Track market-moving stories before they get noisy

Key Takeaways OUT launched its advertising and experiential program at Los Angeles Union Station.Large-format digital networks at key touchpoints expand premium transit ad inventory for OUT.World Cup 26 Fan Zone status may boost brand visibility, occupancy and pricing power for OUT. OUTFRONT Media (OUT - Free Report) recently launched its inaugural advertising and experiential program at Los Angeles Union Station, creating an in-real-life media environment for brands. The move adds a marquee transit destination to OUTFRONT’s portfolio and expands its presence in premium out-of-home advertising.

Los Angeles Union Station, with a target audience averaging 14.8 million, strengthens OUTFRONT’s national transit advertising footprint. The addition of large-format digital networks across key touchpoints increases premium inventory and creates more opportunities for advertisers to deliver impactful campaigns.

The station’s role as an official Los Angeles World Cup 26 Fan Zone further enhances its advertising appeal. Live FIFA World Cup 2026 match streaming across digital displays is likely to attract brands seeking heightened visibility during a globally watched sporting event, potentially driving incremental ad spending.

Overall, the development is expected to support higher occupancy rates for OUTFRONT’s digital transit assets, improve pricing power for premium ad placements and reinforce the company’s position in experiential and out-of-home advertising, creating a positive revenue growth opportunity.

Over the past three months, shares of this Zacks Rank #3 (Hold) company have gained 28.3% compared with the industry's growth of 3.2%.

Image Source: Zacks Investment Research

Stocks to ConsiderSome better-ranked stocks from the broader REIT sector are American Tower (AMT - Free Report) and Cousins Properties (CUZ - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for AMT’s 2026 FFO per share is pegged at $10.95, which indicates year-over-year growth of 1.8%.

The consensus estimate for CUZ’s full-year FFO per share is pinned at $2.93, which calls for a 3.2% increase from the year-ago period.

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

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 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 given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning 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 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 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 +23.7% 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.

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.

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: Outfront Media (OUT - Free Report) Headquartered in New York, OUTFRONT Media Inc. is a leading provider of OOH advertisement space in key markets throughout the United States. With billboard and transit displays, the company provides advertising structures and sites to diverse industries across the largest markets in the United States. As of Dec. 31, 2025, the company had approximately 19,100 lease agreements with approximately 17,500 different landlords.

OUT is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Finance stock. OUT has a Momentum Style Score of A, and shares are up 1.2% over the past four weeks.

For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.04 to $2.26 per share. OUT boasts an average earnings surprise of +12.1%.

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

Image: Bigstock

Read MoreHide Full Article

Key Takeaways OUT jumped around 30% YTD with Q1 revenues rising 10% to $429.6M and adjusted OIBDA surging 56%.OUTFRONT Media's transit revenues grew 22.3%, led by 26% growth in its New York MTA business.OUTFRONT Media digital revenues grew 11% ; automated sales hit 20% of digital, up from 16%. OUTFRONT Media (OUT - Free Report) shares have rallied about 30% year to date, outperforming the industry’s growth of 11.2%, a strong move that reflects better investor confidence in the company’s recovery story.

The gain follows a solid first-quarter report, where revenues rose 10% year over year to $429.6 million and adjusted OIBDA jumped 56% to $100.4 million. The market also responded well to a sharp improvement in AFFO, which more than doubled to $61 million, suggesting that the company’s operating leverage is starting to show up in cash flow.

OUTFRONT is one of the largest out-of-home advertising companies in the United States, with assets across billboards, digital displays, transit media and experiential advertising. Its performance is closely tied to ad spending, city traffic and the shift toward digital outdoor media. The broader industry is benefiting from advertisers looking for real-world visibility at a time when digital ad channels are crowded and harder to measure.

Image Source: Zacks Investment Research

Factors Behind OUT Stock Price Rise: Will This Trend Continue?A key reason for the stock’s rise is the rebound in transit advertising. Transit revenues increased 22.3% in the first quarter, led by more than 26% growth in the New York Metropolitan Transportation Authority ("MTA") business. That is important because the MTA is OUTFRONT’s largest transit franchise and has been a major swing factor for the company. Management also said it now expects 2026 MTA revenues to exceed the baseline revenue level, which could support better cash generation.

Billboards also helped the quarter, though the picture is more mixed. Billboard revenues rose 7.1%, while digital billboard revenues increased 6.1%. Management noted that excluding certain items, including condemnation revenue and the exit of a large Los Angeles contract, digital billboard revenues would have been up more than 10%. That points to healthy demand for digital inventory, even if some reported growth had one-time support.

Digital remains another important driver. Total digital revenues grew more than 11% and represented about one-third of total revenues. Programmatic and digital direct automated sales increased nearly 40%, reaching 20% of total digital revenues, up from 16% a year earlier. This suggests OUTFRONT is making progress in selling outdoor media in ways that are more familiar to digital ad buyers.

The company also has some event-driven opportunities. Management expects second-quarter revenue growth of more than 10%, supported by roughly 30% growth in transit and mid-single-digit growth in billboard. The World Cup is expected to help demand in June and July, especially in major cities where OUTFRONT has a strong presence. Its new advertising and experiential program at Los Angeles Union Station also gives the company another platform to sell high-traffic, real-world brand activations.

Still, the rally may not be easy to extend. Some first-quarter benefits, including $13.5 million of billboard condemnation revenues, are not recurring in nature. OUTFRONT also remains exposed to advertising cycles, lease costs and leverage. Net leverage improved to 4.3 times at the end of the quarter, within management’s target range of 4-5 times, but it is still a factor investors will watch closely.

View on OUT StockOUTFRONT’s 30% YTD gain is supported by stronger transit trends, improving digital sales and better cash flow. The company also has near-term tailwinds from major events and better demand in key markets. However, after such a sharp move, the stock already reflects a good part of that improvement. A neutral stance looks reasonable for now, as investors may want to see whether the stronger growth trend can continue without help from one-time items.

Currently, OUT carries a Zacks Rank #3 (Hold).

Stocks to ConsiderSome better-ranked stocks from the broader REIT sector are Prologis, Inc. (PLD - Free Report) and Lamar Advertising (LAMR - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Prologis’ 2026 FFO per share suggests a 6.37% increase year over year.

The consensus mark for Lamar Advertising’s 2026 FFO per share has been revised 2.2% upward to $8.81 over the past month.

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

Zacks' 7 Best Strong Buy Stocks (New Research Report) Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.

Click Here, It's Really Free

Published in ad-tech reit

OUTFRONT Media remains a compelling 'Buy,' driven by robust billboard and transit advertising demand. OUT's digital transformation is accelerating, with programmatic and automated sales now 20% of revenue, boosting margins and supporting faster AFFO growth. Management guides for mid-teens AFFO growth in 2026, aided by strong transit momentum, digital adoption, and FIFA World Cup advertising tailwinds.

Reinsurance Group of America, Incorporated is a global leader in life and health reinsurance with $4.3 trillion in force and $157 billion in assets. Focus is on RGA's baby bond NT CAL 52, offering a 7.125% coupon, callable or resettable in October 2027, and currently trading just above par. We like this one, and it offers a lower-risk play today.

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 company to watch right now is Reinsurance Group of America (RGA - Free Report) . RGA is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.54. This compares to its industry's average Forward P/E of 8.55. Over the last 12 months, RGA's Forward P/E has been as high as 10.24 and as low as 7.17, with a median of 8.48.

Another valuation metric that we should highlight is RGA's P/B ratio of 1.02. 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 1.96. RGA's P/B has been as high as 1.47 and as low as 0.96, with a median of 1.18, over the past year.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. RGA has a P/S ratio of 0.58. This compares to its industry's average P/S of 0.76.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Reinsurance Group of America is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RGA feels like a great value stock at the moment.

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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 Reinsurance Group of America (RGA - Free Report) . RGA is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 7.54, which compares to its industry's average of 9.17. Over the past 52 weeks, RGA's Forward P/E has been as high as 10.24 and as low as 7.17, with a median of 8.48.

We should also highlight that RGA has a P/B ratio of 1.02. 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 attractive against its industry's average P/B of 2.08. RGA's P/B has been as high as 1.47 and as low as 0.96, with a median of 1.18, over the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. RGA has a P/S ratio of 0.58. This compares to its industry's average P/S of 0.83.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Reinsurance Group of America is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RGA feels like a great value stock at the moment.

ST. LOUIS--(BUSINESS WIRE)--Reinsurance Group of America, Incorporated (NYSE: RGA) (the “Company”) announced today that a notice of redemption will be issued to the holders of all of its outstanding $400 million aggregate principal amount 5.75% Fixed-to-Floating Rate Subordinated Debentures due 2056 (CUSIP No. 759351 802 and ISIN US7593518027) (the “2056 Debentures”) in accordance with the terms of the indenture governing the 2056 Debentures. The 2056 Debentures are listed on the New York Stock.

ST. LOUIS--(BUSINESS WIRE)--Reinsurance Group of America, Incorporated (NYSE: RGA), a leading global provider of life and health reinsurance, reported first quarter net income available to RGA shareholders of $330 million, or $4.98 per diluted share, compared with $286 million, or $4.27 per diluted share, in the prior-year quarter. Adjusted operating income for the first quarter totaled $462 million, or $6.97 per diluted share, compared with $379 million, or $5.66 per diluted share, the year be.

For the quarter ended March 2026, Reinsurance Group (RGA - Free Report) reported revenue of $6.66 billion, up 24.8% over the same period last year. EPS came in at $6.97, compared to $5.66 in the year-ago quarter.

The reported revenue represents a surprise of +3.78% over the Zacks Consensus Estimate of $6.42 billion. With the consensus EPS estimate being $6.19, the EPS surprise was +12.53%.

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.

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 Reinsurance Group performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Net premiums- U.S. and Latin America- Financial Solutions: $320 million versus the three-analyst average estimate of $257.26 million.Net investment income- U.S. and Latin America- Traditional: $288 million versus $296.43 million estimated by three analysts on average.Net premiums- U.S. and Latin America- Traditional: $1.93 billion versus the three-analyst average estimate of $2 billion.Other Revenues- Corporate and Other: $29 million versus the three-analyst average estimate of $19.08 million.Net investment income- Corporate and Other: $149 million versus $157.1 million estimated by three analysts on average.Other Revenues- EMEA Financial Solutions: $15 million versus the three-analyst average estimate of $10.98 million.Net investment income- EMEA Financial Solutions: $137 million compared to the $120.5 million average estimate based on three analysts.Net investment income- EMEA Traditional: $35 million versus the three-analyst average estimate of $35.54 million.Net investment income: $1.7 billion compared to the $1.58 billion average estimate based on four analysts. The reported number represents a change of +38.1% year over year.Revenues- Other revenues: $368 million versus $326.38 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +318.2% change.Revenues- Net premiums: $4.6 billion compared to the $4.48 billion average estimate based on four analysts. The reported number represents a change of +14.3% year over year.Investment related gains, net- Corporate and Other: $1 million versus the three-analyst average estimate of $2.69 million.View all Key Company Metrics for Reinsurance Group here>>>

Shares of Reinsurance Group have returned +1.6% over the past month versus the Zacks S&P 500 composite's +11.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Miami, OK, May 08, 2026 (GLOBE NEWSWIRE) -- The American Global Insurance and Reinsurance Group (the “American Global Group”) is pleased to announce that it has entered into a strategic partnership with two leading Lloyd’s syndicates. American Global Group’s principal subsidiary, American Global Insurance, Inc. (“AGII”), a commercial insurance and reinsurance company organized and licensed under the laws the Modoc Nation, a tribal entity recognized by the Federal Government which has its sovereign tribal jurisdiction in the State of Oklahoma, has secured quota share reinsurance support for its health care indemnity insurance from two prominent, corporately owned, syndicates at Lloyd’s of London.

The American Global Group is comprised of insurance and reinsurance companies and various service companies that support its businesses, many of which are established under the laws of Tribal Jurisdictions. AGII is the preeminent insurer and reinsurer of the American Global Group. It was established and incorporated under the laws of the Modoc Nation, and licensed, pursuant to the Insurance Code of the Modoc Nation, by its Department of Insurance.

AGII principally underwrites supplemental wellness and fully funded health care indemnity insurance programs for small to medium sized employers that conform to the guidelines set forth in the Employee Retirement Income Security Act of 1974 (“ERISA”) and the Internal Revenue Code, such that they are exempt from state and local regulation. AGII has also designed and developed health care plans that will soon be offered in certain States as alternatives to the Affordable Care Act (“ACA”) products; these plans are ACA compliant. Many of AGII’s insurance programs integrate Health Savings Accounts to bring additional savings, versatility, and long-term wealth accumulation to further add to the value proposition.

As noted above, AGII entered into a Hospital Indemnity Quota Share Reinsurance Agreement with two pre-eminent Lloyd’s of London Syndicates effective as of January 1, 2026. Under the Quota Share Agreement, the Lloyd’s of London Syndicates are assuming a fifty percent (50%) share of the premiums and losses directly related to the medical health indemnity risks underwritten by AGII.

The Commissioner of Insurance for the Modoc Nation believes AGII is the first tribal insurance company to secure a working relationship with any Lloyd’s of London Syndicate. He commented that “with the support and strength of the oldest and most established insurance and reinsurance organization in the world, the American Global Group is now setting its sights on redefining how American employers can provide affordable quality healthcare to their employees.”

This Quota Share Agreement serves to validate the underwriting capabilities of the AGII team, while at the same time, gives additional assurances and confidence to AGII’s policyholders and insureds that they have solid financial backing and support from not only AGII, but also from two of the most highly rated Lloyd’s of London Syndicates.

William White
[email protected]
1-877-828-9970

Despite Downturns, Analysts Say These 4 Financial Stocks Are BuysReinsurance Group of America NYSE: RGA reported a strong first quarter of 2026, with management pointing to broad-based earnings strength across regions, favorable claims experience and continued capital deployment into new business opportunities.

On the company’s earnings call, President and Chief Executive Officer Tony Cheng said the quarter reflected “disciplined execution, strong underlying fundamentals, and the benefits of the diversified global platform” RGA has built. Cheng said performance was strong across many regions and products, with Asia Pacific, EMEA and the U.S. all contributing to results.

Get RGA alerts:

3 Stocks Generating a Ridiculous Amount of CashChief Financial Officer Axel André said RGA generated pre-tax adjusted operating income of $611 million for the quarter, or $6.97 per share after tax. Adjusted operating return on equity, excluding notable items, was 16.2% for the trailing 12 months. André said management views first-quarter run-rate earnings per share at approximately $6.70 after considering claims experience, variable investment income and other items.

Broad-Based Regional Strength Cheng said Asia Pacific delivered another strong quarter, supported by ongoing growth and execution. He highlighted several notable transactions in Japan, including both in-force and flow deals involving asset and biometric risk.

In EMEA, Cheng said earnings exceeded expectations, helped by favorable overall experience and continued momentum in longevity. He said RGA completed additional longevity transactions in the region by leveraging long-standing client relationships.

In the U.S., management said adjusted operating performance was strong, aided by favorable claims experience and contributions from recent new business. Cheng said U.S. individual life activity remained robust, driven in large part by the company’s strategic underwriting initiative. He also said U.S. group results were in line with 2026 expectations.

André said traditional premium growth was 5% year over year, helped by growth in EMEA and Asia Pacific. U.S. traditional premium growth was approximately 1%, reflecting the effect of strategic recaptures of certain treaties in the second half of 2025. André said those recaptures involved lower-quality and less profitable blocks and reduced volatility.

Claims Experience Remains Favorable Management emphasized favorable biometric claims experience during the quarter. André said economic claims experience was favorable by $117 million, with a corresponding favorable current-period financial impact of $4 million. More than half of the economic experience came from U.S. individual life, and every region posted favorable experience.

André said much of that favorable experience was deferred to future periods because of uncapped cohorts, while the portion recognized in current-period income was partly offset by unfavorable experience in EMEA traditional capped cohorts. Since the beginning of 2023, he said total company economic claims experience has been favorable by $343 million.

During the Q&A session, Chief Risk Officer Jonathan Porter said first-quarter U.S. claims experience benefited from lower frequency of both large and non-large claims. He said RGA did not see other significant trends in its own data during the quarter. Porter also noted that the flu season was more moderate than last year based on CDC data.

Asked about longer-term mortality trends and GLP-1 drugs, Porter said RGA has not made material assumption changes related to GLP-1s. However, he said the expected benefit gives the company more confidence that its existing mortality improvement assumptions will be realized over time.

Capital Deployment and Share Repurchases RGA deployed $338 million into in-force transactions during the quarter. André said the company remains selective and is focused on the quality and expected returns of new business. Cheng said most in-force deployment during the quarter was in Asia, where RGA saw attractive risk-reward opportunities.

The company also repurchased $50 million of shares in the quarter, bringing total repurchases to $175 million since buybacks were reinstated in the third quarter of last year. André said RGA ended the quarter with estimated excess capital of $2.4 billion and estimated next-12-month deployable capital of $2.9 billion.

André said RGA expects shareholder capital returns to range between 20% and 30% of after-tax operating earnings over the long term. He also said the company expects to allocate $400 million of excess capital to reduce financial leverage during 2026.

Responding to an analyst question about whether RGA has enough opportunities to meet its capital deployment needs, André said the company is tracking in line with expectations and will prioritize quality over quantity. He said RGA expects to meet its financial targets through a combination of capital deployment and shareholder returns.

Investment Portfolio and Private Credit André said RGA’s non-spread book yield, excluding variable investment income, was 4.85% in the quarter. The new money rate was 5.64%, above the portfolio yield, which he said continues to provide a tailwind to the overall book yield. Variable investment income was modestly below the company’s 7% annual return expectation by about $8 million.

André also addressed RGA’s private credit strategy, saying private credit represents approximately 9% of the total portfolio and is diversified across categories such as investment-grade private placements, private asset-backed securities, fund finance, infrastructure debt and middle-market loans. He said most private assets are investment grade, and the majority of below-investment-grade private assets are first-lien senior secured loans underwritten by RGA’s internal team.

“Overall, fundamentals across the portfolio remain healthy,” André said, adding that credit performance has been in line with expectations.

Pipeline, Competition and Regulatory Topics Cheng said RGA’s pipeline remains strong, high quality and globally diversified. He cited continued opportunities in Asia tied to product development and capital framework changes in markets such as Japan and Korea. He also pointed to strong U.K. longevity momentum and continued U.S. opportunities linked to RGA’s biometric and underwriting strengths.

Asked about competition, Cheng said RGA’s “sweet spot” remains transactions that combine biometric and asset risks. He said competition has increased in some markets, particularly for more “vanilla” asset-intensive transactions, but argued that RGA is uniquely positioned in more complex deals involving both asset and biometric expertise.

Management also addressed several client and regulatory topics. Porter said RGA does not expect the planned merger of Equitable and Corebridge to affect its in-force or flow reinsurance transactions with Equitable. On potential U.K. regulatory changes related to funded reinsurance counterparty charges, Porter said RGA does not expect a large impact because roughly 90% of its in-force U.K. longevity block is done on a swap basis rather than funded reinsurance.

André said RGA does not expect the NAIC’s Actuarial Guideline 55 to have a material impact on the company, noting that its U.S. business typically uses its onshore flagship entity, RGA Re, as the reinsurer facing clients.

Cheng closed the call by saying RGA was pleased with its strong start to the year and remains confident in its outlook for 2026 and beyond.

About Reinsurance Group of America NYSE: RGAReinsurance Group of America, Incorporated NYSE: RGA is a leading global provider of life and health reinsurance solutions. Headquartered in St. Louis, Missouri, RGA partners with primary insurance companies to help them manage risk, improve capital efficiency and develop innovative products. The company's offerings span traditional risk transfer, financial solutions and facultative underwriting services, enabling clients to address a wide range of mortality, longevity, morbidity and critical-illness exposures.

RGA's product suite includes life reinsurance, living benefits reinsurance, structured reinsurance and financial solutions that support product innovation and capital management.

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 Reinsurance Group of America Right Now?Before you consider Reinsurance Group of America, 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 Reinsurance Group of America wasn't on the list.

While Reinsurance Group of America currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Click the link to see MarketBeat's list of seven stocks and why their long-term outlooks are very promising.

Get This Free Report

Key Takeaways RGA benefits from market leadership in the U.S., Latin America and Canada, supporting stable earnings growth. Product expansion, longevity insurance and favorable biometrics experience aid diversification. Strong capital levels support growth investments, dividends and share repurchases over time. Reinsurance Group of America, Incorporated (RGA - Free Report) shares are trading at a discount to the Zacks Life Insurance industry. Its forward price-to-book value of 1.05X is lower than the industry average of 2.06X, the Finance sector’s 4.37X, and the Zacks S&P 500 Composite’s 8.12X. The life insurer has a Value Score of A.

The insurer has a market capitalization of $14.02 billion. The average volume of shares traded in the last three months was 0.3 million.

Shares of Manulife Financial Corp. (MFC - Free Report) and Voya Financial, Inc. (VOYA - Free Report) are trading at a discount, while Sun Life Financial Inc. (SLF - Free Report) is trading at a multiple higher than the industry average.

Image Source: Zacks Investment Research

RGA’s Price PerformanceShares of this life insurer have gained 4.8% in the past year compared with the industry’s growth of 11.3%.

Image Source: Zacks Investment Research

RGA Trading Above 50-Day and 200-Day Moving AveragesShares of Reinsurance Group closed at $214.04 on Tuesday and are trading above the 50-day and 200-day simple moving averages (SMA) of $207.90 and $199.98, respectively, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data.

Image Source: Zacks Investment Research

RGA’s Growth Projection EncouragesThe Zacks Consensus Estimate for Reinsurance Group’s 2026 earnings per share (EPS) indicates a year-over-year increase of 17.9%. The consensus estimate for revenues is pegged at $26.89 billion, implying a year-over-year improvement of 12.2%.

The consensus estimate for 2027 EPS and revenues indicates an increase of 6.4% and 6.5%, respectively, from the corresponding 2026 estimates.

Earnings have grown by 26.7% over the past five years, outpacing the industry average of 6.4%.

Average Target Price for RGA Suggests UpsideBased on short-term price targets offered by eight analysts, the Zacks average price target is $254.38 per share. The average suggests a potential 18.8% upside from the last closing price.

Image Source: Zacks Investment Research

Reinsurance Group’s Return on Invested CapitalIts return on invested capital (ROIC) has increased every year, reflecting RGA’s efficiency in utilizing funds to generate income. ROIC in the trailing 12 months was 5.87%, higher than the industry average of 0.6%.

Key Points to Note for RGAReinsurance Group is a leader in the traditional U.S. and Latin American markets. It has successfully expanded its product line with market-leading services, capabilities, expertise and innovation. Individual mortality has matured, providing a base for stable earnings and capital generation. Significant value embedded in the in-force business is anticipated to generate predictable long-term earnings. Product-line expansion contributes to risk diversification.

In Canada, Reinsurance Group is a market leader with solid growth and profitability. It has a sizable block of in-force business, which is a significant source of future earnings. Reinsurance Group expects longevity insurance, projected to witness steady demand, to experience long-term growth in the Canadian market. While longevity insurance provides a diversified income source, it also acts as a hedge against a large mortality position.

Demand for protection products among the emerging global middle class and increasing demand for retirement, senior protection and savings products among aging populations create opportunities for growth in new business.

RGA is well-capitalized and has access to multiple forms of capital. RGA expects to remain active in deploying capital in attractive growth opportunities while balancing returning excess capital to shareholders over time.

Reinsurance Group continues to ramp up technological inclusion with its product. This insurer is a global biometric liability reinsurance leader. Biometrics experience, which includes mortality, morbidity and longevity, over the last five quarters was favorable.

Wealth DistributionThis global reinsurer has also been managing capital effectively via share buybacks, dividend payments and prudent investments. RGA expects to remain active in deploying capital into attractive growth opportunities in organic flow and in-force block transactions and returning excess capital to shareholders through dividends and share repurchases.

ConclusionNew business volumes, favorable longevity experience, a diversified business and effective capital deployment should continue to favor RGA over the long term.

The stock also has a VGM Score of A. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.

Coupled with solid growth projections, as well as attractive valuations and favorable ROIC of the stock, it is, therefore, wise to hold on to this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ST. LOUIS--(BUSINESS WIRE)--Reinsurance Group of America, Incorporated (NYSE: RGA), a leading global life and health reinsurer, announced today that Crystal Lu has been named Senior Vice President, Investor Relations, effective June 8, 2026. In this role, Ms. Lu will lead investor relations strategy and liaise with the global investment community, supporting communication around the company's financial performance and long-term value creation as RGA continues to advance its enterprise prioritie.

Key Takeaways Even the strongest bull markets can move too far, too fast.Climax tops are marked by vertical price moves and exhaustion gaps. Select AI giants are in the crosshairs. Is There Such a Thing as Too Much of a Good Thing?When a child gets given a giant bowl of ice cream after a full day of activity, its hard for them to imagine anything better. However, while the first few bites are almost always filled with pure joy, eating too fast or too much can trigger a brain freeze, sugar crash, or stomachache. Similarly, water is a critical component of life. Humans cannot survive more than a handful of days without it. That said, drinking too much water in a short period of time can actually be fatal. The point is, virtually everything (including the stock market) operates on a curve. In moderation, most things like exercise or sunlight can be beneficial. Nevertheless, if you cross the threshold into excess, it can cause problems. The stock market is no different.

AI Stocks: Too Far Too Fast?The stock market is a forward-looking mechanism, a game of expectations that tends to climb the proverbial “Wall of worry.” For instance, at the beginning of 2026, investors were skeptical about AI spending, profitability, and the credit market. However, once AI-related stocks began delivering real profits and raised forward guidance, their stocks rose, bucking geopolitical concerns in the Middle East. However, with the S&P 500 Index up 9 straight weeks for just the 14th time in the past century and many AI stocks up triple digits year-to-date, it may finally be time for a breather.  

What is a Climax Top?Currently, things could not be better in Wall Street’s hottest industry – artificial intelligence. Earnings are rising, CAPEX spending is increasing, and the Agentic AI revolution is upon us. That said, the technical action in numerous AI stocks has transformed from bullish to frothy, parabolic, and potentially climactic.

Popularized by legendary growth investor William O’Neil, a climax top is a technical pattern that signals the end of a multi-month advance in a leading growth stock. Below are the characteristics of a climax top:

·       Roaring Uptrend: The stock must have already advanced significantly (100 or more over the past few months).

·       Accelerated Trend: Next, the stock’s advance turns from an uptrend to a parabolic/vertical move.

·       Largest Point Spread: The stock registers its largest daily point gain (not %).

·       Blowout Volume: Volume simultaneously soars to well above average, signaling “churning” action.

·       Exhaustion Gaps Appear: Euphoria reaches a fever pitch as the stock gaps up overnight (maybe several times), signaling exhaustion.

·       Moving Average Extension: Stocks that are 200% or more above the 200-day moving average are considered very extended.

Potential Climax MovesBelow are some potential climax moves that are setting up.

Dell ((DELL - Free Report) )

Image Source: TradingView

Arm Holdings ((ARM - Free Report) )

Image Source: TradingView

Micron ((MU - Free Report) )

Image Source: TradingView

SanDisk ((SNDK - Free Report) ), which is in Micron’s industry, is also worth watching as a potential climax top.

Bottom Line

While the fundamental story driving the AI revolution remains undeniably robust, select AI stocks are setting up potential climax top patterns. Keep a close eye on the extended charts of tech giants like Dell, Arm, and Micron.

Arm Holdings ARM may reach its $15 billion sales target for its own chips sooner than expected, as demand from the AI boom continues to run ahead of the company's earlier assumptions. CEO Rene Haas told Bloomberg Television he remains very confident Arm can hit that target by the previously stated end-of-decade timeline, while also saying at Computex that stronger-than-anticipated demand could possibly pull the milestone forward. Haas said demand has been stronger than Arm anticipated and described customer interest as fantastic, reflecting the pressure across the tech industry to build more data centers and AI services.

The move is a major strategic shift for Arm, a company long known for licensing chip technology to semiconductor makers rather than selling its own components. In March, Arm announced plans to sell its own chips for the first time and laid out aggressive targets for the coming years, including the $15 billion sales projection. The company expects revenue from this new chip business to eventually surpass its current operations, which are centered on selling intellectual property.

Meta Platforms META will be the first major customer for Arm's AGI CPU, a chip expected to carry as many as 136 cores and draw 300 watts of electricity. Taiwan Semiconductor Manufacturing Co. TSM will produce the chip, which is designed to work alongside accelerators from companies such as Nvidia NVDA . For investors, the bigger story could be that Arm is moving beyond its licensing roots and into a more direct role in the AI infrastructure buildout, with Haas saying customers asked for the product and demand has been stronger than expected.

If you have a decade-long retirement horizon and one slot left for an AI semiconductor name, the choice between Arm Holdings (NASDAQ:ARM | ARM Price Prediction) and NVIDIA (NASDAQ:NVDA) is the question that matters right now. Both ride the same AI buildout. Both were just repriced violently after NVIDIA’s blockbuster May quarter. Only one belongs in a portfolio designed to fund withdrawals.

Arm has been the louder trade. The stock is up 271% year-to-date through June 1, including a 94% gain in May alone, as investors repriced its royalty model after NVIDIA’s print. NVIDIA, by contrast, has done nearly 20% year to date and more than 64% over the past year. The setup matters, because retirement capital cares more about what you pay than what just happened.

Dimension 1: On Valuation, NVIDIA Wins This isn’t close. Arm trades at a trailing P/E of 475 and a forward P/E of 161, on a price-to-sales ratio of 89. NVIDIA trades at a trailing P/E of 34 and a forward P/E of 26, with a PEG ratio of 0.69. NVIDIA is the larger, faster-growing, more profitable business, and it trades at a fraction of Arm’s multiple. For a 10-year hold where the starting price determines a meaningful share of total return, that gap is the single most important number in this article.

Dimension 2: On Capital Return and Yield, NVIDIA Wins Arm pays no dividend and runs no buyback. NVIDIA just raised its quarterly dividend to 25 cents from 1 cent, with an ex-dividend date of June 4, and payment on June 26. The board also authorized an additional $80 billion in buybacks in May, after returning roughly $20 billion in Q1 alone. The yield is still tiny, but the direction of travel is unambiguous: NVIDIA is now returning capital at scale. Retirement portfolios reward that signal. Arm’s cash is being plowed into R&D, with non-GAAP R&D up 43% year over year to $1.91 billion.

Dimension 3: On Volatility and Earnings Reliability, NVIDIA Wins. Arm’s beta is 3.41 while NVIDIA’s is 2.24, making the former more volatile. Arm’s 52-week range runs from $100.02 to $421.69, a swing that should make any retiree uneasy. Arm also posted an EPS miss of roughly 49% in Q3 FY26, while NVIDIA delivered four consecutive quarterly beats, including Q1 FY27 revenue of $81.61 billion, up 85% year over year, with data center revenue of $75.25 billion (+92% YoY). Add in SoftBank’s controlling stake and active Qualcomm litigation, and Arm carries governance and legal overhangs NVIDIA doesn’t.

The Verdict NVIDIA wins this matchup outright for a retirement-focused 10-year portfolio. You get the cheaper multiple, the dividend that just stepped up 25x, an $80 billion buyback behind the share count, a 63% net margin, and the most consistent earnings cadence in megacap tech. CEO Jensen Huang’s framing that the “buildout of AI factories is the largest infrastructure expansion in human history” is now backed by hard numbers.

Arm is the better stock only for one specific investor: the aggressive growth buyer who wants pure IP-licensing exposure to every AI chip shipped, including NVIDIA’s own Arm-based Vera CPU in the Rubin platform, and is willing to pay 31x price-to-sales versus NVIDIA’s 16x for 35% forecast EPS growth in fiscal 2027 against a $50 billion AI inference chip market in 2026. For the retirement portfolio that has to last 10 years and pay you along the way, NVIDIA is the position.

While SpaceX’s anticipated public debut has Wall Street salivating over what could be the most consequential IPO in a decade, the historical record offers a sobering warning. The company filed its S-1 in May, outlining three business segments: Space (Falcon and Starship launch services), Connectivity (the Starlink broadband network), and AI (X and Grok subscriptions). SpaceX’s first-quarter 2026 revenue rose 15% year over year (YoY), an increase of $627 million, driven almost entirely by Starlink subscriber growth while the Space segment actually contracted on fewer launch missions.

The headline numbers are real, and so is the corporate structure that investors would inherit. SpaceX intends to list under a dual-class arrangement with Class A carrying one vote per share, Class B carrying ten votes, and Class C carrying none. Tesla (NASDAQ:TSLA | TSLA Price Prediction) CEO Elon Musk will serve as Chief Executive Officer, Chief Technical Officer, and Chairman, with control over director elections under NASDAQ’s “controlled company” rules.

However, the most important data point for anyone buying the IPO sits outside of the SpaceX S-1 entirely. It lives in a Truist study cataloguing what tends to happen to marquee public debuts in their first 12 months.

The 55% Number Wall Street Should Be Watching As reported by an X post from Josh Schafer, Truist’s Keith Lerner studied 30 major IPOs, and the standout figure is the average maximum first-year drawdown of -55%. The best-case maximum drawdown in the study was -20%. The worst was -90%, and they apply to some of the most celebrated names of the past decade.

The interim path is just as instructive. Across the group, the average return was +4% after one week, +4% after one month, +20% after three months, +1% after six months, and +14% after 12 months. That 12-month average looks respectable on its own.

The median, however, was -9%, meaning a typical major IPO lost value over its first year. The positive average was carried by a handful of outsized winners, and that gap between mean and median is where the cautionary tale lives.

Arm Holdings: The Outlier That Proves the Rule The +14% 12-month average was led by names like Zoom Communications (NASDAQ:ZOOM), Palantir Technologies (NASDAQ:PLTR), MongoDB, and Arm Holdings (NASDAQ:ARM). Arm is the most recent example, and its post-IPO chart is exactly the volatility study a SpaceX buyer should review. The stock was priced in September 2023, vaulted on AI hype, and has since rewarded patient holders with a five-year return of 533% from its IPO close.

The journey has been anything but linear. ARM stock changed hands at $165.84 on November 5, 2025, then fell to $97.05 by February 4, 2026, a peak-to-trough swing of 41% in three months. It then rallied back to $222.12 by May 6, after prior 24/7 Wall St. coverage of the February earnings reaction caught the lower end of that range.

That round trip happened to a company posting Q4 FY2026 revenue of $1.49 billion, up 20% YoY, with non-GAAP diluted EPS of $0.60 and full-year free cash flow of $882 million. The valuation gut-check is the punchline: Arm carries a P/E ratio of 474x and a price-to-sales ratio of 87x, against an analyst target price of $241.19. Even dominant franchises can absorb brutal drawdowns when the multiple races ahead of the fundamentals.

Why SpaceX’s First-Year Volatility Could Be Amplified Several SpaceX-specific factors could make the historical pattern more pronounced rather than less. The S-1 discloses that the company does not insure its in-orbit satellites and warns that investors could lose all or part of their investment in the Class A common stock. SpaceX’s AI segment generated revenue of $818 million in Q1 2026 but posted a loss from operations of $2.47 billion, with research and development expenses up 126% YoY as the company expanded its data center footprint.

Yet, the bull case is worth considering. SpaceX’s Connectivity segment delivered $11.39 billion in 2025 revenue with 50% YoY growth and segment adjusted EBITDA of $7.17 billion. The Space segment has been adjusted EBITDA positive on a sustained basis since 2018, the company has raised over $9 billion in equity capital since its 2002 founding, and a five-for-one stock split was approved in May.

The Long Memory Takeaway Lerner’s data offers a realistic framework rather than a doomsday call. The average major IPO buyer endured a 55% drawdown at some point in year one, and the typical IPO actually lost value over 12 months. Even Arm Holdings, one of the study’s biggest winners, gave back 41% in three months on its way to a 533% multi-year gain.

Long term, Wall Street has typically historically rewarded patient owners of dominant franchises, and SpaceX may eventually join that list. The path there, however, tends to be far more volatile than launch-day headlines suggest. Investors who want exposure can consider sizing their positions to survive a drawdown closer to the study’s average than its best case.

That framework matters more than any single price target. History doesn’t promise a 55% drop in SpaceX stock, but it does suggest that such a drawdown would be entirely normal.

Listen to the audio version of this article (generated by AI).

After repeated failures and a fortune lost on the floor of the ocean, Cyrus Field pulled off the impossible, laying a working telegraph cable across the Atlantic. Suddenly, Queen Victoria and President Buchanan could trade greetings in mere minutes instead of prolonged weeks of no news. Naturally, Field became an instant national hero… but three weeks later, the cable went cold.

The backlash was brutal. The same newspapers that had cheered him began trading in ideas that Field’s entire operation had been a swindle from the start… a scheme to pump a worthless stock and dump it on a gullible public.

A few even insisted the messages had been faked. So, what am I getting at here? It’s simple: Field had run headlong into what I call “the reality wall.”

SpaceX’s Reality Wall The Reality Wall is the moment the hype runs out of road and the hard, unforgiving truth of the engineering catches up.

Most ventures die at that wall. But Field’s did not.

He spent eight more years chasing it (going broke in the process); and in 1866, he finally laid a cable that worked. Once it held, it went from being an experiment and borderline scam, to becoming the nervous system of global finance, commerce, and news for the next hundred years.

I’ve been thinking about Cyrus Field all week, because the SpaceX IPO just hit its reality wall. The $2 trillion hype trade that had been carrying every space stock higher slammed into its first real valuation and governance gut-check. The financial commentators came out swinging – “the number is absurd,” they said, “the index fast-tracking is a grift on retail,” “this is a dump on your 401k.” The whispers have started. So, is the parade is over?

Here’s the question that actually matters, the one that separates the initial public offerings that mint fortunes from the ones that vaporize them: does this trade burst through the reality wall, or die at it?

“Everyone else is 10, 15, 20 years behind.”

Every IPO has hype. Every IPO eventually meets the wall. GoPro (GPRO) met it and never recovered. Fitbit (FIT) met it and faded. Facebook (META) met it too… a brutal drawdown in its first couple of years… and then bulldozed straight through and became one of the most valuable companies on earth. The difference is never the hype. It’s what’s standing behind the hype.

What’s Behind the SpaceX IPO Behind SpaceX is the hardest business on the planet. They literally call it rocket science.

Just how hard it is became apparent this past week, when Blue Origin’s rocket exploded before it even cleared the ground. This is Jeff Bezos we’re talking about – one of the great business minds of our era, with effectively unlimited capital – and his rocket blew up on the pad.

Only two companies on earth have turned rocket science into a reliable, repeatable commercial machine: SpaceX and Rocket Lab (RKLB). That technical moat is enormous, and in an age where most moats are eroding, this one is getting wider.

Everyone else is 10, 15, 20 years behind.

Now layer on what that moat unlocks – orbital computing, satellite intelligence, geospatial observation, national defense, eventually point-to-point travel that gets you from Los Angeles to Beijing in about an hour. Does that last one sound like science fiction? Of course it does. So did a mainstream $30,000 electric car when Tesla (TSLA) went public in 2010, and people laughed at that, too.

Sixteen years later, Tesla is the most valuable automaker in the world. This is a founder who has turned science fiction into reality before – more than once, with the most ambitious projects imaginable.

If I’m betting on anyone to break through the wall, it’s the man with the longest track record of doing exactly that, a fresh IPO war chest of roughly $75 billion, and Tesla’s balance sheet behind him.

And that “grift on your 401(k)” accusation? Take the emotion out and it falls apart. You want the indices to own a $2 trillion company.

Picture an index fund that doesn’t hold one of the four or five most valuable businesses on earth – that isn’t protecting you, it’s handing you a broken, inefficient portfolio. The fast-tracking is the market scrambling to build a sensible index for a wave of trillion-dollar IPOs the rules were never written for.

“Knowing which is which is the whole game.”

Here’s where it gets interesting for your portfolio, though, because the reality wall isn’t only a space story. The same pattern is flashing across the entire AI Boom.

The AI Signal Under the Noise Take Nvidia’s (NVDA) move into the PC chip market for the first time in its history – a market Intel has owned for decades. Read past the headline and it tells you two things.

First, the smartest company in AI is now betting heavily on Physical AI – pushing intelligence out of the cloud and onto the device, which puts names like Dell (DELL) and HP (HPQ) squarely in the path of the next leg of this buildout. Second, that new chip is built on ARM (ARM) architecture.

All roads lead back to the foundry when it comes to printing chips. All roads lead back to ARM when it comes to running them. Every one of those chips sold sends a royalty back to ARM. That’s a quiet toll booth on the entire AI economy.

Then there’s the software bounce, where I’ll do something most analysts won’t: admit I got it wrong. I called this a dead-cat bounce. It wasn’t. A 45% rally off the lows, a clean bounce off the 200-week moving average – that’s real technical strength, and I’m not going to pretend otherwise.

But strength in the tape doesn’t resolve the long-term risk that AI eventually collapses demand for ordinary software. The market is finally getting selective. The names that own proprietary data and live inside a workflow AI can’t easily replace – the nervous-system businesses – deserve their bounce. The pure-function names riding the same tide don’t.

Knowing which is which is the whole game.

And watch the drones. They went red-hot before the Iran War, then ice-cold the moment the thesis got validated and everyone sold the news. Now an unexpected jolt of good news out of the White House looks like it could reawaken the trade.

We’ve seen this exact movie with quantum stocks a few weeks ago: red-hot, ice-cold, a policy catalyst, then liftoff. The drone names – AeroVironment (AVAV), Kratos (KTOS), Red Cat (RCAT) – look to be a few weeks behind that same blueprint.

Pull it all together and the signal underneath the noise is the one we’ve been pounding the table on for months. Seven, eight, nine of the 11 sectors can close red while tech rips 2% to 3% higher.

That isn’t random.

That’s the cleanest expression yet of an economy being weighed down by stagflation while the AI train refuses to slow.

We are in the later innings here. Not the ninth but not the fourth, either. The music is still playing, and you stay on the floor as long as it does. The trade is simple, and it hasn’t changed: own AI, and forget almost everything else.

In this week’s episode of Being Exponential With Luke Lango, we walk through exactly where these reality-wall setups sit on the charts… the technical support levels worth watching across space, chips, and drones, and the specific names we think burst through rather than break against the wall.

Watch the full episode here. Also, be sure to subscribe to Being Exponential on X (formerly Twitter) for more exclusive content.

Could the AI trade be starting to lose its edge—or is it just primed for a break?

Listen to the audio version of this article (generated by AI).

Tom Yeung here with your Sunday Digest. 

When people talk about the year “1999,” most investors will immediately tense up. That year was the start of a terrible stretch for the value-focused buy-and-hold crowd. The dot-com bubble burst meant that anyone who bought the Nasdaq Composite in January that year would have been in the red until 2006… just in time for the global financial crisis two years later. 

Experienced growth investors will also shudder at the thought of 1999. Many internet companies saw their share prices peak early that year, including Lycos (March), Priceline (April), and TheStreet.com (May). In fact, many smaller dot-coms were already on their way out by the time 1999 began. 

That means when Louis Navellier says he thinks today’s market looks a lot like 1999, he’s really saying two things: 

Bullish. Much like the internet, AI is justifying more gains to come. Consumers and companies are paying handsomely for the best AI models, and industry leaders are generating record profits as a result. Anthropic, an AI startup that lost roughly $5.2 billion last year, expects to swing to an operating profit this quarter.  Bearish. However, high valuations today make for an extremely fragile bull market. Smaller AI laggards are already fading away, and indebted ones like Oracle Corp. (ORCL) are showing cracks in their balance sheets. Louis forecasts a highly volatile summer and the possibility of a meaningful pullback.  After all, if so many AI stocks are starting to look like hockey-stick charts like the one from Intel Corp. (INTC) below, it’s easy to see how ugly a selloff can get. 

INTC stock price 

Source: LSEG 

To navigate this increasingly brittle rally, Louis has become far more selective in the stocks he’s recommending. And to do that, he’s partnered with TradeSmith CEO Keith Kaplan to build a new AI-driven investing system that combines his Stock Grader research with TradeSmith’s market-timing technology. 

The result is a new Tactical Profits Portfolio that selects the best AI-focused companies with strong fundamentals that can withstand drawdowns. It also helps flag weaker players at risk of losing ground. 

On Thursday, June 10, Louis will sit down with Keith and explain the work they’ve done with their system and how their stock-selection tools have helped investors navigate past volatility. 

You can sign up for their presentation here.

Today, I’d like to give a sample of five stocks that pass this threshold, and another three that fail it. And if you’re worried about the stocks in your own portfolio, you can register for their event and use their free ticker tool for a limited time to check their short-term health.

Five High-Quality Names for a Volatile Summer  Readers will immediately notice that the five companies in this list are wide-moat firms trading at surprisingly reasonable prices. All run like quasi-monopolies, giving them the strength to outlast a market selloff. And all were recently ranked well by both Louis’ Stock Grader and TradeSmith’s market-timing system. 

1. Nvidia Corp. (NVDA). The “king of AI” continues to expand its domain. Last week, at Computex 2026, CEO Jensen Huang revealed that the chipmaker plans to move into personal computers (PCs) with a new chip called the RTX Spark that combines AI and traditional computing power. 

His rationale is straightforward: PCs are looking much like the “dumb phones” from the 1990s. Their purpose has not changed in decades, even though technology has marched ahead. Today, smartphones are used for everything except making calls. Why can’t the same happen for a reinvented laptop? 

In addition, Nvidia continues to surprise even its greatest fans. Last month, the company announced its 14th consecutive earnings beat. Earnings per share grew 95% to $1.87, surpassing consensus by 6%. The company has expanded its supply chain faster than Wall Street expected and kept its lead in AI chips. At Computex 2026, the company additionally announced that its next-gen Vera Rubin AI supercomputer is already ramping into full production – delivering on a promise Nvidia made in 2024. 

By my calculations, that means Nvidia’s fair value is closer to $300 per share today, up 40% from its current  share price. The firm is dominating its industry, and its solid “B” rating in Louis’ Stock Grader suggests it’s an excellent company to buy, even after its multiyear run. 

2. Alphabet Inc. (GOOGL). Meanwhile, Google’s parent company is the only major hyperscale AI data center firm expected to remain cashflow positive in every quarter this year. Analysts expect net cash inflows of $18 billion in 2026 (despite $185 billion in data center spending). That’s thanks to a combination of: 

A dominant search business. Search revenue growth hit 19% growth last quarter, and the remainder of 2026 should see a windfall from record political ad spending for the midterm elections.  Efficient data center chips. Alphabet began building custom “TPU” chips as early as 2013 to handle its voice-to-text system on Android phones. These purpose-built chips have allowed the firm to run its AI models far more efficiently than rivals’. Studies show Alphabet’s TPUs delivering between 1.6X and 4X more performance per dollar than general-purpose GPUs.  A winning AI model. Google’s Gemini 3.5 AI model has proven exceptionally capable, and it’s beginning to steal consumer market share from OpenAI. Betting markets expect Google to have the second-ranked model behind Anthropic by the end of 2026.  That suggests Alphabet’s fair value is somewhere in the mid-$400s range, according to my math. The company’s vertical integration is proving to be a durable competitive advantage, and the advantage looks set to expand over time. Louis’ and TradeSmith’s system both agree. 

3. Advanced Micro Devices Inc. (AMD). Over the past several years, AMD has capitalized on Intel’s stumbles to establish itself in the CPU market. It has gone from less than 10% market share to about a third overall – and provides nearly half of all server CPUs. Its evolution from near-bankrupt company to world-beater got CEO Lisa Su named Time magazine’s CEO of the Year 2024. 

Markets might still be underestimating AMD’s potential. 

In a recent earnings call, Su noted that the CPU-to-GPU ratio should move from a 1-4 or 1-8 ratio today to 1-1 in the coming years. She joins the bosses of Intel and Arm Holdings PLC (ARM) in predicting the return of the CPU. 

I believe they’re right (even though they’re all CEOs of CPU companies). 

That’s because AI is shifting from mostly training and simple inference to agentic inference. This new type of AI requires far more “thinking,” where AI models will plan, call tools, run code, inspect results, and sometimes run in circles before asking for help. GPUs are still needed to run AI models, but CPUs are then used to orchestrate and analyze results. 

That should put AMD on a far faster growth track than people expect. Analysts are currently expecting growth to taper off by the end of 2027, but I expect demand could last through 2030. Louis’ and Keith’s systems both agree, awarding AMD their top bullish scores. 

4. Taiwan Semiconductor Manufacturing Co. Ltd. (TSM). Taiwan Semi (also known as TSMC) is the world’s largest contract chip manufacturer. The firm controls roughly 70% of the market and is the only chipmaker capable of manufacturing the advanced 2-nanometer process at profitable scale. It is now working on the A16 and A13 nodes. 

Expectations for the company are surprisingly modest. TSMC trades at just 28X forward earnings and 21X forward cash flows – well below less established firms like Intel and China’s Semiconductor Manufacturing International Corp. (SMIC). Investors have become conditioned by years of boom-bust cycles in the chip “fab” business and typically view incumbents with skepticism. (Upstarts typically get a free pass during boom times.) 

Yet, skeptics will ignore the Taiwanese firm at their own risk. Like Nvidia, TSMC has been able to raise prices thanks to insatiable AI demand. The company expects capacity to rise just 7% in 2026, meaning that over two-thirds of its 31% revenue growth is coming from price increases. Its monopolistic position means further price increases are likely. 

Consolidation among semiconductor companies has also created demand for more complex chips. Larger firms like Nvidia and AMD are combining GPUs, CPUs, and memory components into integrated products, and these complicated chips require the type of leading-edge nodes that TSMC produces. Though Taiwan Semi is more of a “grind higher” company because of its capital investment needs, it’s still a solid enough company that should weather a selloff. The company earns top marks in Louis’ and Keith’s system. 

5. Analog Devices Inc. (ADI). Finally, we have Analog Devices, one of the world’s largest analog and mixed-signals chipmakers. The company has a particularly wide lead in high-performance signal processing chips – the devices that convert real-world information (light, sound, temperature, voltages) into the usable “0s” and “1s” that digital chips need. 

Profits are high thanks to years of investments and high customer switching costs. Operating margins have hovered around 40% since 2020. Growth is also quite reasonable, thanks to the rise of electric vehicles, robotics, and “internet of things” devices. Analysts expect revenues to increase 34% this year. 

The AI boom now offers three new paths for growth. 

Advanced robotics. The most established way for Analog Devices to grow is through providing chips for AI-powered devices. Every AI-enabled phone, car, camera, robot, and wearable device must convert analog data into digital information.  Chip power systems. High-end GPUs pull hundreds of watts, and their inconsistent demands create voltage spikes that power systems must smooth out. According to a report from Deloitte, power systems cost between 5% to 10% of a typical AI server rack. That benefits Analog greatly – data center product revenues rose 76% in the most recent quarter).  Analog AI computations. Researchers are now exploring analog AI chips that can store more than binary 0s and 1s. Though commercialization of this technology is years away, this could provide Analog Devices with a powerful growth engine down the road.   Together, that makes Analog one of my top long-term companies to buy. The company has a durable moat in analog chips, and its strong quantitative scores from Louis and Keith suggest there’s still time to get in on this high-quality firm. 

Knowing When to Sell  Louis’ and Keith’s systems also make it clear that some AI stocks are off the table. These include: 

Accenture Plc (ACN)  Adobe Inc. (ADBE)  Intuit Inc. (INTU)  Not only are the fundamentals at these firms deteriorating – often from AI competition – but short-term momentum is also turning decidedly negative. That’s a highly bearish sign in this returns-chasing market. No retail investor wants to hold a sinking stock. 

These are not the only companies at risk. 

In their upcoming presentation, Louis and Keith caution why the months ahead could be much more volatile than many investors expect… and why comparisons to 1999 are both an encouragement and a warning for investors today. 

You can register for their presentation here.

I’ll be out of town next week, so I’ll see you back here in two weeks 

Regards, 

Thomas Yeung, CFA 

Market Analyst, InvestorPlace 

Thomas Yeung is a market analyst and portfolio manager of the Omnia Portfolio, the highest-tier subscription at InvestorPlace. He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad.

© Sundry Photography / iStock Editorial via Getty Images

Arm (NASDAQ: ARM | ARM Price Prediction) has been one of the most explosive AI infrastructure trades of 2026, with shares rocketing 197.19% year to date as the chip designer cements its position at the center of the agentic AI buildout. After a 52.32% surge over the past month, the stock is consolidating.

Our 24/7 Wall St. price target for Arm is $359.98, implying roughly 10.81% additional upside from current levels by year-end 2026. We rate shares a buy with high confidence.

24/7 Wall St. Price Target Summary Metric Value Current Price $324.86 24/7 Wall St. Price Target $359.98 Upside 10.81% Recommendation BUY Confidence Level 90% From $109 to $324: How Arm Got Here Arm entered 2026 at $109.31 and now trades just off a 52-week high of $427.99, though shares pulled back 19.33% over the past week.

The catalyst was the May 6, 2026 Q4 FY2026 report. Revenue hit $1.49 billion, up 20.1% YoY, with non-GAAP EPS of $0.60 beating the $0.5793 consensus.

Data center royalty revenue more than doubled, and CEO Rene Haas said “demand for Arm AGI CPU, Arm’s first data center chip, has exceeded expectations.” Management cited more than $2 billion in customer demand for AGI CPU across FY2027 and FY2028.

The Case for $437+ The bull scenario points to $437.55, a 34.69% total return. Arm holds roughly 50% CPU compute share among top hyperscalers, with Meta co-developing a multi-generation AGI CPU roadmap, Google replacing x86 with custom Arm-based Axion in next-gen TPUs, NVIDIA building its Vera CPU on Arm, and Microsoft expanding Cobalt across Azure.

CSS royalty rates climbed from roughly 5% of ASP on Armv9 to north of 10% on next-generation deals. With the data center CPU TAM projected at more than $100 billion by 2030, royalty take rates that doubled represent powerful operating leverage.

What Could Go Wrong The bear case lands at $278.99, a 14.12% drawdown. Valuation is the obvious overhang. A trailing P/E of 399 and forward P/E of 179 leave no room for slippage.

Wall Street consensus target of $247.41 sits well below current levels. RPO fell 7% YoY, non-GAAP operating margin compressed from 52.8% to 49.1%, and R&D spending jumped 43% to $1.911 billion.

Bulls counter that margin compression reflects deliberate investment in the AGI CPU silicon ramp, which has $2B in committed demand. The Qualcomm/Nuvia trial scheduled for Q4 calendar 2026 and 25% US tariffs on semi imports create catalysts for a multiple reset.

Arm Price Prediction 2026-2030 My 24/7 Wall St. price target of $359.98 and buy rating reflect 90% confidence that the AGI CPU ramp and CSS royalty rate expansion drive numbers higher into FY2027. The tipping factor is visibility: $2B in booked AGI CPU demand and 50% hyperscaler share gives this story unusual conviction at a high-beta name.

Risk/reward improves on any pullback toward the 50-day moving average near $214.92. The thesis weakens if Q1 FY2027 revenue comes in below the $1.26 billion guide or if Qualcomm litigation breaks against Arm.

Here is where our model projects Arm could trade, assuming current growth trajectories and royalty rate expansion hold.

Year 24/7 Wall St. Price Target 2026 $359.98 2027 $385 2028 $415 2029 $445 2030 $469.95 These projections assume Arm executes on the AGI CPU roadmap and CSS adoption keeps royalty rates climbing. Significant upside or downside could come from the Qualcomm trial outcome or a sharper-than-expected AI capex pullback.

© Justin Sullivan / Getty Images

Shares of Qualcomm (NASDAQ:QCOM | QCOM Price Prediction) are down 6% to $193 and change in midday trading Wednesday, while Arm Holdings (NASDAQ:ARM) stock is off 5% to $309.75. The moves come as mobile and edge-compute chip names lag the broader semiconductor tape.

The iShares Semiconductor ETF (NASDAQ:SOXX) is down by 2.3% on the session, signaling that the weakness extends well beyond Qualcomm and Arm. QCOM stock and ARM stock are simply at the sharp end of a multi-day chip selloff.

Mobile-Chip Pair Caught in the Downturn Qualcomm and Arm are tightly linked. Qualcomm’s mobile processors are built on Arm’s instruction-set architecture, and Arm collects royalties across the mobile ecosystem, so weakness in one tends to track the other. The pair also has a history of licensing tension and litigation, which makes their linkage in a selloff worth flagging.

There isn’t one clean catalyst for today’s mobile-chip moves. Traders point to a broad risk-off tone in high-valuation chip names, profit-taking after big year-to-date runs, rate concerns, and the lingering fallout from Broadcom‘s (NASDAQ:AVGO) recent weak AI guidance Broadcom’s recent weak AI guidance.

The macro backdrop isn’t helping. The CBOE Volatility Index or VIX sits at 19.87, up 26% over the past week, and the 10-year Treasury yield is at 4.56%, near the upper end of its 12-month range.

QCOM: A Familiar Air Pocket Qualcomm’s most recent quarter, Q2 FY2026, beat on both lines with revenue of $10.6B and non-GAAP EPS of $2.65. However, Qualcomm’s handset revenue fell 13% to $6.02B on memory supply constraints and softness from Chinese handset OEMs, a setup that leaves QCOM stock sensitive to any mobile-demand wobble.

The stock carries a forward P/E ratio of 20x and a beta of 1.6, with an analyst target price of $180. Even after today’s pullback, Qualcomm stock is still up 11.6% year to date (YTD), leaving room for further profit-taking.

ARM: High Beta Meets a High Bar Arm’s most recent quarter showed revenue of $1.49B, up 20% year over year (YoY), with license revenue jumping 29% and data center royalties more than doubling. CEO Rene Haas highlighted the launch of an Arm AGI CPU and over $2B in customer demand across FY27-FY28, with Meta Platforms (NASDAQ:META) as lead partner.

However, ARM stock trades at a trailing P/E ratio of 399x and a forward P/E ratio of 179x, with a beta of 3.8. The analyst target price stands at $247, well below today’s quote, and the stock is still up 181% YTD even after the recent slide.

That valuation profile makes Arm a natural pressure point when risk sentiment turns. ARM stock’s 52-week range of $100 to $428 tells you how much air is in the move both ways.

What to Watch Into the Close For Qualcomm, the next event on the calendar is the June 24 Investor Day, focused on data center and physical AI updates, which could reframe the narrative beyond handsets. For Arm, traders can track how the stock behaves around its 50-day moving average near $215 if the selloff deepens.

Reddit chatter on QCOM remains in neutral territory with low activity, suggesting retail isn’t capitulating yet. With the VIX elevated and yields firm, investors weighing their exposure to mobile-chip names may want to consider their position sizing and entry points rather than chase intraday lows.

Both the Qualcomm and Arm share-price moves are intraday and can shift in the coming sessions. Any late-day commentary from sector analysts could set the tone into Thursday’s open.

The move is also lining up with strength in Technology (XLK) as the Nasdaq (QQQ) pushes higher.

Shares are catching a bid after BofA Securities analyst Vivek Arya maintained a Neutral rating while raising its price forecast to $335.00, adding to a cluster of recent forecast hikes. The analyst sees stronger long-term chiplet potential as agentic AI expands the server CPU opportunity.

Arya said agentic AI is "a powerful demand accelerant" for CPUs, including ARM challengers, because orchestration and decision-making workloads are better suited for CPUs than accelerators.

In the same recent set of updates, Mizuho reiterated its Outperform rating and raised its forecast to $500.00, while Barclays reiterated its Overweight rating and raised its forecast to $360.00.

With markets open, the tape is supportive: the Nasdaq is up 0.94%, and Technology is up 0.97%, while market breadth is firmly positive with 10 sectors advancing versus 1 declining. That kind of backdrop tends to reward high-momentum leaders, and Arm is acting like one today.

Technical AnalysisArm is still in a powerful, longer-term uptrend, trading above all major moving averages, including the 20-day SMA ($310.48) and the 200-day SMA ($160.04). The golden cross that triggered in April (50-day SMA moving above the 200-day SMA) continues to reinforce the "trend is up" message on pullbacks.

From a levels perspective, the stock is well off its February 52-week low ($100.02) and below the June 52-week high ($427.99), leaving room for volatility inside that wide range. The most recent swing high in June and swing low in March help frame the current structure as "high and choppy," rather than a clean, low-volatility grind.

Earnings & Analyst OutlookLooking further out, the next major catalyst for the stock arrives with the July 29, 2026 (estimated) earnings report.

EPS Estimate: 36 cents (Up from 35 cents YoY) Revenue Estimate: $1.27 Billion (Up from $1.05 Billion YoY) Valuation: P/E of 361.7x (Indicates premium valuation relative to peers) Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $255.85. Recent analyst moves include:

B of A Securities: Neutral (Raises Target to $335.00) (June 11) Mizuho: Outperform (Raises Target to $500.00) (June 4) Barclays: Overweight (Raises Target to $360.00) (June 1) Top ETF ExposureSignificance: Because ARM carries significant weight in these funds, any significant inflows or outflows will likely trigger automatic buying or selling of the stock.

Price ActionARM Stock Price Activity: ARM Holdings shares were up 6.52% at $327.46 at the time of publication on Thursday, according to Benzinga Pro data.

Photo via Shutterstock

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

To add Benzinga News as your preferred source on Google, click here.

Urban Edge Properties trades at 79% of NAV and 17.6x AFFO, entering value territory amid strong shopping center fundamentals. UE benefits from densely populated, high-income Northeastern markets, boasting 96.7% occupancy and aggressive lease spreads, but growth is rate-driven due to full occupancy. High anchor space limits leasing economics but offers redevelopment potential, with SNO leases providing visibility into future NOI growth.