Key Takeaways Enphase's Q2 results may benefit from new product launches and stronger microinverter shipments.U.S. demand stayed strong, while Europe showed improving solar market trends during the quarter.Reciprocal tariffs are expected to reduce Q2 gross margins by about three percentage points. Enphase Energy, Inc. (ENPH - Free Report) is scheduled to release its second-quarter 2026 results on July 28, after market close. In the last reported quarter, the company delivered an earnings surprise of 9.30%.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors at Play Ahead of ENPH’s Q2 ResultsDuring the second quarter, ENPH announced the expansion of commercial microinverter deployments across the United States. Stronger microinverter shipments from Enphase Energy's U.S. manufacturing facilities are expected to have supported its quarterly earnings.
In May 2026, Enphase Energy announced the launch of PowerMatch technology across North America. In June 2026, the company launched the IQ9N microinverter for residential solar across key European markets. These product launches strengthen Enphase Energy's residential solar portfolio and are expected to drive higher customer adoption and product shipments, supporting the company's revenue and earnings growth in the second quarter of 2026.
Product launches, coupled with robust microinverter and battery shipments amid healthy solar demand, are likely to have supported ENPH's overall performance in the to-be-reported quarter.
On a regional basis, Enphase Energy expects continued strength in the U.S. market and improving demand trends across Europe.
ENPH's continued investments in product innovation and customer support, along with ongoing cost-reduction efforts, are anticipated to have boosted its earnings in the to-be-reported quarter.
Meanwhile, reciprocal tariffs remain a key headwind. The company expects them to reduce second-quarter 2026 gross margins by nearly three percentage points, weighing on profitability.
Q2 Expectations for ENPHThe Zacks Consensus Estimate for ENPH’s sales stands at $292.2 million, which suggests a decline of 19.6% from the year-ago reported number.
The Zacks Consensus Estimate for earnings per share is pinned at 46 cents, which indicates a year-over-year fall of 33.3%.
The Zacks Consensus Estimate for total megawatts (MWs) shipped is pegged at 689 MW, up 2% from the figure registered in the year-ago quarter.
What the Zacks Model Unveils for ENPHOur proven model does not conclusively predict an earnings beat for Enphase Energy this time. 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, which is not the case here, as you will see below.
Stocks to ConsiderHere are three companies from the same sector that have the right combination of elements to post an earnings beat this reporting cycle:
First Solar, Inc. (FSLR - Free Report) is slated to report its second-quarter 2026 results on July 30, after market close. It has an Earnings ESP of +15.75% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for FSLR’s earnings is pegged at $2.74 per share, indicating a year-over-year decline of 13.8%. The consensus estimate for its sales stands at $1.06 billion, suggesting a year-over-year rise of 3.3%.
Devon Energy (DVN - Free Report) is expected to report its second-quarter 2026 results on Aug. 4, after market close. It has an Earnings ESP of +0.61% and carries a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for DVN’s earnings is pegged at $1.30 per share, indicating a year-over-year surge of 54.8%. The consensus estimate for its sales stands at $6.30 billion, calling for a year-over-year jump of 47%.
Ormat Technologies Inc. (ORA - Free Report) is slated to report its second-quarter 2026 results on Aug. 5, after market close. It has an Earnings ESP of +73.47% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for ORA’s earnings is pegged at 29 cents, implying a year-over-year fall of 39.6%. The consensus estimate for its sales stands at $253.9 million, suggesting a year-over-year rise of 0.8%.
Enphase Energy (ENPH - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this solar technology company have returned -17.6% over the past month versus the Zacks S&P 500 composite's +0.6% change. The Zacks Solar industry, to which Enphase Energy belongs, has lost 17.8% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Enphase Energy is expected to post earnings of $0.46 per share for the current quarter, representing a year-over-year change of -33.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.8%.
For the current fiscal year, the consensus earnings estimate of $2.1 points to a change of -29.1% from the prior year. Over the last 30 days, this estimate has changed -2.3%.
For the next fiscal year, the consensus earnings estimate of $2.53 indicates a change of +20.4% from what Enphase Energy is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Enphase Energy is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Enphase Energy, the consensus sales estimate for the current quarter of $292.17 million indicates a year-over-year change of -19.6%. For the current and next fiscal years, $1.22 billion and $1.34 billion estimates indicate -17% and +9.9% changes, respectively.
Last Reported Results and Surprise HistoryEnphase Energy reported revenues of $282.9 million in the last reported quarter, representing a year-over-year change of -20.6%. EPS of $0.47 for the same period compares with $0.68 a year ago.
Compared to the Zacks Consensus Estimate of $283.56 million, the reported revenues represent a surprise of -0.23%. The EPS surprise was +9.3%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Enphase Energy is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Enphase Energy. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Key Takeaways INCY is set to report Q2 results with revenue estimates at $1.40B and earnings expected at $1.85 per share.INCY may benefit from strong Jakafi demand, higher royalties and Opzelura growth with a one-time Q2 benefit.Incyte's newer products, including Niktimvo and Monjuvi, are expected to add to second-quarter revenues. Incyte Corporation (INCY - Free Report) is expected to beat expectations when it reports second-quarter 2026 earnings on July 28, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s revenues is pegged at $1.40 billion, while the same for earnings is pinned at $1.85 per share.
Let’s see how things might have shaped up before the announcement.
Factors Likely to Influence INCY's Q2 ResultsIncyte primarily derives product revenues from the sales of its lead drug, Jakafi (ruxolitinib), in the United States, as well as from the sales of other marketed drugs. Its momentum is likely to have continued on the back of strong Jakafi sales, a first-in-class, selective JAK1/JAK2 inhibitor, in all approved indications (polycythemia vera, myelofibrosis and refractory acute graft-versus-host disease [GvHD]).
The Zacks Consensus Estimate for Jakafi's second-quarter sales is pegged at $796.5 million.
Incyte also earns product royalty revenues from Novartis (NVS - Free Report) for the commercialization of Jakafi in ex-U.S. markets.
While Incyte markets Jakafi in the United States, Novartis markets the same drug as Jakavi outside the United States. INCY is expected to have received higher royalties from NVS in the to-be-reported quarter due to potentially higher Jakavi sales.
Year to date, Incyte shares have gained 18.1% compared with the industry’s 1.3% growth.
Image Source: Zacks Investment Research
Incyte also receives royalties from the sales of Tabrecta (capmatinib), which is approved for treating adult patients with metastatic non-small cell lung cancer. Novartis has exclusive worldwide development and commercialization rights to Tabrecta.
In the to-be-reported quarter, Opzelura (ruxolitinib cream) sales are expected to have been driven by continued growth in new patient starts and refills in the United States, for both its approved indications, atopic dermatitis and vitiligo. Incyte's second-quarter results are expected to benefit from its recent settlement with the CMS regarding Medicaid rebate rules for Opzelura. The agreement eliminates potential liabilities related to the application of line extension regulations, leading to a one-time, non-cash benefit of approximately $246 million in the second quarter from the reversal of previously accrued balances. The settlement should also improve Opzelura's gross-to-net performance going forward, and management is expected to update its financial guidance to reflect the impact.
The Zacks Consensus Estimate for Opzelura’s second-quarter sales is pegged at $214.7 million.
While Jakafi’s sales and royalties are the key catalysts for Incyte’s revenue growth, sales of other drugs like Minjuvi, Pemazyre and Iclusig, and Olumiant’s royalties from Eli Lilly (LLY - Free Report) are also likely to have contributed to Incyte’s top line. INCY has a collaboration agreement with LLY for Olumiant. The drug is a once-daily oral JAK inhibitor discovered by Incyte and licensed to Eli Lilly. It is approved for several types of autoimmune diseases.
Incyte acquired exclusive global rights to Monjuvi/Minjuvi (tafasitamab), initially approved for the treatment of relapsed or refractory diffuse large B-cell lymphoma, from MorphoSys in 2024. Last year, the FDA approved Monjuvi for relapsed or refractory follicular lymphoma, expanding its label and boosting sales. Minjuvi also secured approvals for this indication in the EU and Japan in 2025.
The Zacks Consensus Estimate for Iclusig, Minjuvi/Monjuvi and Pemazyre’s second-quarter sales is pegged at $35.5 million, $50.6 million and $22.4 million, respectively. Incremental sales from Zynyz, too, are expected to have boosted Incyte’s revenues in the to-be-reported quarter.
Incyte and partner Syndax launched Niktimvo (axatilimab-csfr) in the United States in early 2025 after FDA approval for chronic graft-versus-host disease (cGvHD) patients who have failed at least two prior systemic therapies. Niktimvo is Incyte's second approved treatment for cGvHD (third-line). The Zacks Consensus Estimate for Niktimvo’s second-quarter sales is pegged at $63.5 million.
Higher research and development expenses, as well as increased selling, general and administrative costs, are likely to have escalated operating expenses in the second quarter of 2026.
INCY's Earnings Surprise HistoryIncyte has a mixed history of earnings surprises. The company beat earnings estimates in three of the trailing four quarters, while missing the same on the remaining occasion, delivering an average surprise of 18.26%. In the last reported quarter, INCY posted an earnings surprise of 31.16%.
Earnings Whispers for INCY StockOur proven model predicts an earnings beat for INCY this time around. 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, which is the case here, as you will see below.
INCY’s Earnings ESP: Incyte’s Earnings ESP is +18.47% as the Most Accurate Estimate currently stands at $2.19, higher than the Zacks Consensus Estimate, which is pegged at $1.85. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
INCY’s Zacks Rank: INCY has a Zacks Rank #3 at present.
Another Stock With a Favorable CombinationHere is a stock worth considering from the healthcare space, as our model shows that this, too, has the right combination of elements to beat on earnings this reporting cycle.
ACADIA Pharmaceuticals (ACAD - Free Report) has an Earnings ESP of +25.00% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of ACAD have lost 7% year to date. The company’s earnings beat estimates in three of the trailing four quarters and missed on the remaining occasion, delivering an average surprise of 20.83%. Acadia is scheduled to report second-quarter results on Aug. 4.
Key Takeaways Better-than-expected Q2 earnings, policy support and geopolitical tensions lift defense outlook.LMT, RTX and NOC delivered Q2 earnings beats, highlighting resilient defense demandETFs like ITA, XAR and PPA offer diversified exposure to the defense sector's strong outlook Geopolitical tensions have been a significant headwind for financial markets in 2026, with the conflict in the Middle East fueling uncertainty and volatility. Yet, the same backdrop has created a favorable environment for the defense sector, supported by expectations of higher military spending.
With military exchanges between Washington and Tehran becoming more intense, the risk of a broader regional conflict has increased. The concerns of a wider regional war have been reinforced after President Trump stated that a decision on launching a "massive attack" on Iran is imminent, as the Middle East conflict spread to the Red Sea, as quoted on CNBC.
The defense sector remains well-positioned in the current environment, as it has historically outperformed during periods of heightened geopolitical tensions and increased military activity. At the same time, President Trump has urged defense contractors to expand manufacturing capacity and increase weapons production.
The industry's outlook has been further strengthened by policy support. The U.S. House of Representatives advanced the fiscal 2027 National Defense Authorization Act (NDAA), authorizing a record $1.15 trillion in military spending, as per Reuters.
Adding to the positive backdrop, several defense companies delivered robust second-quarter 2026 earnings.
Earnings in FocusBelow, we have discussed in brief the second-quarter results of a few renowned U.S. Aerospace – Defense industry players.
Lockheed MartinLockheed Martin (LMT - Free Report) reported second-quarter 2026 adjusted earnings of $7.94 per share, which beat the Zacks Consensus Estimate of $7.22 by 10%. The bottom line increased 8.9% from the year-ago quarter's reported figure of $7.29.
Net sales were $20.06 billion, which beat the Zacks Consensus Estimate of $19.34 billion by 3.7%. The top line inched up 10.5% from $18.16 billion reported in the year-ago quarter. The year-over-year improvement was driven by higher sales growth registered by LMT’s business segments.
LMT’s backlog, as of June 28, 2026, was $230.42 billion compared with $193.62 billion as of Dec. 31, 2025. The Aeronautics segment accounted for $54.36 billion of the total backlog amount, while the Missiles and Fire Control segment contributed $87.88 billion. The Rotary and Mission Systems segment contributed $48.45 billion, while the Space unit accounted for $39.72 billion.
The company has a Momentum Score of A. LMT came up with second-quarter 2026 earnings on July 23, before market open and gained around 10.54% on the same day.
RTX CorporationRTX Corporation’s (RTX - Free Report) second-quarter 2026 adjusted earnings per share (EPS) of $1.89 beat the Zacks Consensus Estimate of $1.66 by 13.9%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.56.
Revenues rose 14.5% year over year to $24.71 billion and beat the consensus mark of $22.83 billion by 8.2%. Growth was supported by higher commercial aftermarket and defense demand. Organic sales advanced 16% in the quarter.
Backlog climbed 22% to $289 billion. The company secured $43 billion of new awards during the quarter, including nearly $20 billion at Raytheon. The total backlog comprised $170 billion of commercial orders and $119 billion of defense orders, providing strong visibility into future production requirements.
RTX has a Zacks Rank #2 (Buy) with a VGM Score of C. The company released second-quarter 2026 earnings on July 23, before market open and gained around 7.3% on the same day.
Northrop GrummanNorthrop Grumman (NOC - Free Report) reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.
NOC’s total sales of $10.88 billion in the second quarter beat the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter. Total operating income during the quarter was $1.10 billion, reflecting a significant decrease from $1.43 billion in the prior-year quarter.
The company’s total backlog was $95.68 billion at the end of the second quarter compared with $95.61 billion at the end of first-quarter 2026.
The company has a Momentum Score of A. NOC came up with second-quarter 2026 earnings on July 21, before market open and has since gained around 10%.
Defense ETFs to ConsiderFor investors looking to bet on second-quarter results as well as the continued surge in military spending, the following Defense ETFs provide a great opportunity.
Investors can consider iShares U.S. Aerospace & Defense ETF (ITA - Free Report) , Invesco Aerospace & Defense ETF (PPA - Free Report) , SPDR S&P Aerospace & Defense ETF (XAR - Free Report) , Global X Defense Tech ETF (SHLD - Free Report) , First Trust Indxx Aerospace & Defense ETF (MISL - Free Report) and U.S. Global Technology and Aerospace & Defense ETF (WAR - Free Report) .
Gentex (GNTX - Free Report) came out with quarterly earnings of $0.58 per share, beating the Zacks Consensus Estimate of $0.5 per share. This compares to earnings of $0.47 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +16.00%. A quarter ago, it was expected that this maker of automatic-dimming rearview mirrors and other products would post earnings of $0.44 per share when it actually produced earnings of $0.48, delivering a surprise of +9.09%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Gentex, which belongs to the Zacks Automotive - Original Equipment industry, posted revenues of $651.3 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 2.64%. This compares to year-ago revenues of $657.86 million. The company has topped consensus revenue estimates just once 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.
Gentex shares have added about 2.3% since the beginning of the year versus the S&P 500's gain of 8.2%.
What's Next for Gentex?While Gentex has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Gentex 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 $0.50 on $668.26 million in revenues for the coming quarter and $1.97 on $2.68 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, Automotive - Original Equipment is currently in the bottom 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, EVgo Inc. (EVGO - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 5.
This company is expected to post quarterly loss of $0.20 per share in its upcoming report, which represents a year-over-year change of -100%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
EVgo Inc.'s revenues are expected to be $81.78 million, down 16.6% from the year-ago quarter.
Shares of Gentex (GNTX - Free Report) have been struggling lately and have lost 7.6% over the past four weeks. However, a hammer chart pattern was formed in its last trading session, which could mean that the stock found support with bulls being able to counteract the bears. So, it could witness a trend reversal down the road.
While the formation of a hammer pattern is a technical indication of nearing a bottom with potential exhaustion of selling pressure, rising optimism among Wall Street analysts about the future earnings of this maker of automatic-dimming rearview mirrors and other products is a solid fundamental factor that enhances the prospects of a trend reversal for the stock.
Understanding Hammer Chart and the Technique to Trade ItThis is one of the popular price patterns in candlestick charting. A minor difference between the opening and closing prices forms a small candle body, and a higher difference between the low of the day and the open or close forms a long lower wick (or vertical line). The length of the lower wick being at least twice the length of the real body, the candle resembles a 'hammer.'
In simple terms, during a downtrend, with bears having absolute control, a stock usually opens lower compared to the previous day's close, and again closes lower. On the day the hammer pattern is formed, maintaining the downtrend, the stock makes a new low. However, after eventually finding support at the low of the day, some amount of buying interest emerges, pushing the stock up to close the session near or slightly above its opening price.
When it occurs at the bottom of a downtrend, this pattern signals that the bears might have lost control over the price. And, the success of bulls in stopping the price from falling further indicates a potential trend reversal.
Hammer candles can occur on any timeframe -- such as one-minute, daily, weekly -- and are utilized by both short-term as well as long-term investors.
Like every technical indicator, the hammer chart pattern has its limitations. Particularly, as the strength of a hammer depends on its placement on the chart, it should always be used in conjunction with other bullish indicators.
Here's What Increases the Odds of a Turnaround for GNTXThere has been an upward trend in earnings estimate revisions for GNTX lately, which can certainly be considered a bullish indicator on the fundamental side. That's because a positive trend in earnings estimate revisions usually translates into price appreciation in the near term.
The consensus EPS estimate for the current year has increased 0.4% over the last 30 days. This means that the Wall Street analysts covering GNTX are majorly in agreement about the company's potential to report better earnings than what they predicted earlier.
If this is not enough, you should note that GNTX currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. And stocks carrying a Zacks Rank #1 or 2 usually outperform the market. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Moreover, a Zacks Rank of 2 for Gentex is a more conclusive indication of a potential trend reversal, as the Zacks Rank has proven to be an excellent timing indicator that helps investors identify precisely when a company's prospects are beginning to improve.
Gentex (GNTX - Free Report) reported $651.3 million in revenue for the quarter ended June 2026, representing a year-over-year decline of 1%. EPS of $0.58 for the same period compares to $0.47 a year ago.
The reported revenue represents a surprise of -2.64% over the Zacks Consensus Estimate of $668.96 million. With the consensus EPS estimate being $0.50, the EPS surprise was +16%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Gentex performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Auto-Dimming Mirror Shipments - Total Interior Mirrors: 6.28 million versus the two-analyst average estimate of 7.1 million.Auto-Dimming Mirror Shipments - Total Exterior Mirrors: 4.14 million versus 3.97 million estimated by two analysts on average.Auto-Dimming Mirror Shipments - Total Auto-Dimming Mirror Units: 10.42 million versus 11.06 million estimated by two analysts on average.Auto-Dimming Mirror Shipments - Total North American Mirror Units: 3.98 million compared to the 3.71 million average estimate based on two analysts.Auto-Dimming Mirror Shipments - International Exterior Mirrors: 2.51 million compared to the 2.44 million average estimate based on two analysts.Auto-Dimming Mirror Shipments - North American Exterior Mirrors: 1.63 million compared to the 1.52 million average estimate based on two analysts.Auto-Dimming Mirror Shipments - Total International Mirror Units: 6.44 million compared to the 7.35 million average estimate based on two analysts.Auto-Dimming Mirror Shipments - International Interior Mirrors: 3.93 million compared to the 4.91 million average estimate based on two analysts.Auto-Dimming Mirror Shipments - North American Interior Mirrors: 2.35 million versus 2.19 million estimated by two analysts on average.Revenue- Automotive Products: $560.1 million versus the two-analyst average estimate of $581.05 million. The reported number represents a year-over-year change of -1.1%.View all Key Company Metrics for Gentex here>>>
Shares of Gentex have returned -7.6% over the past month versus the Zacks S&P 500 composite's +0.6% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
Miso Robotics stock: Is an IPO coming soon?Gentex NASDAQ: GNTX reported second-quarter 2026 net sales of $651.3 million, down 1% from $657.9 million a year earlier, as lower automotive revenue in several international markets was partly offset by North American strength, higher vehicle content in Europe and growth in non-automotive businesses.
Automotive revenue declined about 3% year over year to $560.1 million, reflecting lower light-vehicle production and reduced shipments of base auto-dimming mirrors. President and CEO Steve Downing said revenue in China fell 20% from the prior-year period amid tariff-related market disruptions, while Europe, Japan and Korea also recorded lower revenue. North American demand remained comparatively strong.
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Analysts Recommend These Stocks To Cushion The Automotive SlumpDespite sales coming in below the company’s forecast, Gentex posted net income attributable to the company of $114.7 million, up 19% from $96 million in the second quarter of 2025. Diluted earnings per share rose to a record second-quarter $0.54 from $0.43. On a non-GAAP basis, adjusted diluted EPS was $0.58, compared with $0.50 a year earlier.
Margins Benefit From Tariff Reimbursements and Mix Second-quarter gross margin rose 280 basis points year over year to 37%. The result included approximately $18 million of IEEPA tariff reimbursements that reduced cost of goods sold. Gentex received about $38 million in total reimbursements during the quarter, with the remaining roughly $20 million reducing inventory held on the balance sheet rather than benefiting gross margin.
Downing said gross margin also benefited from product mix, operational execution and improving profitability in the company’s other-products category. Those gains were partly offset by higher commodity costs, lower sales and higher precious-metals costs. Excluding the $18 million reimbursement benefit, gross margin improved about 50 basis points sequentially from the first quarter.
Income from operations increased 19% to $141.3 million. Adjusted operating expenses were $99.3 million, compared with $97.5 million in the prior-year quarter. The company’s effective tax rate was 16.5%, versus 17.2% a year earlier.
Audio and Other Products Expand Non-automotive revenue accounted for approximately 14% of total company sales during the quarter. Premium audio revenue rose 16% to $51.7 million, driven by powered systems and the Onkyo brand, according to Vice President of Finance and CFO Kevin Nash.
Revenue in the other-products category increased 12% to $39.4 million. The category includes aerospace products, fire-protection devices, medical technologies, biometric solutions and automotive aftermarket products. Nash said growth was led by aerospace products, biometrics and accessory revenues.
Chief Operating Officer and Chief Technology Officer Neil Boehm said more than 75% of Gentex’s automotive product launches during the quarter incorporated advanced features, including HomeLink, Full Display Mirror, in-cabin monitoring and advanced exterior auto-dimming mirrors.
The company began shipping Full Display Mirror products on the Jeep Recon and Infiniti QX65, as well as to McLaren for its W1, Toyota for the Century SUV, and Subaru for the Trailseeker and Uncharted nameplates. Gentex also began shipping driver-monitoring and in-cabin-monitoring systems to BMW for the iX3 and Kia for the EV2.
Morocco Facility Planned for European Demand Gentex said it is establishing a manufacturing plant in Morocco to support European customers seeking more localized production. The company has signed a letter of intent, selected a location and received Moroccan government support for creating the local entity. Initial customer requests could include base electrochromic mirrors and advanced electronic modules, with a targeted start of production in 2028.
Downing said the move was driven by European customers’ requests for local support for vehicles built and sold in the region. He said Gentex has received several customer commitments and expects the plant initially to transition final assembly work from the United States before potentially supporting existing and new programs.
The company said its core technologies would continue to come from existing facilities and that it does not expect the Moroccan expansion to create a large increase in operating expenses or excess capacity at its core plants.
Gentex also said it expects to announce its first advanced electronics contract-manufacturing award by the end of the next quarter, with production targeted for late 2028 or early 2029. Downing said the initial award could represent $100 million to $200 million in revenue, with additional opportunities potentially becoming larger after 2029.
Guidance Maintained for Revenue, Updated for Margins and Spending Gentex maintained its full-year 2026 consolidated revenue outlook of $2.65 billion to $2.75 billion. The company raised its gross-margin forecast to 34.5% to 35.5%, lowered expected operating expenses to $405 million to $415 million, and reduced its estimated tax rate to 16% to 17%.
The company also lowered projected capital expenditures to $115 million to $125 million, while maintaining depreciation and amortization guidance of $100 million to $110 million. Gentex continues to expect 2027 revenue of $2.8 billion to $2.9 billion.
Management’s production assumptions call for global light-vehicle production to decline about 2% in the third quarter and 3% for full-year 2026. For 2027, global production is expected to be relatively flat, although Gentex anticipates continued weakness in its primary automotive markets of North America, Europe, Japan and Korea.
Downing said the company expects second-half growth to be supported by additional Full Display Mirror launches and increasing production of driver-monitoring and in-cabin-monitoring systems. He also cited future contributions from dimmable visors, sunroofs, fourth-generation Full Display Mirror products and expanded premium-audio offerings.
Gentex generated preliminary operating cash flow of $180.9 million in the second quarter, up from $166.1 million a year earlier. Capital expenditures fell to $19.2 million from $31.1 million, resulting in free cash flow of $161.7 million, up about 20% year over year. During the quarter, the company repurchased 2.7 million shares for $66 million at an average price of $24.48 per share.
About Gentex (NASDAQ:GNTX)Gentex Corporation NASDAQ: GNTX is a global technology company specializing in the design and manufacture of automotive and aerospace products. The company's primary business centers on automatic-dimming rearview mirrors, advanced driver-assistance systems (ADAS), and camera-based driver monitoring technologies. In the automotive sector, Gentex supplies exterior and interior mirrors with integrated electronics, connectivity features, and safety capabilities to many of the world's leading original equipment manufacturers (OEMs).
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: W.R. Berkley (WRB - Free Report) Founded in 1967 and based in Greenwich, CT, W.R. Berkley Corp. is a Fortune 500 company. It is one of the nation’s largest commercial lines property casualty insurance providers. The company offers a variety of insurance services from reinsurance to workers’ comp third-party administrators (TPAs) across the United States and in 87 other countries.
WRB is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Finance stock. WRB has a Momentum Style Score of A, and shares are up 6% over the past four weeks.
For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.08 to $4.75 per share. WRB boasts an average earnings surprise of +8.4%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, WRB should be on investors' short list.
WisdomTree, Inc. (WT - 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 stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 31. 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 $0.26 per share in its upcoming report, which represents a year-over-year change of +44.4%.
Revenues are expected to be $170.22 million, up 51.2% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.67% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that 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 WisdomTree, Inc.?For WisdomTree, Inc., the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +3.05%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that WisdomTree, Inc. will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that WisdomTree, Inc. would post earnings of $0.25 per share when it actually produced earnings of $0.27, delivering a surprise of +8.00%.
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.
WisdomTree, Inc. appears 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 PlayerAnother stock from the Zacks Financial - Miscellaneous Services industry, Acadian Asset Management (AAMI - Free Report) , is soon expected to post earnings of $1.05 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +64.1%. Revenues for the quarter are expected to be $179.43 million, up 43.7% from the year-ago quarter.
The consensus EPS estimate for Acadian Asset Management has been revised 8.4% higher over the last 30 days to the current level. However, an equal Most Accurate Estimate has resulted in an Earnings ESP of 0.00%.
When combined with a Zacks Rank of #1 (Strong Buy), this Earnings ESP makes it difficult to conclusively predict that Acadian Asset Management will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Capital One (COF - Free Report) Headquartered in McLean, VA, Capital One Financial Corporation was founded in 1988 and focuses primarily on consumer and commercial lending, along with deposit origination. The company offers a wide range of financial products and services to consumers, small businesses, and commercial clients across the United States through its banking and non-banking subsidiaries.
COF is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 10.03; value investors should take notice.
Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.41 to $19.93 per share. COF boasts an average earnings surprise of +12.8%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, COF should be on investors' short list.
Coastal Financial Corporation is rated a buy, leveraging a scalable Banking-as-a-Service (BaaS) model with 20+ fintech partners and accelerating fee-based growth. CCB's BaaS segment is driving over 30% net revenue growth, with management signaling continued expansion and disciplined partner onboarding. I assign CCB a $110 price target (19x PE, 0.7x PEG), reflecting its lower-risk, diversified fintech service profile and potential for 30%+ EPS growth.
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Molina Healthcare (MOH - Free Report) . MOH is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.08, while its industry has an average P/E of 17.77. Over the past year, MOH's Forward P/E has been as high as 13.98 and as low as 6.48, with a median of 11.46.
Another notable valuation metric for MOH is its P/B ratio of 2.06. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.94. Over the past 12 months, MOH's P/B has been as high as 4.44 and as low as 1.79, with a median of 3.71.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MOH has a P/S ratio of 0.23. This compares to its industry's average P/S of 0.31.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Molina Healthcare is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MOH feels like a great value stock at the moment.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Kinsale Capital Group, Inc. (KNSL - Free Report) Headquartered in Richmond, VA, Kinsale Capital was established in 2009. It offers various insurance and reinsurance productsacross all 50 states of the United States, the District of Columbia, the Commonwealth of Puerto Rico and the U.S. Virgin Islands. It operates primarily through two markets – Commercial and Personal. While personal lines include homeowners insurance; commercial lines offerings cover construction, small business, excess casualty, commercial property, product liability, allied health, general casualty, management liability, inland marine, commercial insurance and public entity.
KNSL is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Finance stock. KNSL has a Momentum Style Score of B, and shares are up 7.7% over the past four weeks.
For fiscal 2026, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.15 to $20.72 per share. KNSL boasts an average earnings surprise of +8.9%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, KNSL should be on investors' short list.
Update! What Is Congress Trading So Far In 2025? Kinsale Capital Group NYSE: KNSL reported higher second-quarter operating earnings and continued underwriting profitability despite what management described as a competitive and softening excess-and-surplus, or E&S, insurance market.
Chairman, President and Chief Executive Officer Michael Kehoe said diluted operating earnings per share rose 15.9% from the second quarter of 2025 to $5.54. The company generated an annualized operating return on equity of 24.4% and posted a combined ratio of 75.5% for the quarter.
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2 Real-Estate Related Stocks Showing Signs Of Being UndervaluedGross written premium declined 5% year over year, while net written premium fell 1.4%. Net earned premium increased 8.9%. Kehoe said the company is prioritizing underwriting profitability over top-line expansion as competition varies substantially by market segment.
Commercial property pressures weigh on premium Kinsale said competition was most intense in its Commercial Property Division, which writes larger layered property accounts. Kehoe said the market has experienced material rate declines and broader coverage terms, describing the environment as a buyer's market.
Don't Overlook Hidden Gem Kinsale As Rallies To New HighsAs a result, Kinsale is writing a smaller volume of business in that division. Excluding Commercial Property, gross written premium grew 3.7% in the second quarter and 4.8% in the first half of 2026.
Chief Underwriting Officer Stuart Winston said the company will not pursue growth that compromises returns. He cited favorable underwriting conditions and meaningful growth in excess casualty, commercial auto, entertainment, environmental, agribusiness casualty and energy. Construction and certain professional lines, meanwhile, remained among the areas facing softer conditions.
New-business submissions increased 6% during the quarter. Excluding Commercial Property, submissions increased 8%, with more than half of Kinsale's divisions recording double-digit submission growth. Winston said the strongest activity came from small and medium-sized accounts, particularly those with premiums of $25,000 or less. Kinsale's average premium is approximately $12,000.
The company said its combined pricing trend was in line with the MS Amlin pricing index, which showed a 5.9% decrease in the second quarter, compared with a 3.3% decrease in the first quarter.
Underwriting results and reserve position Chief Financial Officer Bryan Petrucelli said net income increased 31.1% year over year, while net operating earnings increased 13.3%. The 75.5% combined ratio included 4.5 percentage points of favorable prior-year loss reserve development, compared with 3.9 points a year earlier. Catastrophe losses accounted for 1.3 points, versus less than one point in the 2025 quarter.
The expense ratio rose to 21.7% from 20.7%, reflecting a higher net commission ratio associated with larger reinsurance retentions. Petrucelli said the increased retention represented a favorable economic trade because the higher commission ratio is more than offset by increased underwriting and investment income.
Other underwriting expenses, which Petrucelli characterized as a measure of operating efficiency, declined to 10.3% from 10.6%.
Chief Analytics and Technology Officer Salmaan Allibhai said losses came in below management's expectations during the quarter, consistent with recent quarters. He attributed the results to normal variability and business mix rather than a specific unusual factor, and said reserves remain as conservative as they have been in the company’s history.
On casualty trends, Allibhai said Kinsale estimates loss-cost trends in the mid-single digits, varying by line of business. He said the company’s concentration in smaller accounts and lower limits has limited its exposure to social inflation relative to some other insurers.
Investment income, technology and capital allocation Net investment income rose 19.9% from the prior-year quarter, driven by growth in the investment portfolio from operating cash flow. Kinsale's float, largely consisting of unpaid losses and unearned premiums, reached $3.4 billion at June 30, up from $3.1 billion at the end of 2025.
The company reported an annualized gross investment return of 4.5% for the first half, compared with 4.3% a year earlier. New-money yields averaged about 5.25%, and the fixed-maturity portfolio had an average duration of roughly 4.25 years.
Management also highlighted investments in analytics, automation and artificial intelligence. Allibhai said Kinsale has consolidated its analytics and technology operations into one team, using its 17 years of company data, third-party data sources, statistical models and machine-learning tools to refine underwriting and pricing.
The company has deployed AI tools across analytics, technology, underwriting and claims functions, including functionality integrated into proprietary underwriting worksheets. Winston said workflow improvements and technology upgrades have helped Kinsale maintain or improve service levels while expanding its product and distribution capabilities.
Kinsale introduced nine product offerings or enhancements so far in 2026. Five additional launches were described as imminent, with another 10 in the pipeline. The company appointed 24 new wholesale brokers and 176 new retail brokers to Aspera, its in-house broker for most personal lines products. Kinsale expanded its stock-repurchase authorization by $250 million, bringing total current authorization to $337 million. Kehoe said repurchases are the company’s principal capital-allocation strategy while growth is more limited, though he said expanding growth would remain the first priority as market conditions improve.
About Kinsale Capital Group (NYSE:KNSL)Kinsale Capital Group, Inc NYSE: KNSL is a specialty property and casualty insurance company headquartered in Richmond, Virginia. Established in 2009, the company focuses on underwriting complex and underserved risks across the United States. Kinsale operates through a network of wholesale brokers and independent agencies, offering tailored coverage solutions for a range of niche industries.
The company's product portfolio includes general liability, business auto, professional liability, environmental liability, inland marine, cyber liability, and other specialty lines.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Kinsale Capital Group Right Now?Before you consider Kinsale Capital Group, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Kinsale Capital Group wasn't on the list.
While Kinsale Capital Group currently has a Reduce rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Tesla, Nvidia, and Google helped shape the last era of market growth, but the next wave could come from a new group of companies. Inside this report, you’ll find 7 stocks that could play a major role in the next tech-driven market boom.
Key Takeaways OTIS grew second-quarter Service sales 11%, with maintenance, repair and modernization driving gains.Otis modernization backlog rose 26% at constant currency, supporting future Service revenue visibility.OTIS expects Service margin improvement in second half as UpLift and pricing initiatives continue. Otis Worldwide Corporation (OTIS - Free Report) is leaning harder on its recurring Service business as New Equipment demand stays uneven. Maintenance, repair and modernization now carry more of the revenue story while installation activity remains pressured.
The investor question is whether Service can keep enough momentum to offset weak equipment demand, especially in China. That balance is central to OTIS’ near-term operating setup.
Otis Service Revenue Becomes the Core Growth EngineService accounted for 65.4% of 2025 revenues, making it the larger of Otis’ two segments. The segment includes maintenance, repair and modernization services across a maintenance portfolio of more than 2 million units worldwide.
In the second quarter of 2026, Service net sales rose 11% year over year to $2.58 billion. Organic sales increased 9%, helped by broad gains across maintenance, repair and modernization activity.
OTIS Modernization Backlog Extends Revenue VisibilityModernization remains a key support for Service growth. Organic modernization sales increased 24% in the second quarter, while modernization orders rose 9% at constant currency.
Backlog grew 26% at constant currency, giving Otis better visibility into future modernization revenues. Management expects Service organic sales to grow in the mid-to-high-single-digit range in 2026, though second-half Service growth is expected to ease to about 6% as modernization normalizes to a low-teens rate.
Otis New Equipment Demand Remains Under PressureNew Equipment remains the weak spot. Second-quarter organic sales declined 1%, reflecting a high-teens revenue drop in China and a mid-single-digit decline in Europe, the Middle East and Africa.
Orders fell 5% at constant currency as declines in Asia Pacific and China offset growth in the Americas and Europe, the Middle East and Africa. The segment’s operating margin contracted 220 basis points to 3.1%, underscoring the impact of lower volume, unfavorable pricing and mix.
Carrier Global Corporation (CARR - Free Report) , a climate and energy solutions company, offers investors another lens on building systems demand. United Rentals, Inc. (URI - Free Report) , which serves construction and industrial customers with equipment rentals, provides a broader read on project activity tied to the same end-market cycle.
OTIS Cost Actions Target a Service Margin RecoveryOtis is trying to improve Service execution through its UpLift transformation. The effort focuses on standardized field processes, frontline execution and customer retention.
The company invested $15 million in Service Excellence during the second quarter and plans $50 million of Service Excellence and pricing initiatives in 2026. Management also completed non-frontline restructuring actions and expects Service margins to improve from 23.1% in the first half of 2026 to about the mid-24% range in the second half.
Otis Signals Favor Growth but Not Near-Term MomentumThe bottom line is that Otis has a durable Service thesis, but the stock does not yet show clean near-term confirmation. Recurring maintenance, repair and modernization revenues support the operating case, while China weakness, low New Equipment margins and cost pressure keep the earnings setup mixed.
OTIS currently carries a Zacks Rank #4 (Sell). That ranking reflects weaker short-term estimate revision trends, so it tempers the appeal of the Service-led growth story for investors focused on the next one to three months.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Style Scores are more balanced. OTIS has a Growth Score of B and VGM Score of B, pointing to stronger operating potential across growth and combined style factors. Its Value Score of C and Momentum Score of C are more neutral, suggesting that valuation and price action are not yet providing the same level of support.
Key Takeaways OTIS trades at 16.1X forward earnings, below its five-year median and key industry benchmarks.Otis cut 2026 EPS, operating profit and free cash flow guidance while keeping net sales unchanged.OTIS faces margin pressure as earnings estimates decline despite ongoing buybacks and a higher dividend. Otis Worldwide Corporation (OTIS - Free Report) has fallen 19% year to date, putting valuation back near the center of the investment debate.
The pullback offers a lower entry multiple, but it also reflects weaker profit visibility. Investors now have to weigh the recurring Service business, cash generation and capital returns against reduced guidance and margin execution risk.
OTIS Valuation Sits Below Key Historical BenchmarksOTIS traded at 16.1X forward 12-month earnings, a discount to its five-year median of 23.01X. That gap suggests the stock already reflects a more cautious earnings outlook.
The discount also extends beyond its own history. The stock traded below the Zacks sub-industry multiple of 21.55X, the sector multiple of 21.86X and the S&P 500 multiple of 20.42X. The $76 price target was based on a 17.29X forward multiple, still below its longer-term median.
Carrier Global Corporation (CARR - Free Report) , another industrial building-systems name, offers a useful comparison because investors also evaluate its service and installed-base exposure. United Rentals, Inc. (URI - Free Report) sits in a different part of the industrial cycle, but it gives investors another read on equipment demand and construction-related spending.
Otis Guidance Cuts Weaken the Earnings CaseOtis lowered adjusted earnings per share guidance for 2026 to $4.01-$4.05 from $4.20-$4.24. Adjusted operating profit guidance was cut to about $2.4 billion from about $2.5 billion.
Adjusted free cash flow guidance also moved down to $1.50-$1.55 billion from $1.60-$1.65 billion. Net sales guidance stayed at $15.1-$15.3 billion, so the revision points less to a revenue shortfall and more to weaker conversion from sales into profit and cash flow.
OTIS Cash Returns Offer Partial Downside SupportCash returns remain part of the case for OTIS. First-half adjusted free cash flow reached $562 million, while the company repurchased roughly $800 million of shares in the first half.
The dividend was raised 5%, and the stock offered a dividend yield of 2.5%. These actions may not fully offset margin pressure, but they provide a measure of shareholder-return support while management works through cost and productivity issues.
Owens Corning Inc (OC - Free Report) , a building-products peer, is another relevant industrial comparison for investors tracking construction-linked demand and margin resilience. Its inclusion helps frame OTIS within a broader group where operating execution often matters as much as end-market exposure.
Otis Earnings Estimates and Margins Raise CautionMargin trends are the main reason the lower valuation does not automatically create a clear buying signal. Adjusted operating margin contracted 180 basis points to 15.2% in the second quarter.
Service margin fell 170 basis points to 23.2%, even as segment sales increased. New Equipment margin declined 220 basis points to 3.1%, pressured by lower volume, unfavorable pricing and adverse mix. The fiscal 2026 earnings per share estimate also fell 4.7% over four weeks, showing that expectations were still resetting.
OTIS Scores Point to a Mixed Investment SetupThe bottom line is that OTIS looks cheaper, but the discount comes with visible earnings and margin risks. A durable Service model and cash returns support the long-term profile, while guidance cuts keep near-term conviction limited.
The stock currently carries a Zacks Rank #4 (Sell). That rank weighs against treating the valuation discount as an immediate buying signal because the Zacks Rank is tied to short-term earnings estimate trends.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Style Scores show a mixed setup. OTIS has a Growth Score of B and a VGM Score of B, indicating better relative characteristics on growth and the combined value, growth and momentum framework. Its Value Score of C and Momentum Score of C are more neutral, reinforcing a cautious stance until estimate trends and margins show steadier footing.
Otis Worldwide posted mixed Q2 results, beating revenue estimates but cutting full-year 2026 guidance due to persistent headwinds. Despite margin pressure and profit declines, OTIS's service segment remains the primary growth engine, with modernization up 24% and maintenance trends accelerating. Headwinds in China and higher labor and energy costs continue to weigh on New Equipment segment profits and overall margins.
Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.
The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.
The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.
The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information.
With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure. The system also utilizes our core Zacks Rank to provide a stronger system for identifying stocks that might beat their next quarterly earnings estimate and possibly see the stock price climb.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.
Stocks with a ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Stocks with rankings of #2 (Buy) and #1 (Strong Buy), or the top 15% and top 5% of stocks, respectively, should outperform the market; Strong Buy stocks should outperform more than any other rank.
Should You Consider Southern Co.?The final step today is to look at a stock that meets our ESP qualifications. Southern Co. (SO - Free Report) earns a #3 (Hold) six days from its next quarterly earnings release on July 30, 2026, and its Most Accurate Estimate comes in at $1.05 a share.
SO has an Earnings ESP figure of +2.54%, which, as explained above, is calculated by taking the percentage difference between the $1.05 Most Accurate Estimate and the Zacks Consensus Estimate of $1.02. Southern Co. is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
Key Takeaways Invesco's Q2 results are expected to reflect y/y earnings and revenue growth.IVZ's preliminary AUM reached $2.47T in June 2026, supporting investment management fees.IVZ completed its Canadian fund business transfer to CI GAM while retaining select portfolio mandates. Invesco (IVZ - Free Report) is scheduled to announce second-quarter 2026 results on July 28, before market open. The company’s quarterly earnings and revenues are expected to have witnessed a rise on a year-over-year basis.
In the last reported quarter, IVZ’s adjusted earnings missed the Zacks Consensus Estimate. The results primarily benefited from an increase in adjusted revenues and growth in assets under management (AUM) balance. However, an increase in adjusted expenses was a headwind.
Invesco does not have an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in only two of the trailing four quarters, the average surprise being 7.9%.
Invesco’s Key Q2 Estimates & Factors to NotePer the monthly metrics data published by Invesco, its preliminary total AUM as of June 30, 2026, was $2.47 trillion, up 14.4% from the previous quarter’s end. So, the company’s investment management fees are expected to have been positively impacted in the quarter. The Zacks Consensus Estimate for investment management fees is pegged at $1.48 billion, indicating a rise of 6.8% from the previous quarter.
The consensus estimate for service and distribution fees of $323 million indicates a rise of 7% from the previous quarter’s reported number. Also, the Zacks Consensus Estimate for other revenues is pegged at $63 million, suggesting a 28% sequential increase.
However, the company’s performance fee is expected to have declined sequentially because the previous quarter benefited from relatively stronger realizations in performance-fee-eligible strategies, particularly in private markets, fundamental fixed income and multi-asset products. In the to-be-reported quarter, performance fees are likely to have normalized to a lower level, reflecting the inherently lumpy nature of these revenues and the absence of any indication of unusually large performance-fee realizations during the quarter. The Zacks Consensus Estimate for second-quarter performance fees of $6.02 million indicates a 46.7% decline from the previous quarter’s actual.
On the cost front, while Invesco’s cost-saving initiatives are likely to have boosted its efficiency, the rise in compensation and marketing costs is expected to have had an adverse impact on overall expenses in the to-be-reported quarter.
Management expects one-time implementation costs of Alpha to be $10-$15 million in the second quarter of 2026.
Major Q2 Development for InvescoIn June, Invesco completed the transfer of its Canadian fund management business to CI Global Asset Management (CI GAM), marking the close of a deal that significantly reshapes the Canadian investment fund landscape.
The transaction, announced in January, involved management agreements tied to Invesco’s Canadian fund lineup, which oversees approximately C$27 billion in assets. Now, CI GAM has assumed management responsibilities for 98 mutual funds and ETFs that were previously operated by Invesco Canada.
Although management of the funds has shifted to CI GAM, Invesco will continue to play an important role through a long-term strategic partnership between the two firms. Under a sub-advisory arrangement, Invesco affiliates will keep providing portfolio management services for 61 funds representing roughly C$13 billion in assets.
What Our Model Predicts for IVZAccording to our proven model, the chances of Invesco beating the Zacks Consensus Estimate for earnings this time are high. This is because it has the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Invesco is +0.08%.
Zacks Rank: The company currently carries a Zacks Rank #2 (Buy).
Invesco’s Q2 Earnings & Sales EstimatesThe Zacks Consensus Estimate for Invesco’s earnings of 67 cents per share has been unchanged over the past seven days. However, the figure indicates a rise of 86.1% from the year-ago quarter’s actual.
The consensus estimate for sales is pegged at $1.33 billion, suggesting a year-over-year increase of 20.1%.
Other Finance Stocks Worth ConsideringHere are a couple of other finance stocks that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this time:
Prosperity Bancshares (PB - Free Report) is scheduled to report quarterly results on July 29. The company currently has an Earnings ESP of +1.76% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Over the past seven days, the Zacks Consensus Estimate for PB’s quarterly earnings has been unchanged at $1.54.
The Earnings ESP for Affiliated Managers Group (AMG - Free Report) is +1.86% and it carries a Zacks Rank #2 at present. The company is slated to report quarterly results on July 30.
Over the past seven days, the Zacks Consensus Estimate for AMG’s quarterly earnings has been unchanged at $7.85.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Invesco (IVZ - Free Report) Headquartered in Atlanta, GA, Invesco Ltd. operates as an independent investment manager and offers a wide range of investment products and services. The company was incorporated in 1935. As of March 31, 2026, Invesco served clients in more than 120 countries and had AUM worth $2.16 trillion.
IVZ is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 10.72; value investors should take notice.
Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.20 to $2.78 per share. IVZ boasts an average earnings surprise of +7.9%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, IVZ should be on investors' short list.
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In private equity, pulling a public company off the market requires an alignment of the stars. Buyout shops need a precise playbook:
Predictable cash generation to service debt An equity discount worth exploiting Balance sheet capacity for financial engineering Clear operational levers to pull A check size big enough to actually move the needle for a multi-billion-dollar fund. When a target checks all five boxes, the conversation rapidly shifts from if a deal makes sense to how quickly it can be executed.
Below are four U.S.-listed names screening well against that framework. Each has been beaten down, throws off real free cash flow, and has levers a sponsor could pull.
4. Papa John’s International Papa John’s International (NASDAQ:PZZA) has a market cap of just $998.6 million, and shares closed most recently at $30.35, down 30.0% over the past year. That sub-$1 billion equity check is a rounding error for a mid-market sponsor.
The franchise-heavy model produces a royalty-like revenue stream, with FY26 adjusted EBITDA guided to $200 to $210 million, implying an EV/EBITDA around 11x. Q1 FY26 was weak: revenue fell 7.7% to $478.6 million and free cash flow was negative $6.2 million after refranchising 85 stores. Management targets $30 million in corporate cost savings and $60 million in supply chain savings through 2027, the exact playbook PE runs itself.
Comparable sales in North America down 6.4% represents some risk. Plausible acquirers include Roark Capital or Apollo.
3. Etsy Etsy (NASDAQ:ETSY | ETSY Price Prediction) closed at $80.91, still 61.3% below its 2021 peak despite a 45.9% year-to-date rally. Its forward P/E is 15x, and its EV/EBITDA is 24x.
FY25 free cash flow was $638.75 million on capex of just $54.66 million, a capital-light marketplace profile. The $1.2 billion Depop sale to eBay gives new CEO Kruti Patel Goyal a clean, single-brand focus and a cash position of $1.4 billion. Q1 FY26 GMS grew 5.5%, the second straight quarter of expansion.
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The risk here is consumer discretionary exposure. Silver Lake and Advent are plausible acquirers.
2. Match Match Group (NASDAQ:MTCH) checks nearly every box. Shares at $37.40 are 76.5% below their five-year high. The forward P/E is 14x, and EV/EBITDA is 11x, cheap for a business owning Tinder, Hinge, OkCupid, and Plenty of Fish.
FY25 operating cash flow was $1.08 billion and free cash flow was $1.02 billion, growing every year since 2022. Hinge revenue jumped 28% to $194 million in Q1 FY26, with a path to $1 billion by 2027. Management returned $975 million to shareholders in FY25. Debt of $4.0 billion is manageable against that FCF. Tinder’s ongoing turnaround is a risk, and Blackstone and KKR are plausible acquirers.
1. Kraft Heinz Kraft Heinz (NASDAQ:KHC) is the textbook take-private candidate. Shares at $25.36 are 54.5% below where they traded a decade ago. The forward P/E is 13x, the price-to-book is 0.73, and the dividend yields 6.3%.
FY25 free cash flow was $3.66 billion, up 15.9%, and Q1 FY26 delivered $766 million in FCF alone. The Heinz, Kraft, Philadelphia, Lunchables, and Ore-Ida brand roster is exactly the moat sponsors underwrite for a decade. New CEO Steve Cahillane bought 213,106 shares at $23.4616 on May 12, 2026. The company paused its previously announced separation, freeing capital for a broader transaction. Analyst sentiment is cautious, with an average target of just $23.97, precisely the setup a sponsor wants: low expectations, high cash generation. Key risks include organic sales guided down 1.5% to 3.5%. Plausible acquirers include 3G Capital and Apollo.
What Happens to Shareholders When a Buyout Hits When a leveraged buyout offer lands, target shareholders typically receive a cash premium of 20% to 40% over the unaffected price. For beaten-down names like Kraft Heinz, where the market has priced in years of underperformance, a take-private premium could deliver in weeks what public-market patience has failed to produce in years. The names above may well test that thesis next.
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Key Takeaways United Rentals topped Q2 earnings estimates, raised its 2026 view and cited accelerating large-project demand.Specialty rental revenues rose 24.8% y/y to a record $1.43B, with growth across all seven business lines.URI lifted its gross CapEx guidance to $4.85-$5.25B as record utilization supported added fleet investment. United Rentals, Inc. (URI - Free Report) highlighted accelerating demand, record utilization and a stronger outlook during its second-quarter 2026 earnings call. Management raised its full-year guidance as large projects and customer activity exceeded prior expectations.
Executives emphasized capital discipline, specialty rental growth and operational execution as the key themes, while analyst questions focused on margins, capacity expansion and the durability of current demand trends.
URI Sees Demand Momentum ContinueCEO Matthew Flannery said that United Rentals is benefiting from strong customer activity, particularly around large projects, while its technology, service model and broad fleet offering continue to differentiate the business.
URI reported second-quarter adjusted earnings per share of $12.76, beating the Zacks Consensus Estimate of $11.67. Revenues were $4.41 billion, surpassing the Zacks Consensus Estimate of $4.24 billion.
Management pointed to construction, infrastructure and industrial activity as important contributors, with projects involving hospitals, airports, LNG terminals and data centers supporting demand.
United Rentals Expands Specialty ReachUnited Rentals said that specialty rental revenues increased 24.8% year over year to a quarterly record of $1.43 billion. The company reported growth across all seven specialty business lines.
Flannery noted that complex customer projects require broader service capabilities, supporting demand for the company’s one-stop-shop approach. Specialty offerings such as power, HVAC, tools and matting continued to gain traction.
The company also highlighted strength in power-related demand, which management said represents an important growth area with continued organic expansion opportunities.
URI Raises CapEx Behind UtilizationURI increased its gross rental capital expenditure guidance after demand exceeded earlier expectations. Management said that historically high time utilization levels supported additional fleet investment.
The company raised its gross CapEx guidance to $4.85-$5.25 billion from the prior mentioned $4.4-$4.8 billion. Net rental capital expenditure is expected to be $3.4-$3.8 billion.
Flannery said that the company is adding fleet based on confidence in project visibility rather than simply pursuing near-term revenue opportunities. Management expects large-project demand trends to continue into the following year.
United Rentals Addresses Margin PressureURI discussed margin dynamics as analysts questioned the impacts of fuel costs, delivery expenses and ancillary revenue growth. CFO William Grace said that cost execution remained a priority.
The adjusted EBITDA margin was 46.6% in the quarter. Excluding the benefits from the sale of part of the scaffolding business, management said that the underlying margin performance reflected ongoing cost actions.
Grace noted that labor, delivery and repair-related costs showed positive absorption trends, while higher ancillary and re-rent revenue growth created some margin mix pressure.
URI Highlights Capital StrengthURI maintained a focus on shareholder returns and balance sheet flexibility. The company ended the quarter with a net leverage ratio of 1.8X and total liquidity of nearly $3 billion.
Management said that it returned $998 million to shareholders year to date through share repurchases and dividends. The company expects to complete $1.5 billion in share repurchases in 2026.
The company also discussed potential credit improvement after S&P raised its outlook, while management continued to emphasize maintaining financial flexibility for growth and capital returns.
United Rentals Maintains Strategic FocusAnalysts questioned whether improving local markets, acquisitions and industry consolidation could provide additional growth opportunities. Management said that consolidation remains part of the equipment rental industry’s evolution.
Flannery said that the company continues evaluating acquisitions, particularly opportunities that expand specialty offerings or address portfolio gaps. He noted that current growth is primarily organic.
Management’s overall message centered on continued execution, disciplined investment and supporting customers through large-scale projects while preserving returns.
Zacks Rank & Style ScoresURI currently carries a Zacks Rank #2 (Buy). The Zacks Rank focuses on earnings estimate revisions and is designed to help identify stocks with stronger potential relative performance over the next one to three months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company has a Value Score of C, a Growth Score of B, a Momentum Score of C and a VGM Score of B. Zacks Style Scores range from A to F, with stronger scores indicating more favorable characteristics for their respective investment styles.
The combination of a Zacks Rank #2 and a VGM Score of B reflects favorable characteristics across the combined value, growth and momentum measures. The Zacks Rank can change as analysts update earnings estimates following the quarterly results.
NEW YORK, July 24, 2026 (GLOBE NEWSWIRE) -- Kaplan Fox & Kilsheimer LLP announces that a class action lawsuit has been filed against Hub Group, Inc. (“Hub Group” or the “Company”) (NASDAQ: HUBG) on behalf of investors that purchased or otherwise acquired Hub Group securities between April 28, 2023 and May 11, 2026 (the “Class Period”). CLICK HERE TO RECEIVE MORE INFORMATION ABOUT THIS INVESTIGATION If you are an investor in Hub Group and have suffered losses, you may CLICK HERE to contact us.
LOS ANGELES, July 24, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against Hub Group, Inc. (“Hub” or “the Company”) (NASDAQ: HUBG) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.
Investors who purchased the Company’s securities between April 28, 2023 and May 11, 2026, inclusive (the “Class Period”), are encouraged to contact the firm before August 28, 2026.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
According to the Complaint, the Company made false and misleading statements to the market. Hub suffered from material misstatements in its financial statements from Q1 2023 to Q4 2024 including its annual reports for 2023 and 2024. The Company’s misstatements included operating revenue, operating income, and revenue recognition. The Company’s financial statements from Q1 2025 to Q3 2025 contained misstatements related to the understatement of purchased transportation costs amongst other errors. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Hub, investors suffered damages.
Join the case to recover your losses
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.,
www.schallfirm.com
Office: 310-301-3335 [email protected]
Key Takeaways Sallie Mae missed Q2 earnings and revenue estimates as lower NII and higher expenses hurt the results. SLM's non-interest income grew on gains from loan sales and higher other income.Sallie Mae's private education loans held for investment declined y/y to $19.5 billion. Sallie Mae (SLM - Free Report) , reported second-quarter 2026 earnings per share (EPS) of 29 cents, missing the Zacks Consensus Estimate of 46 cents. The metric declined 9.4% from the year-ago quarter.
Revenues of $338.8 million missed the Zacks Consensus Estimate of $355.2 million by 4.6%. This compares with the year-ago revenues of $376.82 million.
The quarterly results were hurt by lower net interest income (NII), higher provisions for credit losses and an increase in expenses. However, growth in non-interest income and private education loan originations offered some support.
The company’s GAAP net income attributable to common stock was $55 million compared with $67 million in the year-ago quarter.
Sallie Mae’s NII Declines, Expenses RiseSecond-quarter NII totaled $332.8 million, down 11.7% from $376.8 million in the prior-year quarter.
The quarterly net interest margin was 4.75%, contracting 56 basis points year over year.
Quarterly non-interest income was $68.3 million, up significantly from $26.8 million in the year-ago quarter. Gains on sales of loans were $14.9 million against a loss of $13,000 in the prior-year quarter. Other income grew 54.1% year over year to $45.3 million.
Non-interest expenses increased 16.6% year over year to $195 million. Compensation and benefits expenses rose 18.1% to $100.3 million. Other operating expenses were $88.9 million, up 24.1%.
SLM’s Credit Quality: Mixed BagIn the second quarter, provisions for credit losses were $125.7 million, down from $148.7 million in the prior-year quarter.
Net charge-offs were $113 million in the reported quarter, up from the year-ago quarter.
Delinquencies as a percentage of loans in repayment were 3.72% for the second quarter of 2026 compared with 3.51% in the prior-year quarter.
Sallie Mae’s Balance Sheet PositionAs of June 30, 2026, deposits totaled $19.9 billion, down from $20.5 billion in the year-ago quarter.
Private education loans held for investment, net, were $19.5 billion, down from $21.2 billion in the prior-year quarter.
Average loans outstanding, net, totaled $21.1 billion in the quarter. In the reported quarter, private education loan originations increased 4.5% year over year.
Key Ratios of SLMThe efficiency ratio was 48.6% compared with 41.4% in the year-ago quarter.
Return on assets was 0.8% compared with 1% in the prior-year quarter.
Return on common equity was 9.9% compared with 12.6% in the year-ago quarter.
SLM Share Repurchase UpdateThe company’s $200-million accelerated share repurchase concluded in June 2026. It repurchased 9.3 million shares under the program, including the final delivery of 0.9 million shares in the second quarter. As of June 30, 2026, $242 million remained available under the company’s 2026 share repurchase program.
Sallie Mae Reaffirms 2026 OutlookManagement reaffirmed its 2026 EPS guidance of $3.10-$3.20.
Sallie Mae expects year-over-year private education loan origination growth of 12-14%, net charge-offs of $365-$385 million and non-interest expenses of $750-$780 million.
The company sold $420 million in private education loans during the quarter, including $399 million of principal and $21 million of capitalized interest through its strategic partnerships business.
Final Thoughts on SLMSallie Mae delivered a disappointing second-quarter performance. Lower NII, margin contraction, higher expenses, declining loan and deposit balances, and elevated delinquencies remain concerning. Nonetheless, lower provisions for credit losses, growth in non-interest income and higher private education loan originations were positives.
Currently, SLM carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Dates & Expectations of SLM’s PeersOneMain Holdings (OMF - Free Report) is slated to announce second-quarter 2026 numbers on July 29.
In the past week, the Zacks Consensus Estimate for OneMain’s quarterly earnings has been revised downward to $1.31. This implies a 9.7% decrease from the prior-year reported number.
Navient (NAVI - Free Report) is scheduled to announce quarterly numbers on Aug. 6.
In the past seven days, the Zacks Consensus Estimate for Navient’s quarterly earnings has been unchanged at 19 cents. This indicates a 9.5% decline from the prior-year reported number.
LOS ANGELES, July 24, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against Insulet Corporation (“Insulet” or “the Company”) (NASDAQ: PODD) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.
Investors who purchased the Company’s securities between February 21, 2025 and May 26, 2026, inclusive (the “Class Period”), are encouraged to contact the firm before August 31, 2026.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
According to the Complaint, the Company made false and misleading statements to the market. Insulet suffered from defective controls over its manufacturing processes. The Company faced increased risks of safety violations due to these deficiencies. The Company’s manufacturing problem necessitating its March 2026 Medical Device Cirrection impacted a greater number of its Pod Products than it claimed. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Insulet, investors suffered damages.
Join the case to recover your losses.
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.,
www.schallfirm.com
Office: 310-301-3335 [email protected]
Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Cabot (CBT - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Basic Materials peers, we might be able to answer that question.
Cabot is a member of our Basic Materials group, which includes 275 different companies and currently sits at #14 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Cabot is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for CBT's full-year earnings has moved 1.3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that CBT has returned about 34.4% since the start of the calendar year. Meanwhile, the Basic Materials sector has returned an average of 7.4% on a year-to-date basis. As we can see, Cabot is performing better than its sector in the calendar year.
Another Basic Materials stock, which has outperformed the sector so far this year, is CF Industries (CF - Free Report) . The stock has returned 63.8% year-to-date.
Over the past three months, CF Industries' consensus EPS estimate for the current year has increased 27.8%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Cabot is a member of the Chemical - Diversified industry, which includes 31 individual companies and currently sits at #91 in the Zacks Industry Rank. This group has gained an average of 18.6% so far this year, so CBT is performing better in this area.
In contrast, CF Industries falls under the Fertilizers industry. Currently, this industry has 6 stocks and is ranked #70. Since the beginning of the year, the industry has moved +17.2%.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Cabot and CF Industries as they could maintain their solid performance.
HCA Healthcare (HCA - Free Report) came out with quarterly earnings of $7.59 per share, beating the Zacks Consensus Estimate of $7.57 per share. This compares to earnings of $6.84 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +0.26%. A quarter ago, it was expected that this hospital operator would post earnings of $7.17 per share when it actually produced earnings of $7.15, delivering a surprise of -0.28%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
HCA, which belongs to the Zacks Medical Services industry, posted revenues of $20.23 billion for the quarter ended June 2026, in line with the Zacks Consensus Estimate. This compares to year-ago revenues of $18.61 billion. The company has topped consensus revenue estimates just once 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.
HCA shares have lost about 19.4% since the beginning of the year versus the S&P 500's gain of 8.2%.
What's Next for HCA?While HCA has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for HCA was unfavorable. 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 #4 (Sell) for the stock. So, the shares are expected to underperform 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 $7.13 on $19.73 billion in revenues for the coming quarter and $29.19 on $78.51 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, Medical Services is currently in the top 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Teladoc (TDOC - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on July 29.
This telehealth services provider is expected to post quarterly loss of $0.24 per share in its upcoming report, which represents a year-over-year change of -26.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Teladoc's revenues are expected to be $614.69 million, down 2.7% from the year-ago quarter.
HCA Healthcare (HCA - Free Report) reported $20.23 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 8.7%. EPS of $7.59 for the same period compares to $6.84 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $20.23 billion, representing no surprise. The company delivered an EPS surprise of +0.26%, with the consensus EPS estimate being $7.57.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how HCA performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue per Equivalent Admission: $19,370.00 versus $18,771.14 estimated by five analysts on average.Equivalent Admissions: 1.04 billion versus the five-analyst average estimate of 1.04 billion.Admissions: 579.56 million versus the three-analyst average estimate of 579.01 million.Patient Days: 2,690.92 Days compared to the 2,713.59 Days average estimate based on two analysts.Average Length of Stay: 5 versus 5 estimated by two analysts on average.Number of hospitals: 190 versus 189 estimated by two analysts on average.Inpatient Revenue per Admission: $22,524.00 compared to the $20,251.40 average estimate based on two analysts.Equivalent Patient Days: 4.85 million versus 4.9 million estimated by two analysts on average.Licensed Beds at End of Period: 50,550 versus 50,729 estimated by two analysts on average.Number of freestanding outpatient surgery centers: 118 versus the two-analyst average estimate of 119.View all Key Company Metrics for HCA here>>>
Shares of HCA have returned -2.7% over the past month versus the Zacks S&P 500 composite's +0.6% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
Investors interested in Utilities stocks should always be looking to find the best-performing companies in the group. CenterPoint Energy (CNP - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Utilities sector should help us answer this question.
CenterPoint Energy is a member of the Utilities sector. This group includes 111 individual stocks and currently holds a Zacks Sector Rank of #16. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. CenterPoint Energy is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for CNP's full-year earnings has moved 0.1% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, CNP has returned 15.4% so far this year. Meanwhile, stocks in the Utilities group have gained about 8.1% on average. As we can see, CenterPoint Energy is performing better than its sector in the calendar year.
Another stock in the Utilities sector, Evergy Inc (EVRG - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 19.5%.
For Evergy Inc, the consensus EPS estimate for the current year has increased 0% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, CenterPoint Energy is a member of the Utility - Electric Power industry, which includes 63 individual companies and currently sits at #165 in the Zacks Industry Rank. This group has gained an average of 9.9% so far this year, so CNP is performing better in this area. Evergy Inc is also part of the same industry.
Investors interested in the Utilities sector may want to keep a close eye on CenterPoint Energy and Evergy Inc as they attempt to continue their solid performance.
Grayscale Bitcoin Trust ETF remains expensive at a 1.50% fee, losing market share to lower-cost peers despite resilient legacy assets. GBTC's lack of yield features limits Grayscale's ability to enhance the fund, unlike recent improvements for ETHE and GSOL via staking distributions. Significant embedded gains and tax consequences keep legacy GBTC holders in place, but new capital is deterred by high fees and no product enhancements.
Investors in Constellation Energy Corporation (CEG - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the January 15, 2027 $95.00 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for Constellation Energy share, but what is the fundamental picture for the company? Currently, Constellation Energy is a Zacks Rank #3 (Hold) in the Alternative Energy - Other Industry that ranks in the Bottom 38% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their estimates for the current quarter, while two have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter to move from $2.30 per share to $2.24 per share in the same time period.
Given the way analysts feel about Constellation Energy right now, this huge implied volatility could mean there’s a trade developing. Often times, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Silgan Holdings (SLGN - Free Report) Silgan Holdings is a leading supplier of rigid packaging for consumer goods products. Its products are used in diverse end markets. It is the largest metal-container supplier for food products in North America. Silgan operates 113 manufacturing facilities in North and South America, Europe and Asia. Its product lines include steel and aluminum containers for human and pet food; custom-designed plastic containers for personal care, healthcare, pharmaceutical, household, industrial chemical, food, pet care, agricultural chemical, automotive and marine chemical products; and metal, composite and plastic closures for food and beverage products.
SLGN is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 11.98; value investors should take notice.
Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.00 to $3.79 per share. SLGN also boasts an average earnings surprise of +1.9%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, SLGN should be on investors' short list.
The market expects AutoNation (AN - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 31. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis auto retailer is expected to post quarterly earnings of $5.43 per share in its upcoming report, which represents a year-over-year change of -0.6%.
Revenues are expected to be $6.97 billion, down 0.1% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.08% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that 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. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for AutoNation?For AutoNation, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.22%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that AutoNation 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 AutoNation would post earnings of $4.71 per share when it actually produced earnings of $4.69, delivering a surprise of -0.42%.
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.
AutoNation doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAmong the stocks in the Zacks Automotive - Retail and Whole Sales industry, Group 1 Automotive (GPI - Free Report) , is soon expected to post earnings of $10.79 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -6.3%. This quarter's revenue is expected to be $5.65 billion, down 0.9% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Group 1 Automotive has been revised 1.6% down to the current level. Nevertheless, the company now has an Earnings ESP of -0.03%, reflecting a lower Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Group 1 Automotive will beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
First Hawaiian (FHB - Free Report) came out with quarterly earnings of $0.6 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.58 per share a year ago. These figures are adjusted for non-recurring items.
A quarter ago, it was expected that this bank holding company would post earnings of $0.53 per share when it actually produced earnings of $0.55, delivering a surprise of +3.77%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
First Hawaiian, which belongs to the Zacks Banks - West industry, posted revenues of $231.27 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.48%. This compares to year-ago revenues of $217.54 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
First Hawaiian shares have added about 13.2% since the beginning of the year versus the S&P 500's gain of 8.2%.
What's Next for First Hawaiian?While First Hawaiian 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 First Hawaiian 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 #1 (Strong 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 $0.61 on $233.48 million in revenues for the coming quarter and $2.38 on $921.18 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - West is currently in the top 24% 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.
Bank of Marin (BMRC - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on July 27.
This bank holding company is expected to post quarterly earnings of $0.52 per share in its upcoming report, which represents a year-over-year change of +79.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Bank of Marin's revenues are expected to be $34.05 million, up 16.6% from the year-ago quarter.
First Hawaiian (FHB - Free Report) reported $231.27 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 6.3%. EPS of $0.60 for the same period compares to $0.58 a year ago.
The reported revenue represents a surprise of +1.48% over the Zacks Consensus Estimate of $227.91 million. With the consensus EPS estimate being $0.60, the company has not delivered EPS surprise.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how First Hawaiian performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net charge-offs: 0.1% versus the three-analyst average estimate of 0.1%.Total Non-Accrual Loans and Leases: $39.5 million versus $39.42 million estimated by three analysts on average.Net interest margin: 3.3% compared to the 3.2% average estimate based on three analysts.Efficiency Ratio: 56.2% versus the three-analyst average estimate of 56.1%.Average Balance - Total Earning Assets: $21.19 billion versus the three-analyst average estimate of $21.45 billion.Total Non-Performing Assets: $39.5 million versus the three-analyst average estimate of $40.75 million.Total Noninterest Income: $60.28 million versus $54.58 million estimated by three analysts on average.Net Interest Income (FTE): $171.9 million compared to the $173.33 million average estimate based on three analysts.Net Interest Income: $170.99 million compared to the $172.67 million average estimate based on three analysts.Service charges on deposit accounts: $8.32 million versus the two-analyst average estimate of $8.28 million.Other service charges and fees: $14.41 million versus $14.01 million estimated by two analysts on average.Noninterest income- Other: $6.01 million versus the two-analyst average estimate of $2.64 million.View all Key Company Metrics for First Hawaiian here>>>
Shares of First Hawaiian have returned -2.2% over the past month versus the Zacks S&P 500 composite's +0.6% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.
Key Takeaways SouthState Q2 EPS beat estimates, while revenues declined and missed expectations.SSB's non-interest income, loans and deposits grew, while expenses fell and asset quality improved.SouthState raised its quarterly dividend to 66 cents per share despite lower NII and rise in provision. SouthState Corporation (SSB - Free Report) reported second-quarter 2026 earnings per share of $2.35, which surpassed the Zacks Consensus Estimate of $2.33. Also, the bottom line increased 11% from the prior-year quarter.
Results were supported by growth in non-interest income, along with higher loans and deposit balances. Lower expenses and an improvement in asset quality were other positives. However, a decline in net interest income (NII) and net interest margin (NIM), along with higher provisions, acted as headwinds.
Net income (GAAP basis) was $230 million, up 6.9% from $215.2 million in the year-ago quarter.
SouthState’s Revenues Decline, Expenses FallTotal revenues for the quarter were $672.7 million, representing a 1.2% year-over-year decline. Also, the top line missed the Zacks Consensus Estimate of $677.2 million.
NII was $575.9 million, down marginally from the year-ago quarter. NIM declined to 3.78% from 4.02% in the prior-year quarter.
Non-interest income was $96.7 million, up 11.4% from the prior-year quarter. The increase was mainly driven by higher fees on deposit accounts, correspondent banking and capital markets income, trust and investment services income, and bank-owned life insurance income. This was partly offset by lower mortgage banking income and other income.
Non-interest expenses declined 4.6% to $357.7 million. The decrease was mainly due to the absence of merger, branch consolidation, severance-related and other expenses, along with lower information services expenses, OREO and loan-related expenses, the amortization of intangibles, and FDIC assessment and other regulatory charges. This was partly offset by higher salaries and employee benefits, occupancy expenses, business development and staff-related expenses, and other operating expenses.
The efficiency ratio decreased to 50% from 52.75% in the year-ago quarter. A decline in the efficiency ratio indicates a rise in profitability.
SSB’s Loans & Deposits RiseAs of June 30, 2026, net loans were $50.3 billion, up 2.8% from the prior quarter. Total deposits were $56.3 billion, which rose 0.8% sequentially.
SouthState’s Asset Quality: Mixed BagIn the reported quarter, the company recorded a provision for credit losses of $15.9 million, up from $7.5 million in the prior-year quarter.
Allowance for credit losses as a percentage of loans was 1.15%, down 16 basis points year over year. The ratio of annualized net charge-offs to total average loans was 0.06%, down from 0.21% in the year-ago quarter.
Non-performing loans to total loans were 0.54%, down from 0.63% in the previous-year quarter. Total non-performing assets declined to $287.4 million from $323.8 million in the year-ago quarter.
SSB’s Capital Ratios Mixed, Profitability Ratios ImproveAs of June 30, 2026, the Tier I leverage ratio was 9.4%, up from 9.2% in the year-ago quarter. The Tier 1 common equity ratio decreased to 11.1% from the prior-year quarter’s 11.2%.
At the end of the second quarter, the annualized return on average assets was 1.36%, up from the year-ago period’s 1.34%. Return on average common equity was 10.19% compared with 9.93% in the prior-year quarter.
SSB Capital Distribution UpdateThe company increased its quarterly cash dividend on its common stock from 60 cents per share to 66 cents. The dividend is payable Aug. 14, 2026, to shareholders of record as of Aug. 7, 2026
Our Take on SouthStateSouthState’s growth in non-interest income, along with higher loan and deposit balances, is expected to support its financial performance. Lower expenses and improving asset quality trends are additional positives. However, pressure on NII and NIM, along with higher provisions, remains concerning.
Currently, SSB carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other BanksCommerce Bancshares Inc.’s (CBSH - Free Report) second-quarter 2026 earnings of $1.10 per share surpassed the Zacks Consensus Estimate of $1.04. The bottom line reflected a rise of 1% from the prior-year quarter.
CBSH’s results primarily benefited from higher NII and a rise in non-interest income. The sequential rise in loan balances acted as a tailwind. However, higher expenses and provisions hurt CBSH’s results to some extent.
F.N.B. Corporation (FNB - Free Report) reported second-quarter 2026 earnings of 42 cents per share, which matched the Zacks Consensus Estimate. The bottom line jumped 16.7% year over year.
FNB’s results primarily benefited from higher NII, a rise in non-interest income and lower provisions. Higher average loans and deposits were other positives. However, higher non-interest expenses hurt the results to some extent.
SummaryBloom Energy is positioned as a critical AI infrastructure enabler, addressing hyperscaler power constraints with modular, on-site fuel cell solutions.Q1 2026 results proved BE’s scalable model, with 130% YoY revenue growth, expanding margins, and credible upward guidance for 2026.Strategic partnerships—especially Brookfield’s $25B commitment and Oracle’s multi-GW deployments—underscore BE’s moat in rapid, financed power delivery.Despite valuation volatility and customer concentration risks, BE’s operational leverage and AI-driven demand support a long-term Buy rating. da-kuk/E+ via Getty Images
Elevator Thesis The conversation around AI infrastructure has changed, to say the least.
Semiconductors remain important as Nvidia (NVDA) continues to scale supply, and Taiwan Semiconductor (TSM) continues to add
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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The upcoming report from Bloom Energy (BE - Free Report) is expected to reveal quarterly earnings of $0.39 per share, indicating an increase of 290% compared to the year-ago period. Analysts forecast revenues of $766.88 million, representing an increase of 91.1% year over year.
Over the last 30 days, there has been a downward revision of 1.4% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
Bearing this in mind, let's now explore the average estimates of specific Bloom Energy metrics that are commonly monitored and projected by Wall Street analysts.
According to the collective judgment of analysts, 'Revenue- Installation' should come in at $85.92 million. The estimate indicates a year-over-year change of +129.9%.
Analysts' assessment points toward 'Revenue- Service' reaching $71.81 million. The estimate indicates a year-over-year change of +31.9%.
The consensus among analysts is that 'Revenue- Electricity' will reach $14.33 million. The estimate points to a change of +11.8% from the year-ago quarter.
Analysts predict that the 'Revenue- Product' will reach $641.95 million. The estimate points to a change of +116.4% from the year-ago quarter.
The consensus estimate for 'Gross profit (loss)- Product' stands at $242.62 million. The estimate compares to the year-ago value of $97.87 million.
The collective assessment of analysts points to an estimated 'Gross profit (loss)- Electricity' of $3.99 million. The estimate compares to the year-ago value of $5.07 million.
Analysts expect 'Gross profit (loss)- Service' to come in at $9.91 million. Compared to the present estimate, the company reported $5.04 million in the same quarter last year.
View all Key Company Metrics for Bloom Energy here>>>
Over the past month, shares of Bloom Energy have returned -29.7% versus the Zacks S&P 500 composite's +0.6% change. Currently, BE carries a Zacks Rank #1 (Strong Buy), suggesting that it may outperform. the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Customers Bancorp NYSE: CUBI reported second-quarter 2026 earnings per share of $2.05, up about 4% from the prior quarter and 18% from a year earlier, as loan growth, deposit gathering and net interest income increased. CEO Sam Sidhu and Chief Financial Officer Mark McCollum said the company reaffirmed its key full-year guidance and expects stronger net interest income in the second half of 2026.
Total loans reached a record $18 billion, rising $624 million, or 4%, during the quarter and 17% year over year. Total deposits increased by more than $140 million sequentially to a record $21.7 billion, while non-interest-bearing deposits reached a second consecutive record of $6.9 billion, representing 32% of deposits.
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“The second quarter was further evidence of our core strategy firing on all cylinders,” Sidhu said, citing continued balance-sheet growth, credit quality and capital levels.
Net Interest Income and Margin Outlook Net interest income totaled more than $193 million, increasing $16 million, or 9%, from a year earlier. McCollum said the increase reflected higher average loan balances and a lower cost of funds. On an annualized linked-quarter basis, net interest income rose about 4%.
The company’s net interest margin was 3.17% in the second quarter, which McCollum described as the expected low point for 2026. Customers Bancorp expects third-quarter margin to move closer to its first-quarter level and to build from there, while net interest income is expected to be stronger in the year’s second half.
Management pointed to deposit pipelines, continued remixing of higher-cost funding, the contribution from recently hired commercial teams and loan growth that accelerated late in the second quarter. During the quarter, the bank remixed more than $600 million of less-strategic deposits, improving pricing by 150 basis points, according to McCollum.
In response to an analyst question, McCollum said the company’s loan-growth outlook appears more likely to land toward the higher end of its guidance range. He said new-loan pricing varied by business vertical, generally ranging from 200 to 225 basis points over SOFR to 300 basis points over SOFR.
Deposit Growth and Commercial Team Recruitment Non-interest-bearing deposits increased by about $175 million during the quarter. Excluding the digital-assets, or DA, channel, such balances rose approximately $375 million, up 14% sequentially and 37% year over year. The company has added more than $840 million of non-interest-bearing deposits outside the DA channel over the past 12 months.
Sidhu said teams recruited since 2023 account for 18% of the company’s deposit base. Teams hired during the past 12 months held more than $500 million in deposits across 1,600 accounts, with 63% of those deposits non-interest bearing. The company said about 30 team members had joined or were in advanced discussions to join during 2026, with four teams expected to join in the third quarter.
Management said the bank’s 2025 recruiting cohort became profitable in approximately three quarters and operated with roughly 1.7 times deposits to loans. The company also cited a roughly $250 million non-interest-bearing deposit pipeline for new teams over the following 90 days.
cubiX Payments Platform Expands Customers Bancorp’s cubiX payments platform surpassed $5 trillion in cumulative transaction activity during the quarter. The bank said it processed more than 200,000 cubiX internal transfers year to date, double the level in the comparable period last year.
The real estate payments vertical is becoming a larger contributor, with transaction volume rising roughly sevenfold sequentially and spot deposit balances exceeding $400 million after only a few quarters. The bank added about 350 deposit accounts in the vertical.
Sidhu said the company projects that real estate could represent 20% of payment units by 2027. Management said mortgage-finance customers migrated to cubiX and newly added real estate customers represented about $1 billion in aggregate balances, with an internal target of reaching approximately $1.5 billion by year-end.
While DA trading activity was lower in May and June, management said total cubiX balances were roughly flat in the quarter because of growth in real estate payments. Customers Bancorp said it expects cubiX to become a growth area in 2027 as newer verticals scale.
AI Investments and Efficiency Efforts Sidhu said Customers Bancorp is pursuing a goal of becoming an “AI-native regional bank.” The company is working with OpenAI engineers on custom capabilities and has piloted a multi-agent credit-underwriting process that it said helped close certain commercial-and-industrial and commercial-real-estate loans within a week.
The bank said its AI-enabled workflow automation has saved at least 46,000 hours, equivalent to 24 full-time employees, and that employees have built more than 600 agents and custom GPTs. All team members are now AI licensed, according to Sidhu.
Management is targeting a low-40% run-rate efficiency ratio in 2027, compared with roughly 50% currently, through revenue growth and productivity improvements. Non-interest expense was $114.9 million in the second quarter, including about $1 million of severance. The company’s operational excellence program has achieved its $30 million annual run-rate target, including about $4 million from revenue initiatives and $26 million from expense initiatives.
Tangible book value per share rose 3% sequentially and 16% year over year to $65.20. The CET1 ratio stood at 12.8%, while the tangible common equity-to-tangible assets ratio was 8.3%. Management said credit quality remained stable, with commercial charge-offs at 18 basis points and reserve coverage at 293%.
About Customers Bancorp (NYSE:CUBI)Customers Bancorp, Inc NYSE: CUBI is a bank holding company headquartered in Phoenixville, Pennsylvania, and the parent of Customers Bank, a federally chartered institution. The company offers a full suite of commercial and consumer banking services, combining traditional deposit and lending products with modern digital banking platforms. As a publicly traded entity, Customers Bancorp focuses on delivering tailored financial solutions to mid‐market companies, small businesses, professionals and individuals across the United States.
Through its commercial banking division, the company provides term loans, lines of credit, real estate financing, asset‐based lending and treasury management services.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Customers Bancorp Right Now?Before you consider Customers Bancorp, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Customers Bancorp wasn't on the list.
While Customers Bancorp currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
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The AI boom is creating opportunities across semiconductors, cloud computing, enterprise software, infrastructure, cybersecurity, and automation.
Inside this report, you’ll find 10 companies positioned to benefit as artificial intelligence moves from hype to real-world deployment and becomes a core growth driver for corporate America.
Amerant Bancorp NYSE: AMTB reported higher second-quarter earnings as growth in low-cost international deposits supported loan and securities balances, while the company continued to reduce criticized credit exposures and outlined plans for further loan, deposit and profitability growth through year-end.
Diluted earnings per share rose to $0.53 in the second quarter of 2026 from $0.44 in the first quarter. Net interest income increased to $82.6 million from $80.3 million, while net income, return on assets and return on equity improved, according to Chief Financial Officer Sharymar Calderón.
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Return on assets rose to 0.84% from 0.73% in the prior quarter, and return on equity increased to 9.23% from 7.63%. Amerant’s efficiency ratio improved modestly to 68.37% from 68.52%.
Deposits Drive Balance-Sheet Growth Total assets increased to $10.3 billion at June 30 from $9.9 billion at the end of the first quarter. Total deposits rose by $416 million to $8.4 billion, principally because of international deposit growth. Gross loans increased by $112 million to $6.9 billion, led by commercial and industrial lending and residential mortgages, partly offset by commercial prepayments, loan sales and strategic exits.
President and CEO Carlos Iafigliola said the company is emphasizing Florida loan growth, more granular C&I production and selected residential mortgage lending. Amerant does not take credit risk outside the U.S. and uses its international funding to support domestic lending, Calderón said.
International deposits, particularly from Venezuela, were a major source of the quarter’s funding growth. Iafigliola said Venezuelan deposits rose by nearly $500 million from the first quarter, citing the company’s brand recognition, established client relationships and banking relationships in the country.
In response to an analyst question, Iafigliola said the deposits are largely tied to oil production and include institutional balances that are ultimately redeployed into commercial and personal accounts. He said Amerant views the deposits as relatively sticky, while noting the company will manage concentration, compliance and pricing discipline as balances grow.
The higher proportion of lower-cost deposits reduced Amerant’s total deposit cost to 2.21% from 2.31% in the prior quarter, while its cost of funds declined to 2.38% from 2.47%. Net interest margin edged down to 3.52% from 3.55%, however, as lower loan yields offset much of the benefit from reduced funding costs.
Management said competitive pricing for high-quality loans has narrowed new-loan spreads. Iafigliola said Amerant previously originated some loans at spreads above 200 basis points over SOFR, but competition for the asset classes now targeted by the bank has tightened pricing. The company expects net interest margin of about 3.50% for the remainder of 2026.
Credit Optimization Continues Management described credit transformation as its highest strategic priority. During the quarter, Amerant revised credit policies and procedures, including approval authorities and product programs, and completed a revamp of its loan-origination stage.
The bank also continued to exit selected exposures, loans outside its footprint and criticized credits. Nonperforming loans declined by $5 million, or 2.8%, to $171 million, equal to 1.7% of total assets. After the quarter closed, a $9 million New York commercial real estate loan was repaid, reducing nonperforming loans to $162 million, Calderón said.
Loan payoffs totaled $24 million and loan sales totaled about $40 million within the classified portfolio during the quarter. Special mention loans, classified loans and nonperforming loans all declined, according to the company.
The provision for credit losses fell to $4.8 million from $7.8 million in the first quarter, reflecting lower needs for specific reserves and higher recoveries, partially offset by loan growth and macroeconomic adjustments. Gross charge-offs were $5.5 million, mainly associated with two commercial loans, and were offset by $4 million in recoveries. Amerant expects gross charge-offs of 25 to 30 basis points, potentially offset by recoveries from workout efforts.
Iafigliola said future growth will be concentrated mainly in C&I lending, with a smaller contribution from residential lending. The bank remains selective in commercial real estate as it continues to address classified and nonperforming CRE assets. He said the bank’s typical target transaction size is near $30 million, with larger loans generally reserved for selected top-tier customers or especially stable properties and projects.
Expenses, Capital Returns and Outlook Noninterest expense increased 2.9% sequentially to $68.9 million, driven by higher variable compensation, vendor costs and the final portion of a terminated sports partnership agreement. Those increases were partly offset by the absence of investment impairment expense recorded in the first quarter and lower losses on loans held for sale.
Amerant expects third-quarter expenses to be in line with the second quarter, followed by fourth-quarter expenses of $66 million to $67 million. The company is targeting an efficiency ratio of approximately 60% and said it identified additional cost-saving initiatives expected to materialize in the fourth quarter. Management also said it has identified artificial intelligence use cases intended to improve productivity.
For the fourth quarter, Amerant expects total loans of about $7.3 billion and deposits of about $9.1 billion. Management said it expects to reach a 1% return on assets by year-end, with net interest income expected to be the largest contributor.
Common equity tier 1 capital rose to 11.94% from 11.84% in the first quarter, aided by lower risk-weighted assets and quarterly earnings. The company repurchased 690,000 shares during the quarter at a weighted average price of $23.29 per share, or about one times tangible book value, and paid a $0.09 quarterly common dividend. Its board approved another $0.09 per-share dividend payable Aug. 28.
Management said the bank expects to remain above $10 billion in assets by year-end and believes costs associated with crossing that threshold are largely incorporated into its current expense run rate. The company said it expects only modest additional technology investments in 2027 while seeking to maintain expenses near anticipated fourth-quarter levels.
About Amerant Bancorp (NYSE:AMTB)Amerant Bancorp is the bank holding company and parent of Amerant Bank, a community-oriented financial institution headquartered in Coral Gables, Florida. Amerant Bank delivers a comprehensive range of deposit and lending products to both retail and commercial clients, including checking and savings accounts, certificates of deposit, consumer mortgages, and business lines of credit. In addition, the company offers specialized services such as treasury management, international trade finance, foreign exchange, and asset-based lending to support the complex needs of corporate and high-net-worth customers.
Tracing its roots to the early 1980s, Amerant has grown through a combination of strategic acquisitions and organic expansion.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Amerant Bancorp Right Now?Before you consider Amerant Bancorp, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Amerant Bancorp wasn't on the list.
While Amerant Bancorp currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
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With the proliferation of data centers and electric vehicles, the electric grid will only get more strained. Download this report to learn how energy stocks can play a role in your portfolio as the global demand for energy continues to grow.
The upcoming report from Boston Scientific (BSX - Free Report) is expected to reveal quarterly earnings of $0.83 per share, indicating an increase of 10.7% compared to the year-ago period. Analysts forecast revenues of $5.39 billion, representing an increase of 6.5% year over year.
Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
With that in mind, let's delve into the average projections of some Boston Scientific metrics that are commonly tracked and projected by analysts on Wall Street.
According to the collective judgment of analysts, 'Net Sales- MedSurg- Worldwide' should come in at $1.80 billion. The estimate indicates a change of +4.8% from the prior-year quarter.
The combined assessment of analysts suggests that 'Net Sales- Cardiovascular- Worldwide' will likely reach $3.61 billion. The estimate indicates a year-over-year change of +7.9%.
It is projected by analysts that the 'Net Sales- MedSurg- Neuromodulation- Worldwide' will reach $335.33 million. The estimate indicates a change of +10.7% from the prior-year quarter.
The average prediction of analysts places 'Net Sales- MedSurg- Endoscopy- Worldwide' at $774.10 million. The estimate indicates a year-over-year change of +5%.
Based on the collective assessment of analysts, 'Net Sales- MedSurg- Urology- Worldwide' should arrive at $694.74 million. The estimate points to a change of +2.8% from the year-ago quarter.
Analysts' assessment points toward 'Net Sales- Cardiovascular- Cardiac Rhythm Management (CRM)- Worldwide' reaching $601.79 million. The estimate suggests a change of +2% year over year.
The consensus estimate for 'Net Sales- Cardiovascular- Interventional Cardiology & Vascular Therapies- Worldwide' stands at $1.26 billion. The estimate suggests a change of +73% year over year.
Analysts predict that the 'Net Sales- Cardiovascular- Watchman- Worldwide' will reach $553.70 million. The estimate suggests a change of +13.9% year over year.
The collective assessment of analysts points to an estimated 'Net Sales- Cardiovascular- Electrophysiology- Worldwide' of $923.15 million. The estimate indicates a change of +9.9% from the prior-year quarter.
The consensus among analysts is that 'Geographic Revenue- U.S.' will reach $3.39 billion. The estimate suggests a change of +5.1% year over year.
Analysts expect 'Geographic Revenue- Rest of the World' to come in at $1.98 billion. The estimate suggests a change of +8% year over year.
View all Key Company Metrics for Boston Scientific here>>>
Shares of Boston Scientific have experienced a change of -1.4% in the past month compared to the +0.6% move of the Zacks S&P 500 composite. With a Zacks Rank #4 (Sell), BSX is expected to underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Artificial intelligence is creating a problem few investors were talking about just a year ago: the U.S. may not have enough reliable electricity to support the next wave of data centers without driving up energy costs for everyone else.
That challenge increasingly points to one solution. Nuclear power can provide around-the-clock electricity without the carbon emissions of natural gas, making it an ideal match for AI’s insatiable appetite for power. But while the economics look compelling, there’s one obstacle that could determine whether nuclear becomes AI’s energy backbone or remains a niche solution: where these projects get built.
Looming Natural Gas Crisis Makes Nuclear More Attractive Matthew Smith of Chronometer Partners spent 18 months building a detailed model of the U.S. natural gas system, tracking everything from production wells and pipelines to underground storage. His conclusion, shared on a recent episode of the Invest Like the Best podcast, is sobering.
As liquefied natural gas (LNG) exports continue climbing and AI data centers dramatically increase electricity demand, the U.S. could begin drawing down its natural gas storage by mid-to-late 2028. By around 2030, the country’s traditional inventory cushion could be largely depleted, leaving consumers more exposed to price spikes. If gas prices surge, electricity prices are likely to follow.
Nuclear power offers a solution. Existing reactors already provide dependable, carbon-free baseload power, and once operating, production costs are generally well below those of building new gas-fired plants. Restarting retired reactors and deploying small modular reactors (SMRs) could help absorb AI’s rapidly growing electricity demand before it translates into higher utility bills for households.
Amazon‘s (NASDAQ:AMZN | AMZN Price Prediction) data center campus sits alongside Talen Energy‘s (NASDAQ:TLN) Susquehanna nuclear plant. Microsoft (NASDAQ:MSFT) has signed a 20-year agreement to purchase electricity from the restarted Three Mile Island Unit 1, while Meta Platforms (NASDAQ:META) has signed multi-gigawatt agreements tied to Vistra‘s (NYSE:VST) Ohio nuclear facilities and future Oklo (NASDAQ:OKLO) SMRs.
By sourcing power directly from nuclear facilities, these companies can reduce their dependence on the broader electric grid and limit the impact on residential ratepayers.
Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
Gallup’s survey found 53% of Americans still oppose having a nuclear plant in their own community. Data center opposition is even stronger. Emerson College found 63% of people opposed data centers being built nearby — up sharply from 42% just six months earlier. Gallup puts it even higher at 71%.
And data centers themselves face growing backlash. New York just recently imposed a one-year moratorium on building new ones. Communities often support AI, clean energy, and economic growth in principle, but only if it’s in someone else’s backyard.
Geography Could Decide the Winners The good news is that there is a way forward. Expanding nuclear generation at existing reactor sites largely avoids the debate over whether nuclear belongs in a community. Residents have already accepted the technology and frequently value the jobs and tax revenue these facilities provide. Surveys also suggest between 70% and 86% of nearby residents support adding SMRs at existing nuclear sites.
Unfortunately, data centers aren’t typically built where nuclear plants already exist. Developers prioritize inexpensive land, abundant fiber connectivity, water access, and generous tax incentives. That’s why Northern Virginia, Texas, Arizona, and other emerging data-center hubs continue attracting the majority of new investment despite having limited nearby nuclear capacity.
As a result, much of AI’s growing electricity demand still flows through the broader power grid, where natural gas remains the primary balancing fuel.
Key Takeaway If Smith’s model proves accurate, natural gas markets could become significantly tighter by the end of the decade as AI demand collides with rising LNG exports. Nuclear power remains one of the most practical sources of reliable, carbon-free electricity capable of offsetting that pressure.
But investors should focus on companies expanding or restarting nuclear generation at existing sites, where public acceptance is strongest, rather than betting on entirely new nuclear or data-center developments that may face years of local resistance.
Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
Quantum computing is a technology that's coming quicker than most expect, and it could cause some industry stocks to skyrocket, outperforming big tech by a wide margin over the next few years. If that's the case, then investors would be smart to start scooping up some quantum computing stocks now, and one that's massively on sale is IonQ (IONQ -1.26%).
IonQ is generally recognized as a leader in quantum computing and has taken a unique approach that has attracted several clients recently. This makes IonQ a smart stock pick for the quantum revolution, and it could lead to incredible returns over the next few years.
Image source: The Motley Fool.
IonQ is rapidly expanding The quantum computing field is still fairly immature, and several approaches are being pursued to determine which is the best option. The most popular is superconducting, which involves cooling a chamber containing a particle to nearly absolute zero, then using its quantum mechanics for calculations. IonQ is taking a slightly different approach: It uses a laser to pinpoint and cool a particle, then an electromagnetic trap to perform quantum computing.
One of the major problems with quantum computing is that it isn't as accurate as traditional computing, and errors can compound, wrecking calculations. However, IonQ's technique is the most accurate in the world, as it holds the world record for the highest two-qubit gate fidelity at 99.99% -- a commonly used industry metric. It also has a blueprint for building a 10,000-qubit computer on this technology, which would lead to a commercially viable computer that could revolutionize computing.
Today's Change
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If IonQ can do this, then it will be a wildly successful company, and its stock could easily skyrocket over the next few years. Because quantum computing is such an early-stage technology, the success of stocks within that industry is mostly dominated by the market's risk appetite. Currently, the market has no such appetite for risk, and the stock is down over 50% from its all-time high. This makes right now the perfect buying opportunity.
During Q1, IonQ's revenue grew by an incredible 755% year over year, and if it can keep that up for a bit longer, it will be a great investment pick if it can develop a viable technology. There's still no guarantee that IonQ's approach to quantum computing is the right one, but with a solid strategy, a plan to produce a commercially viable computing platform, and increasing early-stage customers, I think IonQ is one of the top investment options to consider in this space.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about IonQ, Inc. (IONQ - Free Report) .
IonQ currently has an average brokerage recommendation (ABR) of 1.58, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 12 brokerage firms. An ABR of 1.58 approximates between Strong Buy and Buy.
Of the 12 recommendations that derive the current ABR, eight are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 66.7% and 8.3% of all recommendations.
Brokerage Recommendation Trends for IONQ
Check price target & stock forecast for IonQ here>>>
The ABR suggests buying IonQ, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is IONQ a Good Investment?In terms of earnings estimate revisions for IonQ, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at -$1.07.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for IonQ. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for IonQ.
Energy Transfer LP (ET - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this energy-related services provider have returned +6.5% over the past month versus the Zacks S&P 500 composite's +0.6% change. The Zacks Oil and Gas - Production Pipeline - MLB industry, to which Energy Transfer LP belongs, has gained 6.1% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Energy Transfer LP is expected to post earnings of $0.37 per share, indicating a change of +15.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.1% over the last 30 days.
The consensus earnings estimate of $1.43 for the current fiscal year indicates a year-over-year change of +18.2%. This estimate has changed +0.3% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $1.52 indicates a change of +6.6% from what Energy Transfer LP is expected to report a year ago. Over the past month, the estimate has changed -0.1%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Energy Transfer LP.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Energy Transfer LP, the consensus sales estimate for the current quarter of $30.87 billion indicates a year-over-year change of +60.4%. For the current and next fiscal years, $121.01 billion and $126.05 billion estimates indicate +41.5% and +4.2% changes, respectively.
Last Reported Results and Surprise HistoryEnergy Transfer LP reported revenues of $27.77 billion in the last reported quarter, representing a year-over-year change of +32.1%. EPS of $0.35 for the same period compares with $0.36 a year ago.
Compared to the Zacks Consensus Estimate of $29.28 billion, the reported revenues represent a surprise of -5.17%. The EPS surprise was -7.89%.
Over the last four quarters, Energy Transfer LP surpassed consensus EPS estimates times. The company topped consensus revenue estimates times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Energy Transfer LP is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Energy Transfer LP. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
Key Takeaways Patterson-UTI Energy reports Q2 2026 earnings on July 29, with estimates calling for a 3-cent per-share loss.PTEN's lower direct operating costs and reduced depreciation may have contributed to its Q2 results.PTEN carries a negative Earnings ESP despite beating earnings estimates in three of the past four quarters. Patterson-UTI Energy, Inc. (PTEN - Free Report) is set to report second-quarter 2026 earnings on July 29. The Zacks Consensus Estimate for the to-be-reported quarter is pegged at a loss of 3 cents per share on revenues of $1.15 billion.
Let’s delve into the factors that might have influenced PTEN’s performance in the to-be-reported quarter. Before that, it’s worth taking a look at the company’s performance in the last reported quarter.
Highlights of PTEN’s Q1 Earnings & Surprise HistoryIn the last reported quarter, the Houston, TX-based oil and gas drilling company’s earnings beat the consensus mark. Patterson-UTI Energy reported a first-quarter 2026 adjusted net loss of 6 cents per share, narrower than the Zacks Consensus Estimate of a 10-cent loss. This was due to a decrease in operating income in its Drilling Services, Completion Services and Drilling Products segments. Total revenues of $1.1 billion beat the Zacks Consensus Estimate by 3.1%.
PTEN’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark once, delivering an average surprise of 27.96%
This is depicted in the graph below:
Trend in PTEN’s Estimate RevisionThe Zacks Consensus Estimate for second-quarter 2026 earnings has not experienced any upward or downward movements in the past seven days. The estimated figure indicates a 5.85% year-over-year decline. However, the Zacks Consensus Estimate for revenues indicates an increase of about 5.85% from the year-ago period’s actual.
Factors to Consider Ahead of PTEN’s Q2 ReleasePTEN generates revenues by providing drilling, completion and related services to oil and gas producers. The company supports customers throughout the well lifecycle by drilling wells, completing them and supplying the equipment and technologies required for these operations. The reduction in PTEN's costs is likely to have supported its bottom line. The company’s operating costs and expenses are projected to reach $1.11 billion in the second quarter, which is 11% up from the year-ago period’s level. Direct operating costs are projected to be $825.6 million, down 11.2% year over year, while depreciation, depletion, amortization and impairment expenses are estimated to be $220.1 million, representing a 15.9% decline from the prior-year period.
On the bearish side, PTEN’s revenues are likely to have come under pressure in the quarter to be reported. The Zacks Consensus Estimate for second-quarter revenues is expected to be down from the year-ago quarter’s $1.22 billion. The decline is likely to have reflected weaker year-over-year performance across the company’s Drilling Services, Completion Services, Drilling Products and Other segments.
What Does Our Model Say About PTEN Stock?The proven Zacks model does not conclusively predict an earnings beat for Patterson-UTI Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. However, that is not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
PTEN’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -10.77%.
PTEN’s Zacks Rank: PTEN currently carries a Zacks Rank #2.
Stocks With the Favorable CombinationHere are some firms from the energy space that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.
Cheniere Energy (LNG - Free Report) has an Earnings ESP of +20.97% and a Zacks Rank #1. The firm is scheduled to release earnings on Aug. 6. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cheniere Energy is valued at $56.03 billion. It is a leading U.S.-based liquefied natural gas (“LNG”) company that produces, exports and markets LNG to customers around the world from the major facilities in Louisiana and Texas. Cheniere Energy's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark once, delivering an average surprise of 74.97%
Murphy Oil (MUR - Free Report) has an Earnings ESP of +10.92% and a Zacks Rank #3. The firm is scheduled to release earnings on Aug. 5. Murphy Oil is an independent oil and natural gas exploration and production company with operations in the United States, Canada and offshore international markets, focusing on the development of conventional and unconventional hydrocarbon resources.
The company is valued at $5.56 billion. Murphy Oil’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 117.54%.
Helmerich & Payne (HP - Free Report) has an Earnings ESP of +2.08% and a Zacks Rank #3. The firm is scheduled to release earnings on Aug. 5.
Helmerich & Payne is valued at $3.52 billion. The company is a leading provider of drilling solutions, offering land and offshore contract drilling services and advanced drilling technologies to oil and natural gas exploration and production companies.
Key Takeaways FIX beat Q2 earnings and revenue estimates as results surged year over year on strong end-market demand.Comfort Systems reported record backlog of $14.06 billion, up 73.2% year over year.FIX expanded margins, strengthened cash flow and reduced long-term debt while returning cash to shareholders. Comfort Systems USA, Inc. (FIX - Free Report) delivered impressive second-quarter 2026 results, with earnings and revenues surpassing the Zacks Consensus Estimate and increasing sharply year over year.
The quarterly performance reflected continued strength across its end markets, robust execution by the operating teams and sustained demand that drove record backlog growth, reinforcing the company’s confidence in the business momentum.
FIX’s Q2 DiscussionThe company reported earnings per share of $12.53, which topped the Zacks Consensus Estimate of $10.38 by 20.7% and increased 91.9% from $6.53 reported in the year-ago quarter.
Revenues of $3.27 billion also surpassed the consensus mark of $2.94 billion by 10.96% and rose 50.3% from $2.17 billion generated in the prior-year quarter.
Comfort Systems Sees Broad-Based Segment GrowthComfort Systems generated Mechanical segment revenues of $2.30 billion in the second quarter, up 40.1% from the prior-year quarter. The Electrical segment's revenues climbed 81.2% year over year to $969 million, reflecting strong demand across electrical contracting operations and contributions from acquisitions.
Customer mix continued to underscore the dominance of technology-related work. Technology customers represented 58.7% of second-quarter consolidated revenues, followed by manufacturing at 16.4%, healthcare at 7.1%, education at 5.1% and government at 4.4%.
Activity type also highlighted where project activity remained concentrated. New construction accounted for 75.1% of revenues, while existing building construction contributed 14.8%. Service projects represented 4.4% of revenues, and service calls, maintenance and monitoring comprised the remaining 5.7%, reinforcing the company's continued emphasis on large construction projects.
FIX Backlog Rises as Demand Stays RobustBacklog as of June 30, 2026, totaled $14.06 billion, increasing 12.9% from $12.45 billion at March 31, 2026, and jumping 73.2% from $8.12 billion reported a year ago. On a same-store basis, backlog climbed to $13.70 billion from $8.12 billion in the year-ago period.
The mix continued to skew toward the Mechanical segment, which represented 71.5% of total backlog ($10.06 billion), while the Electrical segment contributed 28.5% ($4 billion). The company also noted that approximately 65-75% of its remaining performance obligations are expected to be recognized as revenues over the next 12 months, providing healthy visibility into growth.
Comfort Systems Expands Margins on ExecutionOperating performance strengthened alongside the sharp increase in revenues. Gross profit increased to $844.2 million from $509.9 million a year ago, and gross margin expanded to 25.9% from 23.5%, reflecting improved project execution and operating leverage.
Selling, general and administrative expenses increased to $287 million, but as a percentage of revenues, SG&A improved to 8.8% from 9.7%. Operating income climbed to $558 million from $299.9 million a year earlier, lifting the operating margin to 17.1% from 13.8%.
Adjusted EBITDA rose to $600.5 million from $334.1 million in the year-ago quarter, while adjusted EBITDA margin expanded 300 basis points to 18.4%.
FIX Financial Position Remains StrongAs of June 30, 2026, Comfort Systems had cash and cash equivalents of $1.85 billion, up from $981.9 million at 2025-end. Long-term debt declined to $53.8 million from $139.1 million at Dec. 31, 2025, further strengthening the company's balance sheet.
During the first six months of 2026, net cash provided by operating activities totaled $1.53 billion compared with $164.5 million in the year-ago period. Free cash flow increased to $1.24 billion from $113.1 million a year earlier. During the quarter, the company also paid dividends of 80 cents per share and continued repurchasing shares, reflecting its robust cash generation and shareholder return strategy.
FIX’s Zacks Rank & Recent Construction ReleasesComfort Systems currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PulteGroup, Inc. (PHM - Free Report) reported better-than-expected second-quarter 2026 results, with adjusted earnings and total revenues topping the Zacks Consensus Estimate, but declining year over year. The quarterly results reflect reduced home-closing volumes, softer average selling prices (“ASP”) and margin compression.
PulteGroup ended the quarter with a backlog of 10,966 homes, up 1.7% from the prior-year level. Backlog units increased in the Northeast, Florida, Midwest and Texas, while the Southeast and West reported declines. The value of homes in backlog slipped 0.6% to $6.80 billion. The divergence between higher units and lower value indicates that the average value of homes in backlog declined year over year, consistent with PHM’s broader pricing pressure.
D.R. Horton, Inc. (DHI - Free Report) reported third-quarter fiscal 2026 earnings of $3.20 per share, beating the Zacks Consensus Estimate of $2.99 by 7%. Revenues of $9.23 billion also surpassed the consensus mark of $9.19 billion by 0.5%. On a year-over-year basis, earnings declined 4.8%, while revenues increased marginally.
DHI’s earnings and revenue beat was driven by higher home-closing volumes, resilient home sales margins, disciplined management of pricing and incentives, and contributions from the Rental, Forestar and Financial Services businesses. However, lower profitability, elevated incentives and cautious consumer demand continued to weigh on results. D.R. Horton now expects fiscal 2026 consolidated revenues of $32.5-$33 billion, down from $33.5-$34.5 billion expected earlier.
Lennar Corporation (LEN - Free Report) reported mixed second-quarter fiscal 2026 results, with adjusted earnings topping the Zacks Consensus Estimate while revenues missed the same. Year over year, both metrics declined, given ongoing softness in housing demand and a lower ASP for homes delivered.
LEN’s Homebuilding revenues declined 2% year over year to $7.62 billion from $7.84 billion, with home deliveries increasing 2% to 20,519 homes from 20,131 homes a year ago. Backlog at quarter-end increased to 16,818 homes from 15,538 homes. For the third quarter of fiscal 2026, Lennar expects home deliveries in the range of 20,500-21,500 and new orders between 21,000 and 22,000 homes. Gross margin on home sales is expected to be approximately 16%.
