Track market-moving stories before they get noisy

Shake Shack (SHAK -1.38%) reports second-quarter earnings on Wednesday, Aug. 5, but if you're long on Shake Shack, you should focus less on whether the company beats estimates and more on whether its growth story remains intact. So far, it does.

In Q1, revenue climbed 14.3% year over year to $366.7 million, while same-store sales increased 4.6%. The company also opened 17 company-operated restaurants and five licensed locations, continuing one of the fastest expansion plans in the fast-casual industry. I've personally seen quite a few at the travel plazas along the New York Thruway. They're becoming about as common as Chick-fil-A and Starbucks.

Expansion hasn't been an issue. But the challenge of profitability is very real. That shouldn't be taken lightly.

Image source: Getty Images.

Monitor margin pressure as expansions continue Higher beef costs, pre-opening expenses, and investments in technology and marketing helped push Shake Shack to a small net loss of $0.3 million in Q1, compared with net income of $4.5 million a year earlier. Those same pressures prompted management to lower its Q2 and full-year profit guidance. The company now expects Q2 revenue of $415 million to $420 million from a previous range of $424 million to $428 million. It also reduced its full-year adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance to $225 million to $235 million, down from $230 million to $245 million.

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Shake Shack still has a relatively small footprint compared to larger fast-food chains, though, leaving plenty of room for continued expansion. Management believes Shake Shack can ultimately grow to 1,500 company-operated restaurants in the United States, or more than 4 times its current footprint.

That means Aug. 5 isn't really about one quarter's earnings. It's about whether management can show that restaurant traffic is holding up, margins are recovering, and new locations continue generating attractive returns.

If those pieces remain in place, short-term earnings volatility probably won't matter much five years from now. But if traffic weakens further or margin pressure intensifies, you may have to wait longer for the growth story to play out.

Jeff Siegel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Starbucks. The Motley Fool has a disclosure policy.

Wall Street expects a year-over-year increase in earnings on higher revenues when Progyny (PGNY - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 6. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis provider of fertility and family building benefits is expected to post quarterly earnings of $0.51 per share in its upcoming report, which represents a year-over-year change of +6.3%.

Revenues are expected to be $349.19 million, up 4.9% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 7.14% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Progyny?For Progyny, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.96%.

On the other hand, the stock currently carries a Zacks Rank of #1.

So, this combination makes it difficult to conclusively predict that Progyny will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Progyny would post earnings of $0.44 per share when it actually produced earnings of $0.50, delivering a surprise of +13.64%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Progyny doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsCharles River Laboratories (CRL - Free Report) , another stock in the Zacks Medical Services industry, is expected to report earnings per share of $2.72 for the quarter ended June 2026. This estimate points to a year-over-year change of -12.8%. Revenues for the quarter are expected to be $970.77 million, down 6% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for Charles River has been revised 0.7% up to the current level. Nevertheless, the company now has an Earnings ESP of +1.43%, reflecting a higher Most Accurate Estimate.

This Earnings ESP, combined with its Zacks Rank #2 (Buy), suggests that Charles River will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

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

Key Takeaways Ichor Holdings expects second-quarter revenues of $290-$310 million, reflecting 25% Y/Y growth.ICHR is benefiting from AI infrastructure spending and demand for advanced wafer fabrication equipment.Manufacturing expansion and higher proprietary content are expected to support margin improvement. Ichor Holdings, Ltd. (ICHR - Free Report) is scheduled to report its second-quarter 2026 results on Aug. 3, 2026.

For the second quarter of 2026, Ichor expects revenues between $290 million and $310 million. The midpoint implies sequential growth of 17% and year-over-year growth of 25%. The Zacks Consensus Estimate for second-quarter revenues is pegged at $300.33 million, suggesting a year-over-year increase of 24.99%.

For the second quarter of 2026, Ichor expects non-GAAP earnings to be in the range of 25-35 cents per share. The Zacks Consensus Estimate for ICHR’s second-quarter 2026 earnings is pegged at 31 cents per share, implying a significant year-over-year increase of 933.3%. ICHR reported earnings of 3 cents per share in the year-ago quarter.

ICHR’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters while missing twice, the average surprise being 2.95%.

Let’s see how things have shaped up for this announcement.

Key Factors to Note for Ichor Holdings' Q2 EarningsIchor Holdings' second-quarter performance is expected to have benefited from strong demand from wafer fabrication equipment customers, supported by rising investments in AI infrastructure and advanced semiconductor manufacturing. Management noted that demand continued to strengthen during the first quarter of 2026, with visibility extending further into 2026. The company expects unconstrained demand to exceed $300 million in the second quarter, driven by higher spending on etch and deposition equipment used in advanced chip manufacturing.

The company is expected to have benefited from increasing adoption of gate-all-around chip architectures, which require about 30% more process steps than previous-generation technologies. These technology transitions, along with AI-driven capacity expansion by hyperscalers, are expected to have supported demand for Ichor's fluid delivery systems.

Ichor's ongoing manufacturing footprint realignment is also expected to support second-quarter results. The company completed customer qualification for valve manufacturing in Mexico and continued ramping production, while consolidating substrate manufacturing in the country. These initiatives are expected to have improved manufacturing efficiency, increased the use of internally produced components and supported gross margin expansion.

The company is also making progress in expanding its proprietary Ichor-branded content within the systems it builds. It remains on track to increase Ichor-branded content to 35% by the end of 2026 from 25% at the end of 2025, which is expected to support margins over time. In addition, continued investments in machining capacity in Malaysia and growth in aerospace and defense machining business are expected to have contributed to second-quarter performance.

However, second-quarter prospects are likely to have been affected by the company's continued reliance on external suppliers while it ramped manufacturing operations in Mexico. In addition, supply chain constraints are expected to have remained a headwind, limiting Ichor's ability to fully meet strong customer demand despite a favorable demand environment.

What Our Model Says About ICHROur proven model does not conclusively predict an earnings beat for ICHR this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s the exact case here.

ICHR has an Earnings ESP of 0.00% and carries a Zacks Rank #4 (Sell) at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With Favorable CombinationHere are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Arista Networks, Inc. (ANET - Free Report) has an Earnings ESP of +3.08% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arista Networks is set to report second-quarter 2026 results on Aug. 4. The Zacks Consensus Estimate for Arista Networks’ second-quarter 2026 earnings is pegged at 89 cents per share, unchanged over the past 30 days, indicating a rise of 21.9% from the year-ago quarter’s reported figure.

AMETEK (AME - Free Report) has an Earnings ESP of +0.39% and a Zacks Rank #2 at present.

AMETEK is slated to report second-quarter 2026 results on Aug. 4. The Zacks Consensus Estimate for AMETEK’s second-quarter 2026 earnings is pegged at $1.99 per share, unchanged over the past 30 days, indicating a rise of 11.8% from the year-ago quarter’s reported figure.

Advanced Micro Devices (AMD - Free Report) has an Earnings ESP of +1.56% and carries a Zacks Rank #2 at present.

Advanced Micro Devices is set to report second-quarter 2026 results on Aug. 4. The Zacks Consensus Estimate for Advanced Micro Devices’ second-quarter earnings is pegged at $1.61 per share, up by a penny over the past seven days, indicating a rise of 235.4% from the year-ago quarter’s reported figure.

Laureate Education (LAUR - Free Report) came out with quarterly earnings of $1 per share, beating the Zacks Consensus Estimate of $0.96 per share. This compares to earnings of $0.79 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +4.17%. A quarter ago, it was expected that this for-profit higher education purveyor would post a loss of $0.17 per share when it actually produced a loss of $0.17, delivering no surprise.

Over the last four quarters, the company has surpassed consensus EPS estimates just once.

Laureate Education, which belongs to the Zacks Schools industry, posted revenues of $615.9 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.29%. This compares to year-ago revenues of $524.2 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Laureate Education shares have added about 14.1% since the beginning of the year versus the S&P 500's gain of 6.9%.

What's Next for Laureate Education?While Laureate Education has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Laureate Education was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.47 on $476.3 million in revenues for the coming quarter and $2.09 on $1.92 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Schools is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Covista (CVSA - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.

This for-profit education company is expected to post quarterly earnings of $1.90 per share in its upcoming report, which represents a year-over-year change of +14.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Covista's revenues are expected to be $485.01 million, up 6.1% from the year-ago quarter.

Meta is using AI to quickly launch apps, and more are on the way. During this week’s second-quarter earnings call, Meta CEO Mark Zuckerberg said the social giant has new apps in the works, following a recent spate of other launches that included an app for Marketplace sellers, one for Facebook Groups, a vibe-coded gaming app, a newphotos app from Instagram, and an experiment involving AI bedtime stories.

Meta has spent years trying and failing to produce new, standalone social apps to complement its core platforms. Now, the company says that large language models (LLMs) make it possible to ship software faster, allowing it to test new ideas at a quicker pace.

“I’m…excited about how AI is helping our teams speed up product development,” Zuckerberg told investors on Wednesday’s call. “Earlier this year, we shipped Instagram Instants. We also just launched Forum, a standalone Groups app, and Seller, a standalone Marketplace app. I expect it to become a lot easier to ship new apps. So we are planning to build out more ideas and use our recommendation systems to scale them,” he said.

“AI is improving our core business; it’s making our apps more relevant and delivering better results for businesses. We’re starting to deliver more novel products, and we’ll have a lot more there soon as well,” Zuckerberg said.

Meta has been down this road before. In its earlier days, Meta (then known as Facebook) ran an internal incubator called Creative Labs, which aimed to test new social concepts.

That effort produced a handful of launches: the photo-sharing app Slingshot, an anonymous chat app Rooms, a Flipboard competitor called Paper, the Moments photo-sharing app, and a collaborative video app known as Riff. Those experiments came to an end in 2015, and the apps were eventually all shuttered, as the company struggled to find an audience for its efforts.

In the early 2020s, Meta tried again, this time with an internal R&D group, NPE Team, which tested apps that included the chat app Bump, social music app Aux, task app Move, dating app Spark, calling app CatchUp, zine maker E.gg, events app Venue, creator Q&A app Hotline, Cameo competitor Super, couples app Tuned, music app BARS, and others.

Again, none became a breakout success, and the apps were shut down.

Now Meta can point to at least one example of how AI is helping new apps scale. It has finally delivered a modest hit with Threads, which now has 500 million monthly active users. Zuckerberg likes to say Threads will one day become the company’s next billion-user app.

With Threads, Meta learned to heavily lean on its existing user base to help initially seed the app with people, then continued to heavily promote it across its existing platforms, including Facebook and Instagram. But LLMs are another key factor in Threads’ growth, as the company said it sees “significant gains” from its AI-powered content recommendations.

“We are finding that LLMs are increasingly capable of delivering ranking and recommendations gains,” Meta’s CFO Susan Li told investors on the call. “First, they make our existing systems smarter by understanding what the content is actually about and generating better training data. Second, LLM-powered agents are also helping with engineering development by evaluating content quality, detecting trends, and testing ranking changes.”

Li added that earlier this year, Meta reached a milestone: every Reel and Feed post on Instagram is now automatically processed through an LLM and analyzed for topic and tone, which helps improve recommendations.

The company is also developing LLM-native recommendation systems, which could help it to better scale new apps as they arrive.

Investors didn’t follow up with company executives to ask more questions about the new apps Meta has in the works, as they were more concerned with AI spending and Meta’s growing enterprise ambitions. However, Zuckerberg suggested that people won’t have long to wait to see what’s next, saying the “new consumer products” were “releasing soon.”

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Sarah has worked as a reporter for TechCrunch since August 2011. She joined the company after having previously spent over three years at ReadWriteWeb. Prior to her work as a reporter, Sarah worked in I.T. across a number of industries, including banking, retail and software.

You can contact or verify outreach from Sarah by emailing [email protected] or via encrypted message at sarahperez.01 on Signal.

Tesla has built its 10 millionth electric vehicle, according to a social media post by the company early on Thursday. The milestone comes six years after the company built its one millionth vehicle.

Crossing the 10 million mark means Tesla is halfway to reaching one of the four core “product goals” that unlocks the full value of CEO Elon Musk’s $1 trillion pay package, which shareholders approved last year. By 2035, Musk has to ensure the company builds 20 million vehicles, reaches 10 million active subscriptions for its “Full Self-Driving” software, delivers one million “bots,” and puts one million robotaxis on the road.

Despite a few years of intense growth on the backs of the Model 3 and Model Y, Tesla has not been able to sell 2 million vehicles in a single year. If it keeps up that pace, or slows further, it will take the company until at least the early 2030s to hit the 20 million mark.

Tesla has less competition in the United States now, though, as major automakers have pulled back from the electric vehicle market, and startups like Rivian and Lucid Motors have struggled to reach scale. Nevertheless, Tesla is still struggling in its home market. Its U.S. sales fell 13% year-over-year in the second quarter, and the company had to look to newer markets like Japan, Australia and Lithuania to court buyers.

Musk used to promise that Tesla would make 20 million cars per year by 2030, but he abandoned that idea a few years ago as the company’s sales slowed down. Still, of the four product goals, this is the one Tesla is closest to achieving.

The company recently reported just shy of 1.5 million FSD subscribers, though it’s not clear if it is counting free trials — those would not count towards the official product goal laid out by Tesla’s board of directors last year. The carmaker is only in the earliest stages of building robots and robotaxis.

Musk also has to increase the company’s profit (adjusted EBITDA) to $400 billion by 2035 in order to access the full share package. That looks challenging at the moment, too, as the company’s adjusted EBITDA currently hovers around $3.27 billion, and has been shrinking lately thanks to heavy discounts, the loss of saleable regulatory credits, as well as a dramatic increase in spending on new efforts like AI and robotics.

As for the competition, the only other company at the same level is China’s BYD, which recently crossed 17 million “new energy vehicles” built and sold, roughly half of which were hybrids.

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Sean O’Kane is a reporter who has spent a decade covering the rapidly-evolving business and technology of the transportation industry, including Tesla and the many startups chasing Elon Musk. Most recently, he was a reporter at Bloomberg News where he helped break stories about some of the most notorious EV SPAC flops. He previously worked at The Verge, where he also covered consumer technology, hosted many short- and long-form videos, performed product and editorial photography, and once nearly passed out in a Red Bull Air Race plane.

You can contact or verify outreach from Sean by emailing [email protected] or via encrypted message at okane.01 on Signal.

Ashton Thomas Securities LLC increased its stake in CocaCola Company (The) (NYSE:KO – Free Report) by 112.4% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 26,978 shares of the company’s stock after acquiring an additional 14,277 shares during the period. Ashton Thomas Securities LLC’s holdings in CocaCola were worth $2,052,000 as of its most recent SEC filing.

Several other large investors also recently added to or reduced their stakes in KO. Vanguard Group Inc. boosted its holdings in shares of CocaCola by 1.6% in the 4th quarter. Vanguard Group Inc. now owns 374,771,512 shares of the company’s stock worth $26,200,276,000 after purchasing an additional 5,886,352 shares during the period. State Street Corp increased its position in shares of CocaCola by 1.2% during the 4th quarter. State Street Corp now owns 167,850,330 shares of the company’s stock valued at $11,734,417,000 after purchasing an additional 1,992,327 shares during the last quarter. Geode Capital Management LLC raised its holdings in CocaCola by 0.5% during the 4th quarter. Geode Capital Management LLC now owns 89,984,203 shares of the company’s stock valued at $6,273,037,000 after buying an additional 433,547 shares during the period. Norges Bank purchased a new stake in CocaCola during the 4th quarter valued at $3,865,807,000. Finally, Franklin Resources Inc. lifted its position in CocaCola by 3.1% in the fourth quarter. Franklin Resources Inc. now owns 40,289,857 shares of the company’s stock worth $2,816,697,000 after buying an additional 1,195,581 shares during the last quarter. 70.26% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In Several research analysts have commented on the stock. Weiss Ratings raised shares of CocaCola from a “buy (b)” rating to a “buy (b+)” rating in a research note on Monday, May 4th. Piper Sandler increased their target price on shares of CocaCola from $88.00 to $95.00 and gave the company an “overweight” rating in a research note on Wednesday. Truist Financial set a $88.00 target price on shares of CocaCola in a report on Friday, June 26th. Sanford C. Bernstein reaffirmed a “market perform” rating and set a $93.00 price target on shares of CocaCola in a research note on Wednesday. Finally, The Goldman Sachs Group reiterated a “neutral” rating and set a $86.00 price target (up from $82.00) on shares of CocaCola in a report on Tuesday. Fourteen investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $95.56.

Check Out Our Latest Stock Analysis on CocaCola

CocaCola Stock Performance Shares of CocaCola stock opened at $89.30 on Thursday. The stock’s fifty day moving average is $81.77 and its two-hundred day moving average is $78.53. The company has a market capitalization of $384.22 billion, a PE ratio of 26.82, a price-to-earnings-growth ratio of 3.56 and a beta of 0.34. The company has a quick ratio of 1.15, a current ratio of 1.30 and a debt-to-equity ratio of 0.97. CocaCola Company has a 52 week low of $65.35 and a 52 week high of $90.92.

CocaCola (NYSE:KO – Get Free Report) last released its earnings results on Tuesday, July 28th. The company reported $0.97 earnings per share for the quarter, topping the consensus estimate of $0.93 by $0.04. The business had revenue of $13.37 billion during the quarter, compared to the consensus estimate of $13.17 billion. CocaCola had a return on equity of 39.38% and a net margin of 28.56%.The business’s revenue for the quarter was up 6.2% compared to the same quarter last year. During the same period last year, the company earned $0.87 earnings per share. CocaCola has set its FY 2026 guidance at 3.270-3.300 EPS. As a group, analysts expect that CocaCola Company will post 3.27 earnings per share for the current year.

CocaCola Dividend Announcement The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 15th will be given a $0.53 dividend. This represents a $2.12 annualized dividend and a yield of 2.4%. The ex-dividend date of this dividend is Tuesday, September 15th. CocaCola’s payout ratio is 66.67%.

Insider Activity at CocaCola In related news, EVP Jennifer K. Mann sold 23,984 shares of the business’s stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $83.41, for a total value of $2,000,505.44. Following the completion of the sale, the executive vice president owned 157,400 shares in the company, valued at approximately $13,128,734. The trade was a 13.22% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Nancy Quan sold 31,625 shares of the stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $80.93, for a total value of $2,559,411.25. Following the completion of the transaction, the executive vice president directly owned 223,330 shares in the company, valued at approximately $18,074,096.90. This trade represents a 12.40% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 975,632 shares of company stock valued at $78,621,241 in the last quarter. Corporate insiders own 0.90% of the company’s stock.

Key Stories Impacting CocaCola Here are the key news stories impacting CocaCola this week:

Positive Sentiment: Strong Q2 results and higher guidance supported the rally. Coca-Cola reported adjusted earnings of $0.97 per share versus the $0.93 consensus, while revenue reached approximately $13.37 billion, ahead of expectations. Global unit-case volume increased 5%, and management raised its 2026 outlook for organic revenue growth to about 5% and comparable EPS growth to 9%-10%. Coca-Cola Reports Second Quarter 2026 Results and Raises Full Year Guidance Positive Sentiment: World Cup marketing helped drive unusually strong consumption. Coca-Cola said FIFA World Cup activity contributed to its best quarterly volume growth in 17 years. The company also gained value share through pricing, product mix, zero-sugar beverages, and Fairlife, indicating resilience despite uneven consumer spending. Coca-Cola hails World Cup hydration breaks as it lifts annual forecasts Positive Sentiment: Analysts raised their expectations. Jefferies lifted its price target to $104, while TD Cowen and Citigroup raised targets to $100. JPMorgan increased its target to $96, and Bank of America maintained a Buy rating with a $100 target, citing “best-in-class” consumption trends. Positive Sentiment: Brand strength and digital engagement remain long-term positives. Coverage highlighted Coca-Cola’s broad moat, reliable dividend, and expanded digital and social-media reach during the World Cup, reinforcing the investment case for steady long-term growth. Coca-Cola Dominated the Summer’s Biggest Sporting Event Neutral Sentiment: Most Fairlife production has resumed after a cyberattack, reducing the likelihood of a prolonged operational disruption. Coca-Cola says most of Fairlife’s production has been resumed after cyberattack Negative Sentiment: Valuation and a dissenting analyst view temper optimism. Coca-Cola trades at roughly 28 times earnings after gaining more than 20% in 2026. HSBC downgraded the stock to Hold, arguing upside may be limited and that PepsiCo offers better value. Negative Sentiment: An insider sold 75,727 shares under a pre-arranged Rule 10b5-1 plan to cover tax obligations tied to vested equity awards. Because the sale was planned and tax-related, it is a limited negative signal rather than a clear change in management’s outlook. CocaCola Company Profile (Free Report)

The Coca‑Cola Company (NYSE: KO) is a global beverage manufacturer, marketer and distributor best known for its flagship Coca‑Cola soda. Headquartered in Atlanta, Georgia, the company develops and sells concentrates, syrups and finished beverages across a broad portfolio of brands. Its product range spans sparkling soft drinks, bottled water, sports drinks, juices, ready‑to‑drink teas and coffees, and other still beverages, marketed under both global and regional brand names.

Coca‑Cola’s brand portfolio includes widely recognized names such as Coca‑Cola, Diet Coke, Coca‑Cola Zero Sugar, Sprite, Fanta, Minute Maid, Powerade and Dasani, and in recent years the company has expanded into the coffee and premium beverage categories through acquisitions such as Costa Coffee.

Featured Articles Five stocks we like better than CocaCola Why SK hynix Could Be the Best AI Chip Stock to Buy Now Seagate Technology Stock Surges as Earnings Beat Silences AI Doubters Alphabet Is Down 18% From Its High After a Stellar Quarter—Overdone, or More Downside Ahead? Why Bloom Energy May Be the Most Important AI Infrastructure Stock Want to see what other hedge funds are holding KO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for CocaCola Company (The) (NYSE:KO – Free Report).

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By PYMNTS  |  July 30, 2026

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Amazon has reportedly uncovered instances of “catastrophically expensive” cost overruns caused by errors in AI deployment.

That’s according to a report Thursday (July 30) from the Financial Times (FT), citing multiple sources familiar with the matter.

Those sources said that Amazon senior engineers told colleagues at a staff meeting earlier this week that efforts to switch tasks from conventional programming to using artificial intelligence models had caused “unplanned” spending.

The FT notes that the issue underlines the trouble even the largest tech companies are having with weaving AI into day-to-day operations without spending too much.

“It’s difficult to figure out how much anything [AI related] costs,” a senior Amazon employee told the FT.

According to the FT’s sources, employees learned during a presentation this week about an incident in which Amazon spent $1.8 million on matching author details with listings on the company’s eCommerce site using Anthropic’s Claude Sonnet despite the deployment failing.

This meant the project ran 860% over budget, with the spending taking five months to detect, the sources added. Engineers reportedly told staff the overspending wasn’t a one-time thing. In another incident, Amazon incurred around $541,000 in unanticipated costs tied to creating financial auditing tools.

“As with any new technology, we’re experimenting, learning and improving how we use it, including how we drive cost efficiencies,” an Amazon spokesperson said in a statement to PYMNTS.

“Cherry-picking small, isolated examples where teams are learning from one another and portraying them as business as usual doesn’t reflect how teams across Amazon are using AI.”

The news follows reports from earlier this month that AI spending by the world’s biggest tech companies have left investors feeling uneasy.

Meanwhile research by PYMNTS Intelligence finds companies from a range of industries investing more in AI, though for different reasons.

“Financial firms are funding AI to improve productivity, sharpen competitive positioning and reduce risk. Healthcare firms are still using budgets to test what works. Media and advertising firms are moving quickly, often with strong executive backing, but with less reliance on hard financial returns,” the report said.

“The spending pattern suggests that AI is entering a more practical phase. Like a company moving from blueprints to construction, enterprises are beginning to decide which projects deserve real capital and which still need proof.”

Microsoft (MSFT +16.56%) stock is up 13% today on the strength of quarterly earnings that saw revenue increase 18% and cloud computing revenue exceed $100 billion for the first time.

But I believe the most significant number in Microsoft’s fiscal fourth-quarter earnings report is $19.6 billion -- the free cash flow the company generated despite its massive capital expenditures on AI infrastructure.

While some AI companies such as Tesla and Alphabet faltered after their earnings reports this month, Microsoft appears to be in a much stronger position. Here’s why.

Image source: The Motley Fool.

First, a look at Microsoft’s quarterMicrosoft had strong numbers across the board in its fiscal fourth quarter of 2026 (ending June 30). Revenue was $90 billion, up from $76.4 billion a year ago, and net income was $35.76 billion, an increase of 31% from the same period. Microsoft’s earnings per share came in at $4.81 versus $3.86 in fiscal Q4 2025.

For the full year, revenue was $331.8 billion, up 18% from fiscal 2025, and net income of $133.7 billion was up 31% from a year ago. Full-year EPS was $17.95 versus $13.64 in 2025.

Microsoft recorded year-over-year revenue gains in nearly every segment this quarter, with only Windows and Xbox lagging.

Segment Percentage Y/Y Change Microsoft Cloud Revenue 27% Commercial Remaining Performance Obligation 84% Microsoft 365 Commercial Cloud Revenue 14% Microsoft Consumer Cloud Revenue 24% LinkedIn Revenue 12% Dynamics 365 Revenue 13% Azure and Other Cloud Services Revenue 43% Windows OEM and Devices Revenue (7)% Xbox Content and Services Revenue (10)% Search Advertising Revenue Excluding Traffic Acquisition Costs 10% Source: Microsoft

“We are advancing the frontier on the cost-to-outcome curve, ensuring every customer can turn tokens into business results," CEO Satya Nadella said. “This year, Azure revenue surpassed $100 billion for the first time, and Microsoft 365 Copilot reached over 30 million paid seats, reflecting the confidence customers are placing in us to power their AI transformation.”

Why Microsoft stands out from the crowdFrom a revenue perspective, Microsoft had a solid report. But so did Alphabet, which reported revenue up 24% to $119.8 billion, and Tesla, which reported revenue of $28.2 billion, up 26% from a year ago.

The problem for both those companies was their expanding capex and sagging cash flow. Alphabet announced an increase in its projected capex for this year from $185 billion to $200 billion, and reported free cash flow of negative $5.9 billion. Alphabet stock fell 6% on the heels of the report.

Tesla fared even worse. Elon Musk’s company reported a free cash flow of negative $1.1 billion, announced it would spend $25 billion in capex this year, and would borrow up to $30 billion. Tesla stock cratered, falling 18% over a week, marking its worst performance since 2022.

But Microsoft is a different story. Free cash flow fell 23%, but still registered a strong $19.6 billion. And CFO Amy Hood told analysts on the company’s earnings call that Microsoft expected to remain free cash flow positive in fiscal 2027 as well.

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Microsoft also differs in that it didn’t increase its capex plans. The company previously had announced it would spend as much as $190 billion this calendar year on capex; Hood announced in the earnings call that the company’s guidance remains unchanged, but because of an accounting change, the budget item is now $175 billion -- some data center leases are shifting from finance leases to operating leases, which aren’t included in capex.

Just as important, Microsoft indicated it was ready to be flexible with its capex -- particularly as the supply of GPUs, CPUs, storage, and memory products remains tight. “If the demand environment changes, you just slow down what is, in fact, the largest component, and the driver of (cost of goods sold),” Hood said. “… You can stagger the timing of the build-out.”

That kind of thinking is important, as markets have proven sensitive to AI spending right now.

Why I think Microsoft is a good buy nowMicrosoft still has huge plans to spend on AI, and it’s not backing off from its long-term plans. But this quarter’s earnings report indicates that it can fund its AI investments while still generating billions in free cash flow. That’s a feat that eluded both Tesla and Alphabet.

As investors increasingly focus on how big tech companies fund their AI build-outs, Microsoft’s financial position sets it apart.

Nvidia stock NVDA rebounded around 3% on Thursday as strong results from Microsoft reignited optimism around artificial intelligence infrastructure spending, lifting semiconductor stocks after a week of heavy selling.

The stock traded around $195.50 in early trading. Intel rose about 12%, while Advanced Micro Devices gained roughly 13%.

The broader market also advanced after Wednesday's selloff following the Federal Reserve's decision to leave interest rates unchanged.

The Nasdaq Composite rose 2%, the S&P 500 gained 1%, and the Dow Jones Industrial Average added 308 points, or 0.6%.

Semiconductor stocks rallied after Microsoft reported strong growth in its Azure cloud business, easing investor concerns that hyperscale technology companies could begin pulling back on artificial intelligence investment.

The iShares Semiconductor ETF climbed more than 7% in early trading, while the PHLX Semiconductor Index looked set to snap a five-session losing streak.

Microsoft also reassured investors by keeping its calendar 2026 capital expenditure plans unchanged, avoiding another sharp increase in spending after several quarters of aggressive AI investment.

Meta Platforms, by contrast, fell about 8% after issuing a softer-than-expected revenue forecast and reporting a 91% decline in second-quarter free cash flow.

The company modestly increased the lower end of its 2026 capital expenditure guidance to a range of $130 billion to $145 billion, compared with its previous outlook of $125 billion to $145 billion.

The mixed results highlighted a shift in investor focus from simply rewarding higher AI spending toward evaluating whether companies can balance investment with profitability and cash generation.

Thursday's gains followed several weeks of pressure on Nvidia shares.

The stock recently lost its position as the world's most valuable listed company to Apple after a sharp decline driven by concerns over AI spending, financing structures, and rising competition in the semiconductor industry.

Investor sentiment was also weighed down by reports that a Chinese company had begun mass-producing key chipmaking equipment, raising questions about future competitive dynamics.

In addition, The Wall Street Journal reported that Nvidia is discussing a roughly $250 billion financing guarantee to support OpenAI's lease of a large data centre project in Ohio.

The proposed arrangement would help OpenAI secure more favourable financing while supporting long-term demand for Nvidia's AI chips.

However, the report also prompted concerns among some investors that financing agreements between Nvidia and its customers could resemble the circular financing structures that emerged during the dotcom era.

Thursday's rally suggested investors were once again focusing on the underlying outlook for AI infrastructure demand, with Microsoft's cloud performance helping restore confidence that spending by the industry's largest customers remains resilient despite growing scrutiny over capital allocation.

MasterCard (MA - Free Report) came out with quarterly earnings of $5.04 per share, beating the Zacks Consensus Estimate of $4.77 per share. This compares to earnings of $4.15 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +5.66%. A quarter ago, it was expected that this processor of debit and credit card payments would post earnings of $4.4 per share when it actually produced earnings of $4.6, delivering a surprise of +4.55%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

MasterCard, which belongs to the Zacks Financial Transaction Services industry, posted revenues of $9.28 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.44%. This compares to year-ago revenues of $8.13 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

MasterCard shares have lost about 1.3% since the beginning of the year versus the S&P 500's gain of 6.9%.

What's Next for MasterCard?While MasterCard has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for MasterCard was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $5.10 on $9.61 billion in revenues for the coming quarter and $19.61 on $37 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial Transaction Services is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Shift4 Payments (FOUR - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.

This company is expected to post quarterly earnings of $1.19 per share in its upcoming report, which represents a year-over-year change of +8.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Shift4 Payments' revenues are expected to be $614.9 million, up 48.7% from the year-ago quarter.

• Altria Group stock is taking a hit today. What’s pressuring MO stock?.

Quarterly DetailsIn the Smokable Products segment, net revenues increased 0.7%. The segment reported domestic cigarette shipment volume decreased 3.2%, primarily driven by the industry’s decline rate. Shipment volumes for Marlboro fell 7.4%.

The Oral Tobacco Products unit slid 5.3% year over year. The segment reported domestic shipment volume decreased 8.5%, primarily driven by retail share losses and trade inventory movements.

Quarterly operating income fell 2.9% year over year to $3.14 billion.

As of June 30, the company had cash and equivalents worth $2.37 billion.

Consumer Pressure Hits Premium DemandHigher fuel and everyday living costs pressured consumer spending, making price a bigger factor for tobacco buyers. Altria had already warned in April that costs tied to the Middle East conflict were hurting discretionary spending and encouraging some smokers to switch to lower-priced cigarettes, Reuters reported on Thursday.

That down-trading hurt demand for Marlboro, even as Altria leaned on discount brands such as Basic to soften the impact.

Alternatives Remain a Growth FocusAltria has continued shifting toward cigarette alternatives, including On! nicotine pouches and NJOY vapes, as traditional cigarette volumes face pressure.

However, macroeconomic uncertainty also affected demand for premium cigarettes and nicotine pouches in the quarter, contributing to the earnings miss and sending Altria shares lower.

OutlookAltria Group raised its 2026 adjusted EPS guidance to $5.61-$5.72 (up from prior range of $5.56–$5.72), in line with the $5.69 analyst estimate.

MO Price Action: Altria Group shares are trading lower by 9.27% to $67.99 at publication on Thursday.

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Primary Health Properties Plc's (LSE:PHP, OTC:PHPRF) looks "well positioned" as it continues to deliver attractive organic rental growth, that's according to house broker Shore Capital.

The UK stockbroker, in a note following PHP's interim results, highlighted that the property investment company's 7.5% dividend yield is being underpinned by accelerating rents and faster-than-expected savings from its Assura merger.

"We continue to forecast the company benefiting from earnings accretion in FY26F, further supporting an attractive dividend yield – currently 7.5%," said analyst Andrew Saunders.

"PHP has consistently delivered resilient operating metrics in a healthcare market with strong fundamental demographic characteristics, aided by a supportive political backdrop and the need for greater investment in healthcare infrastructure to assist with the delivery of services in local community settings. The shares continue to present a highly attractive opportunity for investors, offering among the best risk-adjusted, total returns profiles in the sector."

Shore noted that the healthcare property investor delivered a strong first half, with interim earnings per share rising 9% to 3.8p. Rent reviews generated an additional £4 million of income, producing a 3.2% annualised uplift against PHP’s 3% target.

Its interim dividend increased 2.8% to 3.65p per share, supporting Shore’s forecast for a 7.3p full-year distribution. At 97p, the shares trade just below the reported EPRA net tangible asset value of 99p.

PHP has also delivered 92% of the £9 million cost savings targeted from the Assura combination, reducing its EPRA cost ratio from 11.3% to 8.7%.

Attention now turns to debt reduction. Portfolio loan-to-value remained at 57%, although Shore expects disposals and new financing facilities to lower leverage and reduce the weighted cost of debt from 3.8% toward 3.5%.

The company is also advancing plans for a joint venture covering its £700 million private hospital portfolio, retaining a 50% interest and an asset-management role.

AMD and Intel shares rebounded sharply on Thursday, reversing losses from previous sessions as Microsoft's stronger-than-expected cloud results boosted confidence in artificial intelligence infrastructure spending and lifted the broader semiconductor sector.

AMD and Intel shares both rose 13% each in the session.

The broader chip industry also advanced, with the iShares Semiconductor ETF (SOXX) gaining more than 8%.

The rally followed Microsoft's quarterly earnings, which showed stronger Azure cloud growth and eased investor concerns that massive AI infrastructure investments were failing to generate returns.

The positive results helped improve sentiment toward semiconductor companies that had come under pressure in recent weeks amid concerns over AI spending, valuations and growing competition.

Susquehanna analyst Christopher Rolland reiterated his Buy rating on AMD and increased his price target to $500 from $450, citing stronger prospects for the company's data center business.

Rolland expects AMD to deliver improved financial results and guidance, driven primarily by server CPUs and data center GPUs.

He believes server CPU demand could exceed expectations as the total addressable market expands, while new customer wins support a ramp-up of the company's MI450 data center GPU.

The analyst now forecasts more than $31.5 billion in data center revenue for 2026, with both server processors and GPUs expected to accelerate significantly during the fourth quarter of that year.

Rolland also highlighted AMD's AI roadmap, noting continued MI350 GPU growth during the first half of 2026 followed by a "significant ramp" later in the year as the MI450 platform and Helios infrastructure launch.

He expects deployments to be led initially by customers including OpenAI and Meta.

The analyst also pointed to AMD's 2-gigawatt infrastructure agreement with Anthropic, with the first 1-gigawatt deployment expected during the first half of 2027.

Management is targeting AI-related revenue in the "tens of billions" of dollars by 2027.

Rolland noted that CEO Lisa Su has increased AMD's estimate for the 2030 server CPU market to around $220 billion, reflecting growing demand from agentic AI workloads, where some applications now require CPU-to-GPU ratios greater than one.

Beyond AI infrastructure, Susquehanna expects AMD's client PC business to outperform the broader market through enterprise market share gains and pricing improvements, while embedded demand continues to strengthen in FPGA applications serving AI, aerospace and test equipment.

Intel also received positive commentary from Wells Fargo, which highlighted improving pricing trends across the company's server processor business.

Analyst Aaron Rakers noted that Intel's latest quarterly filing showed shipments of Xeon server processors increased 9% year over year, while average selling prices jumped 48% over the same period.

Rakers also pointed to stronger profitability in Intel's data center operations.

The company's Data Center and AI segment reported a 56% gross margin, improving by 8.4 percentage points from the previous quarter.

In addition, revenue from Intel's custom AI chip business tripled from a year earlier while generating $1.84 billion in operating income, underscoring stronger financial performance within its AI-related operations.

Wall Street expects a year-over-year increase in earnings on higher revenues when Parker-Hannifin (PH - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 6. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis maker of motion and control products is expected to post quarterly earnings of $8.30 per share in its upcoming report, which represents a year-over-year change of +7.9%.

Revenues are expected to be $5.61 billion, up 6.9% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.27% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Parker-Hannifin?For Parker-Hannifin, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.58%.

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

So, this combination makes it difficult to conclusively predict that Parker-Hannifin will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Parker-Hannifin would post earnings of $7.85 per share when it actually produced earnings of $8.17, delivering a surprise of +4.08%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Parker-Hannifin doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsAmong the stocks in the Zacks Manufacturing - General Industrial industry, Watts Water (WTS - Free Report) , is soon expected to post earnings of $3.34 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +8.1%. This quarter's revenue is expected to be $725.76 million, up 12.8% from the year-ago quarter.

The consensus EPS estimate for Watts Water has been revised 1.5% higher over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -0.34%.

This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Watts Water will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

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

Key Takeaways Clorox's fiscal Q4 revenues are estimated to fall 4.1%, while earnings may decline 42.9%.ERP disruptions, weak category demand and slow Litter recovery are weighing on Clorox's performance.Clorox expects $20-$25 million in Q4 input-cost headwinds and 130 bps of margin pressure. The Clorox Company (CLX - Free Report) is scheduled to report fourth-quarter fiscal 2026 results on Aug. 3, after market close, and is likely to have registered declines in the top and bottom lines.

The Zacks Consensus Estimate for revenues is pegged at $1.91 billion, indicating a drop of 4.1% from the prior-year quarter’s reported figure. The consensus mark for quarterly earnings has moved down 5.2% in the past 30 days to $1.64 per share. The consensus mark indicates a decline of 42.9% from the prior-year quarter.

The Zacks Consensus Estimate for Clorox’s quarterly revenues is pegged at $6.7 billion, implying a 5.9% decline from the year-ago quarter’s reported number. For fiscal 2026, the consensus mark is pegged at $5.52 per share, suggesting 28.5% growth from the prior-year reported figure. The consensus mark has moved down 2.1% in the past 30 days.

The consumer and professional product company has a trailing four-quarter earnings surprise of 11.3%, on average. CLX surpassed earnings estimates by 10.8% in the last reported quarter.

Factors Likely to Influence CLX’s Q4 ResultsClorox entered fiscal 2026 with expectations that the back half of the year would mark a return to stronger execution after ERP-related disruptions. However, on the last reported quarter’s earnings call, management acknowledged that the anticipated recovery has been slower than expected, with the fiscal third-quarter results falling short of internal expectations. While the company cited continued strength in cleaning products and international markets, several businesses failed to recover at the expected pace, resulting in weaker-than-planned market share gains and margin performance.

Several of Clorox's important categories continue to experience operational and competitive headwinds despite heavy investments. Fresh Step litter, one of the company's largest turnaround priorities, is undergoing a complete product reset involving new formulations, packaging, pricing architecture and SKU conversions. Meanwhile, the Food segment faces declining category demand, aggressive competitive discounting and potential consumer shifts related to GLP-1 weight-loss drug adoption. Although Hidden Valley has launched products and adjusted packaging, management admitted category weakness remains a drag.

On the last reported quarter’s earnings call, management admitted that the turnaround in its Litter business will be a "multi-year process," suggesting that a meaningful recovery remains some distance away. The company also admitted that Food categories have been underperforming due to weaker category demand and heightened promotional intensity. Although management remains optimistic about fiscal 2027, the latest commentary suggests that restoring consistent organic sales momentum will require more time than previously anticipated.

Clorox has been confronting multiple layers of cost pressure that threaten profitability in the fiscal fourth quarter and beyond. Management highlighted higher-than-expected supply-chain expenses, delayed productivity savings due to ERP stabilization and a sharp increase in commodity costs following higher oil prices.

For fourth-quarter fiscal 2026 alone, the company expects $20-$25 million in incremental input-cost headwinds, equivalent to roughly 130 basis points (bps) in gross margin pressure, without any meaningful mitigation actions yet in place. While management emphasized confidence in their pricing and productivity toolkit, it also admitted that fiscal 2027 remains highly uncertain, given volatile energy markets and geopolitical developments.

Apart from inflationary pressures, the GOJO acquisition introduces temporary gross-margin dilution and one-time integration costs, further weighing on profitability. The combination of elevated commodity inflation, deferred cost savings and acquisition-related expenses creates a difficult earnings backdrop, leaving investors exposed to additional estimate revisions if cost inflation persists longer than management currently anticipates.

Clorox expects fiscal 2026 net sales to decline 6%, including a slightly less than 3-percentage-point benefit from the GOJO Industries acquisition, less than one point of headwind from the VMS divestiture and a modest foreign exchange tailwind. Organic sales are projected to decline 9%, reflecting a 7.5-point drag from the reversal of incremental shipments made ahead of last year’s ERP transition.

For fiscal 2026, management expects the gross margin to fall 250-300 bps, including about 60 bps of headwinds from the GOJO acquisition, 100 bps tied to the ERP shipment reversal and additional headwinds from higher energy costs tied to the Middle East conflict. This setup raises the bar for execution in productivity and revenue management.

Our model predicts gross profit to decline 14.7% year over year to $788.2 million in fourth-quarter fiscal 2026. The gross margin is expected to have contracted 540 bps to 41.1% in the quarter under review. Our model expects operating income to decline 37.9% year over year in the fiscal fourth quarter, with an 820-bps contraction in operating margin.

What the Zacks Model Unveils for CLXOur proven model does not conclusively predict an earnings beat for Clorox this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Clorox has an Earnings ESP of -3.52% and a Zacks Rank #4 (Sell) at present.

CLX’s Valuation & Price PerformanceFrom the valuation standpoint, Clorox has a forward 12-month price-to-earnings ratio of 16.43X, which is below the industry’s average of 18.93X. Also, the stock is trading below its five-year high of 35.61X.

Image Source: Zacks Investment Research

CLX shares have risen 14.4% in the past three months compared with the industry’s growth of 5.3%.

Image Source: Zacks Investment Research

Stocks With the Favorable CombinationHere are companies that, according to the model, have the right combination of elements to beat on earnings this reporting cycle.

Archer Daniels Midland Company (ADM - Free Report) currently has an Earnings ESP of +3.43% and a Zacks Rank #2. ADM is anticipated to register top- and bottom-line growth when it reports second-quarter 2026 results. The Zacks Consensus Estimate for Archer Daniels’ quarterly revenues is pegged at $22.4 billion, indicating growth of 5.7% from the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Archer Daniels’ earnings is pegged at $1.27 per share, which indicates growth of 36.6% from the year-ago quarter. ADM delivered an earnings surprise of 5.4% in the trailing four quarters, on average.

Newell Brands Inc. (NWL - Free Report) has an Earnings ESP of +5.36% and a Zacks Rank #2 at present. NWL is likely to register top-line growth when it releases second-quarter 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.97 billion, implying growth of 1.7% from the year-ago quarter.

The consensus estimate for Newell Brands’ quarterly earnings currently stands at 19 cents per share, suggesting a decline of 20.8% from the year-ago quarter. NWL has a trailing four-quarter average earnings surprise of 9.7%.

Church & Dwight Co. (CHD - Free Report) has an Earnings ESP of +3.53% and a Zacks Rank of 3 at present. CHD is likely to register top- and bottom-line declines when it releases second-quarter 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.5 billion, implying a decline of 0.2% from the year-ago quarter’s actual.

The consensus estimate for Church & Dwight’s quarterly earnings of 89 cents per share indicates a decline of 5.3% from the year-ago quarter’s reported number. CHD has a trailing four-quarter average earnings surprise of 6.5%.

Anheuser-Busch Inbev (BUD - Free Report) reported $16.66 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 11%. EPS of $1.21 for the same period compares to $0.98 a year ago.

The reported revenue represents a surprise of +2.26% over the Zacks Consensus Estimate of $16.29 billion. With the consensus EPS estimate being $1.09, the EPS surprise was +11.01%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Anheuser-Busch Inbev performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Volume in Hectoliters - Middle America: 38,822.00 KhL versus the three-analyst average estimate of 39,102.03 KhL.Volume in Hectoliters - South America: 34,199.00 KhL compared to the 36,814.15 KhL average estimate based on three analysts.Volume in Hectoliters - EMEA: 24,172.00 KhL versus 23,999.03 KhL estimated by three analysts on average.AB InBev Worldwide - Total Volume: 143,347.00 KhL versus 144,023.50 KhL estimated by three analysts on average.Volume in Hectoliters - Global Export and Holding Companies: 62.00 KhL compared to the 74.17 KhL average estimate based on three analysts.Volume in Hectoliters - North America: 22,376.00 KhL versus 21,750.32 KhL estimated by three analysts on average.Revenue- North America: $3.84 billion versus the three-analyst average estimate of $3.9 billion. The reported number represents a year-over-year change of 0%.Revenue- Middle Americas: $4.34 billion versus $4.88 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a 0% change.Revenue- Global Export & Holding Companies: $144 million compared to the $159.38 million average estimate based on three analysts. The reported number represents a change of 0% year over year.Revenue- EMEA: $2.49 billion compared to the $2.64 billion average estimate based on three analysts. The reported number represents a change of 0% year over year.Revenue- Asia Pacific: $1.66 billion compared to the $1.6 billion average estimate based on three analysts. The reported number represents a change of 0% year over year.Revenue- South America: $2.53 billion compared to the $3.12 billion average estimate based on three analysts. The reported number represents a change of 0% year over year.View all Key Company Metrics for Anheuser-Busch Inbev here>>>

Shares of Anheuser-Busch Inbev have returned +5.8% over the past month versus the Zacks S&P 500 composite's -1.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

In its upcoming report, Booking Holdings (BKNG - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $2.45 per share, reflecting an increase of 10.4% compared to the same period last year. Revenues are forecasted to be $7.19 billion, representing a year-over-year increase of 5.8%.

The consensus EPS estimate for the quarter has undergone a downward revision of 0.1% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.

In light of this perspective, let's dive into the average estimates of certain Booking Holdings metrics that are commonly tracked and forecasted by Wall Street analysts.

The consensus among analysts is that 'Revenues- Agency' will reach $1.91 billion. The estimate suggests a change of -6.6% year over year.

It is projected by analysts that the 'Revenues- Advertising and Other Revenues' will reach $313.10 million. The estimate indicates a year-over-year change of +5.4%.

Analysts' assessment points toward 'Revenues- Merchant' reaching $4.97 billion. The estimate suggests a change of +11.5% year over year.

The collective assessment of analysts points to an estimated 'Units Sold - Room Nights' of 320.57 million. Compared to the present estimate, the company reported 309.00 million in the same quarter last year.

Analysts predict that the 'Gross Bookings - Total' will reach $49.42 billion. Compared to the present estimate, the company reported $46.70 billion in the same quarter last year.

Analysts forecast 'Units Sold - Airline Tickets' to reach 19.22 million. The estimate compares to the year-ago value of 16.00 million.

The combined assessment of analysts suggests that 'Units Sold - Rental Car Days' will likely reach 23.55 million. The estimate compares to the year-ago value of 24.00 million.

The consensus estimate for 'Gross Bookings - Agency' stands at $13.46 billion. Compared to the current estimate, the company reported $14.40 billion in the same quarter of the previous year.

According to the collective judgment of analysts, 'Gross Bookings - Merchant' should come in at $36.02 billion. The estimate compares to the year-ago value of $32.30 billion.

View all Key Company Metrics for Booking Holdings here>>>

Booking Holdings shares have witnessed a change of +10.2% in the past month, in contrast to the Zacks S&P 500 composite's -1.5% move. With a Zacks Rank #4 (Sell), BKNG is expected underperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Customer investments exceeded $2 billion in 2025 as CN continues to invest in its network July 30, 2026 12:15 ET  | Source: Canadian National Railway Company

MONTREAL, July 30, 2026 (GLOBE NEWSWIRE) -- CN (TSX: CNR) (NYSE: CNI) today announced that it is supporting the development of more than 300 customer development projects across its North American network, reinforcing its role in strengthening supply chains and powering economic growth.

In 2025, CN helped bring more than 70 customer projects into service, representing over $2 billion in customer investment across its network. So far in 2026, CN has helped bring 30 customer-led projects into service and is on track to complete an additional 70 projects by the end of 2026 and into early 2027.

"Our customers are making significant investments because they have confidence in the strength of CN's network and our ability to grow alongside them. We've invested in the capacity, infrastructure and operating model needed to support new business while continuing to improve network fluidity. That allows us to move more traffic safely and efficiently while giving customers the confidence to invest, expand and bring new industrial projects online across North America."

– Sandra Ellis, Vice-President, Bulk, Industrial and Business Development, CN

Beyond supporting customer growth across its network, CN also plays a critical role in supporting the construction of major infrastructure projects. From moving specialized equipment and construction materials for the LNG Canada project in Kitimat, B.C., to supporting the BC Hydro Site C project, CN's network and supply chain expertise helped deliver the materials needed to advance these transformative investments.

In 2026, CN is investing approximately $2.8 billion through its annual capital investment program, strengthening the safety, capacity and resiliency of its network. Key projects include the Zanardi Rapids Bridge Project in Prince Rupert, and the Glen Valley double-track project in British Columbia, both of which will increase rail capacity and support future growth across Western Canada.

CN’s capital investments are already delivering results. Major capacity improvements completed in 2025 along CN's Edson Subdivision have increased corridor capacity by approximately 25 percent, helping CN support growing customer demand while maintaining a safe, fluid and reliable network.

CN continues to work closely with customers and supply chain partners to bring new projects online, supporting long-term economic growth while strengthening the resilience and competitiveness of North American supply chains.

About CN
CN powers the economy by safely transporting more than 300 million tons of natural resources, manufactured products, and finished goods throughout North America every year for its customers. With its nearly 20,000-mile rail network and related transportation services, CN connects Canada’s Eastern and Western coasts with the U.S. Midwest and the U.S. Gulf Coast, contributing to sustainable trade and the prosperity of the communities in which it operates since 1919.

Contacts:
MediaInvestment CommunityAshley MichnowskiJamie LockwoodSenior Manager        Vice-PresidentMedia RelationsInvestor Relations and Special Projects(438) 596-4329(514) 399-0052
[email protected]
[email protected]

Consolidated Edison (ED - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The earnings report, which is expected to be released on August 6, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis utility is expected to post quarterly earnings of $0.74 per share in its upcoming report, which represents a year-over-year change of +10.5%.

Revenues are expected to be $3.74 billion, up 4.2% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 6.84% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Con Ed?For Con Ed, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.08%.

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

So, this combination makes it difficult to conclusively predict that Con Ed will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Con Ed would post earnings of $2.32 per share when it actually produced earnings of $2.17, delivering a surprise of -6.47%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Con Ed doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerAmong the stocks in the Zacks Utility - Electric Power industry, MGE (MGEE - Free Report) , is soon expected to post earnings of $0.77 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +6.9%. This quarter's revenue is expected to be $166.37 million, up 4.3% from the year-ago quarter.

The consensus EPS estimate for MGE has been revised 8.7% higher over the last 30 days to the current level. However, an equal Most Accurate Estimate has resulted in an Earnings ESP of 0.00%.

When combined with a Zacks Rank of #2 (Buy), this Earnings ESP makes it difficult to conclusively predict that MGE will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.

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

Key Takeaways Lam Research highlighted AI-driven semiconductor demand, with higher wafer fab spending expected.LRCX saw NAND revenues more than double sequentially as memory reached 46% of systems revenues.Lam Research expects advanced packaging growth above 70% year over year, driven by AI package demand. Lam Research Corporation (LRCX - Free Report) highlighted accelerating semiconductor demand as AI infrastructure spending reshapes wafer fabrication requirements. Management pointed to stronger memory demand, expanding technology complexity and rising opportunities across etch, deposition and advanced packaging.

The company raised its near-term outlook with expectations for higher wafer fab equipment spending and continued growth from customer support offerings. Executives also emphasized margin expansion efforts and investments aimed at long-term market share gains.

LRCX Sees AI Fueling Semiconductor GrowthManagement said AI demand is driving new capacity investments and more complex semiconductor architectures. CEO Timothy Archer said the company expects calendar 2026 wafer fab equipment spending to reach the low $150 billion range, up from the prior $140 billion outlook.

Archer noted that AI development is progressing through multiple stages, increasing demand for storage, advanced memory and complex logic devices. He highlighted opportunities as customers move toward higher-layer NAND, advanced DRAM and next-generation foundry technologies.

The company reported fourth-quarter fiscal 2026 non-GAAP earnings per share of $1.82, which beat the Zacks Consensus Estimate of $1.69. Revenues of $6.72 billion also surpassed the Zacks Consensus Estimate by 0.73%.

Lam Research Expands Memory and Packaging OpportunitiesLam Research said NAND revenues more than doubled sequentially as customers focused on upgrades to 256-layer and above-class devices. Memory represented 46% of systems revenues compared with 39% in the prior quarter.

Management emphasized that NAND remains one part of a broader opportunity set. Archer said the company is also gaining traction in DRAM and foundry logic as device architectures require more deposition and etch processes.

Advanced packaging was another growth area, with the company expecting greater than 70% year-over-year growth. Lam 
Research pointed to demand for TSV etch, copper electroplating and larger AI package designs as key drivers.

LRCX Builds Margin MomentumLam Research expanded profitability during the quarter, with non-GAAP gross margin reaching 52% and operating margin improving to 38.4%. CFO Douglas Bettinger attributed margin strength to pricing actions, operational efficiencies, scale benefits and product mix.

The company also outlined a longer-term goal of reaching mid-50% gross margins and mid-40% operating margins over the next several years. Management tied the opportunity to revenue growth, new products and improving operational execution.

Lam Research reported a strong cash position, ending the quarter with $5.6 billion in cash and short-term investments. The company returned capital through approximately $246 million in share repurchases and $325 million in dividends during the quarter.

Lam Research Raises September-Quarter OutlookManagement guided for September-quarter revenues of $8.1 billion, plus or minus $400 million, with non-GAAP gross margin of 52%, operating margin of 39.5% and EPS of $2.15, plus or minus $0.15.

Bettinger said customer support revenue should remain strong, supported by upgrades, spare parts demand and Equipment Intelligence offerings. The segment generated record revenue of nearly $2.5 billion in the June quarter.

Analysts also focused on supply constraints and future capacity. Management said customers are adding clean-room capacity and working with Lam to secure equipment for upcoming fabs, while the company continues expanding manufacturing capabilities.

LRCX Addresses Analyst Questions on GrowthA JPMorgan analyst asked about the drivers behind margin improvement. Bettinger said operational efficiency, the global manufacturing footprint, new products and pricing efforts all contributed to recent gains.

A Goldman Sachs analyst questioned the outlook for 2027 growth. Management avoided numerical guidance but said industry capacity additions and new fabs coming online create a strong setup for continued demand.

A Bank of America analyst asked about future NAND upgrades. Archer said the opportunity extends beyond current upgrades because future transitions to higher-layer NAND devices will require additional process complexity and equipment intensity.

Lam Research Focuses on Long-Term AI DemandLam Research entered the second half of 2026 emphasizing technology transitions across memory, logic and packaging. Management said rising complexity in semiconductor manufacturing expands the company’s served available market opportunities.

Executives highlighted continued investments in research facilities, manufacturing capacity and customer support capabilities to address evolving semiconductor requirements.

The company’s message centered on scaling with AI-related semiconductor demand while improving profitability through technology leadership and operational execution.

Zacks Rank and Style Scores Lam Research carries a Zacks Rank #2 (Buy), indicating favorable earnings estimate revision trends within the Zacks Rank framework. The Zacks Style Scores show a Growth Score of B and Momentum Score of B, while the Value Score is D and the VGM Score is C. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Style Scores are designed to complement the Zacks Rank by evaluating characteristics such as value, growth and momentum. A stock with a Zacks Rank #1 or 2 combined with stronger Style Scores can provide additional signals for investors focused on those factors. The Zacks Rank can change as analysts update earnings estimates following new company information.

Carvana CVNA opened in the “red” this morning as management’s lowered guidance tempered the firm’s record Q2, featuring a 38% increase in retail units sold.

Still, Needham’s senior analyst Chris Pierce recommends buying the dip in CVNA, noting it could actually double from current levels over the next 12 months.

That said, the muted outlook adds to pressure on Carvana stock that was already down nearly 40% heading into the earnings release.

Carvana now expects full-year adjusted EBITDA to fall between $2.7 billion and $3.0 billion.

While that still suggests a meaningful increase on a year-over-year basis, the midpoint of that range missed the $2.99 billion consensus by a significant margin.

In the earnings release, management cited some pressure on Gross Profit per Unit (GPU) non-retail components, temporary inventory rebalancing costs, and broader consumer spending uncertainty amidst a higher-for-longer interest rate environment.  

While Q2 net income hit a robust $769 million, traders focused heavily on the “moderated” near-term margin expectations, leading to short-term profit-taking in CVNA shares.

Adding to pressure is algorithmic selling as Carvana tumbled through its 20-day moving average (MA) – a technical breakdown that often accelerates bearish momentum in the near-term.

In a note to clients, Needham’s Chris Pierce urged investors not to get bogged down by short-term metric noise.

Pierce maintained CVNA on Needham’s coveted Conviction List – emphasizing that the market is overreacting to temporary guidance tweaks rather than focusing on durable unit volume growth.

Needham’s $120 target values Carvana shares at roughly 30x its estimated 2028 adjusted EBITDA and assumes the company will ultimately achieve its long-term milestone of 3 million annual retail sales at 12.6% margins.

According to the Needham analyst, the current valuation bakes in an excessively pessimistic timeline, ignoring CVNA’s unmatched infrastructure advantages, proprietary artificial intelligence (AI) logistics, and expanding nationwide reconditioning network.

While guidance adjustments can spark immediate market turbulence, Carvana’s core disruption of the highly fragmented $1 trillion US used vehicle market remains firmly intact.

By leveraging central reconditioning hubs and direct-to-consumer delivery, the company operates with structural cost advantages over traditional dealership networks.

Short-term margin volatility often creates disconnects between intrinsic value and market price.

For growth-oriented investors with a 12-to-36-month horizon, Needham's bullish analysis suggests the current dip presents a “compelling risk-reward entry point” before CVNA stock’s next leg of operational expansion takes hold.

Crucially, other Wall Street firms seem to agree with Needham on Carvana Co as well.

According to The Wall Street Journal, the consensus rating on the online car retailer remains at “Overweight”, with the mean price target of about $86 indicating potential upside of about 45% from here.

For the quarter ended June 2026, IntercontinentalExchange (ICE - Free Report) reported revenue of $2.67 billion, up 4.8% over the same period last year. EPS came in at $1.90, compared to $1.81 in the year-ago quarter.

The reported revenue represents a surprise of +1.51% over the Zacks Consensus Estimate of $2.63 billion. With the consensus EPS estimate being $1.84, the EPS surprise was +3.26%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how ICE performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Revenues- Exchanges Segment (less transaction-based): $1.46 billion versus the four-analyst average estimate of $1.45 billion. The reported number represents a year-over-year change of +33.5%.Revenues- Fixed Income and Data Services Segment: $645 million versus $850.12 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +8% change.Transaction revenues, net- Exchange: $1.05 billion compared to the $1.04 billion average estimate based on four analysts.Recurring revenues- Exchange: $416 million compared to the $404.53 million average estimate based on four analysts.Revenues- Mortgage Technology Segment- Servicing software: $226 million versus $220.39 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +2.7% change.Revenues- Mortgage Technology Segment- Data and analytics: $69 million versus the four-analyst average estimate of $73.43 million. The reported number represents a year-over-year change of +4.6%.Revenues- Mortgage Technology Segment- Closing solutions: $65 million compared to the $58.48 million average estimate based on four analysts. The reported number represents a change of +12.1% year over year.Revenues- Mortgage Technology Segment: $557 million versus the four-analyst average estimate of $545.6 million. The reported number represents a year-over-year change of +4.9%.Revenues- Exchanges Segment- Energy futures and options: $518 million versus the four-analyst average estimate of $532.93 million. The reported number represents a year-over-year change of -12.9%.Revenues- Exchanges Segment- Ags and Metals: $87 million compared to the $86.39 million average estimate based on four analysts. The reported number represents a change of +33.9% year over year.Revenues- Exchanges Segment- Financials: $192 million versus $193.37 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +21.5% change.Revenues- Exchanges Segment- Cash equities and equity options: $140 million versus the four-analyst average estimate of $128.6 million. The reported number represents a year-over-year change of +13.8%.View all Key Company Metrics for ICE here>>>

Shares of ICE have returned +21.7% over the past month versus the Zacks S&P 500 composite's -1.5% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

Wave Life Sciences (WVE - Free Report) came out with a quarterly loss of $0.34 per share versus the Zacks Consensus Estimate of a loss of $0.31. This compares to a loss of $0.31 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -9.68%. A quarter ago, it was expected that this biopharmaceutical company would post a loss of $0.34 per share when it actually produced a loss of $0.13, delivering a surprise of +61.76%.

Over the last four quarters, the company has surpassed consensus EPS estimates just once.

Wave Life Sciences, which belongs to the Zacks Medical - Biomedical and Genetics industry, posted revenues of $2.27 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 73.48%. This compares to year-ago revenues of $8.7 million. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Wave Life Sciences shares have lost about 65.8% since the beginning of the year versus the S&P 500's gain of 6.9%.

What's Next for Wave Life Sciences?While Wave Life Sciences has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Wave Life Sciences was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.32 on $8.57 million in revenues for the coming quarter and -$1.10 on $54.71 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Biomedical and Genetics is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Entrada Therapeutics, Inc. (TRDA - Free Report) , has yet to report results for the quarter ended June 2026.

This company is expected to post quarterly loss of $1.16 per share in its upcoming report, which represents a year-over-year change of -11.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Entrada Therapeutics, Inc.'s revenues are expected to be $0.88 million, down 54.9% from the year-ago quarter.

Uniti Group (UNIT - Free Report) came out with a quarterly loss of $0.68 per share versus the Zacks Consensus Estimate of a loss of $0.43. This compares to a loss of $0.04 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -58.14%. A quarter ago, it was expected that this real estate investment trust would post a loss of $0.42 per share when it actually produced a loss of $0.34, delivering a surprise of +19.05%.

Over the last four quarters, the company has surpassed consensus EPS estimates two times.

Uniti, which belongs to the Zacks Wireless National industry, posted revenues of $909.7 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.97%. This compares to year-ago revenues of $300.73 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Uniti shares have added about 47.9% since the beginning of the year versus the S&P 500's gain of 6.9%.

What's Next for Uniti?While Uniti has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Uniti was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.46 on $859.77 million in revenues for the coming quarter and -$1.56 on $3.63 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Wireless National is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Ondas Holdings Inc. (ONDS - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026.

This company is expected to post quarterly loss of $0.07 per share in its upcoming report, which represents a year-over-year change of +12.5%. The consensus EPS estimate for the quarter has been revised 25% lower over the last 30 days to the current level.

Ondas Holdings Inc.'s revenues are expected to be $66.68 million, up 963.5% from the year-ago quarter.