Track market-moving stories before they get noisy

It's that time of summer again. With August on the doorstep, companies are busy announcing financial results. Like many other businesses, Parsons (PSN -37.11%) posted quarterly earnings before the bell today -- and investors are clearly unhappy with what the company reported -- though it has more to do with what management offered on 2026 guidance.

As of 12:58 p.m. ET, shares of Parsons, a specialist in defense, intelligence, and critical infrastructure solutions, are down 38.1%.

Image source: Getty Images.

Beating bottom-line expectations isn't enough to outshine a less auspicious outlook for 2026 Reporting second-quarter adjusted earnings per share (EPS) of $0.86, Parsons exceeded the $0.76 adjusted EPS that analysts had anticipated. Investors aren't impressed, though.

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Instead, they're focusing on management's downwardly revised 2026 outlook. The company now projects 2026 revenue of $6.2 billion to $6.5 billion, down from the original sales forecast of $6.5 billion to $6.8 billion. Similarly, management revised profitability expectations. Whereas it had originally projected 2026 adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), including non-controlling interest, of $615 million to $675 million, it now projects $500 million to $560 million.

Parsons also revisited cash flow expectations. Paring back its original 2026 operating cash flow guidance of $470 million to $530 million, management now projects $430 million to $490 million in cash from operations.

According to Matt Ofilos, the company's CFO, the downwardly revised guidance doesn't reflect something materially wrong with the business. It stems from the company's divestitures and the timing of new awards.

Does today's sell-off represent a buying opportunity? While the market is thoroughly disappointed with the company's new outlook for 2026, there's reason to believe that the future remains bright for Parsons as the company reported a 4% year-over-year increase in its total backlog. For those able to see past the market's immediate reaction to the company's earnings report, now might be a good time for patient investors to pick up shares of this tech stock.

It's been a fantastic past 12 months for Vertiv (VRT -16.38%) shareholders. Even with the stock's pullback from its mid-May record-breaking peak, it's still up about 96% from where it traded at this time last year.

Veteran investors know such a big run-up in such a short period of time is a tough act to follow, of course. Some are even anticipating more pullback. And maybe that's what's in the cards.

The analyst community, however, remains more optimistic about this ticker's foreseeable future.

Image source: Getty Images.

Vertiv is reporting plenty of growth The company makes equipment used in data centers, by the way. Not processing chips like those supplied by Nvidia, or networking hardware like that made by Broadcom. Rather, Vertiv manufactures power systems, cooling solutions, and the specialized racks and enclosure frames that make it possible to integrate this equipment with the usual data center tech.

Yes, the rapid rise of artificial intelligence is proving very good for business. Vertiv's first-quarter top line of $2.65 billion was up 30% year over year, and is expected to grow about as much for the entirety of 2026. Analysts are looking for comparable growth next year as well. Moreover, the company is profitable. Last year's bottom line of $4.20 is expected to reach $6.48 per share this year, en route to $8.83 in 2027.

This fantastic growth course begs one question: Why has the stock been sinking since May's high, falling 24% from that peak?

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Valuation may have a little something to do with it. At its peak, VRT was trading at more than 58 times this year's projected profits, and over 40 times next year's expected bottom line. That's a steep price to sustain, no matter how compelling your growth story is. It's even tougher to sustain when investors start to doubt artificial intelligence's long-term future.

Curiously, though, analysts aren't deterred.

Wall Street is (mostly) still on board with Vertiv OK, a handful of analysts are doubters. Two of the 33 covering this stock rate it as underweight. The lowest price target is $255, 11% below the stock's current price.

The vast majority of the analyst crowd watching this stock, however, is firmly bullish. Indeed, 22 of the 33 analysts covering it consider VRT a strong buy, while the consensus price target stands at $377, more than 31% above Vertiv shares' present price. It's a target, of course, that rightfully doesn't reflect too much concern about a rich valuation.

What are these analysts seeing that others aren't? It's not what they're seeing. Rather, it's all the noise they're looking past. The AI industry's stocks may be losing ground because growing infrastructure spending may or may not pay off soon enough to suit investors. But there's no denying that artificial intelligence will feature prominently in the future, once its key players refine their businesses and meet actual needs.

In this vein, a Precedence Research outlook indicates that the worldwide AI infrastructure market is poised to grow at an average annualized rate of nearly 22% through 2035. Vertiv is well positioned to win at least its fair share of this growth.

Just bear in mind that not even analysts expect VRT shares to reach their consensus target in a straight line.

SAN MATEO, Calif., July 29, 2026 (GLOBE NEWSWIRE) -- Freshworks Inc. (NASDAQ: FRSH) announced today that it has been named by Gartner as a Leader in the 2026 Gartner® Magic Quadrant™ for IT Service Management Platforms. The evaluation was based on specific criteria analyzing the company’s overall Completeness of Vision and Ability to Execute. Freshworks attributes this recognition to its rapid customer growth and the depth and scale of its unified service operations platform.

According to Gartner, “The ITSM platforms market reached nearly $9 billion in 2025, growing 13.74% year over year and remains the largest segment of the IT operations value management market.” The report later notes, “Asset visibility has evolved toward a unified data fabric that connects ITSM, asset and operational data, becoming a prerequisite for effective automation and AI-driven decision making.”

Historically, IT and operations have run on a single linear trigger: something happens, and a human responds. A laptop is requested, so a ticket gets created for manual provisioning. An alert fires, so an onsite engineer investigates. Many leaders have been promised zero touch autonomous service, yet the core blockers to modernization are not a lack of ambition; they’re disconnected data, missing context, and AI that acts as more of a consulting project instead of an accelerator.

“Service and operations leaders don't just want a faster ticketing system, they want an AI-powered platform that unifies service, operations, assets and knowledge together on a shared data layer," said Dennis Woodside, Chief Executive Officer & President of Freshworks. "We believe our positioning as a Leader by Gartner highlights a clear shift in the market. We’re focused on giving agile enterprises the depth and scale they need, alongside domain-specific AI so they can move at the speed of their business while staying firmly in control.”

Companies like Amerisure, McLaren Mastercard Formula 1 Team and New Balance already trust Freshservice to run that way. Our customer base experiences a CSAT of 97.8% and an average first contact resolution of 75%.

Freshworks drives service transformation across three core areas:

Unified ServiceOps Platform: Brings together IT Service (ITSM), Operations (ITOM), Asset (ITAM), and Enterprise Service Management (ESM) on a single platform with a common data and context model. Our one service delivery model serves IT, HR, Finance, and other business teams - not separate tools stitched together - meaning a single common layer of insights, analytics and integrations.Trusted, Domain-Specific AI: Deploys intelligent agents across critical workflows - including IT and HR requests, incident triage, and multichannel self-service - to automate routine resolutions. Freshworks has built Freddy AI for the problems tens of thousands of customers have today, with a foundational understanding of over a decade of experience, workflow, and service domain solutioning to make Freddy AI more accurate, reliable and effective.Rapid Impact: Built for short implementation cycles that deliver immediate value without consultant overhead and no-code setup. On average, Freshservice customers go live in under 90 days, delivering a 168% ROI and a six-month payback period (read The 168% ROI behind switching to Freshservice).
"One of the benefits is that we started with IT, and now we bring in a bunch of other workspaces, such as facilities, loss prevention, HR, and all the other business departments," said Markus Gaulke, Platform Manager for New Balance.

To access the full Gartner Magic Quadrant report, visit here.

About Freshservice
Freshservice by Freshworks is an AI-powered ServiceOps platform that unifies IT Service (ITSM), Asset (ITAM), Operations (ITOM) and Enterprise Service Management (ESM) on a single platform with a shared data layer. It gives IT, HR, finance, and facilities teams full visibility across services and infrastructure without the complexity of stitched-together tools. Freshservice comes with a natively embedded AI layer called Freddy AI that helps agents resolve issues faster, automates employee service requests, and gives leaders the insights they need to make better decisions. The result is resilient, proactive service delivery that scales across the entire organization.

About Freshworks
Freshworks is the AI-powered, unified service operations platform that is fast to deploy, intuitive to use, and enables every employee to be more productive. We offer powerful governance and scale, without the operational drag of legacy platforms. Organizations including Bridgestone, New Balance, S&P Global, and Sony Music trust Freshworks to deliver quality employee and customer service and manage efficient technology operations. For the latest updates, visit freshworks.com and follow Freshworks on LinkedIn, X, and Facebook.

© 2026 Freshworks Inc. All rights reserved. Freshworks, Freshservice, and Freddy AI and their associated logos are trademarks of Freshworks Inc. All other trademarks are property of their respective owners. Nothing in this press release should be construed to the contrary, or as an approval, endorsement or sponsorship by any third party of Freshworks Inc. or any aspect of this press release.
Gartner Source Citation
Gartner, Inc., Magic Quadrant for IT Service Management Platforms, Rich Doheny, Jen Lichucki, 27 July, 2026.

Gartner Disclaimer
Gartner does not endorse any vendor, product or service depicted in our research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, and MAGIC QUADRANT is a registered trademark of Gartner, Inc. and/or its affiliates and are used herein with permission. All rights reserved.

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Key Takeaways Datadog's RPO jumped 51% to $3.48 billion as multi-year contracts and longer terms improved visibility.DDOG raised 2026 revenue guidance to $3.225-$3.245 billion, citing demand and execution confidence.Enterprise clients adopting 10-plus products, strong retention and AI deployments support recurring growth. Datadog (DDOG - Free Report) is making its revenue growth more predictable as momentum in multi-year customer agreements improves revenue visibility and reinforces the durability of its subscription-based business model. During the first quarter of 2026, the company reported a 51% year-over-year increase in remaining performance obligations (RPO) to $3.48 billion, with management attributing the growth partly to a higher mix of multi-year contracts and longer contract durations. This expanding backlog provides greater visibility into future revenues, strengthening the predictability of recurring subscription revenues while reducing reliance on short-term renewals.

Datadog continues to win large enterprise expansion deals, with several customers expanding their usage across 10 or more Datadog products. Higher multi-product adoption, coupled with gross retention in the mid-to-high 90% range and net revenue retention in the low 120% range in the first quarter of 2026, supports longer-term customer commitments, increases switching costs and strengthens recurring revenue growth. AI-driven deployments are further contributing to larger enterprise engagements, expanding the company's long-term revenue opportunity.

Reflecting this momentum, management raised its full-year 2026 revenue outlook to $3.225-$3.245 billion from $3.175-$3.195 billion, underscoring confidence in customer demand and execution. While longer-duration contracts enhance revenue visibility and improve growth predictability, Datadog's ability to sustain this momentum will depend on continued customer renewals, platform expansion and healthy enterprise IT spending.

How Do Datadog's Rivals Stack Up?Dynatrace (DT - Free Report) emphasizes large enterprise platform standardization over maximizing RPO, unlike Datadog's expanding multiyear contracts. Dynatrace wins bigger end-to-end observability deals, records $1 million-plus ACV contracts in the fourth quarter of fiscal 2026 and broader platform adoption through DPS subscriptions. Dynatrace focuses on durable ARR expansion, enterprise consolidation and long-term consumption while benefiting from strategic AI-driven platform commitments rather than emphasizing deferred revenue metrics.

Snowflake (SNOW - Free Report) competes more directly with Datadog through rising RPO and multiyear enterprise commitments. In the first quarter of fiscal 2027, Snowflake reported 38% RPO growth, a new five-year AWS agreement and increasing $10 million-plus customers, supporting long-term revenue visibility. While Datadog benefits from larger multiyear observability contracts, Snowflake leverages AI-driven data platform expansion and enterprise consumption, making the company a formidable long-duration subscription competitor.

DDOG’s Share Price Performance, Valuation & EstimatesShares of DDOG have surged 68.5% over the past year, outperforming the broader Zacks Computer and Technology sector's growth of 22.8%.

DDOG’s Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, DDOG appears overvalued, trading at a trailing 12-month price-to-sales ratio of 24.92X, above the industry’s 5.27X. DDOG has a Value Score of F.

DDOG’s Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate projects earnings of $2.41 per share for 2026 and $2.88 for 2027, reflecting year-over-year growth of 17.56% and 19.29%, respectively.

Image Source: Zacks Investment Research

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

Key Takeaways HIW beat Q2 FFO and revenue estimates as leasing activity and higher in-place rents supported growth.Highwoods raised 2026 FFO guidance after improving leverage and maintaining strong leasing momentum.HIW advanced developments, completed asset sales and expects occupancy to rise in the second half of 2026. Highwoods Properties, Inc. (HIW - Free Report) reported second-quarter 2026 funds from operations (FFO) of 90 cents per share, beating the Zacks Consensus Estimate by 4.7%. The figure increased 1.1% from the year-ago quarter.

Rental and other revenues rose 7.9% year over year to $216.38 million and surpassed the consensus mark of $210.96 million. Robust leasing, higher in-place rents and positive rent spreads supported the quarter. Same-property cash net operating income (NOI) increased 0.3%.

In response to the above results, HIW shares were trading close to 4% higher in the early hours of today’s market session.

HIW's Leasing Volume Remains RobustHighwoods signed 1.07 million square feet of second-generation leases, up from 923,000 square feet in the prior-year quarter. The total included 326,000 square feet of new leases, while the dollar-weighted average lease term was 6.4 years.

Second-generation leases generated GAAP rent growth of 20.9% and cash rent growth of 3.2%. Net effective rents were 8% above the previous five-quarter average, indicating that the company maintained healthy leasing economics despite elevated tenant improvement and leasing commission requirements.

Highwoods Improves Occupancy and In-Place RentsQuarter-end in-service occupancy was 85.7% compared with 85.6% a year earlier. On properties owned throughout the second quarter, occupancy increased 110 basis points sequentially. The in-service leased rate stood at 89.6%, leaving a meaningful backlog of signed leases that have not yet commenced.

Average cash rental rates for in-place leases increased 2.6% year over year to $34.45 per square foot. Management expects occupancy to continue trending higher during the second half of 2026 as tenants begin occupying previously leased space.

Highwoods Advances Its Development PipelineThe company placed Midtown East in Tampa into service during the quarter. Highwoods owns a 50% interest in the 143,000-square-foot development, which was 94.9% leased and 39.5% occupied. Its share of total investment was $41.5 million.

The active development pipeline totaled $230 million at Highwoods’ share and was 93% leased, with only $28 million left to fund. The company also signed 63,000 square feet of first-generation leases, lifting the 642,000-square-foot 23Springs project to 93% leased well ahead of its projected stabilization.

HIW's Asset Sales Strengthen LiquidityHighwoods sold the 513,000-square-foot, fully occupied Bridgestone Tower in Nashville for $255 million. It also sold its 50% joint venture interest in a 10-acre land parcel for $4 million at its share.

The company expects to complete another $73.5 million of non-core dispositions during the third quarter. Including these pending transactions, announced and completed 2026 sales would total about $375 million. The additional proceeds increase financial flexibility but also create near-term earnings dilution because management does not assume reinvestment during the second half.

Highwoods Reduces Leverage and Raises OutlookNet debt to adjusted EBITDAre improved to 6.24X from 6.72X in the first quarter. Highwoods ended the quarter with $145.38 million of cash and no borrowings under its $750 million revolving credit facility.

Management raised its 2026 FFO guidance to $3.46-$3.70 per share from $3.40-$3.68. The outlook assumes same-property cash NOI growth between negative 1% and positive 1%, and year-end occupancy of 86.5%-88.5%.

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

Performance of Other Office REITsBXP, Inc. (BXP - Free Report) reported second-quarter 2026 FFO of $1.78 per share, beating the Zacks Consensus Estimate of $1.71. FFO rose 4.1% from the year-ago period. Results reflected higher occupancy and same-property NOI growth, which supported the FFO beat. Total portfolio occupancy climbed 100 basis points sequentially to 88.4%.

SL Green Realty Corp. (SLG - Free Report) delivered second-quarter 2026 FFO of $1.43, which beat the Zacks Consensus Estimate of $1.19 by 20.17%. However, FFO declined 12.3% from $1.63 in the year-ago quarter. The results reflected stronger Manhattan leasing, higher occupancy and growth in same-store cash NOI.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

Key Takeaways LSCC is expected to post higher Q2 2026 revenues and earnings compared to last year.LSCC's low-power FPGA demand and AI server investments are expected to support quarterly sales.Lattice's industrial demand and expanding design wins are expected to sustain momentum. Lattice Semiconductor Corporation (LSCC - Free Report) is set to report second-quarter 2026 results on Aug. 4, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 13.89%. It pulled off a trailing four-quarter earnings surprise of 3.47% on average, beating estimates only once in the previous quarters.

The company is expected to record year-over-year revenue growth, supported by a favorable demand environment across its key end markets. Healthy customer demand and continued execution of its product strategy are expected to have aided its business performance.

Factors at PlayDuring the second quarter of 2026, Lattice is expected to have benefited from continued demand for its low-power FPGA portfolio, including the Nexus, Avant, Certus and LatticeECP families. Ongoing customer migration to these next-generation platforms, driven by their enhanced performance, power efficiency and connectivity features, is likely to have supported product sales during the quarter.

During the quarter under review, continued investments in AI servers and cloud infrastructure are expected to have remained a key growth driver for Lattice. Rising capital spending by hyperscale and enterprise customers is likely to have boosted demand for the company's platform management, secure boot, I/O expansion and system control solutions, contributing positively to quarterly revenues.

Lattice's Industrial and Embedded business is expected to have delivered a steady performance during the June quarter, supported by sustained demand from factory automation, robotics and embedded computing applications. Improving channel inventory conditions and broader customer spending trends across industrial markets are likely to have provided an additional tailwind to quarterly performance.

During the to-be-reported quarter, Lattice's expanding design-win pipeline, supported by continued investment in development tools, IP cores, reference designs and software platforms, is expected to have strengthened its product ecosystem. This is likely to have facilitated the transition of new designs into commercial deployments, helping maintain business momentum during the quarter.

For the June quarter, the Zacks Consensus Estimate for total revenues is pegged at $185.1 million, indicating an increase from $124 million recorded a year ago. The consensus mark for earnings is pegged at 44 cents per share, indicating an increase from 24 cents reported in the year-ago quarter.

Earnings WhispersOur proven model does not predict an earnings beat for Lattice for the second quarter. 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. This is not the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Lattice carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to ConsiderHere are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:

Sandisk Corporation (SNDK - Free Report) has an Earnings ESP of +4.13% and sports a Zacks Rank #1 at present. It is set to release its fourth-quarter fiscal 2026 numbers on Aug 5.

The Earnings ESP for Motorola Solutions, Inc. (MSI - Free Report) is +0.52%, and it carries a Zacks Rank of 2 at present. The company is scheduled to report second-quarter 2026 numbers on Aug 05.

The Earnings ESP for Arista Networks Inc (ANET - Free Report) is +3.08%, and it carries a Zacks Rank of 2 at present. The company is scheduled to report second-quarter 2026 numbers on Aug 04.

Key Takeaways Equifax doubled its 2026-2028 AI savings target to $150 million to drive productivity and margin gains.EFX mortgage revenue rose 40% as VantageScore reached 1,300 lenders and 2.2 million Q2 transactions.Equifax plans a $750 million Crculo deal as international margins improve and growth broadens beyond the U.S. Equifax Inc. (EFX - Free Report) is leaning on artificial intelligence, mortgage scoring adoption, international expansion and new products to extend its growth profile.

The trends are visible in recent revenue gains. Its investment value still depends on whether Equifax can turn innovation and demand into margin expansion, disciplined acquisitions and durable earnings growth.

Equifax Expands AI-Driven Efficiency GoalsEquifax doubled its 2026-2028 AI-driven cost and capital savings target to $150 million, making artificial intelligence a broader productivity tool rather than just a product feature.

Management is applying AI and agentic solutions across product development, technology, operations and support functions, including human resources, legal and finance. The goal is to improve speed, accuracy and productivity while supporting margin expansion. Technology and operations represent about 60% of gross labor spending, giving the program a meaningful operating base.

EFX Mortgage Growth Signals Product AdoptionU.S. Information Solutions, or USIS, delivered 17% revenue growth in the second quarter, helped by a 40% increase in mortgage revenues. The gains reflect product adoption as well as a mortgage market that provided enough activity for Equifax’s scoring and data offerings to show leverage.

VantageScore adoption is an important part of that story. By July 2026, about 1,300 mortgage lenders were using the product, and second-quarter VantageScore transactions reached about 2.2 million, nearly triple the first-quarter level. TransUnion (TRU - Free Report) also competes in credit data and analytics, making lender adoption a key industry battleground.

Equifax Targets Mexico Through a Major AcquisitionEquifax signed an agreement to acquire Círculo de Crédito for an enterprise value of $750 million. The deal would expand Equifax’s international footprint in Mexico and fit its bolt-on acquisition strategy.

Círculo generated approximately $134 million in trailing revenues through June 30, 2026, up 31%, with an adjusted EBITDA margin of roughly 46%. Management expects the transaction to be accretive to adjusted earnings per share in the first year. Experian plc (EXPGY - Free Report) , another global information services company, offers peer context because international data and analytics scale remain central to the sector’s growth narrative.

EFX International Margins Show Operating LeverageInternational revenues rose 8% on a reported basis in the second quarter and 4% in local currency. Asia Pacific was the standout, with 17% reported revenue growth and 7% local-currency growth, while Latin America rose 9% on a reported basis and 3% in local currency.

The margin trend was more encouraging than the headline growth rate alone. International operating margin improved to 12.1% from 10.9%, and adjusted EBITDA margin expanded to 27.6% from 26.4%. That 120-basis-point improvement contrasted with margin pressure in Workforce Solutions and USIS, showing better incremental leverage outside the U.S. segments.

Equifax Scores Temper the Emerging Growth StoryThe emerging growth story is credible, but it is not yet an all-clear investment signal. AI savings, VantageScore adoption, new-product activity and the Círculo acquisition give Equifax multiple paths to faster revenue growth, but execution risk remains tied to integration, capital demands and margin delivery.

The stock currently carries a Zacks Rank #3 (Hold), which points to a neutral near-term earnings-revision picture. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Its Growth Score of B supports the expansion thesis, while a VGM Score of C suggests the overall blend of value, growth and momentum is not especially strong.

The Momentum Score of F is the main restraint. Zacks Style Scores are designed to complement the Zacks Rank, and stronger scores generally indicate better alignment with a given investment style. For EFX, the profile favors patient investors who are comfortable waiting for technology initiatives and mortgage adoption to translate into steadier market confirmation.

Key Takeaways Kenvue's diverse portfolio spans self-care, skin health and essential health categories.Kenvue's adjusted operating margin improved to 24% in Q1'26 on efficiency gains.Kimberly-Clark transaction could expand scale, distribution reach and cost opportunities. Kenvue Inc. (KVUE - Free Report) remains a closely watched consumer health name as investors weigh trusted brands, improving margins and a major pending transaction.

The company’s mix of self-care, beauty and everyday health products gives it a broad demand base, but uneven organic growth and execution risks keep the outlook balanced.

Kenvue Builds a Diverse Health PortfolioKenvue operates through Self Care, Skin Health and Beauty, and Essential Health. Its brand lineup includes Tylenol, Zyrtec, Neutrogena, Aveeno, Listerine, Nicorette, Johnson’s and BAND-AID Brand, giving the company exposure to pain care, allergy, smoking cessation, oral care, baby care, wound care, skin care and beauty categories.

That range reduces dependence on one product line and supports repeat-purchase behavior across everyday health needs. Global reach through retailers, pharmacies and digital channels further helps Kenvue serve recurring consumer demand across developed and international markets.

Kenvue Improves Margins Through EfficiencyProfitability has become a central part of the Kenvue story. In the first quarter of 2026, adjusted gross margin expanded 80 basis points to 60.8%, while adjusted operating margin improved 420 basis points to 24%.

The gains reflected supply-chain productivity, favorable value realization and cost optimization actions, including Our Vue Forward and the 2026 Restructuring Initiative. Lower selling, general and administrative expenses also helped offset inflation, tariffs and lower volumes, showing that disciplined spending can support earnings even when sales growth is modest.

Image Source: Zacks Investment Research

Skin Health Drives Kenvue Recovery EffortsSkin Health and Beauty delivered the strongest segment growth in the first quarter. Net sales increased 8.4%, while organic sales rose 5%, supported by 4.2% volume growth and 0.8% favorable value realization.

The segment benefited from innovation, sharper brand activation and targeted e-commerce initiatives. Neutrogena’s entry into sun care in select EMEA markets and the launch of OGX Pro Growth in North America and EMEA supported demand. Adjusted operating income rose to $168 million from $92 million, making the segment an important contributor to the company’s recovery profile.

Kimberly-Clark Deal Creates Strategic PotentialKenvue’s pending cash-and-stock combination with Kimberly-Clark Corporation (KMB - Free Report) adds another strategic dimension. Kenvue shareholders are expected to receive 0.14625 Kimberly-Clark shares plus $3.50 in cash for each Kenvue share, subject to closing conditions.

Shareholders of both companies have approved the required proposals, and the U.S. antitrust waiting period has expired. Foreign regulatory approvals remain outstanding, with closing expected in the second half of 2026. If completed, the transaction could combine Kenvue’s consumer health brands with Kimberly-Clark’s global personal-care platform, creating broader scale, distribution reach and cost opportunities.

The transaction also places Kenvue in a wider consumer staples context. The Procter & Gamble Company (PG - Free Report) , with major beauty, health care and household product categories, remains a useful comparison for investors watching branded consumer product scale and global distribution.

Kenvue’s Market Position Faces Mixed SignalsKenvue’s long-term setup combines durable brands, better profitability and a potential deal catalyst. Still, the stock’s profile is not without offsets, including modest organic growth, Self Care volume pressure, restructuring costs, debt, litigation exposure and limited earnings visibility while the Kimberly-Clark transaction remains pending.

The stock currently carries a Zacks Rank #3 (Hold), which fits a balanced near-term view rather than a clear bullish or bearish signal. Its Value Score of C, Growth Score of C and VGM Score of C suggest average characteristics across valuation, growth and combined style measures, while its Momentum Score of D points to weaker share-price and estimate-revision support.

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

For investors, the scores reinforce the need to weigh operating improvements against unresolved risks. Kenvue has credible drivers in brands, efficiency and Skin Health momentum, but broader stock strength may require clearer organic growth, transaction resolution and sustained execution.

The New York Stock Exchange with a Hims & Hers Health, Inc banner is pictured as a person runs past in the Manhattan borough of New York City, New York, U.S., January 21, 2021. REUTERS/Carlo... Purchase Licensing Rights, opens new tab Read more

CompaniesJuly 29 (Reuters) - The U.S. Federal Trade Commission is suing Hims & Hers (HIMS.N), opens new tab alleging the telehealth ​platform shared users' health data with ‌online advertisers despite promising privacy and engaged in deceptive billing and cancellation practices, an FTC spokesperson said.

​Hims & Hers is one of the largest telehealth ​players in the market for weight loss ⁠drugs. The company offers telehealth appointments and ​prescriptions for erectile dysfunction, hair loss, and mental ​health medications, which it ships straight to customers.

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Users' sensitive health information was shared with online advertising companies including ​Meta Platforms (META.O), opens new tab and Snap (SNAP.N), opens new tab, via their interactions ​with Hims' website and through tracking technologies, the FTC ‌plans ⁠to allege in the lawsuit being filed along with Los Angeles County and Utah.

Hims & Hers also starts charging users for prescriptions before they ​have had ​a chance ⁠to meet with healthcare providers, the spokesperson said.

Most customers do not ​receive a consultation with a provider, and ​instead ⁠are charged for prescriptions soon after filling out an intake form, according to the agency. ⁠Hims & ​Hers also makes it difficult ​to cancel subscriptions, the FTC plans to allege.

Reporting by Jody ​Godoy in New York; Editing by Chizu Nomiyama

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Jody Godoy reports on tech policy and antitrust enforcement, including how regulators are responding to the rise of AI. Reach her at [email protected]

Nebius Group (NASDAQ:NBIS | NBIS Price Prediction) stock is down 10% in midday Wednesday trading, changing hands at $152.58. The AI cloud pure-play is the day’s biggest decliner in the group.

CoreWeave (NASDAQ:CRWV) shares are close behind, off 9% to $61.53. Both names have led a sharp re-pricing of highly levered AI infrastructure borrowers, with NBIS stock now down 43% over the past month and CRWV stock down 36% over the same stretch.

Credit-Swap Costs Spark AI Capex Repricing The trigger is the credit market, not earnings. Credit-default-swap (CDS) costs on AI-infrastructure borrowers have surged as investors question whether the current capex boom can be financed at reasonable rates.

CoreWeave’s CDS topped roughly 855 basis points Tuesday, implying a 50% five-year default probability on a widely used pricing model. The company is junk-rated with negative free cash flow since 2022. CoreWeave’s Q1 2026 report showed interest expense doubling to $536 million and free cash flow of negative $4.71 billion.

Oracle (NYSE:ORCL) is caught in the same downtrend. Oracle stock is down 2% to $117.29, with its CDS above 215 basis points, up from about 145 at the end of last year. Oracle is the largest non-financial borrower in the Bloomberg U.S. high-grade index, and its 2054 note yields have climbed to 7.8%.

Apollo economist Torsten Slok warned that rising all-in yields could force the AI capex cycle to “self-throttle.” The 10-year Treasury yield, at 4.65%, sits in the 98th percentile of its 12-month range, reinforcing the tighter-financing narrative.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Oracle didn't make the cut. Grab the names FREE today.

Cloud ETF Green as Pain Stays Concentrated The First Trust Cloud Computing ETF (NASDAQ:SKYY) is the tell. The SKYY ETF is up 0.59% to $138.71, even as its 3% CoreWeave weighting and 3.8% Oracle weighting weigh the fund down. Broad cloud software is holding up, so this looks like a targeted re-rating of leveraged buildout names rather than a cloud-wide unwind. NVIDIA (NASDAQ:NVDA) stock is off 3% to $191.59, with NVIDIA’s CDS also touching a new high per the same reports.

A secondary narrative on the retail side involves insider selling. CoreWeave co-founder Brian Venturo sold about $734 million in Q2 2026 and CEO Michael Intrator sold about $447 million, alongside a roughly $407 million disposal by an NVIDIA director. These sales were executed under pre-arranged 10b5-1 plans, are consistent with routine wealth management, and the executives retain substantial stakes.

What to Watch If CDS spreads on Oracle, CoreWeave and Nebius stay wide into the close, the refinancing math gets harder and equity multiples could compress further.

Investors can watch for whether the SKYY ETF holds green (a signal that the pain stays confined to leveraged AI names) and whether NVIDIA stock stabilizes. Any fresh financing announcement from CoreWeave or Nebius could set the tone for Thursday’s open.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Oracle didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

ProPetro Holding (PUMP - Free Report) came out with a quarterly loss of $0.07 per share versus the Zacks Consensus Estimate of a loss of $0.01. This compares to a loss of $0.07 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -600.00%. A quarter ago, it was expected that this oilfield services company would post a loss of $0.12 per share when it actually produced a loss of $0.03, delivering a surprise of +75%.

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

ProPetro, which belongs to the Zacks Oil and Gas - Field Services industry, posted revenues of $305.81 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.76%. This compares to year-ago revenues of $326.15 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.

ProPetro shares have added about 12.1% since the beginning of the year versus the S&P 500's gain of 8.5%.

What's Next for ProPetro?While ProPetro 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 ProPetro 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 $0.04 on $321.59 million in revenues for the coming quarter and -$0.02 on $1.2 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, Oil and Gas - Field Services is currently in the bottom 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, ProFrac Holding Corp. (ACDC - Free Report) , has yet to report results for the quarter ended June 2026.

This company is expected to post quarterly loss of $0.29 per share in its upcoming report, which represents a year-over-year change of +56.7%. The consensus EPS estimate for the quarter has been revised 4.2% higher over the last 30 days to the current level.

ProFrac Holding Corp.'s revenues are expected to be $448.95 million, down 10.6% from the year-ago quarter.

View of an Apple logo at an Apple store in Paris, France, April 23, 2025. REUTERS/Abdul Saboor/File Photo Purchase Licensing Rights, opens new tab

CompaniesLONDON, July 29 (Reuters) - Apple (AAPL.O), opens new tab said on Wednesday that proposed UK rules governing its App Store would amount to price regulation, arguing that ​plans to loosen its control over in-app payments could undermine innovation ‌and investment.

In a submission to Britain's Competition and Markets Authority, the iPhone maker said proposed "steering" requirements would go beyond promoting competition and give the regulator a "highly intrusive" role ​in managing its business.

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The CMA's consultation, which closed on Monday, ​is part of its efforts to boost competition and consumer choice. ⁠Its proposed measures would allow app developers to direct users to ​payment options outside Apple's App Store and Google's Play Store and require any ​fees charged for such steering to be fair and reasonable.

Apple said the App Store facilitated more than £46.5 billion ($61.8 billion) in UK billings and sales in 2025, with commissions ​accounting for less than 3.5% of the total. It added that there ​was no evidence changes to its payment model would lower prices for consumers.

"Under the (consultation), ‌the ⁠CMA would not only regulate Apple's prices, but also restrict the products and services for which Apple can charge a commission," the company said in its submission.

Gene Burrus, global policy counsel for the Coalition for App Fairness, ​which has long ​campaigned for restrictions ⁠on Apple and Google app store practices, said Apple's arguments overlooked the barriers developers face.

"Apple is using its position ​as the dominant platform gatekeeper to give itself unfair ​and unwarranted ⁠competitive advantages," Burrus said.

Apple has previously said developers already have multiple ways to transact with users outside its platform.

The CMA consultation is part of Britain's ⁠new ​digital markets regime, which gives the watchdog powers ​to impose tailored requirements on companies designated as having "strategic market status".

Apple and Google were designated under ​the regime last year.

($1 = 0.7521 pounds)

Reporting by Sam Tabahriti. Editing by Mark Potter

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Sam Tabahriti is a UK breaking news correspondent covering general and political news for Reuters. He has over five years of experience covering general news and three years covering business and legal news. He is also a keen cyclist and photography enthusiast.

Meta is scheduled to report second-quarter results after the close of regular trading on Wednesday.

Here's what Wall Street is expecting, according to estimates from analysts polled by LSEG:

Earnings per share: $7.22 adjustedRevenue: $60.17 billionMeta is projected to show revenue growth of 26% from $47.52 billion in the same period a year ago, as the company's core advertising business continues to benefit from advancements in artificial intelligence.

While Meta's digital ad business remains healthy, the company is trying to show that it can compete directly in the market for AI models and services, where OpenAI, Anthropic and Google have big leads.

On the earnings call, investors will be listening closely to what Meta CEO Mark Zuckerberg has to say about the company's efforts to more directly monetize its various AI-related efforts. Earlier this month, Meta debuted the Muse Spark 1.1 model, which AI chief Alexandr Wang said represents the "strongest model for agentic and coding work yet" and at a cheaper price than offerings from OpenAI and Anthropic.

Meta also released Muse Image, which contains certain features that power users and creators can access if they sign up for one of the company's new monthly subscription plans that were revealed in May.

The company has been aggressively investing in a new AI strategy since hiring Wang in June 2025 in a deal that involved a $14.3 billion investment in Scale AI, Wang's startup. Meanwhile, Meta is pouring money into AI infrastructure as it tries to keep pace with Alphabet, Amazon and Microsoft when it comes to building data centers and securing AI chips and systems needed to run models and workloads.

On Tuesday, Meta announced a venture with BlackRock to create a $14 billion data center project in El Paso, Texas, just a few weeks after disclosing that its big Hyperion data center project in rural Louisiana would cost over $50 billion. Earlier in July, Meta revealed plans to build a $9 billion data center in Alberta, Canada.

Meta shares are down 10% this year, badly trailing the Nasdaq, as Wall Street questions whether the company's hefty investments will produce returns.

"The gap between capex intensity and diversified monetization remains the central debate for the stock," analysts at Wedbush wrote in a report last week. They have the equivalent of a hold rating on the shares and said the uncertainty is "the reason we remain on the sidelines despite Meta's valuation discount to peers."

In its last earnings report in April, Meta boosted its capex forecast for the year to a high of $145 billion from $135 billion. Analysts expect Meta to post $33.9 billion in capex for the second quarter and are projecting $136.7 billion for the year.

Alphabet shares sank last week after the company hiked its guidance for 2026 capex to as much as $205 billion from a prior prediction of up to $190 billion.

Among the four leading hyperscalers, Meta is the only one without a cloud infrastructure business. But Zuckerberg has indicated recently that the company will be looking to sell some AI capacity to third parties. Anthropic is currently engaged in preliminary talks to lease AI-related computing capacity from Meta, CNBC confirmed earlier this month.

For the second quarter, Meta is expected to report 3.61 billion daily active people (DAP), according to StreetAccount, a number that refers to usage of its family of apps. Analysts anticipate second-quarter average revenue per person of $16.65.

Meta's Reality Labs unit, which develops virtual reality, augmented reality and AI-powered wearable devices like the Ray-Ban Meta glasses, is expected to post a loss for the quarter of $5.07 billion on revenue of $423.4 million, according to StreetAccount.

WATCH: AI and capex in focus for Meta this week: Here's what to expect.

watch now

Key Takeaways Alibaba's operating cash flow fell 53% in FY26 as investment spending accelerated.Free cash flow swung to an RMB46.6 billion outflow from an RMB73.9 billion inflow.Cloud revenues accelerated, but sustained AI spending could keep free cash flow under pressure. Alibaba's (BABA - Free Report) weakening cash flow could become a headwind to its long-term growth potential if heavy investments continue to outpace cash generation. The company generated solid revenue growth in fiscal 2026, but its cash generation deteriorated sharply as it accelerated spending on AI infrastructure, cloud capacity, quick commerce and the Qwen AI ecosystem. Operating cash flow declined 53% year over year in fiscal 2026, while free cash flow swung to an outflow of RMB46.6 billion from an inflow of RMB73.9 billion a year earlier. This decline is primarily due to investments in quick commerce, cloud infrastructure and Qwen user acquisition, underscoring that these initiatives remain strategic priorities despite near-term financial pressure.

At the same time, management indicated that AI demand will require an even larger data center footprint over the next five years, implying sustained capital commitments that could keep free cash flow under pressure. Although Alibaba maintains a strong balance sheet, including RMB520.8 billion of cash and other liquid investments, continued negative free cash flow may eventually reduce financial flexibility if investment returns take longer to materialize.

On the positive side, Cloud Intelligence revenues continue to accelerate, supported by robust AI adoption, suggesting these investments could generate meaningful long-term returns. However, investors should closely monitor whether improving cloud monetization and operating efficiencies can offset persistent cash outflows. Until Alibaba demonstrates consistent recovery in ‘free cash flow’ alongside AI-driven revenue growth, cash flow weakness will likely remain a significant negative factor affecting its long-term investment potential.

How Does Alibaba Stack Up Against Its Main Rivals?Alphabet (GOOGL - Free Report) generates substantially stronger operating cash flow than Alibaba, enabling larger AI and cloud investments without compromising financial flexibility. Alphabet produced $39.1 billion in operating cash flow in the second quarter of 2026 while expanding AI infrastructure and strengthening its global monetization engine. Alphabet's diversified Search, YouTube and Cloud businesses provide durable competitive advantages, whereas Alibaba's free cash flow remains under pressure from aggressive AI investment.

Amazon (AMZN - Free Report) enjoys a stronger cash flow profile than Alibaba, supporting massive AI infrastructure spending backed by customer commitments and long-term returns. Amazon continues funding AWS, custom chips and logistics expansion while expecting future free cash flow acceleration. Amazon benefits from diversified businesses, scale and enterprise demand.

BABA’s Share Price Performance, Valuation & EstimatesBABA shares have declined 21.4% year to date compared with the industry’s fall of 4.1%.

BABA’s YTD Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, BABA is currently trading at a price-to-book ratio of 1.7, below the sector’s average of 4.23. The company carries a Value Score of C.

BABA’s Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for fiscal 2027 and 2028 EPS has been revised downward over the past 30 and 60 days. The company has also missed earnings expectations in each of the trailing four quarters, with an average negative surprise of 37.65%.

Image Source: Zacks Investment Research

Mark Cuban and Michal Burry warn the AI boom is dangerously reliant on Nvidia By You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

Mark Cuban (left) and Michael Burry. Bloomberg/Getty Images; Astrid Stawiarz/Getty Images Mark Cuban and Michael Burry just sounded the alarm on Nvidia's sprawling web of AI deals.

Cuban struck a worried tone on X after another user wrote that Nvidia, by financing its customers' purchases of its graphics chips for their data center buildouts, is acting as a "backstop" and making itself vulnerable to an AI downturn.

"This is so analogous to the dot com burst," the tech billionaire and former "Shark Tank" investor wrote in a Tuesday post. "But instead of IPOs, Nvidia is the 'ipo,' funding everyone and anyone."

Cuban was referring to the popularity of going public during the internet bubble as a way for startups to raise cash and secure rich valuations — and saying that Nvidia has replaced the stock market in that role during this tech boom.

"One breakthrough in another chip provider, or a misstep, and it all could crumble," he wrote on X. "It's truly scary."

As far as Nvidia subsidizing everyone. You are right on. But that feeds the credit problem, far beyond oracle.

You never know where an exogenous change is going to come from. This is so analogous to the dot com burst. But instead of IPOs, Nvidia is the “ipo” , funding…

— Mark Cuban (@mcuban) July 28, 2026 Nvidia has struck deals worth hundreds of billions of dollars with numerous players in the AI ecosystem, including OpenAI, Microsoft, CoreWeave, and SK Hynix.

Cuban seems concerned that the chipmaker is so deeply intertwined with its customers that if it runs into problems, the damage could spread far and fast, creating painful and widespread fallout.

Nvidia CEO Jensen Huang himself, speaking during a company meeting in November, acknowledged Nvidia's linchpin role by pointing to online memes about the company propping up the AI boom, the stock market, and the global economy.

"We're basically holding the planet together — and it's not untrue," Huang said.

Shares of Nvidia were trading 2% lower on Wednesday, leaving them down 18% from their May peak. But they're still up around 13-fold since the start of 2023.

Nvidia didn't immediately respond to a request for comment from Business Insider.

"Biblical proportions"Burry, the investor of "The Big Short" fame, issued a similar warning to Cuban in a late Tuesday post on X.

"There is a reason $NVDA's 5 year credit default swaps are going parabolic," he wrote, attaching a chart showing the price of buying insurance against Nvidia defaulting on its debts has roughly doubled within the past two months.

"All this overreaching by #nvda to push the circular spending to biblical proportions," he added, suggesting that markets are pricing in a greater risk of Nvidia failing to meet its financial commitments because it's overextending itself with too many deals.

Michael Burry posted about Nvidia "circular spending" on X.  @michaeljburry/X Burry's iconic "Big Short" centered on buying credit default swaps to bet against subprime mortgage bonds during the mid-2000s housing bubble. The instruments surged in value once mortgage defaults began spiking, resulting in a huge windfall for Burry and his clients.

Both Cuban and Burry have taken aim at aspects of the AI boom in recent weeks.

Cuban cautioned on a podcast that companies are overbuilding AI infrastructure that will become more efficient over time, resulting in excess capacity. He quipped that a lot of the buildings will be converted into pickleball courts.

Similarly, Burry has said that tech giants are overinvesting in microchips and data centers that will quickly become obsolete, dragging out depreciation to inflate their earnings, and signing "give-and-take" deals to keep fueling hype around AI.

Burry, who pivoted from running a hedge fund to writing about his personal portfolio last winter, wrote in January that he was short Nvidia because it was "entirely dependent on hyperscaler spending, and I do not see how that math works."

In a July 24 post, Burry wrote that he bolstered his Nvidia short and holds bearish puts on the stock "in good size." He believes that much of its demand doesn't stem from end customers, much of it is financed and kept off its balance sheet, and "future revenues are majority financed in a circular arrangement," he wrote.

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Theron Mohamed You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

Theron Mohamed is a London-based correspondent on the Trending team at Business Insider. His coverage spans finance, investing, wealth, markets, and the economy.Theron joined BI in 2019 as a reporter at Markets Insider and rose to the rank of correspondent before moving to the Trending team in 2024. He previously covered tech, media, and telecom stocks for Investors Chronicle magazine and had a brief stint on the Financial Times' Data team. He interned at the Wall Street Journal in New York where he primarily wrote for Heard on the Street.Theron has freelanced for The Independent, The Telegraph, WIRED, and several smaller publications. He holds an undergraduate degree in geography from the London School of Economics, and a master's degree in journalism from Columbia University.Theron often covers Warren Buffett, Michael Burry, Jeremy Grantham and other top-flight investors. He also writes about the world's wealthiest people and shares financial advice from all manner of rich and successful people.Email Theron at [email protected] and follow him on X @theron_mohamed.Expertise

Corporate financeStocks and investingWealth and philanthropyBusiness historyUS economyWarren Buffett and Berkshire HathawayPopular articlesAl Pacino says he went from $50 million to broke, joining a long list of stars who've experienced money troublesAn oil tycoon sold his company for $26 billion this year — but died before the deal closedWarren Buffett drinks 5 cans of Coke a day — here's why he switched from Pepsi after nearly 50 yearsMeet the 16 people in the $100 billion club — who are jointly worth more than Amazon or Google'Big Short' investor Michael Burry kept quiet, piled into China tech, and won big with a stock bet in 2024Bill Gates' former assistant is worth $154 billion — and could soon be richer than the Microsoft cofounderHoward Schultz talked about Steve Jobs, trademarking the latte, and Starbucks' problems in a marathon interviewWarren Buffett just made a rare trip to Tokyo. Here's the story of a disastrous sushi dinner that made him swear off Japanese food forever.21 states where recession bells are ringing after unemployment jumpsWarren Buffett is building the Noah's Ark of rainy-day funds. Here's why he's stacked up more than $300 billion.The 'Shark Tank' star Kevin O'Leary warns couples not to combine finances: 'I don't care how in love you are'The Waltons are once again the world's wealthiest family, beating out Gulf royalty and fashion dynasties

Finance Tech Mark Cuban More Shark Tank AI Data Centers IPO Investing Stocks

Key Takeaways PepsiCo's international organic revenue rose 7%, extending mid-single-digit growth to 21 quarters.PepsiCo reaffirmed 2026 organic revenue growth of 2-4% and core EPS growth of 5-7%.PepsiCo's North America organic revenue fell 0.5% as affordability and cost pressures persisted. PepsiCo Inc. (PEP - Free Report) enters the second half of 2026 with durable global brands, better international volumes and reaffirmed financial guidance.

The investment debate is more balanced in North America, where soft demand, affordability spending and input-cost pressure continue to test near-term execution.

PepsiCo Builds on a Diversified Global PortfolioPepsiCo operates in more than 200 countries and territories with a portfolio that spans beverages and convenient foods. Its brands include Pepsi, Gatorade, Lay’s, Doritos, Cheetos, Quaker and Mountain Dew, giving the company multiple demand channels across daily consumption occasions.

Its six reporting segments further reduce reliance on one geography or category. PepsiCo Foods North America and PepsiCo Beverages North America cover the United States and Canada, while International Beverages Franchise, Europe, the Middle East and Africa, Latin America Foods and Asia Pacific Foods broaden the growth base.

The Coca-Cola Company (KO - Free Report) remains a relevant benchmark because it also sells beverages in more than 200 countries and territories. Keurig Dr Pepper Inc. (KDP - Free Report) , with its North American beverage portfolio and distribution network, offers another comparison point for investors tracking category demand and flavor innovation.

PEP Leans on International Markets for GrowthInternational markets were PepsiCo’s clearest growth engine in the second quarter of 2026. International organic revenue increased 7%, marking the 21st consecutive quarter of at least mid-single-digit organic revenue growth.

The strength was broad based. International Beverages Franchise organic revenues rose 9%, Europe, the Middle East and Africa grew 6%, Latin America Foods increased 4% and Asia Pacific Foods advanced 9%. Asia Pacific Foods also delivered 10% organic volume growth, the strongest volume performance among the reported segments.

PepsiCo Uses Productivity to Support EarningsPepsiCo’s second-quarter net revenues rose 6.4% to $24.18 billion, while organic revenues increased 2.4%. Core operating profit increased 4% and core earnings per share grew 4%, showing that productivity and pricing helped support earnings despite a tougher cost environment.

Automation, digitalization and supply-chain simplification remain central to that support. These initiatives are intended to offset inflation, help fund brand investment and preserve flexibility as management expects higher input-cost inflation in the second half of 2026.

PEP Balances Innovation With AffordabilityPepsiCo is expanding in functional hydration, protein offerings, zero-sugar beverages, permissible snacks and portion-control formats. These categories align with consumer demand for better-for-you choices while allowing the company to refresh established brands.

Affordability is the other side of the strategy. PepsiCo is using price-pack adjustments and spending behind value-oriented offerings to reach budget-conscious consumers, especially in North America. That focus helped convenient foods gain volume share, but the region still showed softer financial trends.

PepsiCo’s Signals Point to Near-Term CautionPepsiCo’s long-term global strengths remain visible, but the stock’s near-term setup is cautious. North America organic revenue declined 0.5% in the second quarter, PepsiCo Foods North America revenues fell 2%, and PepsiCo Beverages North America organic growth was only 1% despite reported revenue growth of 7%.

The company reaffirmed its 2026 outlook for organic revenue growth of 2-4% and reported net revenue growth of 4-6%. Core constant-currency earnings per share are expected to increase 4-6%, while core earnings per share are expected to rise 5-7%. Still, earnings growth is expected to be weighted toward the fourth quarter, which raises execution risk.

The stock currently carries a Zacks Rank #4 (Sell). That rank points to unfavorable earnings estimate revision trends over the next one to three months and supports caution for investors focused on near-term stock selection.

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

PepsiCo also has a Value Score of C, Growth Score of C, Momentum Score of F and VGM Score of C. These scores suggest a middle-ground valuation and growth profile, while the weak momentum reading reinforces the more cautious near-term signal despite PepsiCo’s durable global brand base.

Qualcomm stock price continued its strong downward trend this week, reaching its lowest level since April 30. QCOM has plunged by over 37% from its highest point this year, with its market capitalization falling from $265 billion to $171 billion. 

Qualcomm’s crash has coincided with the ongoing sell-off among other semiconductor companies. The VanEck Semiconductor (SMH) ETF has dropped from $671 to $529, while the iShares PHLX SOX Semiconductor Sector ETF (SOXX) has pulled back from a high of $655 to $490 today. 

QCOM stock has been in a strong bearish trend in the past few months as semiconductor and memory companies came under pressure. Nvidia, the biggest name in the industry, remains down by over 17% from its peak. Other companies like Intel and AMD have plunged in this period.

Qualcomm stock will be in the spotlight as the company publishes its financial results. Analysts expect the upcoming results to show that its revenue dropped by 6.68% last quarter to $9.6 billion. Also, its earnings-per-share (EPS) is expected to drop from $2.77 to $2.22. 

Qualcomm plans to address the revenue weakness by hiking prices. Media reports suggest that the company plans to boost prices for all chips going out in September this year. This is important as its products power most devices like smartphones, tablets, and some laptops.

According to Bloomberg, the company says that the price hikes are necessary as it has exhausted its ability to absorb costs from its suppliers. Also, it has faced its hard to find alternative suppliers to lower its prices. 

The price increases should help to support the stock in the near future as analysts predict that its full-year revenue will be lower than what it made a year earlier. Analysts expect the revenue to drop by 3.50% to $42.6 billion this year, followed by $44.18 billion next year.

The risk, however, is that soaring prices may lead to lower demand for smartphones and other devices. 

Third-party data shows that the company has become a bargain. It has a forward price-to-earnings ratio of 15, lower than the sector median of 23. The iShares Semiconductor ETF (SOXX), which tracks the biggest semiconductor companies, has a price-to-earnings ratio of 67. 

Qualcomm also has a forward price-to-cash flow ratio of 12.90, also lower than the sector median of 18.7. 

The options market expects the company to be highly volatile, with the implied volatility rising to 123%. Its put/call open interest has moved to 0.55, a sign that more investors see the stock rising. 

Qualcomm stock chart | Source: TradingView

Qualcomm share price has plunged from a high of $260 in May to the current $162. Technicals suggest that the stock has more downside. For example, the Percentage Price Oscillator (PPO) has continued falling. Also, the Relative Strength Index (RSI) has continued falling and is nearing the oversold level of 30. The RSI suggests that it has more downside before it becomes oversold.

On the positive side, the stock has formed a falling wedge pattern, which is made up of two falling and converging trendlines. This pattern often leads to a bullish breakout.

As such, these technicals suggest that the stock will be highly volatile after its earnings report. The key levels to watch will be at $150 and $180. 

Chord Energy Corporation (CHRD - 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 5, 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 company is expected to post quarterly earnings of $6.68 per share in its upcoming report, which represents a year-over-year change of +273.2%.

Revenues are expected to be $1.43 billion, up 20.8% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 20.68% lower 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 an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

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. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

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 Chord Energy Corporation?For Chord Energy Corporation, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.

On the other hand, the stock currently carries a Zacks Rank of #4.

So, this combination makes it difficult to conclusively predict that Chord Energy Corporation 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 Chord Energy Corporation would post earnings of $3.35 per share when it actually produced earnings of $4.56, delivering a surprise of +36.12%.

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.

Chord Energy Corporation 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 PlayerW&T Offshore (WTI - Free Report) , another stock in the Zacks Oil and Gas - Exploration and Production - United States industry, is expected to report loss per share of $0 for the quarter ended June 2026. This estimate points to a year-over-year change of +100%. Revenues for the quarter are expected to be $151.55 million, up 23.9% from the year-ago quarter.

The consensus EPS estimate for W&T has been revised 12.5% lower over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +633.32%.

When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that W&T will most likely 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 Gilead to report Q2 results on Aug. 4, with HIV therapies likely to remain the primary growth driver.GILD raised 2026 Yeztugo sales guidance after a strong launch and improved HIV market trends.Gilead expects Cell Therapy sales to face competitive pressure, while Trodelvy demand remains solid. Biotech bigwig Gilead Sciences, Inc. (GILD - Free Report) is scheduled to report second-quarter results on Aug. 4, after market close. The Zacks Consensus Estimate for sales and loss per share is pegged at $7.37 billion and $7.07, respectively.

Bottom-line estimate for 2026 has decreased to a loss of 78 cents from earnings of 8 cents per share over the past 60 days.

The EPS estimate for 2027 has increased to $9.73 from $9.58 in the said time frame.

Image Source: Zacks Investment Research

GILD’s Earnings Surprise HistoryGILD has a good track record. Its earnings beat estimates in three of the trailing four quarters and missed in the remaining one, delivering an average surprise of 6.75%. In the last reported quarter, the company’s earnings beat estimates by 7.41%.

What Our Model Predicts for GILDPer our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here, as you can see below.

Earnings ESP for GILD is -0.75%. The company currently carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Factors Influencing GILD’s Q2 ResultsGilead has a market-leading HIV franchise, led by flagship HIV therapies — Biktarvy and Descovy.

Biktarvy is the top revenue generator for GILD. Per the company, Biktarvy accounts for more than 52% of the treatment market in the United States, and continues to be the market leader in major markets around the world.

Gilead’s HIV pre-exposure prophylaxis (PrEP) portfolio comprises daily oral Descovy and the first and only twice-yearly injectable Yeztugo.

Descovy’s performance continues to be strong, primarily driven by higher demand and average realized price.

The top-line estimate for Biktarvy and Descovy is pegged at $3.6 billion and $750 million, respectively, and our model estimate for the same is pinned at $3.7 billion and $701 million.

Yeztugo raked in sales of $166 million in the first quarter. Following better-than-expected first-quarter results and improving market trends, Gilead raised its 2026 sales guidance for Yeztugo to $1 billion, signaling the product’s potential to achieve blockbuster status in its first full year on the market.

Consequently, Yeztugo sales likely recorded strong growth in the second quarter.

Driven by increased Yeztugo sales expectations and strong first-quarter HIV performance, Gilead now projects total 2026 HIV sales growth of approximately 8%, up from its prior guidance of 6% issued in February. The updated outlook includes an estimated 2% headwind related to the U.S. government’s Medicaid drug pricing agreement and proposed Affordable Care Act changes.

The Liver Disease portfolio includes drugs for chronic hepatitis C virus, chronic hepatitis B virus and chronic hepatitis delta virus.

Sales from this franchise have likely increased in the second quarter, driven by higher demand for Livdelzi (seladelpar) for the treatment of primary biliary cholangitis.  

Veklury sales likely remained highly variable.

Cell Therapy product sales (Yescarta and Tecartus) have likely decreased in the to-be-reported quarter due to competitive headwinds, both in the United States and internationally.

The Zacks Consensus Estimate and our model estimate for Cell Therapy product sales are pinned at $417 million and $419 million, respectively.

Trodelvy, indicated for second-line metastatic triple-negative breast cancer and pre-treated HR+/HER2- metastatic breast cancer, likely experienced strong demand in the second quarter, similar to the first quarter. The Zacks Consensus Estimate and our estimate for Trodelvy sales are pinned at $448 million and $427 million, respectively.

R&D expenses might have increased in the second quarter, caused by higher investment in virology clinical manufacturing, partially offset by lower oncology clinical study activity. SG&A expenses, too, must have increased, reflecting higher investments in sales and marketing to support commercial launches.

GILD’s Price Performance and ValuationShares of GILD have risen 9.4% year to date compared with the industry’s growth of 2%. The stock has outperformed the sector and the S&P 500 in this time frame.

GILD's Outperforms Industry, Sector & S&P 500 Index 
Image Source: Zacks Investment Research

Going by the price/earnings ratio, GILD’s shares currently trade at 25.48X forward earnings, higher than its mean of 12.01X but lower than 19.11X for the large-cap pharma industry.

Image Source: Zacks Investment Research

Investment Thesis for GILDGilead Sciences has a market-leading HIV portfolio that continues to deliver strong growth, supported by sustained demand for its flagship therapies. The company's ongoing innovation in HIV treatment has been well received by investors, while the strong initial launch of Yeztugo has provided an additional boost to the franchise.

Gilead is also investing to further strengthen its HIV leadership through internal pipeline development and its collaboration with Merck (MRK - Free Report) . Potential approvals of new HIV therapies should reinforce the company's dominant position in the market.

Beyond HIV, Gilead is making steady progress in diversifying its revenue base. Strong uptake of Livdelzi has strengthened its liver disease portfolio.

In oncology, Trodelvy continues to gain market share in second-line metastatic breast cancer and recently secured FDA approval for an expanded label in the first-line treatment of adults with unresectable locally advanced or metastatic triple-negative breast cancer (mTNBC).

This followed a similar label expansion by the European Commission, significantly broadening Trodelvy's addressable market by moving the therapy into the first-line setting, where treatment options have historically been limited. These developments support Gilead's strategy of building a stronger oncology franchise and reducing its dependence on HIV revenues.

The company's strategic acquisitions and partnerships further enhance its long-term growth prospects. However, Gilead's Cell Therapy franchise, comprising Yescarta and Tecartus, continues to face competitive pressures in both the United States and Europe, which might have weighed on recent sales. Despite these challenges, the strength of Gilead's HIV business, expanding oncology portfolio and disciplined business development strategy position the company for sustained long-term growth.

Stay Invested in GILD StockContinued innovation across Gilead's HIV portfolio should drive sustained growth despite intensifying competition from GSK plc (GSK - Free Report) .

GSK continues to expand its HIV business, fueled by strong demand for its long-acting injectable therapies, Cabenuva and Apretude, as well as Dovato, which have more than offset the ongoing decline in Triumeq sales.

Gilead's strategic acquisitions and partnerships to diversify its revenue base further strengthen its long-term growth outlook.

However, we recommend that prospective investors adopt a wait-and-watch approach, as Gilead's Cell Therapy business continues to face competitive pressures.

For existing shareholders, holding the stock appears prudent, supported by the company's solid HIV franchise, pipeline strength and attractive dividend yield.

Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- W.W. Grainger, Inc. (NYSE: GWW) announced today that its board of directors approved a quarterly cash dividend of $2.49 per share. The dividend is payable on September 1, 2026, to shareholders of record on August 10, 2026.

This dividend reflects Grainger's ongoing commitment to delivering long-term value to shareholders and maintaining a disciplined capital allocation strategy.

About Grainger
W.W. Grainger, Inc., is a leading broad line distributor with operations primarily in North America and Japan. At Grainger, We Keep the World Working® by serving more than 4.6 million customers worldwide with maintenance, repair and operating (MRO) products and value-added solutions delivered through innovative technology and deep customer expertise. Known for its commitment to service and purpose-driven culture, the Company reported 2025 revenue of $17.9 billion. For more information, visit www.grainger.com.

SOURCE W.W. Grainger, Inc.

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Key Takeaways Albemarle and Rio Tinto are well-positioned to benefit from rising lithium demand.ALB focuses on capacity expansion, cost cuts and strong cash flow to support growth.RIO advances major lithium projects, boosts output and leverages a strong balance sheet. Albemarle Corporation (ALB - Free Report) and Rio Tinto Group (RIO - Free Report) are prominent players in the lithium space. Both companies are well-positioned to gain from robust long-term growth in lithium demand from electric vehicles (EVs) and energy storage systems.

Falling lithium market prices are weighing on lithium stocks lately. Lithium prices have pulled back amid slowing demand for EVs in China, an inventory glut and prospects of increased supply from mine restarts and capacity additions. EV orders have slowed in China, the world’s biggest lithium consumer, while demand in energy storage systems remains healthy.

Let’s dive deep and closely compare the fundamentals of these two lithium producers to determine which one is a better investment option now in the prevailing lithium market environment.

The Case for ALBAlbemarle is well-placed to gain from long-term growth in the battery-grade lithium market. The market for lithium batteries and energy storage remains strong, offering significant opportunities for the company to develop innovative products and expand capacity. Lithium demand is expected to grow on the back of significant global EV penetration.

ALB expects lithium demand to witness a compound annual growth rate (CAGR) of 10-20% from 2025 to 2030. Stationary storage is expected to be a significant driver for lithium demand along with EVs. Albemarle expects demand to grow roughly 15-40% this year. Demand indicators stayed positive in the first quarter of 2026, with global Energy Storage Systems production rising 117% year over year.

The company is strategically executing its projects aimed at boosting its global lithium conversion capacity. It remains focused on investing in high-return projects to drive productivity. Healthy customer demand, capacity expansion and plant productivity improvements are supporting its volumes. ALB saw higher sales volumes (up 14% year over year) in its Energy Storage unit in the first quarter on the strength of its integrated conversion facilities.

The Salar yield improvement project in Chile has achieved a 50% operating rate, and the ramp-up continues to deliver encouraging outcomes. ALB has started the environmental permitting process for a commercial direct lithium extraction project at Salar de Atacama. The ramp-up at the Meishan lithium conversion facility in China is also progressing ahead of schedule.

Albemarle is taking aggressive cost-saving and productivity actions. The company delivered roughly $450 million in cost and productivity improvements in 2025, having surpassed its initial target of $300-$400 million. It expects additional cost and productivity improvements of $100-$150 million in 2026, with $40 million already delivered. ALB is taking actions to maintain its competitive position, including the initiation of a comprehensive review of cost and operating structure, optimization of the conversion network and reduction of capital expenditure.

 Albemarle remains committed to driving shareholder value by leveraging healthy cash flows and strong liquidity. Its operating cash flow was around $1.3 billion in 2025, up roughly 86% from the prior-year period. At the end of the first quarter, ALB had liquidity of around $2.7 billion, including cash and cash equivalents of around $1.1 billion. ALB generated an operating cash flow of $346 million and free cash flow of $248 million in the quarter.

The company paid down $1.3 billion of outstanding debt in March 2026, reducing annual interest expense by roughly $60 million. This followed the successful divestments of the controlling stake in Ketjen and its 50% interest in the Eurecat joint venture, which together generated $670 million in pre-tax proceeds.

The company remains focused on maintaining its dividend payout. It has raised its quarterly dividend for the 30th straight year. ALB offers a dividend yield of 1.4% at the current stock price.

The Case for RIORio Tinto holds one of the world’s largest lithium portfolios and a robust pipeline of development projects, positioning it well to benefit from the growing demand for lithium.  RIO produces lithium using several established methods, including direct lithium extraction (“DLE”) from brines, traditional pond-based brine extraction and hard-rock mining. The company also manufactures a broad suite of lithium products, including lithium chloride, lithium carbonate, lithium hydroxide, and spodumene concentrate.

RIO is expanding its lithium extraction capabilities through a new partnership with ILiAD Technologies, a leader in DLE technology. The collaboration supports the company’s efforts to enhance operational efficiency while improving sustainability and cost-effectiveness. ILiAD’s technology allows the extraction of high-purity lithium chloride from a wide range of lithium-rich brine resources and complements RIO’s existing DLE operations at Fénix and Rincon.

RIO is making progress with its high-value lithium projects. The fully owned Rincon Lithium Project in Argentina remains on track, with commissioning of the starter plant already being completed and ramp-up currently in progress, with full capacity expected by the end of 2026. RIO is investing $2.5 billion to expand Rincon, which has a capacity of 60,000 tons of battery-grade lithium carbonate annually with a 40-year mine life. First production from the project is expected in 2028, followed by a three-year ramp-up to full capacity. Rio Tinto has secured a $1.175 billion financing package from international lenders to support the development of the Rincon project.

The Fénix expansion project and Sal de Vida in Argentina, with a capital cost of $0.7 billion each, have achieved first production ahead of schedule. The Nemaska Lithium project, in which Rio Tinto now holds a 53.9% stake with the Government of Québec retaining the balance, is a fully integrated spodumene-to-lithium hydroxide development project comprising the lithium hydroxide plant in Bécancour and the Whabouchi spodumene mine with a production capacity of 32,000 tons. RIO initially acquired a 50% interest in Nemaska Lithium through the buyout of Arcadium in March 2025.

At Bécancour, engineering has been completed, with construction at more than 70%. RIO has decided to slow the pace of construction of the project during 2026, but remains fully committed to advancing the project. It expects construction to ramp up following optimization works and does not envision major changes to the project’s overall timeline.

RIO has a robust balance sheet and generates strong cash flows, which allow it to make investments in projects while driving shareholder returns. RIO generated a strong operating cash flow of $9.2 billion in the six months ended June 30, 2026, up 32% year over year. Free cash flow surged 75% year over year to roughly $3.8 billion. The company ended the period with cash and cash equivalents, and other short-term, highly liquid investments, totaling $9.1 billion.

Rio Tinto has a policy of returning 40-60% of its underlying earnings, with a 10-year track record of dividend payout at the top end of the range. It has declared an interim ordinary dividend of $3.4 billion, up 43% year over year, with a payout ratio of 50%. It offers a dividend yield of 5.5% at the current stock price.

ALB & RIO: Price Performance, Valuation & Other ComparisonsThe ALB stock is down 20% year to date, while RIO has gained 14.5%.

Image Source: Zacks Investment Research

ALB is currently trading at a forward price-to-sales ratio of 2.11. RIO is currently trading at a forward price-to-sales ratio of 1.84, below ALB.

Image Source: Zacks Investment Research

ALB’s long-term debt-to-capitalization is around 15.2%, lower than RIO’s 24.6%.  

Image Source: Zacks Investment Research

How the Zacks Consensus Estimate Compares for ALB & RIOThe Zacks Consensus Estimate for ALB’s 2026 sales implies year-over-year growth of 18.9%. The same for EPS suggests a 1,727.9% year-over-year rise. The EPS estimates for 2026 have been trending higher over the past 60 days.

Image Source: Zacks Investment Research

The consensus estimate for RIO’s 2026 sales and EPS implies a year-over-year rise of 14% and 27.7%, respectively. The EPS estimates for 2026 have been trending southward over the past 60 days.

Image Source: Zacks Investment Research

ALB or RIO: Which Stock Holds the Edge?Both ALB and RIO currently carry a Zacks Rank #3 (Hold), so picking one stock is not easy. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ALB and RIO stand to benefit from higher lithium demand, driven by EVs and energy storage. Albemarle is benefiting from higher lithium volumes on project ramp-ups and actions to boost global lithium conversion capacity and productivity. RIO is advancing major lithium projects to boost output and leveraging a strong balance sheet. ALB's higher earnings growth projections suggest that it may offer better investment prospects in the current market environment. ALB’s lower leverage also suggests lower financial risks. Investors seeking exposure to the lithium space might consider Albemarle as the more favorable option at this time.

Key Takeaways AMC is adding more premium auditoriums to capitalize on demand for enhanced moviegoing experiences.AMC is growing loyalty, subscriptions and higher-margin food and beverage sales to boost guest spending.Premium formats helped drive record quarterly revenues and adjusted EBITDA as AMC gained market share. AMC Entertainment Holdings, Inc. (AMC - Free Report) delivered a record second quarter in 2026, indicating that its next growth phase could be fueled by expanding the premium screen portfolio rather than a strong movie slate alone.

The company outpaced the broader box office recovery by gaining market share and reporting record revenues of $1.6 billion and adjusted EBITDA of $321.4 million. Management credited premium offerings, disciplined cost controls and continued investments in the guest experience for the strong performance.

A major contributor to this momentum is the rapid expansion of premium large format and extra-large format auditoriums. Although these premium screens account for only about 8% of AMC's global screen base, they generated more than half of ticket sales during the opening weekend of The Odyssey. AMC now operates nearly 750 premium auditoriums across IMAX, Dolby Cinema, Prime, ScreenX, 4DX, XL and other formats. Management also plans to add another 100 to 250 premium auditoriums over the next two to four years while keeping capital spending disciplined through partner funding.

The strategy extends beyond premium screens. AMC is upgrading high-traffic theaters with Club Rocker seating while expanding its A List subscription program and loyalty platform. The company is also growing higher-margin food, beverage and merchandise sales, helping increase spending per guest and strengthen customer engagement.

With a healthier balance sheet, disciplined capital allocation and growing demand for premium experiences, AMC appears well positioned to convert stronger box office trends into sustainable earnings and cash flow growth. If movie attendance remains healthy, the company's premium screen strategy could become a key driver of its next growth phase.

Cinemark and Marcus Challenge AMC in Premium MoviegoingAmong AMC's closest rivals, Cinemark Holdings (CNK - Free Report) has expanded its premium moviegoing strategy through XD premium large format auditoriums, luxury recliner seating and upgraded food and beverage offerings. Cinemark is also maintaining disciplined capital spending while leveraging a stronger balance sheet. These investments have helped Cinemark increase per-patron spending and compete more effectively for moviegoers seeking a premium theater experience.

The Marcus Corporation (MCS - Free Report) is pursuing a similar strategy with its UltraScreen DLX and SuperScreen DLX formats, recliner upgrades and enhanced dining options. The company is also strengthening customer engagement through loyalty initiatives designed to encourage repeat visits. While Marcus operates a smaller theater network than AMC, its emphasis on premium experiences mirrors the industry's shift toward higher value offerings.

As exhibitors increasingly focus on premium formats and enhanced amenities rather than expanding theater counts, AMC, Cinemark and Marcus are likely to compete for customers willing to pay more for superior technology, comfort and an elevated moviegoing experience.

AMC’s Price Performance, Valuation & EstimatesShares of AMC have surged 92.1% in the past six months against the industry’s 3.5% decline.

AMC’s Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, AMC trades at a forward price-to-sales (P/S) multiple of 0.43X, below the industry’s average of 2.74X.

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

The consensus estimate for AMC’s 2026 loss per share indicates a 77.1% year-over-year improvement.

Image Source: Zacks Investment Research

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

Broadcom Today

$373.24 -7.67 (-2.01%)

As of 12:29 PM Eastern

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

52-Week Range$281.61▼

$495.00Dividend Yield0.70%

P/E Ratio61.91

Price Target$493.24

Broadcom NASDAQ: AVGO is back in the news with another multi-billion-dollar semiconductor deal. However, this time, Broadcom is not on the receiving end of the commitment. Broadcom and memory chip giant Samsung Electronics OTCMKTS: SSNLF have announced a five-year agreement valued at over $200 billion, under which Broadcom will purchase various chips from Samsung.

Although this is money going out rather than coming in, there are still real positives to take away from the deal. Most notably, the agreement aids Broadcom in capitalizing on its AI chip demand by locking down the supply of a vital component. Let's dive into the details and what it means for Broadcom going forward.

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Broadcom and Samsung’s Memory Pact: Securing Supply to Realize GrowthThe deal contains two primary components, which Samsung outlines in the corresponding press release. Part one relates to memory, where “Samsung and Broadcom plan to pursue a strategic collaboration for the supply of industry-leading memory solutions, including High Bandwidth Memory (HBM), supporting Broadcom’s next-generation AI accelerators.”

Here, Broadcom is securing supply for Samsung’s HBM, which is a critical component within AI accelerators. This deal comes amid a drastic shortage in HBM as well as other memory products. For Broadcom, investors can think of this deal as a necessary evil as the company looks to execute on its massive AI accelerator opportunity.

Notably, the firm expects its AI semiconductor revenue to grow by more than 200% year over year (YOY) to $16 billion. With 10 gigawatts of data center commitments from large language model developers, Broadcom may have a path to generate $200 billion in AI semiconductor revenue in 2027 or beyond.

However, HBM is a non-negotiable component within AI accelerators. Without it, the vast majority of Broadcom’s AI semiconductor opportunity could go out the window. In turn, Broadcom needs to ensure it locks in HBM supply, especially given NVIDIA's NASDAQ: NVDA massive HBM purchases.

Another potential benefit of its multi-year agreement with Samsung is that it could help the firm shield itself from HBM price volatility. Memory prices have seen dramatic upward swings, with HBM prices reportedly increasing by 20% in Q1 alone. The deal could potentially cap future increases, helping to prevent margin contraction at Broadcom.

Broadcom Follows in NVIDIA’s Memory FootstepsSpeaking of NVIDIA, the company recently announced a similar partnership. NVIDIA and SK hynix NASDAQ: SKHY entered a $500 billion deal that “allows NVIDIA to secure a stable supply of next-generation AI memory." The deal also includes a two-gigawatt data center deployment, where SK Group, SK hynix’s parent company, will use NVIDIA's Vera Rubin systems. In this sense, a significant amount of revenue may also flow NVIDIA’s way. However, the overwhelming majority of the deal is likely centered around buying HBM from SK hynix.

Broadcom is clearly not alone in feeling the need to pay up for HBM, showing that it is acting strategically to further its interests.

Broadcom Eyes Samsung’s Advanced PackagingThe second part of the deal surrounds Samsung’s foundry, where it makes non-memory chips. Here, the collaboration “focuses on Samsung’s 2-nanometer (nm) and below process technologies for Broadcom’s products, including Wireless Broadband Communications (WBC) solutions. The collaboration is expected to extend to advanced packaging technologies built on Samsung’s 2nm process, including 2.3D and 2.5D integration, to enable higher-performance and more power-efficient AI and networking silicon.”

Overall MarketRank™100th Percentile

Analyst RatingModerate Buy

Upside/Downside29.5% Upside

Short Interest LevelHealthy

Dividend StrengthStrong

News Sentiment1.33 Insider TradingSelling Shares

Proj. Earnings Growth71.19%

See Full Analysis

The Wireless Broadband Communications piece does not appear AI-related. Rather, it likely refers to Broadcom’s wireless and smartphone chip business. Producing these chips with Samsung may relate to Broadcom fulfilling its $30 billion deal with Apple NASDAQ: AAPL to supply wireless chips.

However, the advanced packaging portion is AI-related. Advanced packaging is also critical to building advanced AI chips as it combines HBM with computing components. This part of the agreement suggests that Broadcom is considering using Samsung’s advanced packaging technology for its AI chips. However, the release only says that the agreement is “expected to extend” into advanced packaging, indicating that nothing is set in stone.

This is notable, considering that Taiwan Semiconductor Manufacturing NYSE: TSM has dominated the advanced packaging market. TSMC's advanced packaging is also facing significant supply shortages. In this context, it makes sense for Broadcom to explore Samsung as an alternative advanced packaging supplier. If Samsung’s advanced packaging capabilities prove to be adequate for Broadcom’s needs, the company may be able to sell more chips than it otherwise could.

Broadcom and Samsung: Do the Advanced Packaging Stars Align?Broadcom is taking the necessary steps to execute its long-term data center opportunity. Going forward, investors may monitor whether Broadcom mentions margin benefits due to its long-term deal with Samsung. Additionally, it is worth monitoring whether Broadcom actually adopts Samsung’s advanced packaging technology and if management sees this benefiting the firm’s growth.

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Key Takeaways Cummins reports Q2 2026 results on Aug. 4, with consensus EPS of $7.33 and revenues of $9.33 billion.CMI raised FY2026 outlooks for Distribution, Power Systems, Engine and Components after strong Q1.CMI is expected to post growth in Engine and Power Systems, while Components and Accelera may decline. Cummins Inc. (CMI - Free Report) is slated to release second-quarter 2026 results on Aug. 4, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at $7.33 and $9.33 billion, respectively.

For the second quarter, the consensus estimate for Cummins’ earnings has moved down 15 cents over the past 30 days. Its bottom-line estimates imply growth of 14% from the year-ago reported numbers.

The Zacks Consensus Estimate for CMI's quarterly revenues implies a year-over-year rise of 7.9%. The company's earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 17.15%. This is depicted in the graph below:

Q1 HighlightsCummins delivered adjusted earnings of $6.15 per share in the first quarter of 2026, which increased 3.2% year over year and 9.8% above the Zacks Consensus Estimate. Revenues of $8.40 billion rose 2.7% from the year-ago quarter and topped the consensus mark by 0.9%. The quarter reflected solid execution in key end markets, highlighted by an adjusted EBITDA margin of 17.7% of sales.

Things to NoteCummins continues to benefit from rising demand for backup power in data centers and other mission-critical settings, which is supporting the Distribution and Power Systems segments. In first-quarter 2026, Distribution revenues increased and Power Systems delivered record EBITDA dollars, reflecting higher volumes, pricing and operational execution, because of which the company raised its full-year 2026 outlook for the Distribution and Power Systems segments.

The company now expects Distribution revenues to grow 9-14%, up from the previous estimate of 5-10%. CMI expects Power Systems revenues to grow 14-19%, up from the previous estimate of 12-17%. It also lifted Power Systems & Distribution EBITDA margin guidance to about 25-26% and 13.7-14.7%, up from the previous estimate of 23-24% and 13.25-14.25%, respectively.

For full-year 2026, the company also increased its Engine business revenue growth forecast to 7-12% compared with its earlier outlook of flat to 5% growth. It raised its EBITDA margin projection to a range of 12.5-13.5%, representing a 50-basis-point increase at the midpoint. It has raised its forecast for the Components business for 2026 and expects revenues now to be up 5% to 10%, up from prior guidance of flat to up 5%. The stronger outlook is primarily supported by improved expectations for North America heavy- and medium-duty truck demand, particularly in the first half of the year.

Expected growth across Distribution, Power Systems, Engine and Components segments in full-year 2026 is likely to have boosted Cummins’ performance in the second quarter.

Let’s have a look at our estimates for CMI’s segmental performance.

We expect Engine revenues to be $3.22 billion, suggesting an 11.2% year-over-year increase. For the Power Systems segment, we project sales of $2.1 billion, indicating an 11.2% year-over-year increase. We expect Components sales to be $2.67 billion, suggesting a decline of 1.5% year over year. For the Distribution segment, we project sales of $3.3 billion, indicating a 7.5% year-over-year increase. We expect Accelera revenues to be $71 million, implying a 32.4% year-over-year decline.

Our estimate for the Engine segment’s EBITDA is $454 million, which suggests a rise of 13.6% year over year. We expect the Power Systems segment’s EBITDA to be $519 million, suggesting a rise of 20.7% year over year. Our estimate for the Component segment’s EBITDA is pegged at $385.9 million, suggesting a decline of 2.8% year over year. We expect the Distribution segment’s EBITDA to be $485.9 million, indicating a 9.2% year-over-year decline.

Earnings WhispersOur proven model predicts an earnings beat for Cummins for the quarter to be reported, as it has the right combination of the two key ingredients. A positive Earnings ESP, combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat. This is the case here.

Earnings ESP: CMI has an Earnings ESP of +0.78%. This is because the Most Accurate Estimate is pegged higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: It currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings Releases From Auto SpaceGeneral Motors Company (GM - Free Report) reported second-quarter 2026 adjusted earnings of $3.57 per share, up 41.3% year over year. The figure beat the Zacks Consensus Estimate of $3.13 by 14.06%. Revenues increased 1.9% to $48.03 billion and surpassed the consensus estimate of $46.56 billion by 3.15%. Strong pricing, lower costs and disciplined incentives supported results. General Motors raised its full-year adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion. Adjusted earnings are now projected at $12-$14 per share, up from the prior range of $11.50-$13.50.

Tesla, Inc. (TSLA - Free Report) reported second-quarter 2026 adjusted earnings of 33 cents per share, which declined 17.5% year over year. The figure missed the Zacks Consensus Estimate of 50 cents by 34%. Revenues advanced 25.5% to $28.24 billion and surpassed the consensus estimate of $25.81 billion by 9.41%. Tesla expects 2026 capital expenditures to exceed $25 billion and rise further over the next two to three years.

Genuine Parts (GPC - Free Report) reported second-quarter 2026 adjusted earnings of $2.15 per share, beating the Zacks Consensus Estimate of $2.10 by 2.38%. The bottom line increased 2.4% from $2.10 in the year-ago quarter. Revenues rose 6% year over year to $6.54 billion and surpassed the consensus estimate of $6.39 billion by 2.36%. Genuine Parts reaffirmed its 2026 adjusted earnings guidance of $7.50-$8 per share and total sales growth outlook of 3-5.5%. Genuine Parts ended June with $2.3 billion of liquidity, including $559 million in cash.

Key Takeaways Accenture launched an AI-powered Radisson hotel discovery app in ChatGPT for search and booking. The app uses live availability, pricing, amenities, property details, location insights and maps. Future upgrades may add personalization, loyalty recognition, in-chat booking and AI concierge services. Accenture (ACN - Free Report) has partnered with Radisson Hotel Group to launch an AI-powered hotel discovery app in ChatGPT, enabling travelers to move seamlessly from trip planning to hotel search, comparison and booking through natural language conversations.

Accessible as @RadissonHotels in ChatGPT, the app allows users to discover more than 1,000 Radisson Hotels properties across over 100 countries. By starting a ChatGPT conversation with @RadissonHotels, travelers can request recommendations for trips, such as family-friendly stays in Amsterdam or hotels near the Eiffel Tower in Paris that offer gym and spa facilities. The app provides relevant hotel recommendations featuring live room availability, pricing, amenities, property information, location insights and interactive maps. Once a selection is made, users are directed to the Radisson Hotels website to complete their reservation.

As more travelers rely on AI to research destinations, evaluate options and organize trips, hospitality providers are increasingly required to ensure their offerings remain discoverable, accurate and actionable during the planning stage. Accenture’s Consumer Pulse Research indicates that 87% of travelers are willing to use AI-powered travel agents to identify the most suitable options, while 71% expect AI to influence at least half of their hotel or airline spending over the next year.

The partnership began with Radisson Hotel Group adopting an MCP accelerator within Accenture’s AI Merchant Center, an agentic readiness and intelligence platform. The solution helped organize, validate and optimize the company's hotel content, inventory, pricing and booking data for AI-driven discovery. Accenture also designed the user experience and integrated the app with Radisson Hotel Group’s existing systems to deliver real-time hotel information. The companies plan to further enhance the platform with personalized recommendations, loyalty recognition, in-chat booking, reservation management, itinerary modifications and AI concierge services.

For Accenture, the collaboration reinforces its leadership in generative AI and agentic commerce while demonstrating the practical value of the AI Merchant Center platform. The project highlights Accenture’s ability to help enterprises modernize customer engagement, accelerate AI adoption and create new digital commerce channels. Successful deployment of the solution is expected to strengthen Accenture’s credentials in the hospitality sector and support future AI transformation opportunities across travel and other consumer-facing industries.

The ChatGPT app also supports Radisson Hotel Group’s broader digital transformation and direct booking strategy. Accenture has already assisted the company in modernizing the digital and data infrastructure, consolidating its brands onto a unified global platform and enabling more personalized marketing across the portfolio of more than 1,000 hotels. Extending this foundation to ChatGPT is expected to help Radisson Hotel Group remain visible, relevant and easily bookable as traveler preferences continue to evolve.

Taking a Look at Similar AI-Powered DealsSalesforce (CRM - Free Report) is participating in a similar hospitality-focused AI initiative with Minor Hotels, alongside Google Cloud, OneTrust and Deloitte. The companies are developing a global data and AI platform that will connect more than 640 Minor Hotels properties, unify guest information and support AI-driven personalization. Salesforce’s Agentforce Marketing capabilities are anticipated to help the hotel operator deliver more relevant communications and experiences throughout the customer journey.

Like Accenture’s collaboration with Radisson Hotel Group, the project involving Salesforce demonstrates how enterprise technology providers are helping hospitality companies modernize legacy systems, use real-time data more effectively and create increasingly personalized digital interactions for travelers.

Choice Hotels International (CHH - Free Report) has also entered into a comparable collaboration with Amazon Web Services (“AWS”) to integrate artificial intelligence across its operations. The initiative is intended to move AI beyond isolated experiments and deploy it at an enterprise scale, supporting enhanced guest experiences, hotel management and organizational efficiency. By integrating AI into core functions such as guest personalization, pricing and operations, Choice Hotels aims to improve both customer experience and internal efficiency. Importantly, this strategy extends beyond AWS.

Choice Hotels is building a broader ecosystem of AI partnerships, including collaborations with Google for AI-powered travel discovery and participation in OpenAI’s ChatGPT advertising pilot. This multi-platform approach indicates a forward-looking strategy as travel search and booking increasingly shift toward AI-driven and conversational interfaces.

Price Performance, Valuation & EstimatesAccenture has lost nearly 40% in the past year, underperforming its industry.

1-Year Price ComparisonImage Source: Zacks Investment Research

From a valuation standpoint, ACN trades at a forward price-to-sales ratio of 1.44, way below the industry’s 11.14.

Image Source: Zacks Investment Research

See how the Zacks Consensus Estimate for ACN’s earnings has been revised over the past 90 days.

Image Source: Zacks Investment Research

ACN’s Zacks RankACN currently carries a Zacks Rank #4 (Sell).

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