Track market-moving stories before they get noisy

At the opening bell, Diane King Hall discusses this morning's top moving stocks in companies like Applied Materials (AMAT), Lam Research (LRCX), and KLA Corp. (KLAC) receiving price targets hikes from Citigroup. She also highlights earnings movers in Jabil's (JBL) earnings beat and La-Z-Boy (LZB) raising guidance as U.S. consumers show strength.

The unconventional AI play raises its fiscal-year guidance after third-quarter results handily top estimates.

The company reported adjusted earnings of $3.16 per share, topping the analyst consensus estimate of $3.10. Revenue increased 12% year over year to $8.75 billion, exceeding analysts’ expectations of $8.61 billion. Cash and cash equivalents totaled $1.36 billion as of May 31.

Segment PerformanceRevenue from the Regulated Industries segment increased 4% from a year earlier, while Intelligent Infrastructure revenue climbed 21%. Connected Living & Digital Commerce revenue rose 5%.

Core EBITDA increased to $654 million from $571 million in the prior-year quarter.

AI Demand Fuels GrowthChief Executive Officer Mike Dastoor said demand for AI infrastructure remains “extremely strong,” prompting the company to raise its fiscal 2026 outlook.

Jabil now expects AI-related revenue of about $13.6 billion in fiscal 2026, up $500 million from its March forecast and higher than the $9 billion reported in fiscal 2025.

Dastoor said the company’s end-to-end manufacturing capabilities allow customers to scale AI deployments by integrating compute, storage, networking, power, advanced cooling and full system assembly.

He added that Jabil recently secured its third hyperscale customer. The engagement is expected to generate a few hundred million dollars in revenue during fiscal 2027 before growing into a billion-dollar opportunity or more in fiscal 2028.

Capacity Expansion ContinuesChief Financial Officer Greg Hebard said Jabil is expanding its global manufacturing footprint by about 10% through new facilities and site expansions.

He said the company expects to support similar AI revenue growth in fiscal 2027 while keeping capital expenditures within its long-term target range of 1.5% to 2% of revenue.

Dastoor said new capacity is coming online in North Carolina, Memphis, India, Mexico and other locations. He added that the North Carolina facility remains on schedule, with one customer already committed and additional customer discussions underway. The site is expected to begin ramping production by January.

India Partnership And Storage Demand Offer UpsideDastoor said Jabil’s proposed alliance with Adani Enterprises could establish a significant AI infrastructure manufacturing platform in India, although the companies have not finalized an agreement. He said meaningful contributions are more likely to begin in fiscal 2028.

He also said the Hanley acquisition is performing better than expected and strengthening Jabil’s capabilities in power equipment, energy systems and services. In addition, storage demand tied to the company’s second hyperscale customer continues to accelerate.

OutlookFor the fiscal fourth quarter, Jabil expects revenue of $9.20 billion to $10.00 billion, above the analyst consensus estimate of $8.97 billion. The company forecasts adjusted earnings of $3.80 to $4.20 per share, compared with analysts’ expectations of $3.72.

For fiscal 2026, Jabil raised its revenue outlook to $35.00 billion from its previous forecast of $34.00 billion, ahead of the analyst consensus estimate of $34.24 billion.

The company also increased its adjusted earnings outlook to $12.70 per share from $12.25, topping the consensus estimate of $12.38.

JBL Price Action: Jabil shares were up 4.27% at $391.55 at the time of publication on Wednesday, according to Benzinga Pro data.

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Jabil Inc (NYSE:JBL) shares moved higher after the electronics manufacturing services company reported fiscal third quarter financial results that exceeded Wall Street estimates and raised its full-year guidance.

For the quarter, the electronics and manufacturing services company posted net revenue of $8.8 billion, outpacing analyst expectations of $8.55 billion.

Jabil reported core diluted earnings per share of $3.16, beating the consensus estimate of $3.08 per share.

The quarterly outperformance was driven primarily by sustained momentum in technology sectors alongside stabilization in segments that had previously faced headwinds.

Jabil CEO Mike Dastoor noted that artificial intelligence infrastructure demand remains extremely strong, prompting a meaningful increase to the company's full-year AI-related revenue outlook.

“AI infrastructure demand remains extremely strong, and our full-year AI-related revenue outlook is now meaningfully higher,” Dastoor said. “At the same time, we continued to see better-than-expected performance in areas of the portfolio that had previously been under pressure, particularly in Automotive and Connected Living.”

Citing this robust demand and broad portfolio improvement, Jabil raised its full-year guidance for fiscal year 2026. The company now expects net revenue of $35 billion, a non-GAAP core operating margin of 5.8%, and core diluted earnings per share of $12.70. Adjusted free cash flow for the full year is now projected to exceed $1.4 billion.

For the upcoming fourth quarter of fiscal 2026, Jabil issued guidance projecting net revenue between $9.2 billion and $10.0 billion. Core diluted earnings per share for the fourth quarter are estimated to fall within the range of $3.80 to $4.20, while GAAP diluted earnings are expected between $3.24 and $3.64 per share.

Management indicated that the current momentum provides a favorable baseline as the company looks ahead toward the setup for fiscal year 2027.

Shares of Jabil added 2% at about $382 on Wednesday afternoon, paring gains of as much as 14% earlier in the session.  

Jabil Inc. continues robust growth, with Q3 FY26 revenue up 11.8% to $8.75 billion, surpassing analyst expectations. AI infrastructure demand is driving a significant revenue outlook increase, offsetting weakness in connected living and auto segments. Profitability metrics are surging: adjusted EPS rose to $3.16, and EBITDA reached $679 million, with management raising full-year guidance.

Key Takeaways Jabil posted fiscal Q3 core EPS of $3.16 and revenues of $8.75 billion, both above expectations.JBL's Intelligent Infrastructure revenues rose 21%, led by cloud, data center and networking demand.Jabil raised fiscal 2026 guidance and now sees AI-related revenues of about $13.6 billion. Jabil, Inc. (JBL - Free Report) third-quarter fiscal 2026 results surpassed expectations, driven by robust AI infrastructure demand and broad-based growth across its portfolio. Core earnings of $3.16 per share increased 23.9% year over year and topped the Zacks Consensus Estimate of $3.12 by 1.28%.

Net revenues rose 11.8% to $8.75 billion and exceeded the consensus mark of $8.63 billion by 1.39%. Intelligent Infrastructure remained the key growth engine, with segment revenues climbing 21% year over year.

Earnings and Revenue Top ExpectationsJabil reported third-quarter fiscal 2026 net revenues of $8.75 billion, up from $7.83 billion in the year-ago quarter. Revenues benefited from strong demand across multiple end markets, particularly AI-related cloud and data center infrastructure programs.

Core operating income increased to $504 million from $420 million a year ago. Core diluted earnings per share rose to $3.16 from $2.55, reflecting solid operating execution and margin expansion. On a GAAP basis, diluted earnings per share improved to $2.59 from $2.03.

Intelligent Infrastructure Leads GrowthThe Intelligent Infrastructure segment remained Jabil’s largest business, contributing 48% of total revenue during the quarter. Segment revenue increased 21% year over year to approximately $4.2 billion, supported by strong demand in capital equipment, cloud and data center infrastructure, as well as networking and communications.

Management noted that networking and communications revenue increased more than 50%, aided by a strong networking ramp in India. Segment core operating margin expanded 80 basis points year over year to 6.1%, highlighting favorable mix and execution.

Other Segments Deliver Steady ResultsRegulated Industries generated revenues of roughly $3.2 billion, representing 36% of total company sales. Revenues increased 4% year over year, driven primarily by stronger-than-expected automotive and transportation demand. Core operating margin improved 10 basis points to 5.6%.

Connected Living and Digital Commerce accounted for 16% of revenue. Sales rose 5% year over year to approximately $1.4 billion as consumer-related demand performed better than management’s cautious expectations. The segment delivered a core operating margin of 4.9%.

Margins and Cash Flow ImproveJabil’s profitability strengthened during the quarter. Core operating margin expanded to 5.8% from 5.4% in the prior-year period, supported by a favorable business mix and disciplined execution across operations. GAAP operating income increased to $445 million from $403 million a year earlier.

Cash generation also remained healthy. Net cash provided by operating activities totaled $535 million, while adjusted free cash flow reached $359 million after capital expenditures of $176 million. During the quarter, the company repurchased approximately $291 million of shares under its existing authorization.

AI Momentum Drives Outlook HigherManagement highlighted continued strength in AI infrastructure programs as a major growth catalyst. Jabil now expects AI-related revenue of approximately $13.6 billion in fiscal 2026, up from its prior forecast of $13.1 billion and significantly above the $9 billion generated in fiscal 2025. The company also secured a third hyperscale customer during the quarter, further strengthening its long-term growth prospects.

According to management, growth is being supported by capabilities across compute, storage, networking, optics, power, cooling and rack-level integration, while maintaining an asset-light operating model.

Fiscal 2026 Guidance RaisedEncouraged by strong third-quarter execution and healthy demand trends, Jabil raised its fiscal 2026 outlook. The company now expects fiscal 2026 revenues of approximately $35 billion, core operating margin of about 5.8%, core diluted earnings per share of roughly $12.70 and adjusted free cash flow exceeding $1.4 billion.

For the fourth quarter of fiscal 2026, management projects revenues between $9.2 billion and $10 billion and core diluted earnings per share of $3.80-$4.20. The outlook reflects continued momentum in Intelligent Infrastructure, particularly AI-related programs, as well as improving trends in automotive and other end markets.

JBL’s Zacks RankJBL currently carries a Zacks Rank #2 (Buy).

Other Stocks to ConsiderUbiquiti Inc. (UI - Free Report) currently carries a Zacks Rank #2. In the last reported quarter, it delivered an earnings surprise of 22.01%. It offers a comprehensive portfolio of networking products and solutions for service providers and enterprises. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Ubiquiti’s excellent global business model, which is flexible and adaptable to evolving changes in markets, helps it to beat challenges and maximize growth. The company’s effective management of its strong global network of more than 100 distributors and master resellers improved Ubiquiti’s visibility for future demand and inventory management techniques.

Celestica Inc. (CLS - Free Report) carries a Zacks Rank #2 at present. In the last reported quarter, it delivered an earnings surprise of 3.85%.

With rising demand for AI and cloud infrastructure, Celestica is well-positioned to benefit. Its focus on higher-margin markets, diversified portfolio, and strong engineering capabilities support scalable production of complex electronic and data-center solutions. Celestica’s strong research and development capabilities enable it to produce high-volume electronics manufacturing across multiple industries.

Sanmina Corporation (SANM - Free Report) carries a Zacks Rank #2 at present. In the last reported quarter, Sanmina delivered an earnings surprise of 30.58%.

Sanmina’s model spans design and engineering through assembly, test, logistics and after-market support, which lets customers work with one partner across the product lifecycle. Vertical integration helps control critical steps, shorten time to volume production and adjust production flows as program needs change.

Jabil NYSE: JBL is perfectly positioned for the AI supercycle, and its stock price looks poised to continue rising for years. The thesis begins with Jabil’s position as a manufacturing specialist for mega tech companies. It designs, builds, and manages complex hardware manufacturing supply chains across industries, providing infrastructure, engineering, and logistics. The thesis is strengthened by catalysts such as AI, U.S. expansion, client utility, and the AI virtuous cycle.

Jabil Today

$371.04 -0.84 (-0.23%)

As of 06/18/2026 03:59 PM Eastern

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

52-Week Range$189.60▼

$428.93Dividend Yield0.09%

P/E Ratio46.32

Price Target$453.67

The AI boom drives demand for servers, photonics, and liquid-cooling systems today, and for products from infrastructure to IoT-connected devices long into the future.

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Client utility is evident in its services and footprint, which includes more than 100 facilities in over 25 countries, enabling highly localized and resilient supply chain solutions.

Finally, there is the AI virtuous cycle. A virtuous cycle is when the output of new technology leads to improvements throughout the system and technological advancement.

As it stands, Jabil is implementing AI and automation throughout its operations, increasing efficiency and capabilities and advancing technology.

Jabil Sends Signal: Outperformance in Q1 and Robust GuidanceJabil had a solid fiscal Q3, with revenue growing nearly 12% to $8.8 billion, topping consensus estimates of $8.61 billion.

Growth was underpinned by datacenter and AI strength, which management says improved meaningfully, as well as by improvements in other previously underperforming segments, such as Automotive and Connected Living.

Margin news was also bullish. The company widened gross and net margins despite input cost pressures and increased R&D. Net margin rose to 3.1% and adjusted earnings per share (EPS) came in at $3.16, up 24% from last year and 6 cents better than expected. Free cash flow was also solid, up abour 22% year-to-date (YTD) and sufficient to support aggressive share repurchases.

The best news in the fiscal Q3 release was the guifdance, which indicated that strength would persist into the subsequent fiscal year. Executives set aggressive targets for fiscal Q4, well above the consensus, and lifted their forecast for the year. As it stands, revenue is forecast at $35 billion, up more than 15% year-over-year and 200 bps above MarketBeat’s reported consensus, with execs “feeling good” about the setup for next year.

Jabil’s Capital Return Keeps Institutions and Analysts InterestedJabil’s free cash flow is a significant factor as it enables aggressive share buybacks. The company targets using 80% of free cash flow for buybacks, which has amounted to over $800 million so far during its fiscal year, The trailing 12-month (TTM) activity reduced the count by 2.55% on average for the quarter and 3.85% for the YTD period, providing significant leverage for investors.

The only downside is that aggressive buyback activity is reflected on the balance sheet, revealing diminished cash and reduced equity at Q3’s end. The offset, however, is that investments, contract assets, and receivables all increased, indicating Q3’s cash reduction is no problem for shareholders.

Jabil’s analyst trends reveal a triple-strength sentiment tailwind is in place, including increased coverage, firming sentiment with an 82% Buy-side bias, and an uptrend in price targets. While consensus lags the market as of mid-June 2026, it is up more than 100% on a TTM basis, with recent targets pushing the high end. It stands at around $430, implying a more than 15% upside.

Institutional activity is likewise bullish. They own more than 90% of the stock and have been accumulating shares. The TTM balance is approximately $ 1.50 to $1 and may strengthen as the fiscal year-end approaches.

Jabil Pulls Back: Buy the Dip?Jabil’s stock price action surged ahead of the release, indicating an optimistic market anticipating strength. The caveat is that JBL’s price action peaked and may continue to pull back in June. Expected strength amounts to a sell-the-news event, and it will be several more weeks until Jabil’s leading clients begin reporting.

The likely outcome is that subsequent reports from Jabil and its clientele will affirm the robust outlook and trigger a trend-following signal in this market. Support targets include $370 and $355, either of which may trigger the signal.

Jabil’s biggest risk this year is its valuation. Trading at over 30x, JBL is at historically high levels, pricing in solid growth. This leaves the company open to executional risk as production ramps up and to stock price volatility. Any delays, missteps, or changes to fundamental outlook will be reflected in the stock's price. Additionally, a sluggish recovery in legacy markets may offset AI strengths.

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Key Takeaways Jabil opened a new Pune facility to expand its manufacturing presence in India's fast-growing market.JBL increased India manufacturing space to 1.2 million square feet and nearly doubled staff to 11,000.Jabil's deal with Maharashtra Govt. and partnership with Adani Group support manufacturing and AI growth. Jabil Inc. (JBL - Free Report) has expanded its footprint in India by opening a new manufacturing facility in Pune, Maharashtra. This initiative marks a significant step in strengthening its position in one of the world’s fastest-growing manufacturing markets.

Jabil’s new factory significantly increases its production capacity in the country. Over the past year, the company increased its manufacturing space from 500,000 to 1.2 million square feet and nearly doubled its workforce to 11,000, reflecting strong demand and confidence in the Indian market.

Much of the decision to scale its operations in India is supported by the country’s favorable policies, improving infrastructure and skilled workforce, which make it an attractive hub for advanced manufacturing. Jabil’s recent agreement with the Maharashtra government is expected to drive faster expansion and strengthen regional partnerships.

In addition, Jabil recently partnered with Adani Group to build an artificial intelligence (AI) and data center infrastructure manufacturing platform. These strategic developments will likely enable Jabil to achieve strong long-term growth in the subcontinent.

How Are Competitors Faring?Jabil faces competition from Celestica Inc. (CLS - Free Report) and Sanmina Corporation (SANM - Free Report) . Celestica has strengthened its manufacturing capacity to meet growing demand in areas such as AI, cloud computing and data centers. The company is increasing production of hardware, including networking and server equipment. Celestica announced plans to expand its U.S. manufacturing footprint in Fort Worth to support rising demand for next-generation technology solutions.

Sanmina has enhanced its manufacturing capabilities to support growing demand across industrial, cloud and energy markets. The company is increasing production of advanced electronic and networking solutions. Sanmina expanded its footprint with a new facility in Houston to manufacture energy products such as transformers and switchgear for the U.S. market.

JBL’s Price Performance, Valuation and EstimatesJabil has rallied 80.4% in the past year compared with the industry’s growth of 126.1%.

Image Source: Zacks Investment Research

Going by the price/earnings ratio, the company’s shares currently trade at 26.47 forward earnings, lower than 27.7 for the industry.

Image Source: Zacks Investment Research

Earnings estimates for Jabil for 2026 have moved up 0.5% to $12.36 per share over the past 60 days, while the same for 2027 has increased 2.4% to $14.69.

Image Source: Zacks Investment Research

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

SEOUL, South Korea--(BUSINESS WIRE)--RebuilderAI, a company specialising in AI-driven design-to-manufacturing automation, has unveiled its design-to-manufacturing AI agent, VRING:ON, at VivaTech 2026, the global startup and technology fair held in Paris from 17 to 20 June. On the opening day, 17 June, the company drew attention with a stage performance featuring a humanoid robot dressed in an artisan’s design that VRING:ON had recreated from a heritage brand’s archived data.

VRING:ON is an AI agent that automates the core stages of product development, from design concept through 3D modelling to the generation of CAD and engineering data.

Share VRING:ON is an AI agent that automates the core stages of product development, from design concept through 3D modelling to the generation of CAD and engineering data. It is particularly strong with 3D-based hardline products such as eyewear, footwear and jewelry. Rather than merely generating images, it carries an AI-created design seamlessly through 3D modelling, CAD design, mouldability validation and simulation into manufacturing-ready data, producing results that can actually be made.

What sets RebuilderAI apart is its brand-exclusive model architecture. Unlike general-purpose web services that return the same output to anyone, RebuilderAI provides a dedicated AI model tuned to each company’s own data. Its 3D foundation model is trained not only on a brand’s style, materials, production conditions and manufacturing know-how, but also on the archive and heritage it has built over time. Both the training data and the outputs remain the property of that brand. Another key strength is its feedback loop: users can create new agents and continuously refine them through feedback, building a design-assistant AI tailored to their specific needs.

“We tune our AI model to each individual brand to protect the security of that brand’s data and to preserve the distinctiveness of its style,” Jeonghyeon Kim, RebuilderAI CEO said. “With ISO international-standard certification, we provide a stable, enterprise-grade AI model tailored to each company.”

RebuilderAI is also expanding its international commercial footprint. The company has secured investment from Korea’s Naver and Japan’s ASICS Ventures, among others, has joined a Samsung accelerator programme, and has been selected for NVIDIA’s Inception programme, recognition of its 3D engineering capabilities.

Following its participation at VivaTech, RebuilderAI plans to move actively into the European market, supported by a local sales team based in Paris.

The AI infrastructure trade has broadened. NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) still owns the headline, but the second-derivative names that supply connectivity, power, and custom silicon to hyperscalers are where the cleaner setups now sit. Three semiconductor stocks fit that thesis heading into the back half of 2026: each delivered a Q1 2026 beat with raised or strong forward guidance, each carries data-center exposure that the sell side may still be underwriting too conservatively, and each is still early enough in retail discovery that the institutional bid is doing the heavy lifting.

Here are three to keep on the radar in June.

Astera Labs (ALAB) Astera Labs (NASDAQ:ALAB) designs connectivity silicon that solves integration bottlenecks inside AI racks, the plumbing between GPUs, CPUs, and memory. Motley Fool flagged the name in May 2026 as an overlooked AI infrastructure play.

The fundamentals justify the attention. Q1 FY26 revenue hit $308.36 million, up 93% year over year, beating consensus of $292.32 million by 5%. Non-GAAP EPS came in at $0.61 versus the $0.54 estimate, the fourth straight EPS beat. GAAP gross margin expanded to 76%, and operating cash flow surged 610% year over year to $74.6 million. Management guided Q2 revenue to $355 million to $365 million.

CEO Jitendra Mohan tied the quarter to product cycle, saying “revenue growing by 14% sequentially and 93% year-over-year to a record level of $308.4 million, driven by robust demand for our PCIe 6 portfolio.” The bull case sits with the Scorpio X-Series 320-lane Smart Fabric Switch, which targets a $20 billion merchant scale-up market by 2030 with production ramping in the second half of 2026.

One catalyst is already priced in: shares are up 134% year to date and 334% over the past year, helped by NASDAQ-100 index inclusion. Retail discovery is still concentrated: Reddit qualified mentions remain at 1 to 3 per snapshot, with discussion dominated by r/wallstreetbets.

Risk: Hyperscaler concentration and gross margin compression to roughly 73% in Q2 as newer switch products dilute mix. After a parabolic run, the bar for any disappointment is high.

ON Semiconductor (ON) ON Semiconductor (NASDAQ:ON) is the most contrarian name in this group. The auto and industrial overhang dominated the 2025 narrative, masking what is now a credible AI power story. Shares jumped roughly 11% on the day of the Motley Fool article in May 2026 that flagged ON as an under-the-radar AI name.

Q1 FY26 revenue was $1.513 billion, up 5% year over year and beating the $1.49 billion consensus. Non-GAAP EPS came in at 64 cents against a 62-cent estimate, with non-GAAP gross margin recovering to 39% from 20% a year earlier. The breakout: AI data center revenue more than doubled year over year, with sequential growth exceeding 30%, and Power Solutions Group revenue rose 14% year over year to $736.6 million.

CEO Hassane El-Khoury was direct: “We exceeded expectations as demand strengthened through the quarter and we have moved beyond the cyclical trough on a path to recovery. Our AI data center business accelerated, growing more than 30% sequentially.” Q2 revenue guidance of $1.535 billion to $1.635 billion reinforces the trough-recovery view.

Shares are up 133% year to date off the cyclical bottom. The reset gives onsemi a credible second leg through AI power, EV silicon carbide, and 900V architectures with Geely and NIO.

Risk: Q1 absorbed $329.3 million in restructuring and impairment charges, free cash flow halved to $217.2 million, and share repurchases of $345.7 million ran near 160% of free cash flow. Analog and Mixed-Signal Group revenue was still down 5% year over year.

Marvell Technology (MRVL) Marvell Technology (NASDAQ:MRVL) is the AI networking chip play with the most institutional momentum of the three. Q1 FY27 revenue was $2.418 billion, up 28% year over year, with data center revenue of $1.833 billion, or 76% of the total. Non-GAAP EPS was 80 cents, and free cash flow rose 127% year over year to $483.1 million.

The forward guide is the story. Q2 revenue is guided to $2.700 billion plus or minus 5%, implying roughly 35% year-over-year growth. CEO Matt Murphy said: “We are seeing exceptional AI-related bookings, and as a result, we are significantly raising Marvell’s revenue outlook for both fiscal 2027 and fiscal 2028.” The product breadth, 800G and 1.6T optics, 51.2T Ethernet switches, NPO and CPO scale-up optical, DCI modules, and custom XPU silicon, plus the Celestial AI and XConn Technologies acquisitions closed in February 2026, widens the moat.

Reddit traders are starting to circle the name around S&P 500 inclusion on June 22, but qualified mentions are still running just one per 24-hour period. Shares are up 264% year to date.

Risk: Customer concentration in data center, integration risk on Celestial AI and XConn, and a $331.8 million contingent consideration charge in the quarter. Any hyperscaler insourcing of custom silicon would hit Marvell hardest.

What to watch next The setup heading into Q2 earnings reports is the same across all three: AI data center demand acceleration into a Wall Street consensus that has been chasing rather than anticipating the results. Keep an eye on the next earnings reports, hyperscaler capex revisions, and any signs of customer insourcing. The window for getting ahead of consensus narrows with each beat.

Datadog (DDOG - Free Report) closed at $222.75 in the latest trading session, marking a -1.71% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 1.09%. Meanwhile, the Dow experienced a rise of 0.14%, and the technology-dominated Nasdaq saw an increase of 1.91%.

Prior to today's trading, shares of the data analytics and cloud monitoring company had gained 6.78% outpaced the Computer and Technology sector's gain of 0.22% and the S&P 500's gain of 0.29%.

Investors will be eagerly watching for the performance of Datadog in its upcoming earnings disclosure. In that report, analysts expect Datadog to post earnings of $0.57 per share. This would mark year-over-year growth of 23.91%. Meanwhile, our latest consensus estimate is calling for revenue of $1.08 billion, up 30.22% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.39 per share and a revenue of $4.31 billion, signifying shifts of +16.59% and +25.71%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Datadog. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Datadog is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Datadog has a Forward P/E ratio of 94.97 right now. This indicates a premium in contrast to its industry's Forward P/E of 18.05.

Meanwhile, DDOG's PEG ratio is currently 6.19. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software industry had an average PEG ratio of 1 as trading concluded yesterday.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 84, putting it in the top 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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.

Cognizant and Pearson joint study finds 6 in 10 HR leaders admit L&D programs are failing to keep pace as AI rapidly reshapes entry-level roles

, /PRNewswire/ -- Cognizant (NASDAQ: CTSH) and Pearson (FTSE: PSON.L) today revealed new findings from their joint study, The AI Workforce Pulse, signaling that entry-level roles are being reimagined by AI, and work is evolving faster than organizations can redesign how they hire, develop and support talent.

The findings point to four interconnected shifts shaping the AI workforce ahead:

Entry-Level Work Remains Essential: 94% of HR Leaders Expect AI to Create New Entry-Level Roles, Cognizant and Pearson Study Reveals Roles are Being Reinvented
Entry-level roles are expected to evolve toward supervising and collaborating with AI systems rather than executing routine tasks.

Nearly all (96%) HR leaders expect entry-level roles to evolve into positions where employees supervise or manage AI systems within the next five years. Nearly all HR professionals (94%) expect AI will generate new entry-level roles in the next five years that didn't exist before. More than 90% of respondents say middle managers are instrumental to redefining job roles as AI changes the day-to-day work of team members. Demand for AI Skills is Outpacing Readiness
While demand for AI training is accelerating, most organizations lack the learning infrastructure to keep pace.

Ninety-one percent report employee requests for AI training have increased in the past year. Yet 46% of organizations are not proactively arranging AI training. Sixty percent say their company's learning and development programs cannot keep pace with how fast AI is transforming jobs. AI is Redefining Candidate Pools
As AI takes on routine work, employers are shifting hiring toward non-traditional skillsets.

Nearly seven-in-10 (69%) state broad, interdisciplinary backgrounds are more important for early career talent than deep, specialized skillsets or focused degrees. Two-in-three HR professionals (67%) report they value liberal arts degrees more than they used to in light of AI advancements. Nearly all (97%) report soft skills matter more than ever, reflecting a need for adaptability, problem-solving, and human judgment. The Race for AI-Ready Talent Is Accelerating
Across industries, the rapid pace of AI adoption is creating a disconnect between the skills organizations have and the skills they need, making talent strategy one of the defining challenges of the moment.

Sixty-four percent of respondents believe they can't find the right talent because AI is rapidly changing what skills they need to hire for. Almost all surveyed organizations are planning to redefine job roles to reflect AI's impact on day-to-day work. Only about half (54%) proactively arrange AI upskilling training in anticipation of roles evolving. "AI is reshaping the talent landscape and exposing the limits of traditional talent and learning models," said Kathy Diaz, Chief People Officer, Cognizant. "With the fundamental shift in entry-level tasks and skill requirements changing rapidly, organizations must rethink how they hire and develop talent at pace."

The new findings build on Cognizant's earlier New Work, New World 2026 study, which found that AI is already impacting 93% of jobs, underscoring the urgency for employers to prepare for changing role expectations. Cognizant sees early-career talent as increasingly important in an AI-enabled workforce. After hiring 20,000 fresh graduates in 2025, the company expects to exceed that number in 2026, reflecting its continued investment in early-career talent and skill development as work evolves.

"As work evolves, the most successful organizations will focus less on replacing tasks and more on building the capabilities that help humans and AI work together. That starts with early-career talent," said Ali Bebo, Chief Human Resources Officer, Pearson. "The future belongs to organizations that combine AI innovation with a deep understanding of how people learn, develop, and apply new skills in the real world."

Through their partnership, Cognizant and Pearson are working together to help recent graduates, apprentices, and mid-career professionals build skills in AI, cloud, and digital technologies. Pearson supports Cognizant's existing workforce development programs, including Synapse and its Immersive Learning Center in Chennai, to help create stronger development paths for the workforce.

Methodology: Wakefield Research surveyed 750 HR professionals at the director level and above, at companies with at least 1,000 employees, across the United States, United Kingdom and India, between March 23 and April 3, 2026.

To view the complete study and learn more, please visit https://www.cognizant.com/us/en/insights/insights-blog/adapting-roles-for-an-ai-workforce.

About Cognizant
Cognizant (NASDAQ: CTSH) is an AI builder and technology services provider, building the bridge between AI investment and enterprise value by building full-stack AI solutions for our clients. Our deep industry, process and engineering expertise enables us to build an organization's unique context into technology systems that amplify human potential, realize tangible returns and keep global enterprises ahead in a fast-changing world. See how at www.cognizant.ai or @cognizant.

About Pearson
At Pearson, our purpose is simple: to help people realize the life they imagine through learning. We believe that every learning opportunity is a chance for a personal breakthrough. That's why our c. 18,000 Pearson employees are committed to creating vibrant and enriching learning experiences designed for real-life impact. We are the world's lifelong learning company, serving customers in nearly 200 countries with digital content, assessments, qualifications, and data. For us, learning isn't just what we do. It's who we are. Visit us at plc.pearson.com.

Forward-Looking Statements
This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties and assumptions as to future events that may not prove to be accurate. These statements include, but are not limited to, express or implied forward-looking statements relating to the impact of AI on the job market, including entry-level positions. These statements are neither promises nor guarantees but include findings of the reports discussed above and remain subject to a variety of risks and uncertainties, many of which are beyond Cognizant's control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Factors that could cause outcomes to differ materially from those expressed or implied include general economic conditions, the impact of technological development and competition, the competitive and rapidly changing nature of the markets Cognizant and its clients compete in, the competitive marketplace for talent and its impact on employee recruitment and retention, and the other factors discussed in our most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Cognizant undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.

For more information, contact:

SOURCE Cognizant Technology Solutions Corporation

Cognizant is severely undervalued after a broad IT services sell-off, trading below 8x P/E and yielding over 3%. CTSH fundamentals remain solid with revenue growth, strong bookings, and tangible GenAI profit progress, despite margin and FCF pressures from project costs and compensation. Risks include overconcentration in North America and potential AI-driven business cannibalization, but the downside is limited unless multiple adverse scenarios materialize.

On June 17, 2026, Old Dominion Freight Line Inc ODFL shares fell 5.7% to a current price of $218.36. The stock has exhibited a range of performance over the past year, with a 52-week high of $252.03 and a low of $126.01. The recent decline follows a 39.6% year-to-date increase, showcasing both the volatility and potential growth of the stock.

GF Value™ verdict: The current price of $218.36 is 18.9% above the GF Value™ estimate of $183.61, indicating the stock is overvalued.GF Score™: ODFL has a strong GF Score™ of 93/100, suggesting it has solid fundamentals and potential for long-term returns.Most notable signal: The financial strength of ODFL is rated at a perfect 10/10, highlighting its robust financial position. Is ODFL Overvalued or Undervalued? Old Dominion Freight Line Inc's current price of $218.36 is significantly above its GF Value™ of $183.61, marking the stock as 18.9% overvalued. This valuation suggests that the market may be pricing in overly optimistic growth expectations or that the stock has experienced excessive upward momentum. The GF Valuation label categorizes ODFL as Modestly Overvalued, indicating that while the company possesses strong fundamentals, the current price may not accurately reflect its intrinsic value.

The margin of safety, defined as the difference between the intrinsic value and the market price, is negative in this case, posing a risk for potential investors. If the market corrects itself, ODFL's stock price could decline, leading to potential losses for shareholders. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

How Does ODFL's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 45.7x 32.9x Forward P/E 40.2x N/A Old Dominion Freight Line's current P/E (TTM) of 45.7x is substantially higher than its 5-year median P/E of 32.9x, indicating that the stock is trading at a premium compared to its historical valuation. This analysis aligns with the GF Value™ verdict, reinforcing the conclusion that ODFL is overvalued based on its historical performance metrics.

What Does ODFL's GF Score™ Tell Us? Metric Rating GF Score™ 93 Financial Strength 10/10 Profitability 9/10 Growth 9/10 Valuation 5/10 Momentum 10/10 The GF Score™ for Old Dominion Freight Line Inc is an impressive 93/100, highlighting its strong fundamentals across several critical dimensions. The company excels in Financial Strength (10/10), Profitability (9/10), Growth (9/10), and Momentum (10/10). However, the Valuation rank of 5/10 indicates that, while the company's financial and operational metrics are strong, its current market valuation may not align with these strengths, contributing to the assessment of being overvalued.

What Are Insiders Doing with ODFL Stock? In the past three months, insiders have sold a total of $4.2 million worth of ODFL stock without any buying activity reported. This pattern of selling could indicate a lack of confidence among insiders regarding the stock's current valuation or future performance. Insider selling may signal that those with the most intimate knowledge of the company's operations believe that the stock is currently priced too high.

What This Means for Investors Based on the analysis of GF Value™, ODFL is currently overvalued at a price of $218.36 compared to its intrinsic value estimate of $183.61. Investors should approach ODFL with caution, given the significant premium over its GF Value™ and the recent insider selling activity.

For the complete analysis, visit the Old Dominion Freight Line Inc ODFL stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is ODFL's GF Score™?

ODFL has a GF Score™ of 93/100, indicating strong fundamentals and the potential for long-term returns based on key financial metrics.

Is ODFL overvalued or undervalued?

ODFL is currently overvalued, with a GF Value™ estimate of $183.61 compared to its market price of $218.36, suggesting a premium that may not be justified by its fundamentals.

What is ODFL's P/E ratio?

ODFL's P/E ratio is 45.7x (TTM), which is significantly above its 5-year median P/E of 32.9x, indicating that the stock is trading at a premium compared to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Key Takeaways PLTR is among the five tech laggards highlighted despite XLK's 33.2% year-to-date gain.TEAM's AI-powered Rovo platform and automation tools are driving premium and enterprise growth.U is seeing ad revenue gains, expanding AI tools and improved margins supporting investment. U.S. stock markets have been witnessing an astonishing bull run supported by artificial intelligence (AI) trade. For the past three and a half years, AI trade has single-handedly driven Wall Street. 

Consequently, the technology sector is flourishing this year. The Information Technology Select Sector SPDR (XLK), one of the 11 broad-sectors of the S&P 500 Index, is the best-performing sector with a return of 33.2% year to date.

Despite these positives, several technology stocks have provided double-digit negative returns this year. Here, we have identified five such technology stocks with a favorable Zacks Rank that have significantly lagged in 2026. However, these stocks have room for growth in the near future. 

These are: Palantir Technologies Inc. (PLTR - Free Report) , Atlassian Corp. (TEAM - Free Report) , Toast Inc. (TOST - Free Report) , Unity Software Inc. (U - Free Report) and Roper Technologies Inc. (ROP - Free Report) . Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The chart below shows the price performance of our five picks year to date.

Image Source: Zacks Investment Research

Palantir Technologies Inc.Zacks Rank #2 Palantir Technologies’ AI strategy is comprehensive, combining its proprietary Foundry and Gotham platforms with a solid plan to promote AI adoption across both government and commercial sectors. 

PLTR’s AI Platform (AIP) is the backbone of these capabilities, enabling organizations to process large datasets and derive real-time insights. This is especially valuable in sectors requiring extensive data integration, such as defense, healthcare, finance and intelligence, where operational efficiency and decision-making speed are critical. 

In the government sector, Palantir is aligning its AI strategy with U.S. defense priorities. Its work in high-profile initiatives, such as the Department of Defense’s Open DAGIR project, highlights its ability to modernize military operations through AI-driven solutions where data interoperability and real-time decision-making capabilities are imperative. These capabilities solidify PLTR’s position as a key player in the defense sector. 

In the commercial space, Palantir’s AIP boot camps — providing hands-on experience to over 1,000 companies — have proven instrumental in customer acquisition. Boot camps showcase the platform’s capabilities and demonstrate its adaptability across logistics, manufacturing, and supply-chain management. PLTR’s core customer base comprises businesses seeking tailored AI/ML services, particularly large government and corporate clients willing to invest heavily in its systems. 

Palantir has an expected revenue and earnings growth rate of 71.8% and 98.7%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 11.2% over the last 60 days. 

Atlassian Corp.Zacks Rank #1 Atlassian’s AI-powered capabilities are seeing rapid adoption. TEAM’s AI-powered Rovo platform and automation tools are driving significant growth in premium and enterprise editions, demonstrating high demand for AI-enhanced workflows. 

Atlassian has been continuously adding millions of monthly active users to Rovo and saw Rovo customers growing their ARR two times faster than customers not using Rovo. Investments in multi-model AI strategies and advanced search capabilities further differentiate TEAM’s offerings in an increasingly competitive landscape.

TEAM’s latest focus on adding generative AI features to some of its collaboration software is likely to drive the top line over the long run. The company has collaborated with OpenAI to enhance the capabilities of its Confluence, Jira Service Management and other programs with generative AI features. 

Atlassian has an expected revenue and earnings growth rate of 13.3% and 10.8%, respectively, for the next year (ending June 2027). The Zacks Consensus Estimate for next year’s earnings has improved 13.3% over the last 60 days. 

Toast Inc.Zacks Rank #1 Toast operates a cloud-based digital technology platform for the restaurant industry in the United States, Ireland, India, and internationally. TOST builds software which helps restaurants manage online orders and dine-in orders, operate an on-demand delivery network and integrate payments.

TOST offers a platform of software-as-a-service for restaurant operations and point of sale, such as Toast POS, Toast IQ - a conversational AI, vendor management, multi-location management, kitchen display system, online ordering and delivery.

Toast has an expected revenue and earnings growth rate of 20% and 51.7%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.7% over the last seven days. 

Unity Software Inc.Zacks Rank #2 Unity Software’s Strategic Grow is benefiting from Vector’s improving prediction and measurement, lifting strategic ad revenues and customer returns. Unity expects momentum to carry into second-quarter 2026, with runtime behavioral data beginning to influence live models later in the quarter. 

Create is steadier as subscriptions and consumption expand, aided by Unity AI, web workflows and early commerce capabilities that broaden monetization options. Margin performance has improved, and liquidity is ample, supporting AI investment while addressing upcoming converts over 2026 without sacrificing the roadmap.

Unity AI entered public beta in early May 2026 as an integrated agent tuned for Unity workflows. The company is also expanding web and commerce tooling that helps developers manage catalogs, pricing and payments across mobile, web and PC, creating additional monetization touchpoints.

Unity Software has an expected revenue and earnings growth rate of 13.9% and 19.8%, respectively, for the current year. The Zacks Consensus Estimate for the current-year earnings has improved 0.4% in the last 60 days. 

Roper Technologies Inc.Zacks Rank #2 Roper Technologies is benefiting from strength across its segments. Momentum across the Deltek, Vertafore, PowerPlan and Aderant businesses is aiding the Application Software segment. Solid performance of the ConstructConnect, Subsplash and SoftWriters businesses is boosting the Network Software segment’s performance. 

Strength across the Neptune and NDI businesses augurs well for the Technology Enabled Products unit. ROP’s bullish forecast for 2026 sparks optimism. ROP is carrying out successive acquisitions to expand its operations. It is worth noting that acquisitions boosted the company’s sales by 5% in the first quarter of 2026.

Roper Technologies has an expected revenue and earnings growth rate of 8.1% and 9.7%, respectively, for the current year. The Zacks Consensus Estimate for the current-year earnings has improved 2.2% in the last 60 days. 

Atlassian (TEAM) is upgraded to a strong buy as resilient growth and margin expansion defy AI-driven pessimism and depressed valuations. TEAM delivered 32% YoY revenue growth and over 800 bps non-GAAP operating margin expansion, significantly beating guidance and consensus expectations. Management sees no evidence of AI-induced seat compression, instead reporting record competitive wins and a commitment to accelerating GAAP profitability in FY27.

Image: Shutterstock

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Key Takeaways NIKE leads global athletic footwear, while Steven Madden targets fashion footwear and accessories.NKE's turnaround shows early signs, but sportswear, China, tariffs and promotions remain concerning.SHOO's revenues rose 18%, DTC surged 83.8% and 2026 estimates point to stronger growth. In the highly competitive global footwear and fashion industry, few companies illustrate contrasting paths to success better than NIKE, Inc. (NKE - Free Report) and Steve Madden Ltd. (SHOO - Free Report) . While both brands have built strong consumer followings and established recognizable identities, they operate at vastly different scales and occupy distinct positions within the market.

NIKE stands as the world's largest athletic footwear and apparel company, commanding a dominant share of the global sportswear market through its innovation-driven strategy, premium branding and extensive international reach. Steve Madden, in contrast, has carved out a profitable niche in the fashion footwear segment, leveraging trend-focused designs, accessible pricing and a diversified portfolio of lifestyle brands.

NIKE’s business is deeply rooted in performance athletics, apparel and direct-to-consumer retail, while Steve Madden primarily focuses on fashion footwear, accessories and licensing operations aimed at style-conscious consumers.

As investors and industry observers evaluate opportunities within the footwear sector, understanding how NIKE and Steve Madden compare in terms of market share, brand strength, financial scale and strategic positioning provides valuable insight into their long-term growth prospects and ability to navigate evolving consumer trends.

The Case for NKENike’s investment case rests on unmatched scale, powerful brand equity and leadership in global athletic footwear, wherein it commands an estimated mid-20% market share. Its portfolio spans Nike, Jordan, Converse and ACG, serving athletes, sneaker consumers and lifestyle shoppers across running, basketball, football, training and sportswear.

Management’s turnaround is showing early proof points. Nike Running grew more than 20% in third-quarter fiscal 2026, North America returned to growth, wholesale rose 1%, and revenues of $11.28 billion and earnings per share (EPS) of 35 cents beat expectations. The company is shifting from a Nike Direct-first model to a more balanced marketplace, rebuilding wholesale partnerships, improving digital execution and leaning into innovation platforms such as Nike Mind, Liquid Air Max and Aero-FIT.

However, key headwinds remain centered on NIKE’s turnaround execution. Sportswear remains weak, China is under pressure, EMEA is promotional, and tariffs hurt North America's gross margin. Key headwinds remain centered on NIKE’s turnaround execution. Sportswear is still declining in the double digits, digital remains highly promotional, sell-through is below plan, and EMEA faces elevated inventory and markdown pressure.

Greater China is another major drag, with NIKE intentionally reducing sell-in to clean up channels and restore full-price demand. Tariffs remain a marginal burden, cutting North America's gross margin by roughly 300 basis points (bps) in third-quarter fiscal 2026. These pressures make the recovery promising, but still fragile.

The Case for SHOOSteven Madden presents a compelling investment case as a leading player in the fashion footwear market, commanding an estimated low-single-digit share of the U.S. footwear industry while maintaining strong relevance in women’s fashion footwear and accessories. The company’s portfolio includes the flagship Steven Madden brand, Dolce Vita and Kurt Geiger, enabling it to address multiple consumer segments across footwear, handbags, apparel and accessories. Its trend-driven product strategy, targeting fashion-conscious millennials and Gen Z consumers, continues to strengthen brand equity and market positioning.

The company’s execution remains impressive. First-quarter 2026 revenues rose 18% year over year to $653.1 million, while the adjusted EPS of 45 cents surpassed expectations. Direct-to-consumer revenues surged 83.8%, aided by Kurt Geiger, while organic DTC sales increased 8%. Digital innovation, omnichannel marketing and increased social-media investments have boosted customer engagement, with online searches for the Steven Madden brand rising 27% in the quarter. Management also raised its full-year revenue guidance to 10-12% growth, reflecting strong momentum across Steven Madden, Dolce Vita and Kurt Geiger.

Tariff dynamics remain a key consideration. Management has incorporated a 10% tariff through July and a 15% tariff thereafter into its outlook, while higher freight costs are expected to create 30 bps of margin pressure. Nevertheless, Steven Madden’s diversified sourcing model, pricing flexibility and strong brand demand position it well to navigate these challenges. The company’s expanding international footprint, growing DTC business and disciplined brand-building strategy support its long-term growth outlook despite near-term macroeconomic and tariff-related uncertainties.

How Does the Zacks Consensus Estimate Compare for NKE & SHOO?The Zacks Consensus Estimate for NIKE’s fiscal 2026 sales implies year-over-year growth of 0.1%, while the same for EPS indicates a decline of 31%. The EPS estimate has been unchanged in the past 30 days.

The Zacks Consensus Estimate for Steven Madden’s 2026 sales and EPS suggests year-over-year growth of 11.7% and 22.9%, respectively. The EPS estimate has moved up 1.5% in the past 30 days.

NIKE’s estimate trend appears muted, with sales growth barely positive and earnings under pressure, reflecting ongoing turnaround challenges. In contrast, Steven Madden shows stronger momentum, with expectations pointing to solid sales and earnings growth, supported by upward estimate revisions. This gives Steven Madden a clearer near-term earnings advantage over NIKE.

Price Performance & Valuation of NKE & ADDYYIn the past year, NIKE shares have declined 24.3%, while Steven Madden has rallied 91.9%.

From a price-performance perspective, Steven Madden has significantly outpaced NIKE, reflecting stronger investor confidence in its growth trajectory and execution.

NIKE is trading at a forward price-to-earnings (P/E) multiple of 23.9X, below its median of 28.85X in the last five years. Steven Madden’s forward P/E multiple sits at 18.5X, above its median of 14.74X in the last five years.

While NIKE trades below its historical valuation norms amid turnaround uncertainties, Steven Madden continues to command a more attractive valuation relative to its growth prospects. Despite trading above its long-term average multiple, Steven Madden appears better-positioned, supported by robust momentum, improving fundamentals and a valuation that remains reasonable relative to its earnings growth outlook.

NKE vs. SHOO: Which Is the Better Bet Now?While NIKE remains the industry leader with unmatched scale, brand strength and innovation capabilities, its turnaround efforts are still facing meaningful operational and market challenges. Steven Madden, in contrast, is benefiting from stronger business momentum, healthy consumer demand and a diversified brand portfolio that continues to gain traction across channels and markets.

For investors seeking a combination of growth, valuation and stock performance, Steven Madden emerges as the winner in this face-off. The company has delivered superior shareholder returns, offers a more attractive valuation relative to its growth prospects and enjoys stronger earnings momentum. The company’s upward revisions to estimates further signal growing confidence in its earnings outlook, reinforcing Steven Madden’s position as the more compelling investment opportunity at present.

SHOO currently carries a Zacks Rank #3 (Hold), whereas NIKE has a Zacks Rank #5 (Strong Sell).

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

Published in consumer-discretionary

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Carpenter Technology (CRS - Free Report) Philadelphia, PA-based Carpenter Technology Corporation is a producer and distributor of premium specialty alloys, including titanium alloys, powder metals, stainless steels, alloy steels, and tool steels as well as drilling tools. The company’s provides solutions for critical applications across diversified end-use markets - Aerospace and Defense (accounting for around 50.1% of the company’s revenues), Energy (5.3%), Transportation (3%), Medical (10.3%), Industrial and Consumer (12.3%) and Distribution (2.9%).

CRS is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Basic Materials stock. CRS has a Momentum Style Score of A, and shares are up 36.4% over the past four weeks.

For fiscal 2026, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.26 to $10.56 per share. CRS boasts an average earnings surprise of +9%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, CRS should be on investors' short list.

The produced-water treatment pilot facility is a Joint Industry Project (JIP) between Western Midstream, Chevron, ConocoPhillips, Devon, and ExxonMobil. The facility is designed to produce approximately 1,000 barrels per day of reclaimed freshwater – ten times the amount of JIP 1. The facility's water output is expected to contribute to long-term water security in West Texas. , /PRNewswire/ -- Today, Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership"), alongside its Joint Industry Project (JIP) collaborators Chevron U.S.A. Inc. ("Chevron"), ConocoPhillips Company ("ConocoPhillips"), Devon Energy Corporation ("Devon"), and Exxon Mobil Corporation ("ExxonMobil"), announced the start-up of its second produced-water treatment pilot facility ("JIP 2") near Red Bluff Reservoir in Reeves County, Texas. The facility is designed to receive 2,000 barrels per day of produced water and produce approximately 1,000 barrels per day of reclaimed freshwater, or approximately ten times the amount produced by JIP 1. This new facility builds upon the success of JIP 1 (described below) which evaluated and field-tested multiple produced-water treatment technologies to select preferred, high-performing solutions for ongoing operations.

In 2023, WES and its collaborators created JIP 1, a small-scale pilot site in West Texas, to evaluate and measure technologies needed to commercialize beneficial use of produced water in the Permian Basin. During the 24-month project, technical experts at WES and its collaborators collected over 50,000 water quality data points to demonstrate a treatment process that can consistently produce water quality suitable for end-use applications that include industrial cooling, irrigation, and surface discharge.

The JIP 2 facility will also serve as a demonstration site, enabling continued optimization of operations while validating consistent reclaimed freshwater production for a range of end-use applications. Insights and data collected from JIP 2 will guide the next phase of commercial-scale desalination facilities. WES and its JIP collaborators will continue to work closely with regulators, local communities, and independent experts to further validate the treatment process and confirm water quality outcomes. These investments are aimed at reducing industry disposal volumes while developing a potential alternative water source benefiting industry and surrounding communities.

"The start-up of JIP 2 marks a pivotal milestone in our journey to transform a produced-water stream from a disposal challenge into a valuable resource for the Permian Basin and beyond," said Oscar K. Brown, President and Chief Executive Officer of WES. "Through our multi-barrier treatment approach, we are transforming that stream into highly treated reclaimed freshwater suitable for industrial cooling and irrigation applications, while helping reduce pressure on Texas' limited water resources. WES already handles approximately 3.0 million barrels per day of produced water using all of today's oil and gas flow-assurance solutions: water sourcing, recycling, gathering, long-haul transportation, and disposal, and we believe beneficial reuse will be the next major solution to the Permian Basin's water challenges. We are very proud of the progress our team and our JIP members have made together over the past two years, and we believe JIP 2 brings us meaningfully closer to WES's first commercial-scale facility."

ABOUT WESTERN MIDSTREAM

Western Midstream Partners, LP ("WES") is a master limited partnership formed to develop, acquire, own, and operate midstream assets. With midstream assets located in Texas, New Mexico, Colorado, Utah, and Wyoming, WES is engaged in the business of gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural-gas liquids, and crude oil; and gathering, transporting, recycling, treating, and disposing of produced water for its customers. In its capacity as a natural-gas processor, WES also buys and sells residue, natural-gas liquids, and condensate on behalf of itself and its customers under certain gas processing contracts. A substantial majority of WES's cash flows are protected from direct exposure to commodity-price volatility through fee-based contracts.

For more information about WES, please visit www.westernmidstream.com.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements. WES's management believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove correct. A number of factors could cause actual results to differ materially from the projections, anticipated results, or other expectations expressed in this news release. These factors include our ability to close and realize the expected benefits from the Brazos acquisition; meet financial guidance or distribution expectations; our ability to safely and efficiently operate WES's assets and integrate the Brazos assets into our portfolio; the supply of, demand for, and price of oil, natural gas, NGLs, and related products or services; our ability to meet projected in-service dates for capital-growth projects; construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures; and the other factors described in the "Risk Factors" section of WES's most-recent Form 10-K filed with the Securities and Exchange Commission and other public filings and press releases. WES undertakes no obligation to publicly update or revise any forward-looking statements.

JIP COLLABORATORS DISCLAIMER

The organizations participating in the Joint Industry Project are collaborating solely with respect to the Joint Industry Project described in this release. Such participation does not make any participant a party to, or responsible for, any other Western Midstream transactions, projects, investments, business activities, or statements referenced herein.

WESTERN MIDSTREAM CONTACTS

Daniel Jenkins
Director, Investor Relations
[email protected]
866.512.3523

Rhianna Disch
Manager, Investor Relations
[email protected]
866.512.3523

SOURCE Western Midstream Partners, LP

Western Midstream Partners is upgraded to a 'strong buy' due to compelling valuation, low leverage, and robust yield. WES's $1.6B acquisition of Brazos Delaware expands processing capacity and is priced attractively at 8x EV/EBITDA, declining to 7.5x with synergies. Recent financials show consistent revenue, profit, and cash flow growth, with produced water throughput up 139.3% year-over-year in Q1.

The biotech industry is on fire right now. Over the past 12 months, the SPDR S&P Biotech ETF has crushed broader equities, gaining 61% while the S&P 500 climbed just 25%.

XBI data by YCharts

There are good reasons to remain bullish on the sector. As medical breakthroughs lead to better therapies for hard-to-treat conditions, innovative biotechs might be handsomely rewarded. Let's consider two drugmakers to buy to capitalize on this: CRISPR Therapeutics (CRSP +1.88%) and Vertex Pharmaceuticals (VRTX 1.54%). Here's why these are among the best biotech stocks to buy.

Image source: The Motley Fool.

1. CRISPR Therapeutics CRISPR Therapeutics is a gene editing specialist. It developed Casgevy, a medicine for two rare blood diseases, in collaboration with Vertex Pharmaceuticals. Casgevy doesn't generate much revenue yet, but its sales should ramp up over the next few years. CRISPR Therapeutics also has a deep pipeline of products that could lead to significant clinical and regulatory milestones. Some of the company's most promising medicines include CTX611, an investigational anticoagulant being developed to be administered just twice a year (typically, anticoagulants are taken daily), while lowering the risk of bleeding that competitors pose.

Another promising candidate in CRISPR Therapeutics' portfolio is CTX310, a potential one-time therapy to lower patients' LDL cholesterol, which can lead to cardiovascular issues at high levels. CRISPR Therapeutics expects data readouts from ongoing clinical trials for these candidates in the second half of the year.

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One important thing to note about CRISPR Therapeutics' pipeline is that many of its investigational treatments could be breakthroughs if approved. That's one of the key reasons to consider investing in this biotech stock. And although the company's shares could drop if it encounters setbacks, CRISPR Therapeutics' deep pipeline and significant cash on hand -- it had $2.4 billion in cash and equivalents as of March 31, which isn't bad for a company worth about $5 billion -- should allow it to eventually launch brand-new products. CRISPR Therapeutics could deliver excellent returns as Casgevy makes commercial progress, while newer products pass key clinical and regulatory milestones.

2. Vertex Pharmaceuticals Vertex Pharmaceuticals still has a monopoly in the cystic fibrosis (CF) area, as the only company that markets medicines that target the underlying causes of CF. However, the biotech leader has made significant progress in diversifying its lineup. The launch of Casgevy was just the first step. It also earned approval for Journavx, a therapy for acute pain. Recent developments should help Vertex add even more brand-new products to its portfolio. In March, Vertex Pharmaceuticals announced positive phase 3 results for povetacicept in patients with IgA Nephropathy (IgAN, a kidney disease).

The company has now completed a regulatory application for this medicine in the U.S., and it could earn approval by year-end.

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For povetacicept, the IgAN indication may just be the beginning. Vertex Pharmaceuticals plans to pursue various label expansions for the medicine. Beyond this product, the drugmaker has several other candidates at various stages of clinical development. Vertex Pharmaceuticals has lagged broader equities over the past year, partly due to clinical setbacks and worse-than-expected financial results. However, the company's continued dominance in CF and attractive pipeline make the stock a great pick for long-term investors.

Prosper Junior Bakiny has positions in Vertex Pharmaceuticals. The Motley Fool has positions in and recommends CRISPR Therapeutics and Vertex Pharmaceuticals. The Motley Fool recommends SPDR Series Trust-SPDR S&P Biotech ETF. The Motley Fool has a disclosure policy.

CRISPR Therapeutics (CRSP +1.88%) has been anything but stable this year. Over the past six months, the stock has experienced sharp swings as the market attempts to determine whether CRISPR is becoming a commercial-stage biotech company or a high-risk clinical-stage play.

The answer is somewhere in between.

The long road to commercialization CRISPR Therapeutics' biggest milestone came in late 2023, when CASGEVY, the gene-editing therapy it developed alongside Vertex Pharmaceuticals (VRTX 1.54%), became the first CRISPR-based treatment ever approved by regulators for the treatment of sickle cell disease.

But historical wins don't always translate into immediate revenue. By the first quarter of 2026, CRISPR Therapeutics reported revenue of just $1.46 million while posting a net loss of $122.9 million. And this begs the question: How long will it take for CASGEVY to move from a scientific breakthrough to a commercially meaningful product?

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Commercial adoption at a snail's pace To be sure, treating patients with gene-editing therapies isn't as simple as writing a prescription. Patients must undergo specialized treatment at centers, complex preparation procedures, and lengthy approval processes. As a result, commercial adoption can only develop gradually rather than all at once.

Now the company has reported a growing number of authorized treatment centers across the United States and Europe, but that still doesn't provide the evidence we need to see that patient volumes can scale meaningfully over the next several years.

Fortunately, CRISPR's balance sheet is strong, and that gives it some breathing room. The company ended the first quarter with approximately $2.4 billion in cash, cash equivalents, and marketable securities. That gives management considerable flexibility to continue funding research programs without raising capital in the near future.

A $22 billion opportunity One of CRISPR's most closely watched treatments is CTX112, an investigational CAR-T therapy for cancer. Early clinical data generated considerable interest because CTX112 is designed as an "off-the-shelf" CAR-T therapy.

Unlike traditional CAR-T treatments, which must be custom-manufactured from each patient's own cells, CTX112 is derived from healthy donor cells and can potentially be produced at scale. If successful, that could lower manufacturing costs, shorten treatment timelines, and make CAR-T therapy available to more patients.

If you're unfamiliar, CAR-T is a type of cancer treatment that genetically reprograms a patient's immune cells to recognize and attack cancer more effectively. Its market value clocked in at around $5.8 billion in 2025, and by 2033, it could be worth more than $22 billion.

Even capturing just 5% of a future CAR-T market would imply more than $1 billion in annual revenue potential.

Image source: Getty Images.

Of course, CTX112 is still years away from potential approval. And right now, the market is simply trying to value a company that now has an approved commercial product, more than $2 billion in cash, and multiple potentially important pipeline programs while weighing ongoing losses, uncertain commercial adoption rates, and the inherent risks of drug development.

Make no mistake: The stock's volatility isn't being driven by one event. It's being driven by the market's attempt to determine how much future value to assign to a company transitioning from a promising gene-editing pioneer to a commercial biotechnology business.

, /PRNewswire/ -- Capstone Partners, a leading middle market investment banking firm, is pleased to announce the appointment of Yogesh Punjabi as Head of its Consumer Industry Investment Banking Group (Consumer Group).

Punjabi brings over 15 years of investment banking experience and has built a reputation as a trusted leader with a strong track record of success. Since joining Capstone in 2019, he has played a central role in supporting growth across its Consumer Group, advancing business development initiatives, and driving momentum in key sectors. As a member of the firm's investment banking committee, he contributes to the strategic direction and alignment of new opportunities across the platform. In his new role, Punjabi will build on this momentum, leading the continued expansion of the Consumer Group and advancing Capstone's broader strategic priorities.

Punjabi has extensive experience advising clients across the Consumer industry, with a particular focus in the Automotive Aftermarket sector, where he has led the execution of complex transactions for clients ranging from nationally recognized market leaders to sophisticated financial sponsors. His work is consistently recognized by leading industry organizations, including the M&A Advisor and Global M&A Network, for delivering exceptional client outcomes. Over the past 12 months, he successfully closed several notable transactions in the sector—including Max Auto Supply's acquisition by Midas International, Bertram Capital's acquisition of Left Lane Auto, and Freedman Seating Company's acquisition by Lippert Components, Inc—demonstrating his ability to navigate competitive processes in dynamic market conditions. In parallel, his work developing Capstone's proprietary Automotive Aftermarket insights reinforces the firm's position as a trusted source of market intelligence and thought leadership in the industry.

"Yogi has played a key role in building momentum for our Consumer Group and consistently creates strong outcomes for our clients," said John Ferrara, Founder and President of Capstone Partners. "His leadership, market knowledge, and strategic perspective position him well to lead the Group's ongoing growth."

Amid a period of accelerated expansion following the acquisition of TM Capital, this appointment reflects Capstone's continued investment in leadership to align with the evolving needs of clients and emerging market opportunities. Under Punjabi's leadership, the Consumer Group is well-positioned to build on this momentum and deliver differentiated insight and outcomes in an increasingly dynamic environment.

ABOUT CAPSTONE PARTNERS

For over 20 years, the firm has been a trusted advisor to leading middle market companies, offering a fully integrated range of investment banking and financial advisory services uniquely tailored to help owners, investors, and creditors through each stage of the company's lifecycle. Capstone's services include M&A advisory, debt and equity placement, corporate restructuring, special situations, valuation and fairness opinions, and financial advisory services. Headquartered in Boston, the firm has 175+ professionals across the U.S. With 12 dedicated industry groups, Capstone delivers sector-specific expertise through large, cross-functional teams. Capstone is a subsidiary of Huntington Bancshares Incorporated (NASDAQ: HBAN). For more information, visit www.capstonepartners.com.

SOURCE Capstone Partners

CarMax Inc (NYSE:KMX) shares fell more than 6% in early trade on Wednesday as investors looked past a better-than-expected first quarter earnings report and focused on margin pressure, credit risks and concerns about the company's profitability strategy.

The used-vehicle retailer reported adjusted earnings per share of $1.31 for the quarter, well above analyst estimates of $0.95.

Revenue increased 6.2% year over year to $8.01 billion, topping consensus expectations of about $7.4 billion.

Combined retail and wholesale vehicle sales rose 3.3% to 392,357 units. Wholesale unit sales increased 8.4%, while retail used-vehicle sales were up slightly. Comparable-store used-vehicle sales declined 0.8%.

Investors, however, focused on declining retail vehicle profitability. Gross profit per retail used vehicle fell $230 year over year to $2,177 as CarMax continued pricing actions aimed at supporting sales growth. The company has now experienced several consecutive quarters of margin compression as it prioritizes volume.

Concerns also centered on credit quality within CarMax Auto Finance (CAF). While CAF penetration increased to 43.3% from 41.8% a year earlier, investors remain cautious about rising loan delinquency risks and the company's increased exposure to lower-tier borrowers. CAF income declined 1% to $140.2 million during the quarter.

The company purchased approximately 322,000 vehicles from consumers and dealers, down 4.4% from a year earlier.

The report was the first under new CarMax CEO Keith Barr, who said in a statement that the company has adopted a four-pillar strategic framework aimed at driving unit sales and earnings growth while improving shareholder returns.

“We are entering this fiscal year with a clear strategy that is driving early results,” he said. “Our goal is clear: deliver strong unit sales and earnings growth that enables us to consistently reward our shareholders.”

CarMax, Inc. (KMX) Q1 2027 Earnings Call Transcript