Track market-moving stories before they get noisy

Key Takeaways Omnicell reports Q2 2026 results on July 30, with revenues seen rising 6.6% and EPS expected to grow 6.7%. OMCL may benefit from OmniSphere adoption, customer wins and Titan XT traction across health systems. Omnicell's Product and Services revenue growth is expected to reflect demand and recurring software momentum. Omnicell (OMCL - Free Report) is set to release second-quarter 2026 results on July 30, before market open. 

In the last reported quarter, the company posted adjusted earnings per share (EPS) of 55 cents, which surpassed the Zacks Consensus Estimate by 66.67%. Omnicell beat on earnings in three of the trailing four quarters and missed on one occasion, the average surprise being 34.65%.

OMCL’s Q2 EstimatesThe Zacks Consensus Estimate for revenues is pegged at $309.6 million, which suggests 6.6% growth from the year-ago reported figure.

The Zacks Consensus Estimate for earnings is pinned at 48 cents per share, which implies a 6.7% rise from the year-ago recorded actuals.

Estimate Revision Trend Ahead of OMCL’s Q2 EarningsEstimates for second-quarter earnings have remained unchanged at 48 cents per share in the past 30 days.

Here’s a brief overview of the company’s performance leading up to this announcement.

Factors Shaping OMCL’s Q2 PerformanceThe company is expected to have delivered another quarter of solid growth, supported by continued execution of its Connected Devices strategy and expanding recurring revenue streams. Demand is likely to have remained strong across inpatient and outpatient pharmacies as well as broader patient care settings, reflecting continued adoption of Omnicell's medication management solutions. 

Second-quarter revenue growth is also expected to have been supported by increasing penetration of OmniSphere, a cloud-native medication management platform, as healthcare providers continue to prioritize enterprise-wide automation, workflow optimization and data-driven medication management. 

The second-quarter top line is also likely to have benefited from continued customer wins among large and complex health systems. The recently launched Titan XT next-generation automated dispensing system is expected to have gained further commercial traction, supported by its integration with the OmniSphere platform. The combined offering is likely to have strengthened Omnicell's value proposition by providing enterprise-wide visibility, guided clinical workflows and a modern cloud-based infrastructure designed for large healthcare organizations.

From a segment perspective, Product revenues are expected to have benefited from sustained demand for the Connected Devices portfolio across both North America and international markets, supported by ongoing capital investments from healthcare providers.

The Zacks Consensus Estimate for Product revenues indicates 5.2% year-over-year growth for the second quarter. 

Service revenues are likely to have remained on a growth trajectory, supported by higher recurring software and service revenues, including continued momentum in Specialty Pharmacy Services. This growth is expected to have been driven by increasing customer adoption of subscription-based and technology-enabled medication management solutions.

The Zacks Consensus Estimate for Services revenues indicates 5% year-over-year growth for the second quarter. 

Omnicell, Inc. Price and EPS SurpriseWhat Our Quantitative Model Predicts for OMCLPer our proven model, stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, have a higher chance of beating estimates. However, this is not the case here, as you can see below:

Earnings ESP: Omnicell has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

Top MedTech PicksHere are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time around:

Hinge Health Inc. (HNGE - Free Report) has an Earnings ESP of +4.24% and a Zacks Rank #1 at present. The company is expected to release second-quarter 2026 results soon.

In the trailing four quarters, HINGE delivered an average earnings surprise of 179.54%. The Zacks Consensus Estimate for second-quarter EPS implies a decrease of 11.9% from the year-ago quarter’s figure.

Neurocrine Biosciences (NBIX - Free Report) has an Earnings ESP of +40.60% and a Zacks Rank #1 at present. The company is expected to release second-quarter 2026 results soon.

NBIX’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 9.08%. The Zacks Consensus Estimate for the company’s second-quarter EPS calls for an increase of 112.3% from the year-ago quarter’s figure.

West Pharmaceutical Services (WST - Free Report) has an Earnings ESP of +1.09% and a Zacks Rank #2 at present. The company is slated to release second-quarter 2026 results on July 23. 

WST’s earnings beat estimates in each of the trailing four quarters, the average surprise being 19.37%. The Zacks Consensus Estimate for WST’s second-quarter EPS implies a rise of 13% from the year-ago reported figure.

Key Takeaways Petrobras awarded SBM Offshore contracts for SEAP-I and SEAP-II FPSOs in the Sergipe-Alagoas Basin.PBR's two FPSOs will each produce 120,000 barrels of oil per day, with delivery planned for 2030 and 2031.SBM Offshore will build and operate the FPSOs using its Fast4Ward platform to streamline execution. Petrobras (PBR - Free Report) is advancing Brazil’s offshore energy expansion with the award of contracts to SBM Offshore for two new Floating Production, Storage and Offloading (“FPSO”) units in the Sergipe-Alagoas Basin, according to ShippingTelegraph. The SEAP-I (P-81) and SEAP-II (P-87) projects are expected to play a key role in developing deepwater oil and gas resources and enhancing the country’s offshore production capabilities.

The agreement reinforces the long-standing relationship between Petrobras and SBM Offshore, combining the Brazilian energy company’s ambitious offshore development strategy with the contractor’s expertise in designing and operating large-scale FPSOs.

SBM Offshore to Design, Build and Operate Both FPSOsUnder the contracts, SBM Offshore will oversee the engineering, construction and operation of the two production vessels. While the Petrobras-led consortia will own the FPSOs, SBM Offshore will manage their operations and maintenance under separate agreements spanning an initial period of 6.5 years.

This model allows Petrobras to focus on field development while relying on an experienced offshore specialist to ensure efficient day-to-day operations. It also highlights the industry's growing preference for partnerships that combine technical innovation with long-term operational support.

Fast4Ward Platform to Streamline Project ExecutionA defining feature of both projects is the use of SBM Offshore’s Fast4Ward program, which introduces standardized hull designs to simplify construction and reduce project timelines.

The company will deploy its 11th and 12th multipurpose new-build hulls for the SEAP-I and SEAP-II units, respectively. By using a proven design platform, engineering teams can focus on integrating field-specific processing systems without starting every project from scratch.

This standardized approach has become increasingly valuable as offshore developments move into deeper waters and require more sophisticated production facilities. Key benefits of the Fast4Ward concept include accelerated project execution, greater reliability and more efficient construction schedules.

SEAP-II Will Prioritize High-Capacity Gas ProcessingThe first vessel scheduled for delivery is SEAP-II (P-87), which is expected to enter service in 2030.

Designed to produce up to 120,000 barrels of oil per day, the FPSO will also feature an associated gas treatment capacity of 425 million standard cubic feet per day and a water injection system capable of handling 120,000 barrels per day.

The unit will operate approximately 80 kilometers offshore in water depths of around 2,500 meters, demonstrating the advanced engineering required for Brazil’s ultra-deepwater developments.

Its robust gas processing capability reflects Petrobras’ broader strategy of maximizing natural gas recovery alongside crude oil production, helping supply additional gas to regional markets.

SEAP-I Focuses on Long-Term Reservoir PerformanceThe second production vessel, SEAP-I (P-81), is scheduled for delivery in 2031 and will be deployed roughly 100 kilometers from Brazil’s coastline in similarly deep waters.

Like its sister vessel, it will produce 120,000 barrels of oil per day, but the design places greater emphasis on reservoir support through an enhanced 200,000 barrels per day water injection capacity. It will also process 355 million standard cubic feet of associated gas per day, ensuring efficient resource utilization throughout the project's operational life.

The complementary design of the two FPSOs allows Petrobras to optimize production across different field conditions while maintaining operational flexibility.

Why the Sergipe-Alagoas Basin MattersAlthough Brazil’s pre-salt fields often receive the most attention, the Sergipe-Alagoas Basin has steadily emerged as one of the country’s most promising offshore regions.

Located off Brazil’s northeastern coast, the basin offers significant untapped hydrocarbon potential that can diversify national production and support energy demand. Petrobras' continued investment in SEAP-I and SEAP-II reinforces its commitment to advancing offshore resource development beyond the legacy producing assets.

The projects are also expected to contribute to regional economic activity by creating opportunities across engineering, marine services, logistics and offshore support industries during both construction and operational phases.

Partnership Built on Offshore ExpertiseThe latest awards further strengthen the collaboration between Petrobras and SBM Offshore, which has delivered numerous FPSO projects for Brazil over the years.

Commenting on the announcement, SBM Offshore chief executive officer Øivind Tangen said the contracts reaffirm its long-term partnership with Petrobras. Tangen noted that the advanced gas treatment systems required for these developments align with SBM Offshore’s technical expertise and will help increase gas availability in northeastern Brazil.

The continued collaboration reflects the confidence both companies place in proven engineering solutions for increasingly complex offshore environments.

Supporting Brazil’s Next Phase of Offshore GrowthThe SEAP-I and SEAP-II developments illustrate how Brazil continues to invest in modern offshore infrastructure capable of supporting future production while improving operational efficiency.

As energy companies place greater emphasis on maximizing resource recovery and reducing environmental impact, advanced FPSOs have become central to offshore development strategies. Their ability to process oil and gas directly at sea reduces the need for extensive fixed infrastructure and enables production from remote deepwater reservoirs that would otherwise remain uneconomical.

For Petrobras, these projects represent another step toward expanding production capacity while strengthening domestic gas supply. For SBM Offshore, they reinforce its position as one of the industry's leading FPSO providers, with a proven track record of delivering complex offshore solutions.

With construction set to begin in the coming years and deliveries targeted for 2030 and 2031, the two FPSOs are poised to become important assets in Brazil’s evolving offshore energy landscape, supporting production growth and reinforcing the country's position as one of the world's leading deepwater oil and gas producers.

PBR's Zacks Rank & Key PicksCurrently, PBR has a Zacks Rank #5 (Strong Sell).

Investors interested in the energy sector might consider some better-ranked stocks, such as Par Pacific (PARR - Free Report) , Cheniere Energy (LNG - Free Report) , both sporting a Zacks Rank #1 (Strong Buy), and Delek US Holdings (DK - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Par Pacific is valued at 3.82 billion. It is a diversified energy company that owns and operates petroleum refineries, logistics assets and retail fuel businesses across the United States. Par Pacific focuses on refining, transporting and marketing fuel products while serving regional markets with reliable energy solutions.

Cheniere Energy is valued at $55.03 billion. It is a leading U.S. producer and exporter of liquefied natural gas (“LNG”), supplying energy to customers across more than 40 international markets. Cheniere Energy operates major LNG export terminals in Louisiana and Texas and focuses on providing reliable, lower-carbon energy solutions

Delek US Holdings is valued at $3.88 billion. It is a diversified downstream energy company engaged in petroleum refining, renewable fuels, asphalt production and logistics operations. Delek US Holdings operates multiple refineries in the United States and is committed to delivering safe, reliable energy while investing in cleaner energy initiatives.

Key Takeaways UDR is expected to post modest revenue growth, while adjusted FFO per share may edge lower year over year.UDR expects higher NOI, strong occupancy and share repurchases to support sequential FFO growth.UDR continues to benefit from improving coastal markets, while weaker Sunbelt pricing remains a risk. UDR Inc. (UDR - Free Report) , a premier multifamily real estate investment trust (REIT), is set to announce its second-quarter 2026 results after the closing bell on July 27. Its quarterly results are likely to reflect growth in revenues but a dip in funds from operations (FFO) per share.

In the last reported quarter, this Denver, CO-based residential REIT came up with an FFO as adjusted per share of 62 cents, in line with the Zacks Consensus Estimate. Results reflected year-over-year growth in rental rates, while expense growth weighed on same-store net operating income (NOI).

In the last four quarters, UDR’s FFO as adjusted per share met the Zacks Consensus Estimate on two occasions and surpassed it on the other two, the average surprise being 1.60%. The graph below depicts the surprise history of the company:

As we approach the release of UDR's second-quarter 2026 earnings report, it is important to examine how this residential REIT is likely to have performed amid the current market conditions.

US Apartment Market in Q2The U.S. multifamily market entered the second half of 2026 with a clearer recovery taking shape, as strong renter demand and a rapidly shrinking supply pipeline began translating into lower vacancy and improving rent growth.

According to a Cushman & Wakefield report, net absorption reached roughly 124,600 units, up from 83,500 units in the first quarter and 8% above the prior year, making it the fifth-strongest quarter in nearly 25 years. The supply picture also became more favorable. Approximately 88,000 units were delivered during the quarter, down 27% year over year. Around 475,000 units remained under construction at quarter-end, equal to just 3.5% of existing inventory.

Improving demand and slowing supply pushed the national vacancy rate down 35 basis points quarter over quarter to 8.9%, its first move below 9% since 2024. On a trailing four-quarter basis, absorption of approximately 362,000 units exceeded deliveries of about 358,000 units for the first time since early 2022, indicating vacancy is likely to have passed its cyclical peak. The recovery was particularly pronounced in previously overbuilt markets: Austin; Charleston, SC; Savannah, GA; Huntsville, AL; Salt Lake City, UT, and Colorado Springs recorded some of the largest quarterly vacancy declines.

Rent growth remains modest but is beginning to improve. National asking rents reached approximately $1,945 per month, up 1.5% year over year, compared with 1.1% growth in the first quarter. The Bay Area led the recovery, with San Francisco rents rising 13%, San Jose 7% and the East Bay 4.8%. Norfolk, Toledo, Reno and Boise also posted strong gains.

High-supply markets remained softer, with rents still declining in Austin and Sarasota, although the pace of those declines moderated as excess supply was absorbed. Overall, the market appears to be shifting from stabilization into an occupancy-led recovery, with broader rent growth likely as the construction pipeline continues to shrink.

Factors to Consider Ahead of UDR’s Upcoming ResultsUDR enters second-quarter 2026 results with operating trends largely on plan. Management expects blended lease rate growth of 1.5% to 2% and occupancy in the mid-96% range, with April performance still near the first-quarter level of 1.6%. Coastal markets remain the main growth driver, with San Francisco and New York showing the strongest rent gains, while Dallas continues to improve.

Renewals should remain supportive, with offers running around 5% to 5.5% and signed renewals expected within roughly 100 basis points of that range. Record resident retention and lower turnover should help protect occupancy, reduce operating costs and support cash flow. However, some Sunbelt markets, particularly Florida and Nashville, softened in April and could limit upside.

For earnings, UDR guided second-quarter adjusted FFO to $0.62-$0.64 per share, with the midpoint of $0.63 implying about 2% sequential growth. The improvement is expected to come from higher NOI and accretion from share repurchases funded by asset sales. Overall, the quarter should show steady revenue growth, solid occupancy and better sequential earnings, though expense pressure and weaker Sunbelt pricing remain key risks.

Projections for UDRAmid these, we expect occupancy to stay elevated at 96.7%, a 10-basis-point improvement sequentially. We estimate same-store revenues to grow 1.2% year over year for the second quarter.

The Zacks Consensus Estimate for quarterly revenues is currently pegged at $425.19 million. This indicates a marginal year-over-year rise.

Before the second-quarter earnings release, the company’s activities were inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly FFO as adjusted per share has remained unrevised at 62 cents over the past three months, suggesting a 1.56% decrease year over year.

Here Is What Our Quantitative Model Predicts for UDROur proven model does not conclusively predict a surprise in terms of core FFO per share for UDR this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.

UDR currently carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks That Warrant a LookHere are two stocks from the broader REIT sector — SL Green Realty (SLG - Free Report) and Cousins Properties (CUZ - Free Report) — you may want to consider, as our model shows that these have the right combination of elements to report an FFO beat this quarter.

SL Green is slated to report quarterly numbers on July 22. SLG has an Earnings ESP of +7.20% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cousins is slated to report quarterly numbers on July 30. CUZ has an Earnings ESP of +0.45% and a Zacks Rank of 3 at present.

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.

Elon Musk warned that investors betting against SpaceX have little chance of survival — even as short sellers boosted their wagers against the company to about one-third of its publicly tradable shares ahead of several key catalysts.

About 206 million SpaceX shares are now sold short, representing roughly 32% of the company's publicly tradable float and about $25 billion in notional bearish bets, according to estimates from S3 Partners. That's up from about 185 million shares, or 29% of the float, just last week, and marks a dramatic increase from an estimated 40 million shares, or roughly 5% to 7% of the float, about a month ago.

"We continue to see short sellers adding exposure ahead of several key upcoming catalysts, including the company's first earnings report as a public company and subsequent lock-up expirations," Matthew Unterman, head of research at S3, told CNBC.

Musk responded to the growing short interest in a post on X, predicting investors betting against the company would ultimately lose.

"The survival probability of firms who maintain a significant short position in SpaceX over time is very low," Musk wrote. "I said SpaceX will be worth more than Earth if we achieve our goals. Obviously true."

SpaceX one month

SpaceX confirmed Tuesday that it will release its first quarterly earnings report as a public company after U.S. markets close on Aug. 4. The results will give investors their first detailed look at SpaceX's performance since its initial public offering and could provide a fresh test for both bulls and short sellers.

The growing bearish position comes as investors weigh SpaceX's long-term prospects against its valuation and the possibility of additional shares becoming available after lock-up restrictions expire. Bulls point to the company's leadership in launch services, Starlink's expansion, and its artificial intelligence ambitions, while skeptics have questioned how much future growth is already reflected in the stock.

SpaceX shares rose about 7% on Tuesday, on pace to snap a seven-session losing streak after analysts at Macquarie reiterated their outperform rating and urged investors to buy the recent weakness. The stock climbed to around $128, though it remains below its $135 IPO price following a sharp post-listing pullback.

Tesla (NASDAQ:TSLA | TSLA Price Prediction) heads into its Q2 2026 earnings report tomorrow as the undisputed laggard of the Magnificent 7. Shares are down 17.82% year to date, badly trailing every other name in the cohort. Our proprietary model says the setup is more constructive than the tape suggests.

Our 24/7 Wall St. Price Target for Tesla The 24/7 Wall St. price target for Tesla is $428.08, implying 15.83% upside from the current $369.57 quote. Our recommendation is buy.

The rating reflects a re-rating pathway from expanding automotive margins, an accelerating Services and Other line, and imminent product catalysts in Cybercab, Semi, and Optimus. Q2 is the near-term trigger; the multi-year AI thesis is the structural driver.

Metric Value Current Price $369.57 24/7 Wall St. Price Target $428.08 Upside 15.83% Recommendation BUY Confidence Level 90% Why Tesla Has Been the Mag 7 Anchor in 2026 Tesla has slid 6.38% in the past week and 7.72% in the past month, sitting well below the 52-week high of $498.83 hit late last year.

In Q1 2026, Tesla reported revenue of $22.387 billion, up 15.78% YoY, and non-GAAP EPS of $0.41 versus a $0.3481 estimate, a 17.78% beat. Automotive gross margin snapped back to 21.1% from 16.2% from a year earlier, and Services and Other revenue jumped 42% to $3.745 billion on 1.28 million FSD subscriptions. Q2 reports July 22 after the close.

The Case for the Bull Scenario Our bull scenario gets Tesla to $487.11 within twelve months, a 31.81% total return. Cybercab volume production at Giga Texas, Tesla Semi volume production, Megapack 3, and the Optimus Fremont line all hit in 2026. FSD subscriptions rose 51% YoY, and Netherlands approval opens the EU.

Prediction markets on Polymarket price a 77.5% probability of a Q2 EPS beat. On 7investing’s AI Investor Podcast, Simon Erickson framed a robotaxi-success DCF at $700 per share, arguing Tesla “can probably double again” if regulators cooperate.

What Could Go Wrong The bear scenario lands at $375.64, barely above today’s price. TSLA trades at 346 trailing earnings and 167 forward. Q1 flagged real headwinds: energy revenue fell 12% YoY, inventory rose to 27 days of supply from 22, regulatory credits are declining, and digital asset losses hit $222 million. Opex is up 37% YoY.

Bulls counter that opex growth reflects deliberate AI R&D and the CEO award SBC, and that $1.95 billion in quarterly R&D is the price of buying Optimus and Robotaxi optionality. Polymarket assigns just a 16% chance of an Optimus release by year-end, so expectations there are already reset lower.

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

How Tesla Stacks Up Against GM and Rivian General Motors (NYSE:GM) is the traditional-auto counterpoint. GM trades at a P/E near 25 on $185 billion in 2025 revenue, with Q1 2026 EPS of $3.70 beating the $2.62 consensus. GM prints real cash today; Tesla is priced on cash it will earn a decade out. That contrast is why our 24/7 Wall St. price target applies a mega-cap dampener rather than pure growth multiples.

Rivian (NASDAQ:RIVN) is the pure-play EV comp on the other extreme. Rivian’s Q1 2026 revenue was $1.381 billion on 10,365 deliveries, with negative adjusted EBITDA of -$472 million. Rivian has no P/E because it lacks earnings.

Between GM’s 25 P/E and Rivian’s negative one, Tesla’s 167 forward P/E reflects the market pricing a hybrid auto-plus-AI outcome. That framing makes our 24/7 Wall St. price target of $428.08 look reasonable.

The Setup Ahead of Q2 Earnings The 24/7 Wall St. price target is $428.08, the call is buy, and our confidence is 90%. The tipping factor is margin recovery: automotive gross margin snapping back to 21.1% resets the earnings math.

The bullish case strengthens if Q2 confirms the margin trajectory and FSD subscription growth holds above 40% YoY. The bearish case gains ground if energy revenue slips again and inventory days climb further.

Tesla Price Projection 2026 to 2030 Our base case implies a 9.94% annualized return to $593.66 by 2031.

Year 24/7 Wall St. Price Target 2026 $428 2027 $470 2028 $515 2029 $555 2030 $590 These projections assume Tesla executes on Cybercab, Semi, and Optimus ramps while sustaining FSD adoption. Meaningful upside or downside could emerge from Robotaxi geographic expansion or delayed Optimus commercialization.

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

Contact [email protected] for any questions or corrections.

Key Takeaways Amazon's AWS growth is backed by Trainium chips, Bedrock upgrades and a diversified earnings base.MSFT is expanding Azure AI offerings but faces rising capital spending and softer cloud margins.AMZN trades at a lower forward P/S than Microsoft and has outperformed it year to date. Amazon (AMZN - Free Report) and Microsoft (MSFT - Free Report) sit atop the global cloud computing hierarchy, each channeling record capital into artificial intelligence infrastructure to capture enterprise workloads shifting to the cloud. Amazon Web Services and Microsoft Azure remain the two largest cloud platforms worldwide, and both companies have used recent product launches to reinforce their positions as the default infrastructure layer for generative and agentic AI.

The two stocks warrant a side-by-side look right now because both are entering a pivotal stretch of AI monetization, backed by aggressive infrastructure spending, expanding model partnerships and enterprise demand that continues to outstrip available capacity. Yet each company is approaching the opportunity from a different starting point, with distinct guidance, cost structures and growth trajectories.

Let's delve deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.

The Case for AMZN StockAmazon's cloud arm continues to demonstrate that scale and innovation can move together. In the first quarter of 2026, AWS delivered operating income of $14.2 billion, with management attributing the strength to broad customer demand alongside efficiency gains from custom Trainium chips, which now underpin the majority of Amazon Bedrock workloads. This combination lets Amazon absorb rising component costs while still expanding margins, a favorable setup few cloud rivals can match at similar scale.

Amazon's roadmap reinforces this momentum. At recent AWS Summit events, the company introduced Amazon Bedrock's fully managed Knowledge Bases, an Agentic Retriever for complex enterprise queries, and Web Search on Bedrock AgentCore, extending its agentic AI stack well beyond simple model hosting. AWS also deepened its partnership with OpenAI, bringing GPT-5.5 and Codex to Bedrock, giving customers more model choice without leaving Amazon's ecosystem. New EC2 G7 instances powered by Blackwell GPUs further strengthen AWS' AI compute lineup.

Management has been candid about near-term pressure points, including elevated memory costs and cash capital expenditures of $43.2 billion in the first quarter, mostly directed toward AWS and generative AI capacity. Executives acknowledge a lag of 6 to 24 months between infrastructure spending and revenue monetization, tempering the timeline for payback.

Even so, Amazon's diversified base of retail, advertising and cloud earnings gives it more levers to fund this AI buildout than a single-segment cloud peer, positioning AWS to keep converting capacity investment into durable, long-term growth as enterprise AI adoption widens steadily across its global customer base.

The Zacks Consensus Estimate for AMZN’s 2026 earnings is pegged at $8.93 per share, indicating a 24.55% increase from the figure reported in the year-ago quarter.

The Case for MSFT StockMicrosoft's cloud business remains a formidable growth engine, though its economics look different from Amazon's. In its third quarter of fiscal 2026, Azure and other cloud services revenues grew 40%, with management guiding to 39% to 40% constant-currency growth for the fiscal fourth quarter, citing broad customer demand that continues to exceed available supply. Microsoft's commercial remaining performance obligations reached $627 billion, underscoring a substantial multiyear revenue backlog.

Recent announcements show Microsoft widening its AI platform ambitions. The company confirmed that Anthropic's Claude models now sit alongside OpenAI's GPT models within Microsoft Foundry, giving enterprise customers added model flexibility. Microsoft also committed $2.5 billion and thousands of employees to a new AI implementation unit designed to help customers deploy agentic AI faster, following a similar move by AWS.

That expansion carries a real cost. Fiscal third-quarter capital expenditures and finance leases rose 49% year over year to $31.9 billion, and management has guided to roughly $190 billion in 2026 capital spending, up sharply from the prior year. Gross margin narrowed to its lowest level since 2022 as depreciation from data center buildouts weighed on profitability, and Microsoft Cloud gross margin is guided to soften further next quarter.

Copilot adoption offers a genuine bright spot, with paid seats climbing sharply and usage trends improving across coding, productivity and security workloads. Still, questions persist around whether that momentum, alongside Azure's capacity-constrained growth, can offset mounting depreciation and infrastructure costs quickly enough to preserve Microsoft's historically wide operating margins over the next several quarters.

The Zacks Consensus Estimate for MSFT’s fiscal 2026 earnings is pegged at $17.33 per share. The estimate indicates 27.05% year-over-year growth.

Valuation and Price Performance ComparisonOn valuation, AMZN stock is currently trading at a forward 12-month price-to-sales ratio of 3.04, well below MSFT's 7.75, even as both companies carry premium multiples relative to the broader market. Amazon's comparatively lower premium looks better justified given its diversified retail, advertising and AWS earnings base funding its AI buildout versus Microsoft's steeper multiple resting more heavily on cloud and Copilot monetization.

AMZN vs. MSFT P/S Ratio
Image Source: Zacks Investment Research

Price performance also favors Amazon. Microsoft shares have lost 16.8% year to date, underperforming Amazon's 8.3% gain over the same stretch, reflecting relatively stronger investor confidence in Amazon's near-term execution and its broader AI-driven growth trajectory.

AMZN Outperforms MSFT In 6 Months
Image Source: Zacks Investment Research

ConclusionWeighing both companies together, Amazon holds a modest edge. Its efficient Trainium-powered infrastructure, expanding agentic AI stack, diversified earnings base, and comparatively reasonable valuation offer a more balanced risk-reward setup than Microsoft, whose steep capital spending and narrowing cloud margins introduce near-term uncertainty despite strong Azure growth. Amazon's stronger year-to-date price performance further reflects this relative confidence. Investors would do well to track Amazon stock closely and consider holding it as AWS scales its AI monetization, while staying patient on Microsoft and watching for a more attractive entry point before committing fresh capital, given its currently elevated near-term cost pressures. AMZN currently carries a Zacks Rank #2 (Buy), whereas MSFT has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

HomeStock IdeasLong IdeasTech 

SummaryRecent multi-year partnerships with Meta and OpenAI, each for 6 GW of AI infrastructure, could generate up to $120 billion in Data Center revenue through 2030.AMD's Helios platform integrates CPUs, GPUs, networking, and software, positioning AMD as a more formidable competitor to Nvidia in rack-scale AI systems.Potential shareholder dilution risk exists if up to 320 million warrants from Meta and OpenAI are exercised, representing a possible 19.6% increase in shares outstanding. Getty Images

By Khaveen Jey, CFA, FMVA, Portfolio Manager @ Khaveen Investments & Anthony Goh, Senior Investment Research Analyst @ Khaveen Investments

In our previous analysis, we compared AMD (AMD) with Intel (INTC) and explained

8.52K Followers

Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMD either through stock ownership, options, or other derivatives. 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.

Khaveen Investments is registered as an investment adviser with the U.S. Securities and Exchange Commission (SEC). Registration with the U.S. SEC does not imply a certain level of skill or training. No information in this publication is intended as investment, tax, accounting, or legal advice, or as an offer/solicitation to sell or buy. Material provided in this publication is for educational purposes only and was prepared from sources and data believed to be reliable, but we do not guarantee its accuracy or completeness.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

© AlexSava / Getty Images

Amazon (NASDAQ:AMZN | AMZN Price Prediction) and NVIDIA (NASDAQ:NVDA) just closed earnings on opposite sides of the AI infrastructure trade. Amazon reported Q1 FY2026 on April 29, 2026, with AWS growing 28% and custom silicon crossing a $20 billion annual run rate. NVIDIA followed with Q1 FY2027 revenue of $81.62 billion, up 85.2%. Trainium is the reason to compare them right now.

AWS Sprints, Blackwell Still Roars AWS hit $37.59 billion in revenue, the fastest growth in fifteen quarters. CEO Andy Jassy told investors Amazon now has “over $225 billion in revenue commitments for Trainium”, anchored by Anthropic’s 5 GW deal and OpenAI’s 2 GW commitment starting 2027. Trainium2 is “largely sold out”, with 1.4 million chips already deployed powering most Bedrock inference.

NVIDIA’s Data Center revenue reached $75.25 billion, up 92%, with networking alone up 199%. Jensen Huang called this “the largest infrastructure expansion in human history”. Blackwell 300 is ramping and Vera Rubin is queued behind it. Non-GAAP gross margin held at 75.0%, roughly the mirror image of Amazon’s 50.3%.

The Three Ways Trainium Cracks NVIDIA’s Moat First, the mass volume ramp is happening now. The 3nm Trainium 3 moved from select early customers in early 2026 into mass production, and AWS hiked its Q3 2026 server shipment targets by 20% to 30% to support the ramp. Jassy said Trainium 3 is “30% to 40% more price performant than Trainium2” and nearly fully subscribed.

Second, distribution is changing. Reports emerged in June 2026 that Amazon is in active talks to sell physical Trainium server racks directly to external, sovereign, and co-location data centers. That breaks the AWS-only wall Trainium has lived behind and puts it in NVIDIA’s direct sales lane.

Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.

Third, Trainium 4 lands next. The chip is designed to offer 3x the processing power of Trainium 3, is already heavily pre-ordered, and is scheduled for initial deployment in late 2026 to early 2027. Amazon frames the savings bluntly: “tens of billions of dollars of CapEx each year”.

Lens Amazon NVIDIA Core Bet Vertical AI stack GPU platform lock-in Gross Margin 50.3% 75.0% Anchor Commit $225B Trainium OpenAI 10 GW The Rubin Ramp Will Decide 2027 Watch whether Vera Rubin arrives with pricing power intact, or whether hyperscalers use Trainium 4 leverage to negotiate harder. Amazon still plans to deploy 1 million or more NVIDIA GPUs starting in 2026, so this is a share shift, not a replacement. The mix worth watching is inference workloads migrating from GPU to Trainium inside Bedrock’s 125,000 customer base.

Why I Lean Amazon for the Next Eighteen Months Amazon trades at a P/E of 30, the lowest in over a decade, while the chip business compounds at triple digits with anchor customers locked in. NVIDIA is the safer operating model at a 75.0% gross margin, but Polymarket traders see just a 5.8% chance NVDA closes above $220 today. For defensive AI exposure at a premium multiple, NVIDIA still works. For a re-rating catalyst tied to a specific product, Trainium 4 into early 2027 is the cleaner setup.

Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.

Contact [email protected] for any questions or corrections.

On the July 14 earnings call, JPMorgan Chase (JPM +1.78%) CEO Jamie Dimon disclosed that artificial intelligence (AI) has already eliminated 30% to 40% of headcount in some of the bank's units. In the same breath, he tempered any hope that this would translate into fatter profits, warning that "you don't uniquely benefit from AI." That single sentence, more than the job-cut figure, is the one investors should study.

This is not a pilot program. JPMorgan is spending nearly $20 billion on technology this year, runs close to 1,000 AI use cases across functions from fraud detection to back-office processing, and now has roughly 150,000 of its more than 300,000 employees using an internal large language model every week. The headcount reductions Dimon described are the visible output of that investment: Real efficiency, applied at an industrial scale, already reshaping how the bank operates.

Jamie Dimon, CEO of JPMorgan Chase. Image source: JPMorgan Chase & Co.

Why the savings may not reach the bottom line Here is an analytically important part. A technology confers a durable advantage only when it is proprietary or scarce. When it diffuses across an entire industry, competition dissipates the excess returns it generates. Banking is intensely competitive and largely commoditized, so if every institution deploys similar AI tools, no single firm can hold onto the productivity windfall. The gains instead get passed through to customers in the form of lower prices, better service, or higher deposit rates, a textbook case of competitive pass-through.

That is precisely Dimon's point. AI lowers the cost of doing business, but it also lowers rivals' costs by roughly the same amount, leaving relative margins little changed. Worse, the technology is not free to run. CFO Jeremy Barnum cautioned that spending on generative AI is set to climb sharply in the second half of 2026, meaning some of the labor savings will be recycled into higher computing bills rather than dropping to earnings.

Today's Change

(

1.78

%) $

6.02

Current Price

$

344.89

The takeaway for JPMorgan Chase investors The takeaway here is a sobering one for anyone expecting an AI-driven profit surge at the big banks. AI is genuinely transforming JPMorgan's cost structure, trading expensive headcount for cheaper software, and that is real progress. But because the same transformation is available to every competitor, the productivity gains are more likely to flow to customers than to shareholders.

For investors, AI at JPMorgan is best understood as a defensive necessity, the price of staying competitive, rather than an offensive source of expanding margins. The bank that fails to adopt it would fall behind; the bank that adopts it merely keeps pace. That distinction is the difference between a cost saver and a moat, and Dimon is candidly telling the market it is the former.

Key Takeaways SBUX's U.S. comps rose 7.1%, with transactions up more than 4% in the fiscal second quarter.Starbucks raised non-GAAP EPS guidance to $2.25-$2.45 as operating momentum strengthened.SBUX expects sales leverage and its $2B savings plan to support further margin recovery. Starbucks Corporation (SBUX - Free Report) is showing tangible signs that its "Back to Starbucks" turnaround is translating into financial improvement. In the second quarter of fiscal 2026, the company returned to year-over-year EPS growth for the first time in more than two years, while consolidated operating margin expanded for the first time since the first quarter of fiscal 2024. Starbucks also raised its full-year outlook, now expecting global and U.S. comparable sales growth of 5% or better, up from its prior outlook of at least 3%. The company also lifted its non-GAAP EPS guidance to $2.25-$2.45 from $2.15-$2.40, pointing to greater confidence in the recovery.

The improved outlook is being supported by stronger customer demand and transaction-led comp growth. U.S. comparable sales increased 7.1%, fueled by transaction growth of more than 4%, while U.S. company-operated morning transactions were roughly back to fiscal 2022 levels. The comp recovery was supported by Green Apron Service, improved staffing, service-time execution, delivery expansion and menu innovation. Starbucks Rewards membership also reached a record 35.6 million active members, strengthening the company’s digital engagement base.

Higher transaction volumes are becoming increasingly important because they can support operating leverage as sales recover. Starbucks expects sales leverage to build over the next two quarters, while its $2 billion cost-savings program remains on track through fiscal 2028. The company also expects coffee and tariff pressures to begin easing in the back half of fiscal 2026. These factors could help offset ongoing Back to Starbucks investments and support better margin flow-through.

International profitability and the China joint venture add another layer to the earnings recovery setup. Starbucks expects the China JV structure to be margin accretive, with the transaction expected to be relatively EPS neutral in fiscal 2026. The company also expects the transition to support a more capital-efficient model in China while allowing it to continue participating in the market’s long-term growth opportunity.

Starbucks’ ability to deliver sustainable earnings growth will likely depend on whether it can convert improving traffic into consistent operating leverage and margin expansion. Customer demand is recovering, guidance has moved higher and several operating initiatives are beginning to support stronger traffic, sales leverage and margin recovery. Together, these factors likely suggest that the Back to Starbucks turnaround is gaining financial traction.

SBUX’s Price Performance, Valuation & EstimatesShares of Starbucks have gained 16.1% in the past year against the industry’s of 5.3% fall. In the same time frame, other industry players like Dutch Bros Inc. (BROS - Free Report) have gained 5.9%, while McDonald's Corporation (MCD - Free Report) has declined 7.3%.

SBUX’s One-Year Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, SBUX trades at a forward price-to-sales (P/S) multiple of 3.01, below the industry’s average of 3.30. Conversely, industry players, such as Dutch Bros and McDonald's, have P/S multiples of 4.95 and 6.51, respectively.

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

The Zacks Consensus Estimate for SBUX’s fiscal 2026 earnings per share has increased in the past 30 days.

EPS Trend of SBUX Stock
Image Source: Zacks Investment Research

The company is likely to report strong earnings, with projections indicating an 13.2% rise in fiscal 2026. Conversely, industry players like McDonald's are likely to witness an increase of 5.4%, year over year, in 2026 earnings. Meanwhile, Dutch Bros’ 2026 earnings are likely to witness a rise of 22.4% year over year.

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

Key Takeaways American Express reports Q2 results on July 24, with estimates suggesting 7.8% EPS and 9.9% revenue growth.AXP's network volumes, cards-in-force and net interest income are expected to support quarterly growth.American Express has a positive Earnings ESP, though higher customer engagement costs may weigh on margins. American Express Company (AXP - Free Report) is set to report second-quarter 2026 results on July 24, 2026, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $4.40 per share, and the same for revenues is pinned at $19.62 billion.

The second-quarter earnings estimate witnessed two upward revisions over the past 60 days against two downward movements. The bottom-line prediction indicates a year-over-year increase of 7.8%. The consensus estimate for quarterly revenues implies year-over-year growth of 9.9%.

Image Source: Zacks Investment Research

For the full-year 2026, the Zacks Consensus Estimate for AmEx’s revenues is pegged at $79.28 billion, implying a rise of 9.8% year over year. Meanwhile, the consensus mark for full-year EPS is pegged at $17.67, implying growth of 14.9% on a year-over-year basis.

AmExbeat the consensus estimate in three of the last four quarters and missed once, with the average surprise being 4%.

Q2 Earnings Whispers for AmExOur proven model predicts a likely earnings beat for the company 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. That is precisely the case here.

AXP has an Earnings ESP of +0.61% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

What is Shaping AmEx’s Q2 Results?AmEx is expected to see a rise in network volumes during the second quarter, likely attributable to the resilient consumer spending of its premium customer base, which is less impacted by economic volatilities. The Zacks Consensus Estimate for second-quarter total network volumes indicates 10.1% year-over-year growth from $472 billion.

Discount revenues, a key source of AmEx’s top line, are expected to have benefited from rising network volumes. The consensus mark for second-quarter Discount revenues indicates 7.7% year-over-year growth. Billed businesses in U.S. Consumer Services and Commercial Services are expected to witness growth of 11.8% and 3.5% year over year, respectively. The Zacks Consensus Estimate for pre-tax income from Commercial Services indicates a 7.5% jump from a year ago.

Cards-in-force are expected to increase in the quarter on the back of expanding product offerings and stronger market penetration.The consensus projection for second-quarter total cards-in-force indicates 4.7% year-over-year growth. The estimate for Average fee per card also implies a 14.3% year-over-year increase.

AmEx’s interest income, another major revenue contributor, is expected to rise on higher loan receivables. The estimate for AXP’s net interest income implies an upside of 11.3% from the year-ago reported figure.

The above factors are expected to support year-over-year growth in the second quarter and set the stage for a potential earnings beat. However, higher customer engagement and operating costs could limit the upside. Higher variable customer engagement costs resulting from increased spending by Card Members and greater use of travel and lifestyle benefits are likely to have partially impacted margin growth.

Other Stocks That Warrant a LookHere are some other companies worth considering from the broader Finance space, as our model shows that these, too, have the right combination of elements to beat on earnings this time around:

Credicorp Ltd. (BAP - Free Report) has an Earnings ESP of +2.31% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Credicorp’s bottom line for the to-be-reported quarter is pegged at $7.20 per share, which indicates 15.4% year-over-year growth. The consensus estimate for BAP’s revenues is pegged at $1.72 billion, a 9.3% increase from a year ago.

Brookfield Asset Management Ltd. (BAM - Free Report) has an Earnings ESP of +1.60% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for Brookfield Asset Management’s bottom line for the to-be-reported quarter is pegged at 44 cents per share, which indicates 15.8% year-over-year growth. The consensus estimate for BAM’s revenues is pegged at $1.49 billion, a 15.6% increase from a year ago.

Virtu Financial, Inc. (VIRT - Free Report) has an Earnings ESP of +3.25% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for Virtu Financial’s bottom line for the to-be-reported quarter is pegged at $1.67 per share, suggesting growth of 9.2% from a year ago. The consensus estimate for VIRT’s revenues is pegged at $639.48 million, a 12.6% year-over-year jump.

Key Takeaways NEM will report Q2'26 results July 23, with earnings seen up 49% and revenue up 16.4% year over year.NEM expects lower Q2 gold output and higher unit cost from mine sequencing, inflation and sustaining capital.NEM expects lower 2026 output at Penasquito, Cadia, Nevada Gold Mines and Pueblo Viejo. Newmont Corporation (NEM - Free Report) is slated to report second-quarter 2026 results after the closing bell on July 23. The mining giant is expected to have benefited from significantly higher realized gold prices in the second quarter compared with the year-ago period. However, the pricing tailwind is likely to have been weaker than in the first quarter. Gold prices retreated from the record highs reached earlier in the year as easing trade tensions, profit-taking after a solid rally and a stronger U.S. dollar reduced safe-haven demand. 

NEM’s second-quarter performance is expected to have been weighed down by lower production across certain operations, planned mine sequencing and persistent cost inflation. Higher labor, energy and consumable costs are also likely to have pressured margins. Although stronger copper and silver prices may have provided some support, these gains are expected to have been insufficient to fully offset the impact of lower output and elevated operating expenses. 

The Zacks Consensus Estimate for second-quarter earnings was revised downward in the past 90 days. The consensus estimate for earnings is pegged at $2.07 per share, suggesting a 44.8% year-over-year rise. The Zacks Consensus Estimate for second-quarter revenues currently stands at $6.19 billion, indicating a roughly 16.4% increase from the year-ago quarter.

Image Source: Zacks Investment Research

NEM beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of 33.6%, on average. 

Image Source: Zacks Investment Research

Q2 Earnings Whispers for NEMOur proven model doesn’t predict an earnings beat for NEM this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is just not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

NEM has an Earnings ESP of -10.65% and a Zacks Rank #4 (Sell). 

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

Factors Shaping NEM’s Q2 ResultsNEM saw lower gold production for the first quarter, partly linked to its strategic divestment of non-core assets. NEM reported a roughly 16% year-over-year and 10% sequential decline in attributable gold production to 1.3 million ounces. Newmont expects second-quarter 2026 production to be below the first-quarter level. The company had produced 1.5 million attributable gold ounces in the first quarter of 2025. 

Our estimate for attributable gold production stands at 1.23 million ounces for the second quarter, which indicates a 10.9% year-over-year decline. 

The company anticipates gold production at about 5.26 million ounces for 2026, indicating a year-over-year decline from 5.89 million ounces in 2025. NEM expects lower production from Penasquito and Cadia in 2026 due to the site transitions. It also sees lower-than-expected production from Nevada Gold Mines and Pueblo Viejo. These will be partly offset by contributions from the newly commissioned Ahafo North mine. 

Newmont is expected to have benefited from higher realized gold prices on a year-over-year basis in the to-be-reported quarter, but the pricing tailwind is likely to have been less pronounced than in the first quarter of 2026. Gold prices have retreated from the record highs reached earlier in the year amid easing geopolitical and trade tensions, a firmer U.S. dollar and profit-taking following a sharp rally, reducing safe-haven demand. Consequently, the company's average realized gold price is expected to have been lower than the record $4,900 per ounce reported in the first quarter, limiting the upside from higher gold prices in the second quarter. 

Our estimate of the average realized gold price for the second quarter is $4,774 per ounce, indicating a 2.5% sequential decline. 

Lower production is expected to lead to higher unit costs in 2026. NEM expects all-in-sustaining costs (AISC) — a critical cost metric for miners — to be $1,680 per ounce on a by-product basis, a notable increase from $1,358 per ounce in 2025. The expected increase is due to lower sales volumes resulting from planned mine sequencing, higher royalties and production taxes, deferral of sustaining capital from 2025 to 2026, and inventory changes.  

Newmont also sees a significant sequential increase in unit costs in the second quarter, partly due to increased sustaining capital spending, higher costs associated with sales at Boddington, Tanami, Lihir and Penasquito and increased oil prices. The production decline and higher costs could undercut the profitability goals. 

Newmont Stock’s Price Performance and ValuationNewmont’s shares have surged 44.5% in the past year, outperforming the Zacks Mining – Gold industry’s 26.2% increase and the S&P 500’s rise of 21.1%. Its gold mining peers, Barrick Mining Corporation (B - Free Report) , Agnico Eagle Mines Limited (AEM - Free Report) and Kinross Gold Corporation (KGC - Free Report) have surged 60.5%, 6% and 37.4%, respectively, over the same period. 

Price Performance of NEM vs. Industry, S&P 500, KGC, AEM & BImage Source: Zacks Investment Research

From a valuation standpoint, Newmont is currently trading at a forward 12-month earnings multiple of 9.09, higher than the industry. NEM is trading at a premium to Barrick and Kinross Gold and at a discount to Agnico Eagle. Newmont and Kinross Gold have a Value Score of B, Barrick has a Value Score of A, while Agnico Eagle currently has a Value Score of C. 

Valuation of NEM vs. Industry, KGC, AEM & BImage Source: Zacks Investment Research

Investment Thesis for NEM StockNewmont faces near-term headwinds from anticipated lower gold production, mine transitions and rising costs, which are expected to have weighed on earnings and margins in the second quarter of 2026. Production is projected to have declined due to weaker output at key operations, while higher all-in sustaining costs and softer realized gold prices sequentially could pressure profitability. Although contributions from the Ahafo North mine and elevated year-over-year gold prices might have provided some support, they are unlikely to have fully offset these challenges. These factors are expected to have limited earnings growth and could keep pressure on the stock in the near term. 

Final Thoughts: Sell NEM SharesNewmont's near-term outlook remains challenging as lower gold production, softer realized gold prices and significantly higher all-in sustaining costs are expected to weigh on earnings and margin performance. Production headwinds stemming from mine transitions, asset divestments and weaker output at several key operations are likely to persist through 2026, limiting volume growth. At the same time, easing gold prices reduce the benefit of the favorable pricing environment seen earlier this year, while rising operating and sustaining capital costs are expected to pressure profitability.  

With weakening fundamentals and a relatively expensive valuation, the stock offers a less compelling risk-reward profile, and investors may be better served by considering more attractively valued alternatives in the gold mining space. 

HomeStock IdeasLong IdeasTech 

SummaryTSMC and ASML confirmed AI memory demand remains exceptionally strong, while fully booked EUV capacity limits industry supply growth through 2028.Japan and the U.S. committed billions toward Micron Technology, Inc.'s manufacturing expansion, strengthening long-term capacity, supply-chain resilience, and geopolitical positioning.General Motors and Ford signed long-term supply agreements, diversifying Micron beyond hyperscalers with stable automotive AI memory demand.Micron trades at only 11.6x forward earnings despite consensus forecasting EPS growth from $73.39 to $150.91 in FY2027.The main risks are HBM4 technology execution and antitrust litigation, while investor sentiment has become increasingly polarized after the recent selloff. petrovv/iStock via Getty Images

Investment Thesis Despite the correction in Micron Technology, Inc.'s (MU) stock price, TSMC (TSM) and ASML Holding (ASML) have reiterated that HBM demand remains exceptionally strong, whereas EUV shortages turn into

17.4K Followers

Analyst’s Disclosure: I/we have a beneficial long position in the shares of MU either through stock ownership, options, or other derivatives. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

AMC Entertainment Holdings, Inc. (NYSE:AMC) on Monday reported better-than-expected second-quarter results.

Adjusted EPS of 14 cents surpassed the analyst expectations for a loss of six cents per share. The largest cinema chain operator’s revenue rose 14.2% year over year (Y/Y) to $1.60 billion, exceeding estimates of $1.47 billion.

AMC plans to expand its premium large format (PLF) and extra-large format (XLF) footprint by adding 100–250 auditoriums over the next 2–4 years, primarily funded through third-party capital.

AMC shares fell 6.9% to trade at $2.28 on Tuesday.

These analysts made changes to their price targets on AMC following earnings announcement.

Wedbush analyst Alicia Reese maintained AMC with an Outperform rating and raised the price target from $3 to $4. Benchmark analyst Mike Hickey maintained the stock with a Buy and raised the price target from $2.5 to $3. Considering buying AMC stock? Here’s what analysts think:

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.

Selection of fuel efficient engines and EngineWise support build on decade-long relationship

, /PRNewswire/ -- Farnborough International Air show – Pratt & Whitney, an RTX (NYSE: RTX) business and Tigerair Taiwan have signed a Memorandum of Understanding for GTF engines to power 15 Airbus A321neo aircraft, made up of four firm and 11 leased aircraft. Tigerair Taiwan currently operates nine Airbus A320neo family aircraft powered by the GTF and nine Airbus A320ceos powered by IAE V2500 engines.

Pratt & Whitney will provide maintenance services for the engines through a 12-year EngineWise® Comprehensive services agreement, ensuring predictable maintenance costs and optimal efficiency. Deliveries are expected to begin in 2028.

"This latest GTF order reaffirms Tigerair Taiwan's trust in Pratt & Whitney, which exclusively powers the airline's fleet," said Rick Deurloo, president of Commercial Engines, Pratt & Whitney. "The GTF engine will continue to enable Tigerair Taiwan's regional fleet expansion while delivering best-in-class fuel efficiency."

"Pratt & Whitney has been a trusted partner since we began operations in 2014," said Joyce Huang, chairperson of Tigerair Taiwan. "Our new A321neo fleet, powered by the GTF engine, will advance our next phase of growth, as we continue to serve more passengers across more destinations with a lower cost per seat."

The GTF delivers 20% lower fuel consumption and a 75% smaller noise footprint compared to the prior generation of engines.  Over 2,800 GTF-powered aircraft are operated globally by more than 90 customers, and the order backlog of over 8,000 GTF engines reflects strong market demand. The engine's revolutionary geared architecture will serve as the foundation for next generation propulsion technologies.

About Tigerair Taiwan

Tigerair Taiwan launched its first route in 2014. As Taiwan's first and only low-cost carrier (LCC), it operates routes across Asia, providing travelers with affordable, reliable, and convenient options. Focusing on a warm, passionate, and genuine service while upholding safety as its core value, Tigerair Taiwan continues to expand its footprint and add more destinations in Asia. Learn more at www.tigerairtw.com.

About Pratt & Whitney

Pratt & Whitney, an RTX business, is a world leader in the design, manufacture and service of aircraft engines and auxiliary power units for military, commercial and civil aviation customers. Since 1925, our engineers have pioneered the development of revolutionary aircraft propulsion technologies, and today we support more than 90,000 in-service engines through our global network of maintenance, repair and overhaul facilities.

About RTX

With more than 180,000 global employees, RTX pushes the limits of technology and science to redefine how we connect and protect our world. With industry-leading capabilities, we advance aviation, engineer integrated defense systems for operational success, and develop next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2025 sales of more than $88 billion, is headquartered in Arlington, Virginia

For questions or to schedule an interview, please contact [email protected].

SOURCE RTX

, /PRNewswire/ -- Lockheed Martin (NYSE: LMT) and Venus Aerospace announced a joint technology development agreement to evaluate and mature Rotating Detonation Rocket Engine (RDRE) technology for future long-range precision fires applications, accelerating the transition of advanced propulsion from flight demonstration to operational capability.

Venus Aerospace successfully completed the first U.S. flight test of a rotating detonation rocket engine (RDRE). Lockheed Martin and Venus Aerospace announced a collaboration to evaluate precision fires applications for the advanced propulsion technology. Photo Credit: Venus Aerospace. The collaboration combines Venus Aerospace's flight-tested propulsion technology with Lockheed Martin's expertise in developing, integrating and rapidly fielding advanced defense systems. Together, the companies will assess how this emerging propulsion architecture could support next-generation precision fires capabilities that require greater range, speed and operational flexibility.

THE BIG PICTURE

As threats evolve and mission demands multiply, the U.S. Department of War is seeking technologies that deliver meaningful performance improvements while remaining affordable, manufacturable and scalable. By combining emerging propulsion technologies with proven launch systems, precision guidance and production expertise, Lockheed Martin continues to expand the pipeline of future capabilities available to the U.S. and its allies.

WHY IT MATTERS

Rotating detonation propulsion could enable future precision fires systems to achieve significantly greater range and speed while remaining compatible with the Army's need for affordable, scalable production. Unlike conventional rocket engines that rely on subsonic combustion, RDREs generate thrust through continuously traveling detonation waves. This approach has the potential to improve propulsion efficiency while reducing complexity, enabling systems to travel farther and respond faster to emerging threats. The agreement enables Lockheed Martin to evaluate RDRE technology within the context of operational military requirements to transition the advanced propulsion concept from a subsystem demonstration environment into practical missile applications. Lockheed Martin's expertise in system integration and advanced manufacturing allows advanced technologies to move more quickly from laboratory development into deployable defense solutions that can be produced at scale. By working with innovative U.S. technology companies, Lockheed Martin is strengthening the nation's defense industrial base and helping accelerate advanced manufacturing capabilities critical to future readiness. EXPERT PERSPECTIVE

"Lockheed Martin is focused on rapidly delivering advanced capabilities that strengthen deterrence and provide decisive advantages for the warfighter," said Tim Cahill, president, Lockheed Martin Missiles and Fire Control. "Our collaboration with Venus Aerospace allows us to evaluate a promising propulsion technology and determine how it can be integrated into future precision fires solutions. Partnerships like this help accelerate innovation, reduce risk and rapidly advance from emerging technology to operational capability." "Defense customers are asking for more than incremental gains from legacy propulsion," said Sassie Duggleby, co-founder and CEO of Venus Aerospace. "Our RDRE technology offers a different propulsion architecture for systems that need more range, more speed and a realistic path to production. This agreement with Lockheed Martin moves our breakthrough closer to real precision fires applications." About Lockheed Martin   
Lockheed Martin is a global defense technology company driving innovation and advancing scientific discovery. Our all-domain mission solutions and 21st Century Security® vision accelerate the delivery of transformative technologies to ensure those we serve always stay ahead of ready. More information at Lockheedmartin.com.

SOURCE Lockheed Martin

Also from this source

Key Takeaways Aon raised Data Center Lifecycle Insurance Program capacity to $5B from $3.5B for digital projects.Aon combines engineering, risk intelligence and insurance planning through its Reliable by Design approach.Aon expanded coverage across construction, property, cyber, liability and operational risk solutions. Aon plc (AON - Free Report) has expanded the capacity of its proprietary Data Center Lifecycle Insurance Program (DCLP) to $5 billion, up from $3.5 billion, strengthening its ability to support increasingly complex digital infrastructure projects. The enhancement comes as investments in artificial intelligence, cloud computing and hyperscale data centers continue to rise, creating greater demand for comprehensive insurance and risk management solutions that span the entire lifecycle of these assets.

The upgraded program combines higher insurance capacity with Aon's Reliable by Design approach, which integrates engineering expertise, risk intelligence and insurance planning early in the project lifecycle. The expanded offering includes up to $5 billion in Construction All Risks, Delay in Start-Up, Property Damage and Business Interruption coverage. It also provides enhanced cyber, liability, project cargo and terrorism protection, alongside advisory services covering climate risk, operational resilience and risk engineering.

The expansion comes at a time when AI-driven infrastructure spending continues to accelerate worldwide. Hyperscale operators and enterprise clients are investing billions in new facilities that require reliable power, advanced cooling systems and resilient network connectivity. As projects become larger and more capital intensive, securing adequate insurance capacity has become a critical requirement for developers, lenders and investors seeking to manage construction and operational risks.

The initiative strengthens Aon's position in a fast-growing specialty insurance segment where technical expertise can be a significant competitive advantage. By combining insurance placement with consulting and engineering capabilities, the company is building a more integrated value proposition that could support higher client retention and cross-selling opportunities beyond traditional brokerage services.

The initiative also aligns with Aon's broader strategy of expanding its Risk Capital offerings in high-growth industries. As global AI adoption fuels sustained investment in digital infrastructure, demand for specialized lifecycle risk solutions is likely to rise, positioning Aon to benefit from long-term growth while reinforcing its leadership in complex commercial insurance markets.

AON’s Price PerformanceOver the past year, AON shares have risen 2.5% against the industry’s fall of 26.4%.

Image Source: Zacks Investment Research

AON’s Zacks Rank & Key PicksAON currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader finance space are Alerus Financial Corporation (ALRS - Free Report) , Acadian Asset Management Inc. (AAMI - Free Report) and BlackRock, Inc. (BLK - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Alerus Financial’s current-year earnings of $3.03 per share has witnessed two upward revisions in the past 30 days against none in the opposite direction. ALRS’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 35.8%. The consensus estimate for current-year revenues is pegged at $307.1 million, suggesting a 4.2% year-over-year jump.

The consensus estimate for Acadian Asset Management’s current-year earnings is pegged at $5.11 per share, which signals 57.2% year-over-year growth. Its earnings beat estimates in three of the trailing four quarters and missed once, with the average surprise being 8.6%. The consensus mark for AAMI’s current-year revenues of $785.9 million implies 42.7% year-over-year growth.

The consensus estimate for BlackRock’s current-year earnings is pegged at $55.24 per share, which has witnessed six upward revisions in the past seven days against none in the opposite direction. Its earnings beat estimates in each of the trailing four quarters, with the average surprise being 7.3%. The consensus estimate for BLK’s current-year revenues is pegged at $28.6 billion, which implies an 18% year-over-year rise.

Earlier this year, the streaming and entertainment industry witnessed one of its most high-stakes megadeals ever, stunning industry observers. Not only is it historic in its size, but it is also predicted to disrupt Hollywood and the media business as we know it. 

After years of Warner Bros. Discovery (WBD) struggling under the weight of billions of dollars in debt, compounded by declining cable viewership and fierce competition from streaming platforms, the company has been considering major strategic changes, including selling its entertainment assets to one of its rivals.

Several major players saw the potential in acquiring the media giant, and in December, Netflix announced it would acquire WBD’s studios and streaming for $82.7 billion.

But in a surprise eleventh-hour move in late February, the David Ellison-run Paramount became the winner of this bidding war, offering $111 billion to acquire all of WBD’s assets, including its studios, HBO, streaming platforms, games, and TV networks such as CNN and HGTV. Paramount was recently acquired by Ellison with significant support from his father, Larry Ellison — the Oracle chairman, world’s sixth-richest person, and major Trump donor.

Paramount’s offer was approved by the U.S. Department of Justice (DOJ) in June. However, a federal judge just paused the deal after a lawsuit was filed on July 13 by a coalition of 12 state attorneys general.

Let’s break down exactly what is happening, what’s at stake, and what could come next. 

What has happened so far? ​This all started back in October when Warner Bros. Discovery revealed it was exploring a potential sale after receiving unsolicited interest from several major players in the industry.

​The bidding process quickly became competitive, and Paramount and Comcast emerged as serious contenders, with Paramount initially viewed as the frontrunner. 

However, WBD’s board eventually determined that an offer from the streaming giant Netflix was the most attractive. Netflix offered $82.7 billion for just Warner’s film, television, and streaming assets.

Thus began the bidding war. Paramount believed its bid of approximately $108 billion for all of Warner’s assets was superior to Netflix’s offer that focused on just the studios and streaming. To sweeten its deal, Netflix amended its agreement in January to an all-cash offer at $27.75 per share of Warner Bros. Discovery, further reassuring investors and paving the way for the deal to proceed.

​Paramount persisted in its attempts to acquire WBD. Still, the Warner board repeatedly rejected its offers, citing concerns about Paramount’s heavy debt load and the increased risk associated with its proposal, including concern over the suite of investors bankrolling Paramount’s bid, which includes Saudi, Qatari, and Abu Dhabi sovereign wealth funds. The board noted that Paramount’s offer would have left the combined company burdened with $87 billion in debt, a risk they were unwilling to take at the time.

In January, Paramount filed a lawsuit seeking more information about the Netflix deal. A month later, the company sought to sweeten its deal by announcing it would offer a $0.25 per share “ticking fee” to WBD shareholders for each quarter the deal fails to close by December 31, 2026. It also said it would pay the $2.8 billion breakup fee if Warner backs out of its deal with Netflix.

Then, in a final attempt to secure a deal, Paramount increased its offer to $31 per share in February. This prompted the WBD board to prolong discussions with Paramount regarding a potential agreement, considering it as a superior offer. Netflix declined to increase its bid and withdrew from the negotiations.

“The transaction we negotiated would have created shareholder value with a clear path to regulatory approval,” Netflix co-CEOs Ted Sarandos and Greg Peters said in a statement on February 26. “However, we’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid.”

In addition to the billions Paramount already holds in debt, the company is also set to assume the approximately $33 billion in debt Warner Bros. Discovery holds under the agreement. The deal will be backed by a $54 billion debt commitment from Bank of America, Merrill Lynch, Citi, and Apollo Global Management, as well as $45.7 billion in equity from Larry Ellison.

Regulatory hurdles and other concerns In addition to the assumption of substantial debt posing a significant financial burden, Paramount faces several other hurdles in its deal with WBD that could impact the success of the transaction. 

For one, Ellison has warned about significant job reductions that are expected in the near future. There have already been widespread concerns among critics about potential job losses and lower wages.

Ellison is also a controversial figure in the industry, and his ownership of CBS News has been seen as sympathetic and supportive of the administration of Donald Trump, of whom his father, Larry Ellison, is a major donor. Under Ellison’s ownership of Paramount, reporting critical of the administration has been shelved or received increased scrutiny from Ellison or his appointed head of CBS News, the conservative provocateur Bari Weiss.

This has led to some concern among employees at Warner-owned CNN. Trump has personally sought concessions from news divisions critical of him, including a $16 million settlement from CBS, before his FCC would approve the Ellison takeover of Paramount. Before Netflix bowed out of the deal, Trump pressured the company to fire the former Biden White House official Susan Rice from its board. He has publicly stated his intentions to bring CNN to heel under new owners.

Regulatory scrutiny is another hurdle. Such a large-scale merger has attracted attention from lawmakers.

For instance, California attorney general Rob Bonta said in a statement on February 26 that “these two Hollywood titans have not cleared regulatory scrutiny — the California Department of Justice has an open investigation, and we intend to be vigorous in our review.”

A day before Netflix backed out, it was revealed that a coalition of 11 state attorneys general urged the U.S. Department of Justice to review the merger under concerns it will stifle competition and increase subscription prices. This comes months after U.S. senators Elizabeth Warren, Bernie Sanders, and Richard Blumenthal voiced their concerns to the Justice Department’s Antitrust Division, warning that such a massive merger could have serious consequences for consumers and the industry at large. The senators argue that the merger could give the new media giant excessive market power, enabling it to raise prices for consumers and stifle competition.

Despite the DOJ approving the deal in June, a coalition of 12 state attorneys general filed a lawsuit on July 13 to block the merger. The suit argues it would lessen competition and harm movie theaters, cable distributors, and viewers. The coalition is led by Bonta, with Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington also joining. 

In response, U.S. District Judge Araceli Martínez-Olguín issued a 14-day pause.

When is the deal expected to close? Paramount initially aimed to finalize its acquisition of WBD as early as July. However, the transaction has now been temporarily paused until August 3, with a hearing set to assess whether the freeze will extend further.

Stay tuned…

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

Carrier Global (CARR - Free Report) is expected 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 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 28. 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 company is expected to post quarterly earnings of $0.83 per share in its upcoming report, which represents a year-over-year change of -9.8%.

Revenues are expected to be $6.02 billion, down 1.5% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.4% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

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

Price, Consensus and EPS Surprise

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

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

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

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

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

How Have the Numbers Shaped Up for Carrier Global?For Carrier Global, 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 -3.24%.

On the other hand, the stock currently carries a Zacks Rank of #2.

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

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

For the last reported quarter, it was expected that Carrier Global would post earnings of $0.5 per share when it actually produced earnings of $0.57, delivering a surprise of +14.00%.

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.

Carrier Global 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.

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

Key Takeaways Applied Materials' AGS revenues rose to $1.665B as higher fab utilization boosted recurring services.AMAT expects AGS to sustain mid-teens annual growth as revenue per installed tool continues to expand.AMAT has connected more than 35,000 chambers to AIx software for AI-powered monitoring and analytics. Applied Materials’ (AMAT - Free Report) large installed base has turned into a recurring revenue engine. Applied Global Services (AGS), under which the servicing of installed bases is reported, has generated $1.665 billion in revenues, up from $1.42 billion a year earlier, reflecting higher fab utilization.

AGS’ gross margin improved to 34.7% and its operating margin rose to 29.2%. The strategic value of AGS is that it adds resilience to Applied Materials’ profit model. Unlike the more cyclical equipment business, services are tied to a growing installed base and to customer needs throughout the tool lifecycle.

Management said AGS is another important growth driver because Applied Materials increases the revenue it generates “per tool” on top of a growing installed base. AMAT expects the AGS segment to deliver a sustainable annual growth rate in the mid-teens, potentially higher this year. That makes AGS an important bridge between one-time equipment sales and long-duration customer relationships.

What makes AGS especially relevant in the AI era is the company’s AI-enabled service layer. Applied Materials said that more than 35,000 chambers are connected to its AIx software capabilities, which use AI-powered monitoring, diagnostics and analytics. This matters because Applied Materials’ broader AI and advanced-node strategy depends on execution, visibility and support after installation.

In that setting, AGS helps stabilize Applied Materials’ revenue base, deepen customer relationships and improve operating leverage as the company scales. The segment’s margin profile, recurring nature and AI-driven service enhancements make it a valuable part of Applied Materials’ long-term earnings power.

How Competitors Fare Against AMATSince AMAT serves its own installed base through the AGS business, there are no competitors in this segment. But in the broader product category, AMAT competes with Lam Research (LRCX - Free Report) and ASML Holding (ASML - Free Report) .

ASML is experiencing strong demand from DRAM and logic customers, which are ramping up leading-edge nodes using ASML’s NXE:3800E EUV systems. Additionally, ASML noted that multiple DRAM customers are adopting EUV lithography, which helps shorten cycle time and lower costs. However, AMAT offers a broad range of WFE products that do not compete directly with ASML and Lam Research, making the stock worth holding.

Lam Research secured multiple critical etch wins at a major DRAM manufacturer with its new Akara etch system, which supports 3D DRAM architectures. This was supported by LRCX’s customer investments in DDR5, LPDDR5 and high-bandwidth memory. Lam Research’s Aether dry-resist technology was recently selected as the production tool of record for a leading DRAM customer, securing a foothold in this high-growth segment.

AMAT’s Price Performance, Valuation and EstimatesShares of Applied Materials have surged 104.5% year to date compared with the Zacks Electronics - Semiconductors industry’s growth of 27.4%.

AMAT YTD Performance Chart
Image Source: Zacks Investment Research

From a valuation standpoint, Applied Materials trades at a forward price-to-sales ratio of 12.81X, higher than the industry’s average of 10.48X.

AMAT Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Applied Materials’ fiscal 2026 and 2027 earnings implies year-over-year growth of 29% and 34%, respectively. The estimates for fiscal 2026 and 2027 have been revised upward over the past seven days.

Image Source: Zacks Investment Research

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

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

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 28. 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 truck maker is expected to post quarterly earnings of $1.34 per share in its upcoming report, which represents a year-over-year change of -2.2%.

Revenues are expected to be $7.11 billion, up 2.1% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 2.56% 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 Paccar?For Paccar, 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 -0.45%.

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

So, this combination makes it difficult to conclusively predict that Paccar 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 Paccar would post earnings of $1.13 per share when it actually produced earnings of $1.15, delivering a surprise of +1.77%.

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

Paccar 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.

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

Energy stocks have regained momentum in 2026. Oil prices remain well above their long-term averages, global demand for liquefied natural gas (LNG) continues to grow, and electricity consumption is accelerating as artificial intelligence (AI) data centers and electrification place new demands on the power grid.

Not every energy company will benefit equally. But if you're looking for stocks with clear catalysts over the next 12 months, these three stand out.

Image source: Getty Images.

ExxonMobil ExxonMobil (XOM +1.97%) has built one of the oil industry's lowest-cost, highest-return businesses. And its biggest advantage is Guyana, where the company has now discovered more than 11 billion barrels of recoverable oil equivalent, making it one of the largest oil discoveries in decades. Production recently surpassed 700,000 barrels per day, and management expects Guyana to produce about 1.7 million barrels per day by 2030.

That country is also one of the world's lowest-cost oil sources, with break-even prices estimated at less than $35 per barrel. That allows Exxon to remain highly profitable even if crude prices sink.

Today's Change

(

1.97

%) $

2.92

Current Price

$

151.28

The company is also beginning to realize the benefits of its acquisition of Pioneer Natural Resources. The deal significantly expanded Exxon's position in the Permian Basin, giving it one of the largest unconventional oil portfolios in North America while creating about $4 billion in expected annual integration benefits and operating efficiencies.

Cheniere Energy It's only natural to associate energy with oil, but liquefied natural gas may offer one of the industry's strongest growth opportunities. That's where Cheniere Energy (LNG 1.03%) comes into play.

Cheniere is the largest producer and exporter of LNG in the U.S. As Europe continues replacing Russian natural gas and Asian demand steadily increases, long-term LNG contracts have become increasingly valuable.

The company currently operates seven liquefaction trains at Sabine Pass on the Texas-Louisiana border and another seven at Corpus Christi, Texas. The latter's stage 3 expansion is expected to add another 10 million metric tonnes of LNG production capacity once fully completed. That expansion should significantly increase earnings and cash flow over the next several years.

Today's Change

(

-1.03

%) $

-2.74

Current Price

$

262.21

Cheniere has also become a free-cash-flow powerhouse. In 2025, the company generated $5.29 billion in distributable cash flow, allowing management to aggressively repurchase shares while steadily increasing its dividend.

And unlike traditional exploration and production companies, much of Cheniere's earnings are supported by long-term contracts rather than daily swings in natural gas prices. With global LNG demand expected to continue growing, Cheniere is well positioned to benefit for the foreseeable future.

NextEra Energy NextEra Energy (NEE 0.32%) isn't just the largest renewable energy company in the U.S. It's increasingly becoming one of the biggest beneficiaries of the country's growing electricity demand.

After years of relatively flat power consumption, utilities are preparing for a surge driven by AI data centers, domestic manufacturing, and electrification. The U.S. Energy Information Administration expects electricity demand to continue reaching record highs over the coming years. NextEra is well-positioned to capitalize on that trend.

The company currently owns Florida Power & Light, one of the nation's largest regulated electric utilities, serving more than 6 million customer accounts. That business generates stable, recurring earnings regardless of the economy.

At the same time, NextEra Energy Resources has become the world's largest generator of solar and wind power. The company currently has a development backlog in renewable energy and battery storage of about 33 gigawatts, giving it one of the industry's deepest growth pipelines.

Today's Change

(

-0.32

%) $

-0.28

Current Price

$

87.72

The artificial intelligence (AI) building boom could provide another catalyst. Data centers require enormous amounts of electricity, and tech companies need utilities capable of delivering reliable power while helping meet their clean energy goals. NextEra's combination of regulated utility operations, renewable-power generation, and battery storage puts it in a good position to capture that demand.

Financially, the company continues to execute, too. In 2025, adjusted earnings per share (EPS) increased roughly 8%, and management now expects compound annual adjusted EPS growth of at least 8% through 2032. The dividend has also grown by about a 11% compound annual rate over the past decade.

Outperforming the market Energy isn't just about oil prices. You have a variety of opportunities across traditional oil production, global LNG exports, renewable energy, energy storage, and the infrastructure to support a rapidly expanding electricity infrastructure.

ExxonMobil offers low-cost production growth led by Guyana. Cheniere provides exposure to one of the fastest-growing segments of the energy market through LNG exports. NextEra gives you a way to benefit from rising electricity demand and the continued expansion of renewables.

To be sure, no energy stock is immune to commodity price swings or changes in the broader economy. But these three companies have something many competitors don't: high-quality assets, strong balance sheets, and identifiable catalysts that extend beyond simply hoping oil or natural gas prices move higher. That combination gives them a strong chance of outperforming the broader market over the next 12 months.

Keysight: The AI and Defense Stock Seeing Big Price Target BoostsKeyCorp NYSE: KEY reported higher second-quarter 2026 earnings and raised parts of its full-year outlook, citing stronger commercial loan growth, expanding net interest income and continued momentum in fee-based businesses, while management also addressed investor questions about margin performance, deposit growth and the timing of a recovery in middle-market investment banking.

Chairman and Chief Executive Officer Chris Gorman said KeyCorp earned $0.44 per share in the quarter, up 26% from a year earlier. Revenue rose 7% year-over-year, while pre-provision net revenue increased 9%. The bank’s net interest margin expanded sequentially to 2.89%, and Gorman said the company remains on track to meet or exceed a 3% margin by year-end.

Get KeyCorp alerts:

Banks Are Buying Back Stock Hand Over Fist, Including These 3 Names“Our second quarter results reflect strong business momentum and continued progress against our strategic and financial commitments,” Gorman said.

Commercial Lending Drives Growth KeyCorp’s commercial loan growth was a central focus of the call. Gorman said period-end commercial and industrial loans increased $2.1 billion, or 3%, sequentially, reflecting new client wins and deeper existing relationships. Chief Financial Officer Clark Khayat said average loans rose $2.3 billion sequentially, while period-end loans increased $1.2 billion, as C&I growth was partly offset by the planned runoff of lower-yielding consumer loans.

Intel's New Orbit: From Chip Lag to Leading EdgeKhayat said growth was broad-based across industries and regions, with the largest contributors including utilities, power and renewables, real estate and technology. He also noted that C&I line utilization declined 50 basis points sequentially to 31%, driven by higher commitments.

Management said the bank is intentionally pursuing higher-quality commercial relationships, even where spreads may be somewhat lower. Gorman said about 58% of KeyCorp’s C&I loans are investment grade, and he emphasized that lending is intended to lead to broader relationships in payments, hedging, advisory and other services.

“In order to get the kind of returns that we have to get, we’ve got to do a lot more things for them,” Gorman said.

Guidance Raised on Loan Momentum KeyCorp raised several full-year 2026 guidance metrics. Khayat said the bank now expects revenue to grow 7% to 8%, compared with previous guidance of approximately 7%. Full-year net interest income is now expected to increase 9% to 11%, compared with the prior range of 9% to 10%.

The company also raised its average loan growth forecast to 4% to 5%, from 2% to 4%, and now expects average commercial loans to increase 8% to 10% this year.

Khayat said the updated outlook reflects strong first-half loan growth, success adding and expanding client relationships, and healthy commercial loan pipelines. Gorman said the bank expects revenue to grow about twice as fast as expenses in 2026, producing substantial positive operating leverage.

KeyCorp expects to exit the year with a net interest margin of 3% to 3.05%. Khayat said more than $9 billion of low-yielding fixed assets are expected to reprice through year-end, with a pickup of about 1.25%, helping support margin expansion. He also said the bank expects average client deposits to grow by more than 2% through year-end, largely from core operating deposits.

Deposit Costs and Margin Questions Draw Analyst Focus Analysts repeatedly questioned management about the bank’s margin trajectory after second-quarter net interest margin rose less than expected. Khayat said the quarter reflected stronger-than-expected loan growth, tighter spreads on higher-quality loans and a temporary need for wholesale funding as deposits reached a seasonal low in May.

“We chose to fill that with wholesale funds rather than reprice the client deposit base because the expectation is we’re going to see some good deposit growth here in the second half,” Khayat said.

Average deposits were relatively flat sequentially and year-over-year, while total deposit costs declined two basis points to 1.63%. Average non-interest-bearing deposits increased 2.3% sequentially and represented 19% of total deposits, or 24% when adjusted for hybrid accounts. Khayat said end-of-quarter deposit balances of $153 billion were temporarily elevated by about $4 billion because of transaction timing among relationship clients.

In response to investor questions, Khayat said KeyCorp has good visibility into expected deposit growth, largely from commercial relationship clients. Gorman added that the bank has been focused for years on primacy in commercial relationships, saying KeyCorp has primacy in 82% of its commercial deposits.

Fee Businesses Show Mixed Trends KeyCorp’s fee-based businesses remained an area of emphasis. Gorman said investment banking, commercial payments and wealth collectively grew 8% in the first half of 2026 compared with the first half of 2025.

Investment banking and debt placement fees totaled $169 million in the second quarter. For the first half, investment banking fees were $366 million, up 4% from the year-ago period. Gorman acknowledged that investment banking results were below the company’s expectations in the quarter but said pipelines remain strong. Khayat said overall investment banking pipelines were up 9% from the prior quarter, while M&A pipelines rose 7% to a record level.

KeyCorp expects third-quarter investment banking fees to be up more than 20% sequentially and continues to target mid-single-digit investment banking fee growth for the full year. Gorman said middle-market M&A activity has lagged larger transactions, noting that 40% of KeyCorp’s investment banking fees are driven by private equity.

“I think we are in the early innings of the renaissance of middle market M&A,” Gorman said in response to an analyst question.

In commercial payments, Gorman said total gross payment fees increased 12% year-over-year, helped by investments in bankers and embedded banking. In wealth management, assets under management reached a record $74 billion. Since launching its Mass Affluent strategy in 2023, KeyCorp has added 59,000 households, more than $4 billion of assets under management and nearly $8 billion of total client assets, Gorman said.

Credit, Capital and Strategic Investments Asset quality remained broadly stable, though non-performing assets increased. Khayat said net charge-offs were $115 million, or 42 basis points of average loans, and criticized loans were relatively stable at 4.9%. Non-performing assets rose $126 million sequentially to 74 basis points of loans, largely tied to three credits in real estate, consumer goods and agriculture.

Chief Risk Officer Mohit Ramani said the migration was not related to private credit and did not indicate a broader macro trend. He said KeyCorp continues to expect full-year net charge-offs of 40 to 45 basis points.

“Overall, we don’t feel like a lot of loss content relative to this move,” Ramani said.

KeyCorp reported a CET1 ratio of 11.2% and a marked CET1 ratio of 9.8% at quarter-end. Gorman said the company repurchased more than $340 million of common stock during the quarter and remains on pace to repurchase at least $1.3 billion for the year. Khayat suggested investors assume about $300 million of repurchases per quarter in the second half.

The company also announced an agreement during the quarter to acquire Clearwater U.K., which Gorman described as a strategic extension of KeyCorp’s middle-market advisory franchise. He said the transaction, expected to close in the second half of 2026, will expand the bank’s ability to serve M&A clients and prospects internationally.

Gorman said that despite macroeconomic uncertainty, KeyCorp enters the second half of the year with strong momentum and remains confident in its ability to generate a return on tangible common equity above 15% by the end of 2027, on the way to its longer-term 16% to 19% target.

About KeyCorp (NYSE:KEY)KeyCorp is a bank holding company headquartered in Cleveland, Ohio, that operates through its primary banking subsidiary, KeyBank. It provides a broad range of banking and financial services to individual consumers, small businesses, middle-market companies and large corporations. KeyBank's offerings span traditional deposit and lending products as well as more specialized financial solutions designed for commercial and institutional clients.

The company's product and service mix includes retail banking products such as checking and savings accounts, consumer and residential mortgage lending, and auto financing.

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 KeyCorp Right Now?Before you consider KeyCorp, 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 KeyCorp wasn't on the list.

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

View The Five Stocks Here

MarketBeat just released its list of the 7 hottest IPOs expected to hit Wall Street in 2026. See which companies are preparing to go public and why investors are watching closely.

Get This Free Report

The upcoming report from Snap-On (SNA - Free Report) is expected to reveal quarterly earnings of $4.90 per share, indicating an increase of 3.8% compared to the year-ago period. Analysts forecast revenues of $1.22 billion, representing an increase of 3.6% year over year.

The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during 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 indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.

Bearing this in mind, let's now explore the average estimates of specific Snap-On metrics that are commonly monitored and projected by Wall Street analysts.

Analysts forecast 'Net Sales- Financial Services Revenue' to reach $102.57 million. The estimate points to a change of +0.9% from the year-ago quarter.

The collective assessment of analysts points to an estimated 'Net Sales- Repair Systems & Information Group' of $488.12 million. The estimate indicates a change of +4.2% from the prior-year quarter.

Analysts' assessment points toward 'Net Sales- Snap-on Tools Group' reaching $504.15 million. The estimate indicates a year-over-year change of +2.7%.

The average prediction of analysts places 'Net Sales- Commercial & Industrial Group' at $366.85 million. The estimate indicates a year-over-year change of +5.5%.

The consensus estimate for 'Operating earnings / (losses)- Financial services' stands at $69.07 million. Compared to the current estimate, the company reported $68.20 million in the same quarter of the previous year.

Based on the collective assessment of analysts, 'Operating earnings / (losses)- Commercial & Industrial Group' should arrive at $56.51 million. Compared to the current estimate, the company reported $46.90 million in the same quarter of the previous year.

It is projected by analysts that the 'Operating earnings / (losses)- Snap-on Tools Group' will reach $119.05 million. Compared to the current estimate, the company reported $116.70 million in the same quarter of the previous year.

The consensus among analysts is that 'Operating earnings / (losses)- Repair Systems & Information Group' will reach $122.69 million. Compared to the current estimate, the company reported $119.80 million in the same quarter of the previous year.

View all Key Company Metrics for Snap-On here>>>

Shares of Snap-On have experienced a change of +4.1% in the past month compared to the -0.6% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), SNA is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Analysts on Wall Street project that RPM International (RPM - Free Report) will announce quarterly earnings of $1.84 per share in its forthcoming report, representing an increase of 7% year over year. Revenues are projected to reach $2.19 billion, increasing 5% from the same quarter last year.

The consensus EPS estimate for the quarter has undergone a downward revision of 1.3% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

With that in mind, let's delve into the average projections of some RPM International metrics that are commonly tracked and projected by analysts on Wall Street.

The consensus among analysts is that 'Net Sales- Construction Products Group/ CPG' will reach $891.00 million. The estimate suggests a change of +10% year over year.

The consensus estimate for 'Net Sales- Consumer Segment' stands at $751.41 million. The estimate indicates a change of +8.7% from the prior-year quarter.

The collective assessment of analysts points to an estimated 'Net Sales- Performance Coatings Group/ PCG' of $549.23 million. The estimate indicates a year-over-year change of +37.6%.

According to the collective judgment of analysts, 'Adjusted EBIT- Consumer Segment' should come in at $128.59 million. Compared to the present estimate, the company reported $122.47 million in the same quarter last year.

Analysts predict that the 'Adjusted EBIT- Performance Coatings Group/ PCG' will reach $76.55 million. Compared to the current estimate, the company reported $57.77 million in the same quarter of the previous year.

It is projected by analysts that the 'Adjusted EBIT- Construction Products Group/ CPG' will reach $173.82 million. The estimate compares to the year-ago value of $158.11 million.

View all Key Company Metrics for RPM International here>>>

Shares of RPM International have demonstrated returns of -5.5% over the past month compared to the Zacks S&P 500 composite's -0.6% change. With a Zacks Rank #3 (Hold), RPM is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .