Netflix (NFLX -1.23%) can't catch a break. The company has been lagging the market over the past year, and recent developments have put even more pressure on the stock. On Oct. 20, Netflix reported its third-quarter earnings. The market wasn't impressed, sending shares down significantly post-earnings. Netflix's stock price is now hovering around its 52-week low. Could the company bounce back? Or is it time to give up on the streaming giant?
Image source: The Motley Fool.
Why did Netflix's stock dip?Netflix's third-quarter update didn't look that bad at first glance. The company's revenue of $12.9 billion increased 11.8% year over year. Netflix's operating income of $4.5 billion jumped 37.3% compared to the year-ago period, while its earnings per share came in at $0.87, 47.5% higher than the prior-year quarter.
It's usually a good sign for any company when profits are growing faster than revenue. Meanwhile, Netflix's free cash flow climbed 8.4% year over year to $2.9 billion. So far so good. However, Netflix's revenue and earnings guidance for the fourth quarter missed analysts' projections.
That's one of the reasons the company's shares dropped post-earnings. It's also worth noting that Netflix adjusted its advertising revenue guidance for the year. The company previously expected revenue of $3 billion for this unit, but it reduced that estimate by about $300 million, which Netflix blamed on a slower-than-expected rollout of some ad product capabilities.
For a company that was already in the proverbial doghouse, that's terrible news. Even management highlighted that there is room for the company to improve.
NFLX Netflix$66.23-$0.82 (-1.23%)
NASDAQ · As of 2:09 PM ET 10/23/26
There is hope for a reboundDoes Netflix need a complete shift in strategy? Management doesn't think so and instead plans to lean on what has worked in the past, including the company's original content strategy, especially in its most important market, the U.S. That makes sense.
Many of Netflix's original shows and movies have been very successful and have helped boost the platform's engagement by spreading through word of mouth. This has helped strengthen the company's significant pricing power and supported sales growth through price increases.
Also, Netflix may be underperforming, but that doesn't mean the business is in serious trouble. Right now, Netflix's problem is execution, and it intends to fix it. To that end, Netflix recently appointed Peter Rice, who held major leadership positions at Fox (FOX -1.38%) and Disney (DIS -0.27%), as its chief content officer.
While it's true that Netflix faces more competition than it did when original productions first became the most important aspect of its strategy, at least one thing hasn't changed: The company still boasts the largest number of streaming subscribers in the industry.
That means it can inform its content decisions with data on viewer habits on its platforms, and it arguably has more of it than any of its competitors. The fact that viewing hours are barely growing suggests that the quality of the company's recent productions hasn't been to its subscribers' liking, but fixing that problem will likely improve engagement and sales growth over the medium term.
Of course, Netflix will seek to make progress elsewhere, including in live events, which represent a massive and highly lucrative opportunity, particularly in the sports niche. Netflix significantly trails some of its streaming peers in this corner of the market. Closing that gap somewhat might also be another way for the company to increase revenue growth.
Further, Netflix continues to push in advertising. Netflix intends to introduce its ad tier in 15 new countries in 2027, with the first launches scheduled for March. All these efforts could work wonders down the road, and it wouldn't be the first time Netflix has found a way to overcome significant challenges.
I expect the company to leverage its strengths, including its powerful brand, deep subscriber ecosystem, and pricing power, to capitalize on the vast remaining worldwide opportunity in streaming and advertising. Near its 52-week low, Netflix's stock looks like a buy for investors willing to stay the course.
XRP has shed over 60% from its all-time high, and now a key support level sits between holders and a potentially painful drop toward $1.00. Claude AI ran the numbers, and the odds of a clean hold may surprise you.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Has XRP (CRYPTO: XRP) finally bottomed out? According to Claude, Anthropic’s AI model, there’s a 40% chance that XRP’s low of $1.25 from October 18, 2026, marks the cycle’s bottom. If this level fails, Claude suggests that selling could slow around $1.12.
XRP is trading at $1.31 after a 12.1% drop this month, about 64% below its all-time high of $3.65 in July 2025.
However, there is a silver lining: the recent lows are trending upward, with XRP holding a higher low of $1.28 during the week of October 19. This raises the question: Has XRP truly found its floor, or can sellers still drive the price lower?
XRP’s $83 Billion Valuation Covers More Tokens
XRP’s market cap stands at $83.2 billion, making it the fifth-largest cryptocurrency, ahead of Solana (CRYPTO: SOL), which has a market cap of $61.8 billion.
Many investors overlook XRP’s supply side. Currently, around 63.13 billion XRP are in circulation out of a total cap of 100 billion. This means that XRP’s fully diluted valuation — which accounts for every possible token that could exist — is about $131.8 billion.
Ripple holds a significant portion of the uncirculated supply in escrow and releases tokens gradually over time. As the circulating supply grows, each price level requires more investment to maintain than in previous cycles. Therefore, maintaining a floor at $1.25 in October 2026 will require accounting for a larger supply than in earlier years.
Over the past year, XRP has underperformed its peers, dropping 44.9% while Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) fell 25.2% and 37.8%, respectively.
ETF Inflows and Record Wallets Haven’t Stopped XRP’s Decline
Recently, spot XRP exchange-traded funds (ETFs) that hold XRP and let investors buy shares through a broker saw inflows of about $708,500 on October 21 and $3.55 million on October 22, according to SoSoValue. Total net inflows reached $1.80 billion by October 22, with net assets at $1.49 billion.
However, these inflows appear to have limited impact. On September 25, the funds recorded their largest inflow of the past month, $22.6 million, which temporarily lifted XRP to $1.63. But by October 23, XRP had fallen from $1.50 on September 23 to $1.31, and the funds had a $2.47 million outflow on October 16. Although these inflows could potentially slow selling, they are unlikely to reverse the trend.
Moreover, the XRP Ledger now boasts a record 8.24 million non-empty wallets, according to Santiment. This growth in wallet numbers may indicate a broader holder base, yet it has coincided with a 28.8% decline this year, suggesting that wallet growth hasn’t halted the price drop.
Additionally, central banks in Singapore, Malaysia, and Thailand are expanding a cross-border stablecoin initiative that includes Ripple, Visa (NYSE: V | V Price Prediction), and Mastercard (NYSE: MA). However, Ripple’s specific role and any direct use of XRP remain unclear, so Claude considers this news only in the most optimistic projections rather than relying on it for forecasts.
Claude AI Projects XRP’s Selling to Slow at $1.12
Claude emphasizes that $1.25 is XRP’s crucial support level. If XRP closes below $1.25, it could quickly drop to $1.15. Claude predicts sellers may lose momentum in the $1.10 to $1.15 range, roughly 15% below the current price, with $1.00 as the next major reference point. The model estimates a 20% chance of a drop below $1.00.
For December 31, 2026, Claude’s scenarios range from $0.95 in the bear case to $1.45 in the base case and $2.10 in the optimistic bull case.
Has XRP Bottomed at $1.25, or Is More Selling Ahead?
XRP may not have fully bottomed yet. Claude sees the coin as near a bottom but not confirmed, estimating a 55% chance it trades below $1.25 before the end of 2026, making a retest more likely than a clean hold.
A confirmed bottom could follow a specific pattern: first, XRP needs to recover its 20-day average of $1.37, then close above its 50-day average of $1.41, and finally achieve a weekly close above $1.45. If XRP closes above $1.45 on a weekly basis, it would suggest the bottom is likely in. Conversely, a daily close below $1.25 would bring the $1.12 area back into focus.
Contact [email protected] for any questions or corrections.
, /PRNewswire/ -- National securities litigation law firm Hagens Berman alerts investors in Bank of America Corporation (NYSE: BAC) to a securities class action lawsuit filed in federal court against Bank of America and certain senior executives alleging violations of federal securities laws. The firm urges investors with substantial losses to submit their trading information.
Class Period: Aug. 1, 2025 – Oct. 13, 2026
Lead Plaintiff Deadline: Dec. 15, 2026
Visit: www.hbsslaw.com/bac
Contact Email: [email protected]
Direct Firm Phone: 844-916-0895
Case Overview & Summary of Allegations
The securities class action lawsuit alleges that throughout the Class Period, Defendants made false and/or misleading statements and failed to disclose material adverse facts regarding Bank of America's compliance controls and regulatory risk exposure. Specifically, Defendants failed to disclose that:
Deficient AML & BSA Compliance Controls: Bank of America maintained deficient Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) monitoring systems, underresourcing compliance functions in favor of revenue generation.
Underreported Suspicious Transactions: The Bank failed to detect, track, or report over $5 billion in suspicious transactions to the Financial Crimes Enforcement Network (FinCEN), including over $1 billion tied to high-risk illicit finance.
Regulatory & Financial Exposure: As a result of these failures, Bank of America faced immense regulatory enforcement actions and multi-billion-dollar penalties, making its prior statements regarding regulatory compliance, risk management, and internal controls materially false and misleading.
The Disclosure & Market Impact
On October 13, 2026, the U.S. Department of the Treasury, FinCEN, and the Office of the Comptroller of the Currency (OCC) announced landmark enforcement actions requiring Bank of America to pay over $1.2 billion in penalties for widespread BSA/AML failures and backlog issues.
Following this disclosure, Bank of America's stock price fell sharply by over 4.8%, closing at $51.39 per share on October 14, 2026, wiping out billions of dollars in market value and causing substantial damages to shareholders.
What Can BAC Investors Do?
If you purchased Bank of America Corporation (NYSE: BAC) shares during the Class Period (August 1, 2025 – October 13, 2026) and suffered losses, you may move the Court to serve as Lead Plaintiff no later than December 15, 2026. A Lead Plaintiff is a representative party acting on behalf of other class members in directing the litigation.
Submit your losses now
Learn More: Visit www.hbsslaw.com or contact Reed Kathrein at (844) 916-0895 or via email at [email protected].
"We're focused on the apparent disparity between the bank's assurances and the Treasury's revelations," said Reed Kathrein, a Hagens Berman partner.
Whistleblowers: Persons with non-public information regarding Bank of America should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Attorney Advertising. Prior results do not guarantee a similar outcome in any future case.
Wall Street investors are fleeing stocks at a pace that has Bank of America scrambling to explain what is actually happening, and the real danger may not be the selling itself but where everyone is running for cover.
Wall Street’s love affair with artificial intelligence is running into an uncomfortable reality. After spending much of 2026 piling into AI stocks, investors are discovering that even revolutionary technology has a price ceiling. Rising borrowing costs, enormous data-center spending commitments, and questions about when those investments will pay off have sent traders looking for the exits.
But the selling is spreading far beyond the AI companies that started the trouble. Money managers are unloading stocks across entire sectors, raising the possibility that the market’s next big risk isn’t simply an AI bubble bursting — it’s the rush to escape one.
Bank of America Uncovers a $14.8 Billion Exodus Bank of America (NYSE:BAC | BAC Price Prediction), the nation’s second-largest bank by assets, has put some remarkable numbers behind Wall Street’s retreat.
According to an October report from BofA Securities strategist Jill Carey Hall, the bank’s clients sold a record $14.8 billion worth of individual stocks in a single week, even as they purchased $2.8 billion in equity exchange-traded funds. The S&P 500 fell 1.9% during the reporting period.
The selling crossed nearly every major investor category. Institutional clients were net sellers for a third consecutive week, retail clients reversed two weeks of buying, and hedge funds sold stocks for the first time in five weeks.
The damage wasn’t confined to artificial intelligence.
Sector Bank of America Finding Technology Second-largest dollar outflow on record Industrials Record weekly outflow; 12 consecutive weeks of selling Energy Largest net inflows; first positive week in six Healthcare ETFs Largest sector ETF inflows Source: BofA Securities Equity Client Flow Trends, October 2026.
The exodus from technology is understandable given growing concerns about whether Big Tech’s trillion-dollar AI spending boom will generate sufficient returns.
Yet the industrial selling suggests investors aren’t simply abandoning expensive chipmakers. They’re retreating from companies tied to the broader economic expansion, too.
A massive $14.8 billion sell-off is rocking the market, and the scramble for safety might be creating an even bigger bubble. The AI Bubble Is Creating a Second Danger Surprisingly, the stock market isn’t seeing a universal flight from equities. Bank of America’s separate fund-flow data, compiled using EPFR Global figures for the week ended Oct. 21, showed technology funds attracting $18.8 billion, their strongest inflows since July.
That apparent contradiction reveals how divided investors have become. Bank of America’s client-trading figures show investors selling individual technology stocks, while broader fund-flow data show others continuing to buy the sector.
The selling has nevertheless accelerated. On Oct. 22, the Nasdaq Composite declined 2.6%, while semiconductor stocks lost approximately 6.7%.
The pressure extends to AI infrastructure spending. Billionaire Ken Griffin has warned that artificial intelligence is almost certainly a bubble, even as his Citadel investment firm maintains billions of dollars in AI-related holdings.
Ironically, the scramble for safety could create another problem. If everyone abandons expensive technology stocks for the same handful of defensive investments, those supposedly safer alternatives can become overpriced themselves. Energy, consumer staples, and healthcare may offer shelter from AI-related volatility, but their valuations still need to justify their earnings prospects.
A bubble inside a bubble is possible when investors confuse a popular hiding place with a bargain.
Key Takeaway Bank of America’s numbers reveal genuine selling pressure, but they don’t establish that another stock market crash is inevitable.
The bank also noted that October historically brings heavy institutional tax-loss selling ahead of many mutual funds’ Oct. 31 fiscal year-end. Some of today’s selling could therefore reflect portfolio housekeeping rather than a fundamental rejection of stocks.
For long-term investors, the better approach is to examine portfolio concentration. The S&P 500’s growing dependence on a handful of technology giants means even index investors can carry more AI exposure than they realize. Stark evidence was on display yesterday: Two-thirds of the index’s stocks rose, but the index still closed in the red.
In short, don’t sell profitable businesses simply because Wall Street is running for cover. But don’t chase defensive stocks without checking their valuations, either.
The $14.8 billion stampede is a warning about investor behavior, not a verdict on artificial intelligence’s future. Smart investors should be looking for sound businesses trading at reasonable prices while everyone else is watching the exits.
Contact [email protected] for any questions or corrections.
LOS ANGELES--(BUSINESS WIRE)--Investors in Bank Of America Corporation ("Bank of America" or the "Company") (NYSE: BAC) have until December 15, 2026 to ask the Court to appoint them lead plaintiff in a securities fraud class action lawsuit filed on behalf of investors who purchased or otherwise acquired Bank Of America Corporation securities between August 1, 2025 and October 13, 2026, inclusive. Glancy Prongay Wolke & Rotter LLP ("Glancy") today reminded investors of the upcoming deadline.
Lawsuit alleges Bank Of America Corporation made misleading statements to investors from August 1, 2025 to October 13, 2026; lead plaintiff motions are due December 15, 2026
, /PRNewswire/ -- The Law Offices of Frank R. Cruz today announced a class action lawsuit against Bank Of America Corporation ("Bank of America" or the "Company") (NYSE: BAC) on behalf of investors who acquired the Company's securities from August 1, 2025 to October 13, 2026. Filed on October 16, 2026, the case is New England Teamsters Pension Fund v. Bank of America Corporation et al., U.S. District Court Southern District of New York, Case No. 1:26-cv-09137.
If you lost money on Bank Of America Corporation securities, submit your Bank Of America Corporation loss information by December 15, 2026 to learn about participating in the lawsuit.
Bank Of America Corporation class action timeline
Class period begins: August 1, 2025 Class period ends: October 13, 2026 Complaint filed: October 16, 2026 Lead plaintiff motion deadline: December 15, 2026 What happened?
On October 13, 2026, the U.S. Department of the Treasury announced a $1.2 billion fine against Bank of America Corporation for violations of anti-money laundering and sanctions laws. According to the Department of the Treasury, Bank of America Corporation failed to mitigate and report priority national security risks. The Department of the Treasury also found that the Company's Bank Secrecy Act and anti-money laundering compliance programs were deficient and ineffective.
On this news, Bank of America stock fell $2.57 or, 4.76%, to close at $51.39 on October 14, 2026, thereby injuring investors.
What is the Bank Of America Corporation lawsuit about?
The Bank Of America Corporation securities lawsuit alleges that, between August 1, 2025 and October 13, 2026, defendants made materially false and/or misleading statements and failed to disclose material adverse facts about Bank Of America Corporation's business, operations, and prospects. Specifically, the complaint alleges defendants failed to disclose that: (1) systemic weaknesses in BANA's BSA/AML program caused it to fail to properly monitor trillions of dollars in transactions and to miss, delay, or file inaccurate or incomplete suspicious activity reports involving billions of dollars in suspicious activity; (2) internal reports had documented BANA's BSA/AML deficiencies for years, yet BANA had not adequately remedied them after the 2024 Consent Order; (3) BANA also had deficiencies in its sanctions compliance program and processed transactions later identified as apparent violations of multiple sanctions programs; (4) fixing these deficiencies required significant additional compliance resources and exposed BANA to substantial penalties and costs; and (5) as a result, defendants' positive statements about Bank Of America Corporation's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
"According to the complaint filed against Bank Of America Corporation, the Company, among other things, did not disclose that systemic weaknesses in BANA's BSA/AML program caused it to fail to properly monitor trillions of dollars in transactions and to miss, delay, or file inaccurate or incomplete suspicious activity reports involving billions of dollars in suspicious activity. The December 15, 2026 deadline is a key date for Bank Of America Corporation investors who want a voice in how this case moves forward," said Frank R. Cruz of The Law Offices of Frank R. Cruz.
What should Bank Of America Corporation investors do now?
The Law Offices of Frank R. Cruz can help Bank Of America Corporation investors evaluate potential claims to recover their losses.
Investors who want to serve as lead plaintiff in the Bank Of America Corporation class action must file a motion with the Court by December 15, 2026. For more information, visit the Bank Of America Corporation case page, email [email protected], or call 310-914-5007.
If you inquire by email, please include your mailing address, telephone number, and number of shares purchased.
Investors may retain counsel of their choice. Bank Of America Corporation investors who bought during the class period may also take no action and remain absent class members. No class has been certified yet in the Bank Of America Corporation case.
Questions and answers about the Bank Of America Corporation lawsuit
Who is eligible? Investors who bought Bank Of America Corporation securities between August 1, 2025 and October 13, 2026 and lost money may be class members, and may seek lead plaintiff appointment by December 15, 2026.
What does a lead plaintiff do? The lead plaintiff is appointed by the court to represent all class members and direct the Bank Of America Corporation class action.
Must I be lead plaintiff to share in a recovery? No, Bank Of America Corporation investors can take no action and remain absent class members.
How are attorneys' fees handled? The Law Offices of Frank R. Cruz works on contingency, so investors pay no attorneys' fees unless there is a recovery, and any fees require court approval.
About The Law Offices of Frank R. Cruz
The Law Offices of Frank R. Cruz investigates and prosecutes securities fraud and corporate malfeasance class actions. With nearly 20 years of litigation experience, the firm focuses on complex securities class actions and gives each client personal, one-on-one attention throughout the legal process.
Prior results do not guarantee a similar outcome.
Related links
Bank Of America Corporation case page, The Law Offices of Frank R. Cruz Complaint: New England Teamsters Pension Fund v. Bank of America Corporation et al., U.S. District Court Southern District of New York Bank Of America Corporation SEC filings index, EDGAR The Law Offices of Frank R. Cruz Follow The Law Offices of Frank R. Cruz for updates on Twitter: twitter.com/FRC_LAW
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
SOURCE The Law Offices of Frank R. Cruz, Los Angeles
Procter & Gamble (PG -1.97%), one of the world's largest consumer staple companies, has raised its dividend annually for 70 consecutive years. That makes it a Dividend King, an elite company that has raised its payout for at least 50 straight years.
Today, P&G's forward yield of 2.6% might not seem impressive compared to the 10-Year Treasury's 5% yield. But over the past 10 years, P&G delivered a total return of nearly 150% with dividends reinvested. Over the past 30 years, it generated a total return of 1,310%. Let's see why P&G consistently grew and why its resilience will matter during the next market crash.
Image source: Getty Images.
Why is P&G a resilient stock?
Over the past seven decades, the U.S. has experienced ten official recessions. Yet P&G resisted those downturns because it sells essential household and personal care products.
P&G shrunk its portfolio from around 180 brands in 2014 to 65 today. Roughly 20 of those brands -- including Tide, Downy, Dawn, Cascade, Pampers, Luvs, Tampax, Bounty, Charmin, Head & Shoulders, Pantene, Olay, SK-II, Crest, Oral-B, Vicks, Pepto-Bismol, and Gillette -- generate more than $1 billion in annual sales.
$161.26-$3.24 (-1.97%)
NYSE · As of 2:12 PM ET 10/23/26
By streamlining its business and focusing on those higher-growth brands, P&G steadily grew its organic sales and core EPS. But over its past few fiscal years (which ended in July of each calendar year), its top- and bottom-line growth cooled off.
Period
FY 2022
FY 2023
FY 2024
FY 2025
FY 2026
Organic Sales Growth
7%
7%
4%
2%
1%
Core EPS Growth
3%
2%
12%
4%
1%
Data source: P&G. (Fiscal year ends in July of the calendar year)
Like many of its industry peers, P&G attributed that slowdown to inflationary headwinds for consumer spending. It's raised its prices to offset slowing volume, but it still struggled to grow in China and North America as macro headwinds intensified.
However, P&G's free cash flow (FCF) still grew 8% to $15.1 billion in fiscal 2026 and easily covered its $10.2 billion in dividend payments. It spent another $5.0 billion on share buybacks during the year, returning over 100% of its FCF to its investors.
For fiscal 2027, P&G expects its organic sales to rise 1%-3% and its core EPS to grow 0%-3%. It plans to pay out over $10 billion in dividends and spend another $5 billion on buybacks. That stabilization should be driven by additional price hikes, the premiumization of its classic brands (Pampers, Pantene, Tide, and Gain), and its growth in China and Latin America.
At $160, P&G trades at 23 times the midpoint of its core EPS forecast for fiscal 2027. That multiple is a bit high relative to its growth potential, but it could maintain that premium valuation as long as rising rates and yields drive investors toward defensive stocks. It should also easily recover from the next market crash.
Altria sends nearly all of its earnings straight to shareholders, leaving almost nothing in reserve, yet the board just approved another dividend raise. Understanding what keeps that math from falling apart reveals everything about whether the 5.68% yield holds or…
Altria (NYSE:MO | MO Price Prediction) pays out 89.3% of its earnings as dividends. That payout ratio is simple math: dividends per share divided by earnings per share. It’s also the clearest way to see how Altria works today. The stock trades at $76.07, up 38.33% year to date, and yields 5.68%. The payout ratio shows how much of that income depends on a cigarette business that keeps shrinking.
Why This Number Tells You More Than the Headlines
The reported numbers say Altria is still growing. Adjusted diluted EPS rose 2.8% to $1.48 in the second quarter, and 2026 guidance calls for $5.61 to $5.72. The payout ratio shows how much cash remains after the dividend is paid. At 89.3%, the answer is very little. On the July 30 call, CFO Heather Newman said, “Historically, after we have the dividend, we have about $1 billion excess in cash.” That leftover cash has to pay for buybacks, debt maturities, and smoke-free products like on! PLUS and the Horizon heated tobacco joint venture.
Here’s an unusual detail: Altria’s book value per share is -$1.598. For years, Altria has sent more money to shareholders through dividends and buybacks than it kept as earnings. It returned about $8 billion in 2025 alone. That practice wiped out shareholder equity, which stood at -$2.6B in Q2. In plain terms, the company’s balance sheet shows more liabilities than assets. Altria continues to rely on steady cash flow and borrowing, with debt-to-EBITDA at 1.9x.
Where the Ratio Stands After the Latest Raise
The board raised the quarterly dividend to $1.11 from $1.06, a 4.7% increase. The new annualized rate is $4.44. Against 2026 adjusted EPS guidance, that rate works out to about 78% to 79% of adjusted earnings. The higher 89.3% figure shows how much one-time charges, like the $2.2B NJOY impairment in 2025, can eat into the buffer. Management targets mid-single-digit dividend growth through 2028, about the same pace as its 3.5% to 5.5% EPS growth outlook. So the ratio should hold roughly steady rather than fall.
What Bulls and Bears Should Track Next
Bearish: Domestic cigarette shipments fell 3.2% in Q2 after a 10.0% drop in 2025. Marlboro’s retail share slid to 39.5% while discount brands rose to 33.8%. Higher prices are carrying the business, with Marlboro’s retail price up about 7%. If smokers push back on those prices, EPS will miss guidance and the payout ratio will rise.
Bullish: Industry cigarette declines have slowed for the fourth consecutive quarter. on! Retail share rose 0.8 share points from the prior quarter to 8.6%. PLUS now reaches 120,000 stores, and contract-manufactured export volume jumped 54.9%.
Verdict on the 5.68% Yield
The 5.68% yield looks sustainable for now because adjusted earnings still cover it with room to spare. Still, an 89.3% payout ratio means Altria can grow its dividend only as long as Marlboro keeps its pricing power.
Contact [email protected] for any questions or corrections.
Ford Motor Co. (NYSE:F) shares are dropping Friday along with the rest of the auto sector. Here’s what you should know.
Ford Motor stock is showing notable weakness. Why is F stock dropping? Ford Stock Falls with Auto StocksAutos are weak across the board Friday. General Motors fell 2.56%, the largest drop in the group, followed by Thor Industries at 1.70%, Honda Motor at 1.66% and Rivian Automotive at 1.53%. The Consumer Discretionary sector ETF (XLY) also declined 1.30%.
Ford has trailed GM over the past year, down 6.1% against GM’s 12.6% gain. Stellantis N.V. has dropped 63.0%.
Ford Recalls 102,159 F-Series TrucksFord was also in the news Tuesday, when the National Highway Traffic Safety Administration announced a recall of 102,159 F-Series trucks in the U.S.
A defect affects the gauges. The agency said the analog tachometer and speedometer can get stuck or jump around, so drivers see wrong readings, Reuters reported. The recall spans certain 2026 F-150 and F-750 SD trucks and certain 2025 and 2026 trucks from the F-250 SD through the F-600. Dealers will fit replacement instrument cluster modules, with no charge to owners.
Ford Trades Below Key Moving AveragesFord’s chart shows months of weakness. The stock fell to $11.46 on May 4, rallied to $17.78 by May 29 and has since given back nearly all of that rally, trading at roughly $11.58.
Friday’s decline pushed Ford below its 20-day, 50-day and 200-day moving averages and to its lowest level since May 5, roughly six months ago. A crossover on Oct. 13, when the 50-day average slipped under the 200-day, has added to longer-term pressure. The day’s drop also stood out, measuring about 2.4 times the stock’s typical daily move across the prior 20 sessions.
A close above the 20-day average at $12.14 would wipe out the loss. Support at $11.50 is the next line to watch, since a break would leave the stock near its May 4 low of $11.46.
F Shares Are SlippingF Price Action: Ford shares were down 2.68% at $11.62 at the time of publication on Friday, according to Benzinga Pro.
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Image: Tada Images/Shutterstock.com
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Like a losing game of tic-tac-toe, GE Aerospace (GE -1.93%) stock has fallen three days in a row since reporting earnings Tuesday. Today's 2.5% decline (as of 11:40 a.m. ET) brings GE stock to nearly a 9% loss this week.
But why?
Image source: Getty Images.
GE Aerospace Q3 earningsGE Aerospace's news this week wasn't bad. The company reported $2.25 per share in earnings on $13.3 billion in sales, beating analyst forecasts on both the top and bottom lines. Revenue rose 16% year over year as commercial airplane engine sales boomed. Operating profit on those sales soared 30% year over year, hitting $3 billion.
Best of all, GE Aerospace reported 49% growth in new orders, giving it a 1.35 book-to-bill ratio and implying sales and profits are still rising.
$287.89-$5.65 (-1.93%)
NYSE · As of 2:15 PM ET 10/23/26
Wall Street worriesDespite all this good news, Bernstein SocGen Group analyst Douglas Harned just lowered his price target on GE Aerospace stock.
Mind you, the analyst still likes GE stock, says there's "strong demand" for GE engines, and recommends buying it. However, as the Iran war drags on, rising jet fuel prices are weighing on airline profits and threaten to cut short the rally. For this reason, Harned is pulling back on his target for GE stock and lowering it to $376.
I agree with the sentiment, but... I worry that Wall Street isn't worrying enough about this risk.
Consider that, based on GE's latest forecast of $9.1 billion in 2026 free cash flow, the stock currently trades at more than 36 times current-year FCF. Most analysts forecast profits to grow by less than 18% per year over the next five years -- which already looks expensive.
If Bernstein is right about high fuel prices hurting jet engine sales, GE's stock could be even more expensive than it looks. Caveat investor.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends GE Aerospace. The Motley Fool has a disclosure policy.
Citi sees SpaceX launching national wireless service no earlier than 2029, but its reported interest in 80,000 cell sites raises questions about that timeline.
Ripple Prime just joined DTCC's push to tokenize Wall Street securities alongside BlackRock and JPMorgan, yet XRP keeps sliding deeper into October losses. The question is whether Ripple's growing institutional footprint will ever translate into real demand for the token.
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Ripple Prime, Ripple’s prime brokerage division, is part of the DTCC tokenization working group led by the Depository Trust & Clearing Corporation (DTCC). The group also includes major players like BlackRock (NYSE: BLK | BLK Price Prediction) and JPMorgan Chase (NYSE: JPM), along with about 50 firms working to create a service that transforms certain U.S. securities into blockchain tokens.
Ripple Prime’s involvement isn’t new, as DTCC recognized it as a member on May 4, 2026. Despite the recent buzz, XRP (CRYPTO: XRP) has shown little reaction, trading at $1.31—down 12.1% this October and below its 20-day average of $1.37 and 50-day average of $1.41, indicating that sellers are currently in control.
Ripple Prime Has a Say in How DTCC Tokenizes Wall Street Securities
A prime brokerage provides comprehensive services that let hedge funds and trading firms trade, borrow, and settle across markets through a single entity. Ripple claims that its Prime division clears and finances digital assets, currencies, listed derivatives, swaps, and bonds, and grants clients access to regulated U.S. futures through CME and Nodal Clear. Ripple established this division after acquiring Hidden Road, which finalized on October 24, 2025.
As part of this working group, Ripple Prime helps shape how tokenized stocks, ETFs, and Treasuries integrate with existing Wall Street settlement systems. In December 2025, the SEC issued a no-action letter to DTCC’s Depository Trust Company, promising not to recommend enforcement action against a three-year tokenization service covering Russell 1000 stocks, major index ETFs, and U.S. Treasuries.
DTCC plans to launch this service in October 2026, and prime brokers can earn financing spreads and clearing fees. If hedge funds begin holding tokenized Treasuries, brokers that already handle those tokens could earn the same fees.
Additionally, Ripple Prime is preparing to introduce other tokenized products. Securitize indicated that Ripple Prime plans to support the launch of Securitize Stocks, a tokenized U.S. stock offering, which may enhance Ripple Prime’s institutional business.
DTCC’s First Tokenized Trades Ran on Canton and Besu, Not the XRP Ledger
As of now, DTCC has not confirmed any involvement of XRP or the XRP Ledger in its tokenization efforts, according to CryptoRank. The first production trades took place on July 15, 2026, as a dry run for the upcoming launch, using Besu, DTCC’s private network, and Canton, a public network created by Digital Asset.
The initial trades included industry giants such as BlackRock, Circle (NYSE: CRCL), Goldman Sachs (NYSE: GS), JPMorgan, Chainlink, and Nasdaq, but Ripple Prime was notably absent.
Furthermore, the reports did not specify a settlement asset—the currency or token exchanged when securities change hands. This means settlements could potentially involve bank deposits, Circle’s USDC, Ripple’s RLUSD stablecoin, or other alternatives. Circle participated in the July trades, and its USDC directly competes with RLUSD.
Frank La Salla, DTCC’s president and CEO at the time of the July announcement, remarked that the service “will institutionalize tokenized markets on day one.” However, his statement offers little insight into which token will be used for settlements.
XRP’s Connection to Ripple Prime Is Through Collateral
XRP has a direct connection to Ripple’s brokerage through collateral, the asset a borrower offers to back a loan. Ripple states that Prime clients can use RLUSD, XRP, tokenized real-world assets, or traditional collateral. This suggests XRP is an option for Ripple’s clients, but reports indicate its relevance is tied more to Ripple’s business than to DTCC’s services.
Additionally, Ripple urged the SEC in a letter dated October 20 to expedite its proposed Regulation Crypto Assets framework and clarify when a token ceases to be classified as a security. Clearer regulations could reduce legal uncertainty for brokers dealing with tokens, although the framework was still only a proposal when Ripple sent its letter.
Beyond its Prime services, Ripple issues RLUSD and has received conditional approval from the Office of the Comptroller of the Currency in late 2025 to establish Ripple National Trust Bank. Since Ripple is a private entity, it does not disclose revenue details by business line, making it difficult for outsiders to assess Prime’s contribution.
Can DTCC’s Tokenization Drive Help Pull XRP Out of Its October Slide? Based on available information, it seems unlikely. While Ripple gains credibility, a voice in shaping Wall Street’s tokenization policies, and potentially new clients, XRP has yet to benefit in any measurable way. Reports surrounding DTCC stop short of confirming any commitments to buy, hold, or settle XRP transactions. The token has dropped 28.8% in 2026, compared to a 7.2% decrease for Bitcoin (CRYPTO: BTC), even as Ripple continues to build relationships with institutional partners.
For XRP holders, the wait continues.
Contact [email protected] for any questions or corrections.
Bitcoin has been grinding near $80,000 while ETF flows just swung from a $528 million gain to a $636 million loss in back-to-back sessions. We asked ChatGPT where that volatility leaves BTC when October closes out.
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ChatGPT forecasts Bitcoin (CRYPTO: BTC) at around $80,000 on October 31, 2026, within a likely range of $77,000 to $84,000. This target is about 1.5% below Bitcoin’s $81,234 price, reflecting a 2.8% monthly decline, and about 36% below its all-time high of $126,080.
According to the AI model, Bitcoin has a 25% chance of finishing above its October opening price of $83,556. Bitcoin has been trading in a tight range around $80,000, hitting a low of $80,790 the week of October 19 and $79,676 the prior week. So, could Bitcoin recover and surpass its open before the month wraps up?
Bitcoin at $80,000 Would Be Worth About $1.61 Trillion
Market capitalization is calculated by multiplying Bitcoin’s price by its total supply. With roughly 20.1 million BTC currently in circulation, a target of $80,000 would give Bitcoin a market cap of about $1.61 trillion, compared to about $1.68 trillion at the opening figure of $83,600.
ChatGPT’s forecast puts Bitcoin 4.3% below the October open, meaning it would need to gain 2.9% from its current level to reach that opening price.
Furthermore, as miners continue to introduce new coins daily until the maximum supply of 21 million is reached, maintaining the same price results in a higher total valuation each year. Returning to the October 2025 record would put Bitcoin’s market cap at about $2.53 trillion at current supply levels, exceeding the network’s value at that peak.
ETF Flows Carry the Most Weight, and They Just Turned Negative
ChatGPT emphasizes three main influences leading up to October 31: ETF flows (40%), technology stocks (35%), and oil prices (25%). A spot Bitcoin ETF is an investment fund that holds actual Bitcoin on behalf of its investors.
On October 21, ETF flows brought in $528.4 million, but the next day they posted a $635.6 million loss, with the iShares Bitcoin Trust (NASDAQ:IBIT) accounting for $254.1 million of the outflow. Cumulative net inflows since launch fell from $57.96 billion to $57.32 billion, according to SoSoValue, coinciding with Bitcoin’s 3.3% drop to $81,429 on October 22.
Additionally, traders noted a significant transfer of 3,215 BTC, valued at about $261 million, from BlackRock (NYSE: BLK | BLK Price Prediction) ETF wallets to Coinbase Prime, which serves institutional clients. However, ChatGPT warns that a transfer between wallets doesn’t necessarily indicate an immediate sale.
Oil Above $110 Pulls Bitcoin Down While Tech Stocks Pull It Up
Brent crude, the global oil benchmark, surged to $112.92 after Houthi attacks targeted Saudi Aramco facilities multiple times in just two days. On October 2, Brent peaked at $135.51 and settled at $115.22 on October 20, while West Texas Intermediate, the U.S. benchmark, closed at $107.89 that same day.
With oil prices above $100 a barrel, inflation tends to rise, which could keep interest rates high after the Fed’s September hike, putting downward pressure on Bitcoin. Conversely, positive moves in tech stocks could boost Bitcoin; for example, Bitcoin climbed to nearly $84,600 on October 21 after SpaceX’s encouraging quarterly results helped lift tech shares.
Bitcoin Trades Below Its 20-Day and 50-Day Averages
Moving averages help assess market trends by averaging closing prices over a defined period. Currently, Bitcoin’s 20-day average stands at $82,833, while its 50-day average is $81,779. With Bitcoin trading at $81,234, sellers have the short-term advantage.
ChatGPT’s downside scenario suggests there is a 30% chance Bitcoin could drop below $78,000 at some point before October 31. The recent low of $79,676 represents the first key support level that could be breached if the downward trend continues.
Looking ahead, ChatGPT indicates a 50% chance of Bitcoin ending November around $82,000, a 30% chance of hitting $68,000 in a bearish scenario, and a 20% chance of a bullish outcome at $95,000—much shorter than the long-term predictions from other AI models.
Can Bitcoin End October Above Its Opening Price? Bitcoin will likely end October below its opening price of $83,556. ChatGPT’s 25% prediction of a positive outcome seems reasonable, especially given recent negative ETF flows and persistently high oil prices. For Bitcoin holders, this outlook suggests a potentially challenging month ahead, with a 30% chance of prices dipping below $78,000 before the end of October.
For a positive turnaround in October, ETF inflows will need to stabilize after the recent $635.6 million outflow. Bitcoin would also need to reclaim its 20-day average of $82,833. A daily close above $83,600 would signal bullish momentum, while a daily close above $85,000 could confirm it. Conversely, a decline below $80,000 by the end of October would align with the expected forecast.
Contact [email protected] for any questions or corrections.
Is Ethereum (CRYPTO: ETH) a buy below $2,400? According to Grok, the AI model developed by xAI, the answer is currently no. Grok expresses 65% confidence in this view and identifies $2,000 as a clear entry point, with $1,850 marked…
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Is Ethereum (CRYPTO: ETH) a buy below $2,400? According to Grok, the AI model developed by xAI, the answer is currently no. Grok expresses 65% confidence in this view and identifies $2,000 as a clear entry point, with $1,850 marked as a strong buy zone.
ETH trades at $2,408, down 11% this month. It’s also trading below its 20-day average of $2,491 and its 50-day average of $2,548, suggesting many recent buyers are losing value.
However, ETH’s October lows of $2,313 and $2,357 are significantly higher than the yearly low of $1,505 recorded on June 6. So, is $2,400 a reasonable entry, or does Grok’s lower target seem more achievable?
What ETH Would Be Worth at Grok’s Price Targets
Currently, ETH has a market cap of $294.3 billion, based on its price and the circulating supply of about 122.2 million ETH tokens. Grok has set a base target of $4,500 for the end of 2027, which would translate to a market cap of about $549.7 billion at the current supply. In a bullish scenario, Grok’s target rises to $8,000, suggesting a market cap of about $977.2 billion.
Notably, this bullish figure would still be below Bitcoin’s (CRYPTO: BTC) current market value of $1.65 trillion.
Remember that Ethereum has no fixed maximum supply, so any new issuance can affect the market cap needed to reach $4,500. ETH’s highest price was $4,946 on August 24, 2025, and it’s currently trading 51.3% below that peak.
Grok scenario
December 31, 2026
End of 2027
Bear
$1,700
$2,200
Base
$2,550
$4,500
Bull
$3,200
$8,000
Grok suggests that investing $2,400 at $2,388 would buy about 1.005 ETH. On the downside, Grok estimates a 25% to 30% chance that ETH could drop to $1,800 or below by the end of the year. If ETH falls to $2,000, its market cap would shrink to about $244.3 billion.
Ether ETF Outflows Are Holding ETH Back
Recently, spot Ether ETFs, which allow investors to gain exposure to ETH through the stock market, saw $225 million in net outflows between October 19 and 22. Grok explains that this weak momentum, combined with the ETF flow data, doesn’t create a strong case for taking a bullish stance on ETH right now.
Moreover, BlackRock (NYSE: BLK | BLK Price Prediction) ETF wallets moved 38,882 ETH—worth $93.2 million—to Coinbase Prime, alongside 3,215 BTC. Transfers to Coinbase Prime typically indicate preparation for redemptions.
Historically, ETF demand has influenced ETH’s price. For example, ETH jumped from $2,486 in July 2025 to an all-time high in August 2025, showing how consistent buying can drive price increases.
Glamsterdam’s Delay and Options Pricing Point to Bigger ETH Swings
The upcoming Ethereum upgrade, Glamsterdam, has experienced delays. The Ethereum Foundation announced on October 22 that the planned test date for “Glamsterdam on Hoodi” has been postponed. Developers need more time to understand how a proposed gas-fee change (EIP-8037) will affect active smart contracts.
The new date for the Hoodi test has not yet been confirmed. As a result, Grok has reduced its short-term upside probability by 5 percentage points, while assuring that the scaling plan remains on track.
Additionally, options traders are anticipating greater price fluctuations. Current implied volatility for ETH’s one-month options stands at 49%, compared to a realized volatility of 37% over the past 30 days. This gap, which ranks in the 90th percentile over the last two years, indicates traders are willing to pay for protection against significant price swings in either direction.
Is Ethereum a Buy Under $2,400?
Grok’s cautious stance aligns with recent market trends. With ETF money flowing out, upgrade delays, and ETH trading below key averages, optimism may be limited. For Grok’s $4,500 target to be more plausible, ETF flows would need to turn back to net inflows, and ETH would need to reclaim its 20-day average of $2,491 and surpass its 50-day average of $2,548.
For ETH to reach its $3,200 year-end bull target, it likely needs to clear $2,548 first, with a pullback to around $2,000 appearing more probable in the near term. A break above $2,548, backed by a week of ETF inflows, could challenge this cautious outlook. Conversely, a dip below the $2,313 low could point ETH toward the $1,800 level, with the June low of $1,505 as a floor sellers could target.
Contact [email protected] for any questions or corrections.
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Based in Fairfield, Cincinnati Financial (CINF - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 9.16%. The insurer is currently shelling out a dividend of $0.94 per share, with a dividend yield of 2.11%. This compares to the Insurance - Property and Casualty industry's yield of 0.88% and the S&P 500's yield of 1.33%.
Looking at dividend growth, the company's current annualized dividend of $3.76 is up 8% from last year. Over the last 5 years, Cincinnati Financial has increased its dividend 5 times on a year-over-year basis for an average annual increase of 8.39%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Cincinnati Financial's current payout ratio is 39%, meaning it paid out 39% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for CINF for this fiscal year. The Zacks Consensus Estimate for 2026 is $8.44 per share, representing a year-over-year earnings growth rate of 6.16%.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, CINF presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).
Key Takeaways Cincinnati Financial's Q3 revenues are projected to rise 5.5% to $3B, while EPS may fall 30.2% to $1.99.Higher insured exposures, improved pricing and new business growth are expected to boost CINF's premiums.Higher bond yields may lift investment income, while claims costs and catastrophe losses pressure profits.
Cincinnati Financial Corporation (CINF - Free Report) is expected to register an improvement in top line but a decline in bottom line when it reports third-quarter 2026 results on Oct. 26, after the opening bell.
The Zacks Consensus Estimate for CINF’s third-quarter revenues is pegged at $3 billion, indicating an increase of 5.5% from the year-ago reported figure.
The consensus estimate for earnings is pegged at $1.99 per share. The Zacks Consensus Estimate for CINF’s third-quarter earnings has moved 5.9% north in the past 30 days. The estimate indicates a year-over-year decline of 30.2%.
What the Zacks Model Unveils for CINFOur proven model predicts an earnings beat for Cincinnati this time around. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) that increases the chances of an earnings beat.
You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Earnings ESP: CINF has an Earnings ESP of +2.51%. This is because the Most Accurate Estimate of $2.04 is pegged higher than the Zacks Consensus Estimate of $1.99.
Zacks Rank: CINF carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Shape Q3 ResultsPremiums are likely to have benefited from higher insured exposures, pricing, premium growth initiatives, increased new business and contributions from Cincinnati Re and Cincinnati Global. The Zacks Consensus Estimate is pegged at $2.7 billion.
Performance at Personal Lines is likely to have benefited from higher rates, a higher level of insured exposures, increased policy retention rates and changes in policy deductibles or mix of business. The Zacks Consensus Estimate for Personal Lines revenues is pegged at $896 million.
Better agency renewal and new business written premiums, supported by higher renewal pricing, are likely to have favored Excess and Surplus Lines. The Zacks Consensus Estimate for Excess and Surplus Lines revenues is pegged at $193 million.
Robust operating cash flow and higher bond yields are expected to have boosted net investment income. The Zacks Consensus Estimate for investment income, net of expenses, is pegged at $324 million.
However, total benefits and expenses are likely to have risen due to higher insurance losses, policyholder benefits, underwriting and acquisition costs, interest expense and other operating expenses.
Underwriting profitability is likely to face pressure from elevated claims costs and catastrophe losses.
Other Stocks to ConsiderSome other P&C insurance stocks with the right combination of elements to deliver an earnings beat this time around are:
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +5.25% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at $7.03, indicating a year-over-year decrease of 37.1%.
ALL’s earnings beat estimates in each of the last four reported quarters.
Arch Capital Group Ltd. (ACGL - Free Report) has an Earnings ESP of +11.70% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at $2.05 per share, indicating a year-over-year decrease of 26%.
ACGL’s earnings beat estimates in each of the last four reported quarters.
The Hanover Insurance (THG - Free Report) has an Earnings ESP of +6.83% and a Zacks Rank of 2 at present. The Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at $4.47 per share, indicating a 12.2% year-over-year decrease.
THG’s earnings beat estimates in each of the last four reported quarters.
Moderna (MRNA) shares plunged after a partial leak showed results for the company's cancer vaccine trial. As Alison Kosik points out, the results were positive but weren't enough for investors.
Key Takeaways Moderna's intismeran plus Keytruda cut recurrence or death risk by 42% in a Phase III melanoma study.After six months, the combination reduced recurrence risk by 58% and distant metastasis risk by 50%.MRNA plunges 18% after early data disclosure, as investors weighed results against elevated expectations. Moderna (MRNA - Free Report) , along with partner Merck (MRK - Free Report) , reported detailed positive results from the phase III INTerpath-001 study evaluating their investigational personalized cancer therapy in certain patients with high-risk melanoma, a serious form of skin cancer.
The study evaluated Moderna’s investigational mRNA-based individualized neoantigen therapy (“INT”), intismeran autogene (mRNA-4157 or V940), in combination with Merck’s blockbuster PD-L1 inhibitor, Keytruda (pembrolizumab), as an adjuvant treatment for patients with completely resected stage IIB-IV melanoma.
What Did MRNA & MRK’s Latest Findings Show?The detailed data builds on the positive top-line results Moderna and Merck announced in August 2026, when the combination met the trial’s primary endpoint of recurrence-free survival (RFS) and key secondary endpoint of distant metastasis-free survival (DMFS).
The company had previously announced that INTerpath-001 had achieved the primary endpoint but is now releasing detailed data.
At a prespecified primary analysis, after a median follow-up of 24.6 months, treatment with intismeran plus Keytruda reduced the risk of recurrence or death by 42%. The combination regimen also reduced the risk of distant metastasis or death by 38% versus Keytruda alone.
In a prespecified sensitivity analysis, the benefit was greater after six months, following the intismeran immunization regimen. The combination reduced the risk of recurrence or death by 58% and the risk of distant metastasis or death by 50% compared with Keytruda alone. The companies also reported that the improvements observed in RFS and DMFS were generally consistent across pre-specified patient subgroups.
Overall survival data remain immature, although the companies observed a favorable trend. The study will continue to evaluate overall survival and other key endpoints. The safety profile of intismeran plus Keytruda was generally consistent with earlier studies, with no new safety signals reported.
Moderna and Merck are engaging with regulatory authorities based on the phase III findings.
The detailed results follow a data leak ahead of MRNA and MRK’s planned presentation at the 2026 European Society for Medical Oncology (ESMO) Congress. The companies formally disclosed the findings on Oct. 22, ahead of their presentation at the ESMO Presidential Symposium. The findings were supposed to be reported on Oct. 24, after the data presentation at ESMO, but due to the data leak, MRK and MRNA announced the data on Oct. 22. The data will still be presented at the ESMO as planned.
The latest phase III results build on the phase IIb KEYNOTE-942 study, which reported long-term benefits for the combination regimen. Five-year follow-up data presented at the 2026 ASCO annual meeting showed that the combination reduced the risk of recurrence or death by 49% and the risk of distant metastasis or death by 59% versus Keytruda alone.
Impact on MRNA StockDespite the positive clinical findings, Moderna’s shares plunged 18% on Oct. 22. The steep decline followed the premature disclosure of the INTerpath-001 data ahead of the planned ESMO presentation. Some market reports suggest the sell-off reflected a “sell-the-news” reaction, with investors weighing the results against elevated expectations for the personalized cancer therapy. Investors also seemed unimpressed when they compared the latest findings with the phase IIb study data, especially the risk of distant metastasis or death. Merck’s shares fell around 1.8% on the same day.
Year to date, shares of Moderna have skyrocketed 587.2% compared with the industry’s increase of 6.8%.
Image Source: Zacks Investment Research
More on MRK & MRNA’s Personalized Cancer TherapyIntismeran autogene is an experimental, personalized mRNA-based cancer therapy that is designed using the unique genetic mutations found in a patient’s tumor and can target up to 34 tumor-specific antigens.
Unlike conventional vaccines, intismeran is individually designed for each patient, using mutations identified from the patient’s tumor to create a personalized treatment intended to help the immune system recognize and attack cancer cells. This individualized approach could allow the therapy to be adapted to the unique characteristics of different patients and tumor types.
Merck and Moderna are evaluating intismeran across the broader INTerpath clinical development program, which currently includes nine phase II and phase III studies across melanoma, non-small cell lung cancer, bladder cancer and renal cell carcinoma. The program is evaluating intismeran in combination with Keytruda and other anticancer therapies, as well as as a monotherapy.
If successfully developed and upon potential, intismeran autogene could provide a new growth driver for Moderna and establish oncology as a key growth driver beyond its vaccines business. However, the near-term impact remains limited as the candidate is still investigational, overall survival data are immature, and regulatory review and commercialization timelines remain uncertain.
MRNA Zacks Rank & Stocks to ConsiderModerna currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are TG Therapeutics (TGTX - Free Report) and Halozyme Therapeutics (HALO - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, estimates for TG Therapeutics’ 2026 earnings per share have risen from 92 cents to 94 cents, while estimates for 2027 have increased from $2.65 to $2.66 during the same time. TGTX shares have surged 78.4% year to date.
TG Therapeutics’ earnings beat estimates in one of the trailing four quarters, while missing the same on the remaining three occasions, with the average surprise being 184.65%.
Over the past 60 days, estimates for Halozyme’s 2026 earnings per share have risen from $8.37 to $8.80, while estimates for 2027 have increased from $9.75 to $10.29 during the same time. HALO shares have soared 85.1% year to date.
Halozyme’s earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average negative surprise being 19.12%.
Moderna’s MRNA leaked cancer-vaccine trial results looked “promising” on the surface, yet the biotech stock came under intense pressure late on Thursday and was weak on Friday morning too, although the stock regained the losses and was trading higher later in the session.
In fact, MRNA slipped through its 20-day moving average (MA) this week, indicating bears have taken back control of the near-term.
Despite recent weakness, however, Moderna stock remains a blockbuster investment for 2026, currently trading at more than 6x its price at the start of this year.
The Phase 3 leaked trial data showed that “intismeran autogene” – Moderna’s personalized cancer vaccine – combined with Merck’s Keytruda reduced the risk of melanoma recurrence or death by 42% versus Keytruda alone.
It also lowered the risk of distant metastasis or death by 38%. Those are meaningful clinical gains, and the companies reported no new safety signals.
But the market had already rewarded the study’s success following August’s initial announcement.
The detailed findings therefore needed to improve expectations further.
Bloomberg reported that analysts questioned whether the melanoma results justified confidence in a much broader cancer franchise.
For MRNA shares, that distinction matters – demonstrating that one treatment works supports its development, while supporting a premium valuation requires a credible path to commercial revenue across a larger market.
Another pressure point was the apparent gap with earlier research.
A smaller study showed a 49% reduction in recurrence or death and a 59% reduction in distant metastasis or death, compared with 42% and 38%, respectively, in the larger trial.
However, “different patient populations” and “follow-up periods” mean these are not really direct comparisons.
The latest findings also contain nuance that headline percentages miss.
The companies said the treatment groups performed similarly during the first six months; a prespecified analysis showed stronger benefits afterward. Overall survival data remain immature.
That makes sweeping conclusions premature. The study supports a reduction in recurrence, but it has not yet established an overall survival benefit.
Moderna investors assessing durability, treatment timing, and eventual adoption still have major questions to resolve as follow-up continues.
Moderna’s next challenge is turning clinical progress into an economically attractive product.
The company is preparing to seek US approval and anticipates a potential launch in 2027.
Because the therapy is tailored to each patient’s tumor, investors will need to assess manufacturing capacity, delivery times, reimbursement, and the cost of supplying treatment.
Strong efficacy alone cannot establish the margins or sales volumes the business will ultimately generate.
Friday’s decline therefore raises a practical valuation question: how much future success does MRNA stock already assume at about 50x sales?
Regulatory progress, launch economics and evidence from additional cancer trials could help answer it.
Until then, a positive melanoma study can strengthen Moderna’s scientific credentials while still leaving shareholders vulnerable to falling expectations.
Intel Corp. (INTC, Financials), the chip maker, has secured a one-year exemption from the Federal Communications Commission to continue to use some foreign-built robotic equipment in its U.S. plants.
The FCC said the exemption was designed to avoid any disruptions to domestic chip production.
Intel has warned that constraints might stop it from making software, firmware and hardware updates to autonomous guided vehicles used to transport materials within its operations.
The corporation stated that there are no established U.S.-based substitutes that satisfy its operating standards. Replacing the systems might take years and might disrupt production
This concerns since the vehicles have been utilized in Intel facilities for more than two decades and are embedded in day-to-day fab operations.
The waiver also underscores a larger contradiction in U.S. industrial strategy. The U.S. is trying to lessen its reliance on Chinese technology, and scale up its own chip manufacturing.
The exception buys Intel time. It reduces a short-term operational risk but the fundamental reliance persists.
The other thing to monitor is if Intel can find domestic substitutes before the waiver runs out, or whether it will seek another extension.
Software giants Adobe (ADBE -1.90%) and Salesforce (CRM -0.75%) are competing for dominance in the enterprise cloud market as businesses shift toward automated workflows. Deciding which stock is a better buy today requires a look at their evolving platforms.
Adobe provides essential tools for creative design and document management, while Salesforce leads the market for customer relationship management software. Both companies have integrated advanced artificial intelligence into their core offerings to drive growth. Investors often compare these two because they represent established leaders within the tech stocks sector with massive recurring revenue.
The case for AdobeAdobe provides an end-to-end platform for creative, marketing, and document productivity professionals. Its solutions, including Adobe Acrobat, Creative Cloud, and the Adobe Experience Platform, are used by consumers and global enterprises. The company says it reaches 1 billion monthly active users across its various productivity and creativity solutions. Adobe leverages an extensive ecosystem of partner-integrated AI models to support its content workflows for students, small businesses, and nonprofit organizations.
In the fiscal year ended Nov. 28, 2025, revenue reached nearly $23.8 billion, which is a 10.5% increase over the previous year. This growth helped the company achieve a net income of approximately $7.1 billion, supporting its reputation among top tech stocks today. Adobe maintained a healthy net margin of roughly 30% during this period. This metric shows the percentage of each dollar of sales that the company retained as profit after accounting for all expenses.
As of its November 2025 balance sheet, the current ratio is approximately 1.0x, meaning short-term assets are sufficient to cover short-term liabilities. The debt-to-equity ratio is roughly 0.6x, indicating that total debt is about 60% of shareholder equity. In the fiscal year ended Nov. 28, 2025, free cash flow reached nearly $9.9 billion. Free cash flow is calculated as cash from operations minus capital expenditures and represents the cash a business generates after paying for its physical assets.
The case for SalesforceSalesforce provides customer relationship management technology and enterprise cloud solutions through its Agentforce and Customer 360 platforms. The company serves businesses using unified data and autonomous AI agents to connect with their customers. Its customer base spans organizations of all sizes across industries like financial services and retail. Salesforce integrates data management via its recent acquisition of Informatica and enhances its analytics through strategic acquisitions of smaller firms.
In the fiscal year ended Jan. 31, 2026, revenue reached approximately $41.5 billion, representing an increase of nearly 9.6% year over year. The company reported a net income of roughly $7.5 billion during this period. This resulted in a net margin of about 18% for the fiscal year. This figure helps investors understand how much revenue the company converts into actual earnings after its costs are subtracted.
As of its January 2026 balance sheet, the current ratio is roughly 0.8x, suggesting that total liabilities due within one year exceed its current assets. The debt-to-equity ratio is approximately 0.3x, which indicates a conservative level of debt relative to equity. In the fiscal year ended Jan. 31, 2026, free cash flow reached nearly $14.4 billion. Note that stock-based compensation accounted for roughly 23.4% of operating cash flow, inflating reported cash generation, since SBC is a non-cash expense added back in the cash flow statement.
Risk profile comparisonAdobe faces rapid innovation pressures from a diverse landscape of AI-native firms and large technology incumbents like Amazon (AMZN -0.67%). Incorporating generative and agentic AI introduces potential liabilities, including content bias and intellectual property infringement. The company also faces regulatory scrutiny regarding consumer protection and privacy. Recent legal developments include a $150 million settlement resolving claims over its online subscription cancellation practices, highlighting the financial and reputational risks associated with these actions.
Salesforce operates in a highly fragmented CRM market and risks losing ground to agile start-ups if it fails to maintain its pace of innovation in AI agents. Integrating complex acquisitions, such as Informatica, and managing organizational changes can strain its personnel and infrastructure. The company also faces significant regulatory risk from potential security breaches or failure to comply with evolving global data sovereignty laws. Furthermore, Salesforce manages a large portfolio of strategic investments that may experience value fluctuations in volatile economic conditions.
Valuation comparisonAdobe appears to be the more attractively valued choice for investors because it trades at lower multiples relative to its sales and future earnings estimates.
MetricAdobeSalesforceForward P/E10.1x14.5xP/S ratio3.7x4.5xValuation metrics include those sourced from Financial Modeling Prep (FMP) and may differ from those of other data providers.
When comparing Adobe and Salesforce, investors should consider a few key factors. Let's have a look at them and see what that tells us about each stock.
To start, there's growth. In truth, both companies have shown an ability to grow at a steady pace, and the difference between the two is slight, at best. Over the last five years, Adobe has averaged year-over-year revenue growth of 11.5%, while Salesforce has averaged 13.5%. Verdict: A very slight edge to Salesforce.
Another factor to consider is each company's profitability. Here, as measured by operating margin, the difference in profitability is more substantial. Adobe has averaged 35.6%, while Salesforce has averaged 13.8%. Granted, Salesforce has improved its margins over the years, and its operating margin now stands at 21.5%. However, Adobe still retains a significant advantage overall.
Last, there's valuation. Both companies have been profitable for years, so price-to-earnings (P/E) is the correct valuation metric to use. And while both stocks have seen their multiples compress in recent years, Adobe has held a small but consistent lead in affordability. Adobe's current P/E multiple is 14.8x, while Salesforce's is 22.4x. If using forward estimates rather than reported earnings, the trend still holds. Adobe has a forward P/E multiple of 10.1x vs. 14.5x for Salesforce. Verdict: Another edge to Adobe.
In summary, these two stocks share many characteristics that will appeal to tech-focused investors. They are both growing, are consistently profitable, and have reasonable valuations. However, in a direct matchup, Adobe comes out ahead in every category aside from growth. Therefore, most investors will likely lean toward Adobe if selecting between these two stocks.
Adobe keeps beating earnings estimates while the stock keeps sliding, and that contradiction has split Wall Street into two very different camps with very different price targets.
The 24/7 Wall St. price target for Adobe (NASDAQ:ADBE | ADBE Price Prediction) is $298.13 over the next 12 months. That means 16.4% upside from the current $256.13. The stock earns a buy rating with high confidence.
Metric Value Current Price $256.13 Price Target from 24/7 Wall St. $298.13 Upside/Downside 16.4% Recommendation BUY Confidence Level 90% Adobe keeps beating estimates while the stock keeps falling, and that gap defines the valuation debate. Shares trade at a forward P/E of 9, which looks cheap for a business that just raised guidance.
Several turnaround catalysts are already on the calendar: a new CEO takes over December 1, Adobe MAX arrives in November, and AI-first ARR is growing more than 150%.
Record Quarters Have Not Stopped the Slide Adobe is down 26.75% year to date and sits well below its 52-week high of $363.70, though it has climbed off the $190.12 low. Momentum has turned recently, with shares up 8.51% over the past week and 3% over the past month.
In fiscal Q3, revenue came in at $6.76 billion, up 12.9% and ahead of the $6.70 billion consensus. Non-GAAP EPS of $6.13 topped the $6.09 estimate, making it the fifth beat in a row.
Jim Cramer summed up the problem in June: the stock traded at “just 8.5 times” earnings as concerns grew that AI will replace software.
Why Bulls See $328 and Beyond Adobe now has more than 1 billion monthly active users, and Firefly ending ARR grew 40% quarter over quarter. The pending Topaz Labs deal adds AI video enhancement.
Buybacks also help, with about $24.55 billion left on the current authorization. Incoming CEO Anil Chakravarthy sees “a massive opportunity for us to be the agentic software leader.” In our bull case, shares reach $328.71.
What Could Keep Adobe Stuck Investors remain wary. Of the analysts covering Adobe, 23 rate it a hold, and the consensus target is $272.31. Analysts on the Q3 call noted that net new ARR fell 36% to 37%. Management’s explanation is that it deliberately sent users into the freemium model and delayed price increases.
The trade-off is reasonable, but it needs to start showing up as revenue. A CFO exit and the CEO transition add execution risk. In our bear case, the stock sits flat at $256.44.
Adobe Trades at Half the Multiple of Microsoft and Salesforce Microsoft (NASDAQ:MSFT) competes with Acrobat and Express through Copilot. Shares trade at 30 times earnings, supported by 43% Azure growth.
Salesforce (NYSE:CRM) competes with Adobe’s Experience Cloud and is growing more slowly, yet it still trades at 27 times earnings.
Company P/E (TTM) Latest Quarterly Revenue Growth Adobe 14 12.9% Microsoft 30 17.75% Salesforce 27 10.83% Even at our target, Adobe would trade at about 11 times forward earnings. Compared with these peers, the 24/7 Wall St. price target looks conservative.
Discount Outweighs Doubt The 24/7 Wall St. price target of $298.13 comes with a buy rating and high confidence.
Valuation is the key factor: double-digit growth at a single-digit forward multiple. The case gets stronger if MAX and the CEO transition show freemium users turning into paying ARR. It weakens if net new ARR keeps contracting into 2027.
Year Price Target from 24/7 Wall St. 2026 $264.13 2027 $298.13 2028 $333.05 2029 $370.90 2030 $388.35 Adobe is expected to keep executing on its current strategy. Faster AI monetization could push the stock higher, while AI tools from competitors could cut into these numbers.
Contact [email protected] for any questions or corrections.
Key Takeaways American Express' Q3 adjusted EPS rose 13% to $4.68, beating estimates by 4.7%, while revenues grew 9%.Higher Card Member spending, net interest income and card fees drove growth, while expenses rose 9%.AXP raises its 2026 GAAP EPS outlook to $18.30-$18.60 and reaffirms its 10% revenue growth forecast. American Express Company (AXP - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of $4.68, which surpassed the Zacks Consensus Estimate by 4.7%. The bottom line advanced 13% year over year.
Total revenues, net of interest expense, improved 9% year over year to $20.1 billion. However, the top line missed the consensus mark by a whisker.
The quarterly earnings were driven by increased Card Member spending, higher net interest income and improved card fee growth. However, the upside was partly offset by elevated operating expenses.
AXP’s Q3 Operational PerformanceNetwork volumes grew 8% year over year in the third quarter to $517.9 billion on the back of higher U.S. consumer spending. But the metric missed the Zacks Consensus Estimate of $520.5 billion. Total interest income of $6.9 billion rose 4% year over year but missed the consensus mark of $7 billion. Provision for credit losses came in at $985 million, which declined 23% year over year in the quarter under review due to a reserve release during the quarter compared to a reserve build in the prior-year quarter.
Total expenses increased 9% year over year to $14.5 billion due to higher variable customer engagement costs resulting from increased spending by Card Members and the refresh of the U.S. Platinum Card.
AXP’s Q3 Segmental PerformancesThe U.S. Consumer Services segment recorded pre-tax income of $2.3 billion, which grew 24% year over year and beat the Zacks Consensus Estimate by 36.2%. Total revenues, net of interest expenses, improved 11% year over year to $9.8 billion but missed the Zacks Consensus Estimate by 3%. An expanding Gen-Z and Millennial customer base favored this segment’s results.
The Commercial Services segment’s pre-tax income of $1 billion fell 6% year over year in the third quarter but beat the Zacks Consensus Estimate of $950.5 million. Total revenues, net of interest expense, grew 6% year over year to $4.6 billion, and beat the consensus mark of $4.4 billion.
The International Card Services segment posted pre-tax income of $432 million, which declined 2% year over year and missed the Zacks Consensus Estimate of $698.4 million. Total revenues, net of interest expense, climbed 10% year over year to $3.7 billion but missed the consensus mark of $3.8 billion.
The Global Merchant and Network Services segment’s pre-tax income of $1.1 billion advanced 4% year over year in the quarter under review but missed the Zacks Consensus Estimate of $1.2 billion. Total revenues, net of interest expense, improved 6% year over year to $2.1 billion but came in lower than the consensus mark by 1.5%.
Corporate and Other incurred a pre-tax loss of $307 million in the third quarter, narrower than the prior-year quarter’s loss of $598 million.
Balance Sheet (As of Sept. 30, 2026)American Express exited the third quarter with cash & cash equivalents of $43.2 billion, which fell 9.6% from the 2025-end level. Total assets of $310.3 billion increased 3.4% from the figure at the end of 2025.
Long-term debt amounted to $58.5 billion, up 3.8% from the figure as of Dec. 31, 2025. Short-term borrowing was $1.4 billion.
Shareholders’ equity of $35.8 billion rose 6.9% from the 2025-end level. Return on average common equity stood at 43.6%, compared with 37.3% a year ago.
Capital Deployment UpdateAmerican Express bought back 5 million common shares in the third quarter of 2026 for $1.6 billion and paid $600 million worth of dividends. In the quarter under review, the company paid a per-share dividend of 95 cents.
AXP’s 2026 OutlookAmerican Express raised its 2026 GAAP EPS guidance to $18.30-$18.60 from its previous projection of $17.30-$17.90. The midpoint of which now indicates an improvement of 20% from the 2025 figure.
Management anticipates adjusted EPS to be in the range of $17.60-$17.90 for 2026.
The company reaffirmed its expectation of 10% revenue growth for 2026, supported by continued momentum in Card Member spending, customer acquisitions and its premium membership offerings.
AXP’s Zacks Rank & Key PicksAXP currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Finance space are American Integrity Insurance Group Inc. (AII - Free Report) , Mercury General Corporation (MCY - Free Report) and Robinhood Markets, Inc. (HOOD - 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 American Integrity Insurance’s current-quarter earnings of 49 cents per share has remained stable over the past seven days. AII beat earnings estimates in each of the trailing four quarters, with the average surprise being 46.6%. The consensus estimate for current-quarter revenues is pegged at $105.4 million, implying 70.1% year-over-year growth.
The Zacks Consensus Estimate for Mercury General’s current-quarter earnings of $3.35 per share has remained stable over the past 60 days. MCY beat earnings estimates in each of the trailing four quarters, with the average surprise being 70.2%. The consensus estimate for current-quarter revenues is pegged at $1.6 billion, calling for 8.8% year-over-year growth.
The Zacks Consensus Estimate for Robinhood Markets’ current-quarter earnings is pegged at 56 cents per share and has witnessed one upward revision in the past seven days against no movement in the opposite direction. HOOD beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 15.1%. The consensus estimate for current-quarter revenues is pegged at $1.4 billion, calling for 13.1% year-over-year growth.
Amex Stock Slides on Job Cuts, But the Real Story Is MacroAmerican Express NYSE: AXP reported third-quarter revenue of $20.1 billion, up 9% from a year earlier, as continued spending growth, rising card fees and strong credit performance supported results. The company raised its full-year earnings outlook while reaffirming its expectation for 10% revenue growth.
Chairman and Chief Executive Officer Steve Squeri said reported earnings per share were $5.42, while adjusted EPS was $4.68. The quarter included several discrete items, including a gain from the closing of the Global Business Travel transaction, a restructuring charge and legal reserve expense.
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Swiping to Record Highs: Why Visa Remains a FortressAmerican Express increased its full-year 2026 reported EPS guidance to between $18.30 and $18.60, from its prior outlook, and set adjusted EPS guidance at $17.60 to $17.90. Squeri said the company remains on track for another year of 10% revenue growth and mid-teen EPS growth.
Global Business Travel Gain and Restructuring
The sale of American Express investments in Global Business Travel Group generated a gain of $1.11 per share during the quarter. The company used part of that gain to fund a $336 million restructuring charge, or $0.37 per share, that is expected to eliminate about 5% of its global positions.
3 Stocks to Watch as Wall Street Wealth Fuels Consumer SpendingSqueri said the restructuring is intended to streamline the organization, reduce management layers and speed decision-making as the company pursues growth and innovation initiatives. Excluding the Global Business Travel gain and restructuring charge, adjusted EPS totaled $4.68, up 13% year over year, according to Chief Financial Officer Christophe Le Caillec.
Adjusted results also included a $0.51-per-share increase in legal reserves, including the unreserved portion of a recently announced Office of the Comptroller of the Currency civil money penalty and a reserve for an anticipated settlement in an unrelated matter. A discrete tax benefit of $0.29 per share and a $0.24-per-share benefit related to CECL reserve-model updates offset those items, Le Caillec said.
Squeri said the OCC orders do not impose an asset cap on the company. He added that the costs associated with remediation are not expected to affect American Express’ 2027 guidance, though he said the deficiencies cited in the consent order should not have occurred.
Spending, Fees and Credit Trends
Overall billed business rose 8% during the quarter, consistent with the prior four quarters. Goods and services spending increased 7%, while travel and entertainment spending rose 10%. Airline spending increased 13%, restaurant spending rose 9%, and U.S. consumer spending grew 9.4%.
Le Caillec said the quarter included an approximately 60-basis-point year-over-year effect from co-brand exits, including the sale of the Amazon co-brand portfolio midway through the period. He also cited the timing of Amazon Prime Day and other promotional retail events as a factor affecting sequential spending comparisons.
Commercial spending rose 3%, or 5% excluding co-brand portfolio exits, while international spend increased 11%. Merchant coverage reached more than 190 million locations globally, compared with 160 million a year earlier. American Express acquired 3.1 million new cards in the quarter, with 76% of new accounts on fee-paying products.
Net card fees increased 17% on an FX-adjusted basis, remaining the company’s fastest-growing revenue line. Le Caillec said the growth reflected strong results from the U.S. Platinum card refresh. One year after the refresh, spend retention for the U.S. Consumer Platinum portfolio stood at 99%.
Total cardmember balances grew 8%, while net interest income increased 10%. Write-off dollars rose 3%, and the delinquency rate remained between 1.2% and 1.3% for the 15th consecutive quarter. Provision expense was $985 million, including a $211 million reserve release driven by CECL model enhancements.
Investment, Returns and Customer Offerings
Marketing expense increased 11% as American Express stepped up customer-acquisition investments following strong first-half performance. The value-creating expense-to-revenue ratio was 44.3%, and Le Caillec said growth in cardmember services expenses should moderate significantly in the fourth quarter as the company laps the Platinum refresh.
American Express returned $2.2 billion of capital to shareholders in the third quarter, including $1.6 billion of share repurchases and $600 million in dividends. Its CET1 ratio ended the quarter at 10.9%.
The company also highlighted new products and partnerships, including an exclusive Airbnb agreement that will bring more than 1 million listings globally into Amex Travel and expand travel benefits for eligible U.S. card members. American Express also cited its Corporate Cashback Card, integrated expense-management capabilities and Business Savings account as initiatives designed to build engagement among business customers.
AI Strategy Focuses on Membership and Payments
Squeri said American Express is using artificial intelligence to improve productivity and internal processes, but emphasized that the company sees AI as a way to make card membership more personalized and valuable. The company is focusing on AI applications across value propositions, customer acquisition, engagement, payments and service.
Examples include the Resy Restaurant Discovery and Reservations experience in ChatGPT, work with OpenAI on an Amex plugin for discovering and enrolling in Amex Offers, and the company’s AI-enabled travel Wishlist Builder. Through a partnership with Perplexity, eligible business card members can access Amex-curated AI tools for activities such as cash-flow forecasting and marketing campaigns.
For agent-driven payments, American Express is developing tools intended to authenticate agents, verify customer authorization and preserve transaction context. Squeri said the company plans to take a risk-based approach to AI-agent access and will not allow assistants to operate freely through its systems.
“Our customer remains the card member,” Squeri said, adding that the company’s objective is to extend American Express protections, service and membership benefits into AI-powered experiences.
About American Express (NYSE:AXP)American Express Company is a global financial services company that provides payment, lending, travel and expense management products and services. Its offerings include consumer and small-business charge and credit cards, corporate payment programs, business financing solutions, deposit products and digital payment services.
The company operates an integrated payments network that connects card members, merchants and financial institutions. American Express also provides merchant acquisition and payment processing services, data and analytics, fraud prevention tools, and customer loyalty programs.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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On its third quarter of 2026 earnings call, held on Oct. 23, 2026, American Express (AXP -3.77%) reported record quarterly revenues of $20 billion and reaffirmed its full-year revenue growth target of 10%. Expanding total revenue while sustaining high customer retention gives the business predictable cash flow to reinvest in technology and expand global merchant coverage. Three things management said stand out.
1. Eliminating 5% of Positions Globally to Boost Operational AgilityManagement recorded a $336 million corporate restructuring charge to eliminate roughly 5% of global positions, streamlining management layers to accelerate product delivery and fund strategic growth priorities.
With that objective in mind, earlier this year, I asked the senior leadership team to identify ways to streamline their organizations, align their teams on the most critical deliverables, and reduce layers to speed decision-making.
-- Steve Squeri, Chairman and Chief Executive Officer2. Embedding Membership Assets Into Artificial Intelligence ToolsRather than relying on artificial intelligence solely for operational productivity, the enterprise is integrating its card rewards, travel booking services, and dining reservations into conversational platforms to capture customer spending wherever financial decisions occur.
Our goal is to have membership travel with our card members throughout these new AI-powered experiences, shaping recommendations, securing payments, activating the right value, and supporting the customer afterward.
-- Steve Squeri, Chairman and Chief Executive Officer3. Premium Customer Base Is Elevating Portfolio Credit QualityFocusing card acquisition on creditworthy customers who pay annual card fees strengthens overall credit performance, keeping delinquent accounts low while stabilizing variable customer engagement, or VCE, which tracks rewards and cardmember service expenses.
As we focus more on fee-paying card members, as we focus more on VCE, we are attracting card members that have a great credit profile, and that slowly improving the credit metrics across the portfolio.
-- Christophe Le Caillec, Chief Financial OfficerLooking AheadCardmember travel spending continues to expand, reflecting steady demand across premium segments. To capitalize on this, American Express formed a partnership with Airbnb.
We know that card members enjoy the exceptional variety and scope of Airbnb's network of unique locations, and we are excited to bring over 1 million listings globally into our Amex Travel program, as well as expanding travel benefits for eligible U.S. card members.
-- Steve Squeri, Chairman and Chief Executive OfficerA proprietary closed-loop network and direct customer relationships provide durable competitive advantages as leadership prioritizes underwriting discipline and global merchant acceptance. Management is combining targeted investments with operational discipline to capture long-term growth opportunities.
We are on track to deliver another year of 10% revenue growth and mid-teen EPS growth, and more importantly, we have momentum to sustain strong results in the years ahead.
-- Steve Squeri, Chairman and Chief Executive OfficerAmerican Express is an advertising partner of Motley Fool Money. The Motley Fool has positions in and recommends Airbnb and American Express. The Motley Fool has a disclosure policy.
I upgrade American Express Company to Buy, citing attractive valuation and strong mid-teens EPS growth prospects despite recent underperformance versus peers. Q3 results showed 9% revenue growth, 28% net income increase, and robust card acquisition, with credit quality and capital returns remaining solid. AXP's updated FY 2026 adjusted EPS guidance is $17.60–$17.90, and normalized non-GAAP EPS supports a $360 price target at an 18x multiple.
American Express is slashing 5% of its workforce as the credit card giant prepares to automate some of its internal processes using AI – the latest tech-driven layoffs to hit the financial sector.
The company on Friday announced a $336 million restructuring charge as part of the layoffs, which will impact thousands of the firm’s roughly 77,000 workers.
Christophe Le Caillec, the firm’s chief financial officer, told CNBC after the firm reported its third-quarter earnings that the reorganization will make American Express “leaner, more agile, and also [able] to prepare for AI.”
American Express CEO Stephen Squeri speaks during an event in New York on Nov. 10, 2022. Bloomberg via Getty Images
“You don’t want to automate processes that are not optimally structured,” he added. “So what we’re doing here is to reduce layers and increase spans of controls, so that we can automate and take advantage of AI in the coming quarters and the coming years.”
Shares of American Express slid 3.8% by about 1 p.m. ET as investors took the layoffs as the latest example of AI’s potential to eliminate jobs.
British lender Barclays on Thursday announced 5,000 planned job cuts in its own AI push.
So far this year through September, AI has been cited in more than 120,000 job cut announcements, according to data from Challenger, Gray & Christmas.
The financial sector and other white-collar professions have been among those most impacted by the new tech.
Despite record-low consumer sentiment readings and stubbornly high inflation, American Express reported a rise in profits as shoppers – especially wealthier ones – have shrugged off sky-high prices and continued to spend.
But during a post-earnings call Friday, CEO Stephen Squeri said the AI push and layoffs were necessary to improve efficiency and prepare for the future.
The company announced planned job cuts that will impact thousands of workers. JHVEPhoto – stock.adobe.com
“We’ve got good momentum, but to accelerate innovation and win over the next few years, we needed to become [a] more agile and efficient organization,” he said.
He added that the company will use AI to personalize customer experiences and offers, but assured investors that American Express is “not going to let assistants run rogue through our system.”
Tech giants have reported a slew of concerning incidents in which AI agents broke out of their restraints or turned off safety systems.
Industry leaders like Anthropic CEO Dario Amodei and OpenAI’s Sam Altman have called for more regulations and a development pause after a researcher last month sounded the alarm over the potential for AI to wipe out the human race.
The credit card giant also reported strong earnings. REUTERS
“We need to protect our customers [and] merchants, and we’re only going to allow agents to access our systems that are either approved through API or MCP channels,” Squeri said, referencing two external security systems.
On Friday, the credit card company reported adjusted earnings per share of $4.68 – beating expectations of $4.48.
Revenue jumped 9% to $20.06 billion, slightly missing estimates of $20.12 billion.
American Express also hiked its full-year earnings forecast to $18.30 to $18.60 a share, up from a previous range of $17.30 to $17.90.
Its sale of the company’s stake in Global Business Travel Group helped boost its earnings prediction, according to Le Caillec.
Key Takeaways WELL is set to report Q3 results Oct. 26, with year-over-year revenue and normalized FFO growth expected.Senior housing demand and muted new supply may support WELL, while long-term leases aid stable revenues.Q3 revenue is pegged at $3.63 billion, up 35%, and normalized FFO per share at $1.64, up 22.4% Y/Y. Welltower, Inc. (WELL - Free Report) is slated to report third-quarter 2026 results on Oct. 26, after market close. The quarterly results are likely to reflect year-over-year growth in revenues and normalized funds from operations (FFO) per share.
In the last reported quarter, this Toledo, OH-based healthcare real estate investment trust (REIT) witnessed a normalized FFO per share of $1.60, beating the Zacks Consensus Estimate of $1.55. Results reflected a rise in revenues on a year-over-year basis. The total portfolio same-store net operating income (SSNOI) increased year over year, driven by SSNOI growth in the senior housing operating (SHO) portfolio.
Over the preceding four quarters, Welltower’s normalized FFO per share beat the Zacks Consensus Estimate on all occasions, with the average beat being 2.1%. The graph below depicts this surprising history:
Factors at Play for WELLWelltower owns a diversified healthcare real estate portfolio across the major markets in the United States, Canada and the U. K. During the third quarter, the company’s SHO portfolio is likely to have continued to benefit from strong demand driven by the aging U.S. population. This demographic tailwind, coupled with muted new seniors-housing supply, is expected to have provided a favorable operating environment for this portfolio.
Further, Welltower’s long-term leases with its healthcare management companies or operators are anticipated to have led to stable revenue generation, boosting its top line.
The Zacks Consensus Estimate for quarterly total revenues is pegged at $3.63 billion, suggesting an increase of 35% from the prior-year period’s reported number.
We expect WELL to have continued its investment and development activities during the to-be-reported quarter, supported by its solid balance sheet position and capital-recycling efforts.
WELL’s activities during the to-be-reported quarter were adequate to garner analysts’ confidence. The Zacks Consensus Estimate for third-quarter normalized FFO per share has been revised 2 cents upward to $1.64 over the past three months. The figure suggests an increase of 22.4% from the year-ago reported number.
However, high interest expenses are likely to have been a spoilsport for Welltower during the to-be-reported quarter.
What Our Quantitative Model Predicts for WELLOur proven model predicts a likely surprise in terms of FFO per share for Welltower 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 the case here.
Welltower currently has an Earnings ESP of +0.30% and carries a Zacks Rank of 2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks That Warrant a LookHere are two stocks from the broader REIT industry — BXP, Inc. (BXP - Free Report) and Ventas (VTR - Free Report) — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.
BXP is scheduled to report third-quarter 2026 results on Oct. 27. The company has an Earnings ESP of +0.04% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ventas is slated to report third-quarter 2026 results on Oct. 27. VTR has an Earnings ESP of +0.70% 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.
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Travelers (TRV - Free Report) , which currently has a Momentum Style Score of A. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Travelers currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for TRV that show why this insurer shows promise as a solid momentum pick.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For TRV, shares are up 5.64% over the past week while the Zacks Insurance - Property and Casualty industry is up 3.58% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 11.88% compares favorably with the industry's 8.69% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of Travelers have increased 7.83% over the past quarter, and have gained 50.67% in the last year. In comparison, the S&P 500 has only moved 2.49% and 15.59%, respectively.
Investors should also pay attention to TRV's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. TRV is currently averaging 1,341,677 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with TRV.
Over the past two months, 14 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost TRV's consensus estimate, increasing from $33.82 to $35.96 in the past 60 days. Looking at the next fiscal year, 11 estimates have moved upwards while there have been 1 downward revision in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that TRV is a #2 (Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Travelers on your short list.
Key Takeaways MGM Resorts is set to report Q3 earnings on Oct. 28, with EPS expected to fall 45.8% to 13 cents.Strong group bookings, premium gaming and entertainment events are likely to boost MGM's Las Vegas results.MGM's digital revenues are projected to rise to $207M, while regional revenues may decline to $870M.
MGM Resorts International (MGM - Free Report) is scheduled to report third-quarter 2026 results on Oct. 28, after the closing bell.
MGM’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, the average surprise being 24%.
Trend in Estimate Revision of MGMThe Zacks Consensus Estimate for third-quarter earnings per share (EPS) is pegged at 13 cents, indicating a deterioration of 45.8% from 24 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $4.25 billion, suggesting growth of 0.1% from the prior-year quarter’s figure.
Let's look at how things have shaped up in the quarter.
Factors Likely to Shape MGM Resorts’ Quarterly ResultsMGM Resorts' third-quarter performance is likely to have benefited from continued momentum across its Las Vegas Strip Resorts, supported by group and convention bookings, premium gaming demand and an expanded entertainment calendar. Management highlighted a favorable group booking environment entering the quarter, alongside a larger calendar of sports and entertainment events compared with the year-ago period. These factors are expected to have supported casino activity, hotel demand and non-gaming spending.
The company's Las Vegas Strip Resorts are likely to have benefited from the recovery at MGM Grand, supported by renovated room inventory and favorable gaming trends. Continued demand for premium gaming experiences and investments in luxury offerings are expected to have aided performance. Management also highlighted encouraging trends in high-end customer spending, which may have supported gaming revenues and overall profitability in the quarter under review. The Zacks Consensus Estimate for third-quarter Las Vegas Strip revenues is pegged at $1.99 billion, compared with $1.98 billion reported in the prior-year quarter. Segment-adjusted property EBITDA is projected at $582 million, down from $601 million reported in the year-ago quarter.
MGM China's third-quarter performance is likely to have benefited from a recovery in gaming volumes following the temporary disruption caused by the World Cup in June. Continued investments in premium gaming facilities, renovated suites and luxury hospitality offerings are expected to have supported customer engagement and gaming activity. The recently upgraded suites at MGM Cotai and expanded premium gaming areas may also have strengthened the company's competitive position in Macao. However, higher intercompany branding fees may have weighed on segment profitability. MGM China’s adjusted property EBITDA is projected at $254 million, down from $284 million in the prior-year quarter.
Digital operations are likely to have supported revenue growth, driven by the launch of MGM Digital's proprietary sportsbook in Sweden and growing traction for BetMGM-branded offerings internationally. Encouraging trends in first-time deposits, active players and net gaming revenues in Brazil may also have aided performance. The consensus estimate for digital revenues is pegged at $207 million, up from $174 million a year ago.
However, softness in lower-end leisure demand may have weighed on Las Vegas hotel performance. Management acknowledged continued demand challenges at Luxor and Excalibur, despite some stabilization from value-oriented packages. Subdued international visitation, cautious spending among value-conscious consumers and seasonal fluctuations in leisure demand may also have constrained hotel revenues and gaming activity. Regional Operations' performance is likely to have reflected continued benefits from targeted capital investments and premium gaming upgrades. However, the absence of contributions from Northfield Park following its divestiture may have weighed on reported revenues and profitability. The consensus estimate for regional revenues is pegged at $870 million, down from $957 million reported in the prior-year quarter, while adjusted property EBITDA is expected to decline to $253 million from $296 million.
What Our Model Says About MGM StockOur proven model does not conclusively predict an earnings beat for MGM Resorts this time around. The company does not have the right combination of the two key ingredients, a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), to increase the odds of an earnings beat.
MGM’s Earnings ESP: MGM Resorts has an Earnings ESP of -22.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
MGM’s Zacks Rank: The company currently has a Zacks Rank #5 (Strong Sell).
Stocks Poised to Beat on EarningsHere are some stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Cinemark Holdings, Inc. (CNK - Free Report) currently has an Earnings ESP of +4.49% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cinemark’s earnings for the to-be-reported quarter are expected to increase 127.5%. CNK reported better-than-expected earnings in the trailing three out of four quarters and missed once, the average miss being negative 11.4%.
Rush Street Interactive, Inc. (RSI - Free Report) currently has an Earnings ESP of +2.44% and a Zacks Rank of 2.
RSI’s earnings for the to-be-reported quarter are expected to increase 55.6%. Rush Street Interactive reported better-than-expected earnings in the trailing two out of four quarters, missed estimates once and reported in line once, with the average surprise being 6.3%.
Marriott Vacations Worldwide Corporation (VAC - Free Report) has an Earnings ESP of +10.02% and a Zacks Rank of 3 at present.
Marriott Vacations is expected to register a 45% increase in earnings for the to-be-reported quarter. VAC reported better-than-expected earnings in the trailing three out of four quarters and missed once, with the average surprise being 1.3%.
Chevron Corp. (NYSE:CVX) shares are jumping Friday as crude oil climbs on growing expectations that the U.S. could strike Iran again within weeks. Here’s what you should know.
Chevron shares are testing new highs. Why did CVX hit a new high? Chevron Stock Rises as Iran Strike Fears BuildEnergy stocks are rising because traders see a growing chance that the U.S. will resume strikes on Iran in the coming weeks.
President Donald Trump has said he does not plan to strike Iran again before the November 3 midterm elections. Yet Reuters says investors increasingly expect another joint U.S.-Israeli attack soon afterward.
Iran’s military, meanwhile, has said it is ready for “asymmetric warfare,” according to reports. Investors fear new fighting would prolong supply disruptions and keep energy prices elevated, which could benefit oil and gas companies.
Oil Prices Reach Highest Level Since MayBrent crude trades at $114.99 a barrel as of 9:00 a.m. EST, up $1.71, or 1.5%. It touched $115.16 earlier, its highest price since May 4. West Texas Intermediate, the U.S. benchmark, rose to $101.27, a gain of $1.80, or 1.8%.
Crude flows out of the Gulf look normal, near pre-war levels, yet Brent has held above $110 all week. Reuters said that mismatch suggests traders are preparing for more Middle East strikes.
Middle East Attacks Add to Supply ConcernsViolence keeps raising the risk of disruption. Houthis kept up their attacks on Saudi Arabia this week. They hit a civilian airport and an oilfield, and multiple people died or were hurt. Saudi Aramco evacuated its Dhahran headquarters Thursday as the fighting intensified.
In the Strait of Hormuz, Iran’s Islamic Revolutionary Guard Corps said its forces struck more tankers. The U.S. State Department has ordered some diplomats and family members out of its Saudi missions. The UAE also reported an oil spill from a tanker, and a valve closure on a Libyan pipeline reduced output at two oilfields.
UBS analyst Giovanni Staunovo said the market still worries about a “potential escalation” that, in the worst case, could renew supply disruptions. Volatile flows and high freight rates have kept supply short, Staunovo said.
CVX Shares Are RisingCVX Price Action: Chevron shares were up 2.54% at $232.43 at the time of publication on Friday. The stock is trading at a new 52-week high, according to Benzinga Pro.
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Key Takeaways Phillips 66's Q3 earnings are expected to jump nearly 377% y/y despite a projected 3.6% revenue dip.High refining utilization and strong crack spreads may offset rising crude costs and support Q3 profits.PSX's diversified business offers stability, but its 12.52x EV/EBITDA exceeds the industry's 6.36x average. Phillips 66 (PSX - Free Report) is set to report third-quarter 2026 results on Oct. 28, before the opening bell.
The Zacks Consensus Estimate for third-quarter earnings is pegged at $12.02 per share, implying an improvement of almost 377% from the year-ago reported number. It has witnessed one upward estimate revision in the past seven days. The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $33.7 billion, suggesting a decline of 3.6% from the year-ago actuals.
Image Source: Zacks Investment Research
PSX beat the consensus estimate for earnings in each of the trailing four quarters, with the average surprise being 62.6%. This is depicted in the graph below:
Q3 Earnings Whispers for PSXOur proven model doesn’t predict an earnings beat for PSX 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 isn’t the case here.
The leading refining player has an Earnings ESP of 0.00%. PSX currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
PSX’s Factors to NoteTo understand how oil prices behaved in the September quarter, let's analyze the commodity prices from the data provided by the U.S. Energy Information Administration (“EIA”). The average Cushing, OK, WTI spot prices for July, August and September of this year were $80.46 per barrel, $83.90 per barrel and $97.31 per barrel, respectively, per EIA data. Commodity prices were $68.39 per barrel, $64.86 per barrel and $63.96 per barrel in the prior-year, respective quarters, according to the EIA.
A constructive oil-price backdrop, driven by the Iran war, is likely to have hurt the refining business of Phillips 66 in the third quarter, since the input costs to produce final products like gasoline, diesel fuel and others were higher. A similar dynamic is likely to have affected Par Pacific Holdings, Inc. (PARR - Free Report) and Valero Energy Corporation (VLO - Free Report) , belonging to the same space.
However, the high utilization of refineries in the United States to meet resilient demand is likely to have largely offset the negative impacts of high input costs.
PSX’s Price Performance & ValuationPSX's stock has surged 110.8% over the past year, underperforming the industry’s 132.9% growth. PARR has jumped 100.8% over the same time frame, while VLO has gained 149.2%.
One-Year Price Chart
Image Source: Zacks Investment Research
Despite PSX’s stock price underperforming the industry, the company appears relatively overvalued. The company's current trailing 12-month enterprise value/earnings before interest, tax, depreciation and amortization (EV/EBITDA) is 12.52x, reflecting that it is trading at a premium compared with the industry average of 6.36x. VLO and PARR are valued lower at 9.00x and 3.37x, respectively.
Image Source: Zacks Investment Research
Investment Thesis of PSXPSX noted that there aren’t enough refineries or products globally right now because much refining capacity is offline and fuel inventories are low. This shortage helps keep refining margins, also called crack spreads, high. Management believes these shortages may take longer to resolve than in 2022, which is expected to boost the energy major’s refining profits in the September quarter and in 2027. The broader scenario is also likely to favor other refiners like VLO and PARR.
Although a leading refiner, PSX, unlike most of its refining peers, has diversified into midstream and chemicals. Along with investing in refining operations, Phillips 66 is allocating significant capital to midstream.
The midstream business, by its very definition, is stable since the company generates stable cash flows as the assets are being utilized for the long term and is less vulnerable to commodity price volatility. Hence, having a diversified business model, PSX is insulated from commodity price volatility to a great extent.
Last WordGiven its relatively stable business model, it might be the ideal time for investors to bet on the stock. In fact, investors are willing to pay a premium for this stock as reflected in the valuation picture.
Edge cloud is splitting from the GPU crowd in today's trading, and one name is pulling so far ahead of its own sector fund that traders are asking whether a single partnership deal just rewrote the growth story.
Edge delivery is setting the pace in the cloud software rebound, and one specialist is pulling well ahead of the group. Fastly (NASDAQ:FSLY) stock is at $24.18, up 8% in afternoon trading. This gain ranks among the strongest performances in the cloud group.
Sector-wide gains are far smaller, which makes the jump in Fastly stock stand out even more. The First Trust Cloud Computing ETF (NASDAQ:SKYY) is trading at $167.36, up 2%. On the broad-market side, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is at $762.42, down 0.2%. Cloud buyers aren’t getting any help from the overall market.
Meanwhile, Nebius Group (NASDAQ:NBIS | NBIS Price Prediction) stock is at $161.31, up 1%, a gain that trails Fastly stock by a wide margin. CoreWeave (NASDAQ:CRWV) stock is trading at $54.85, down 1%, moving opposite both Fastly stock and the cloud fund. That split puts Nebius and CoreWeave on opposite sides of a rebound that Fastly stock is leading.
Edge Cloud Leads the Software Bounce
Cloud software stocks are rebounding, and Fastly is posting one of the larger gains in the group. The company runs an edge cloud network that delivers and secures web content close to users, with product lines spanning network services, security, compute, and observability. Nebius and CoreWeave sit in a different corner of the market, renting out graphics processor computing capacity to customers running AI workloads.
Earlier this month, Fastly expanded its partnership with Jio Platforms to power the upgraded JioCDN content delivery network across India. Under the arrangement, Fastly’s programmable edge cloud runs on Jio’s 5G and fixed broadband network, which gives the platform a carrier-scale distribution path. Any link between that agreement and the stock’s jump is still an open question, since the deal came before the current session.
GPU Cloud Names Split From Fastly
Fastly stock is far outpacing the cloud computing fund, and its lead over the GPU providers is wider still, which keeps the spotlight on Fastly’s edge business, a model tied to how much web traffic flows across its network.
Edge positioning gives Fastly a direct line to the rise in machine-generated traffic, a corner of the market where GPU rental plays no part. Company disclosures describe AI traffic as reshaping the internet and lifting demand for tools such as bot management and distributed denial-of-service protection. Reddit, Universal Music Group, and SeatGeek are among the brands already running on Fastly’s platform.
Optimists see that shift in traffic turning into wider adoption of Fastly’s security and compute products, but skeptics counter that a sharp one-session jump can fade quickly when the broad market is slipping and the stock has already outrun its sector fund. Steady demand for AI computing capacity supports the optimism. For Nebius and CoreWeave, the heavy spending needed for that expansion keeps a lid on it (we covered seven suppliers riding that same AI expansion, from power to networking, in a free report).
Jio Deal Sets Up Fastly’s Next Report
Fastly’s upcoming quarterly report will show whether the expanded Jio partnership shows up. Shareholders can watch for whether management puts specific figures behind the JioCDN launch and the India traffic it carries. Hard evidence of that contribution is what would turn a sharp rally into a story grounded in results.
Running this far ahead of both the SKYY cloud fund and the SPY ETF leaves Fastly stock with little buffer if the cloud rebound cools off. Traders may prefer to keep their exposure small until Fastly’s next quarterly report is released.
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A month has gone by since the last earnings report for General Mills (GIS - Free Report) . Shares have added about 1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is General Mills due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
General Mills Q1 Earnings Beat Estimates on Pricing and Mix BenefitsGeneral Mills reported first-quarter fiscal 2027 results, wherein both top and bottom lines beat the Zacks Consensus Estimate. However, both metrics declined year over year. The company posted adjusted earnings of 75 cents per share, down 13% year over year in constant currency but above the Zacks Consensus Estimate of 72 cents. Quarterly profitability was pressured by higher input costs and lower volume, partly offset by favorable net price realization and mix.
Net sales declined 3% year over year to $4,389.5 million, but topped the consensus estimate of $4,344 million. Organic net sales were essentially flat from the prior-year period. Adjusted gross margin contracted 90 basis points to 33.3% of net sales. Higher input costs drove the decline, while favorable net price realization and mix provided a partial offset. We expected an adjusted gross margin of 33.8%.
Adjusted operating profit fell 11% in constant currency to $634 million, and adjusted operating margin declined 130 basis points to 14.4%. We expected an adjusted operating margin of 14.3% for the quarter.
Decoding GIS’ Segmental PerformanceNorth America Retail sales declined 7% year over year to $2,451.8 million, including a 4-point headwind from the U.S. yogurt divestiture. Sales fell at a double-digit rate in Big G Cereal & Canada, including the divestiture impact, declined at a mid-single-digit rate in U.S. Snacks and were flat in U.S. Meals & Baking Solutions. Organic net sales decreased 3% and trailed Nielsen-measured retail sales by about 1 point due to changes in retailer inventory. Retail sales growth improved sequentially by 2 points, while dollar-share trends strengthened across most priority categories.
North America Pet sales were essentially flat at $612.8 million. Cat food sales increased at a double-digit rate and pet treats grew at a low-single-digit rate, while dog food sales declined at a high-single-digit rate. Organic net sales were flat and exceeded all-channel retail sales growth by about 1 point, aided by an extra month of Whitebridge Pet Brands results following the alignment of its calendar with General Mills' August fiscal quarter end.
North America Foodservice sales increased 1% to $523.1 million despite a 2-point headwind from the U.S. yogurt divestiture. Organic net sales advanced 4%, led by growth in cereal and frozen meals. The segment held or gained market share across all of its priority businesses.
International sales grew 4% to $794.3 million, including a 1-point benefit from foreign currency exchange. Organic net sales also increased 4%, driven by growth in distributor markets, India and China.
GIS Reaffirms Fiscal 2027 OutlookGeneral Mills reaffirmed fiscal 2027 organic net sales growth of down 1.5% to up 0.5%. Adjusted operating profit is expected to be down 8-13% in constant currency, while adjusted earnings are projected at $3-$3.20 per share. Free cash flow conversion is expected to be approximately 95% of adjusted after-tax earnings.
The company continues to target at least $750 million of savings from Holistic Margin Management, its global transformation initiative and other cost actions. It also expects roughly 9 points of operating-profit headwind and 11 points of earnings-per-share headwind from lapping the 53rd week, normalizing incentive expense and fiscal 2026 divestitures. The net impact of divestitures, foreign exchange and the 53rd week is expected to reduce reported sales growth by about 4%.
How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended downward during the past month.
VGM ScoresAt this time, General Mills has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, General Mills has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Litigation sought reimbursements for violations of state law in prescribing practices, charges to Medicaid program
HOUSTON--(BUSINESS WIRE)--Building on decades of holding pharmaceutical companies responsible for dangerous products and unlawful business practices, The Lanier Law Firm played a pivotal role supporting Texas Attorney General Ken Paxton in securing a $45 million settlement with Gilead Sciences, Inc. Announced on Oct. 22, the settlement resolves claims that the company offered illegal incentives to medical providers to prescribe its drugs over competitors’ medications.
In many cases, these prescriptions resulted in millions of dollars in claims submitted to Texas Medicaid in violation of the Texas Health Care Program Fraud Prevention Act. As outlined in the lawsuit, Gilead allegedly offered other incentives such as “free nurses” and reimbursement support services to further influence medical providers to prescribe the company’s products.
In the litigation initially filed in 2023, the firm’s Mark Lanier, Zeke DeRose, Jonathan Wilkerson and Alex Brown represented Health Choice Advocates, whose mission is to investigate and bring Medicaid fraud litigation against major pharmaceutical companies. Attorneys with the firm of McKool Smith PC served as co-counsel for the non-profit company.
“As we’ve seen in many other cases, Big Pharma is often motivated by corporate profits rather than what is best and safest for patients, and what is in compliance with the law,” says Mr. Lanier. “We are proud to stand with the State of Texas in exposing this kickback scheme and prevent further abuse of taxpayer funds and the Medicaid program.”
The firm is also supporting ongoing and separate litigation brought by the Attorney General against Bristol-Myers Squibb Co., Novartis and Eli Lilly and Company for similar claims of unlawful prescribing practices and fraud.
About the Lanier Law Firm
For more than 30 years, the men and women at The Lanier Law Firm have worked tirelessly, throughout the United States, to find unique and effective solutions for their clients. More than 60 skilled attorneys practice law in a broad array of areas, including business litigation, pharmaceutical litigation, asbestos exposure, oil and gas litigation, personal injury as well as defective and dangerous products, among others. Named an Elite Trial Law Firm by The National Law Journal, The Lanier Law Firm has offices in Houston, New York, Fort Worth and Los Angeles. To learn more, visit http://www.lanierlawfirm.com.
If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider eBay (EBAY - Free Report) . This company, which is in the Zacks Internet - Commerce industry, shows potential for another earnings beat.
When looking at the last two reports, this e-commerce company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 5.51%, on average, in the last two quarters.
For the last reported quarter, eBay came out with earnings of $1.6 per share versus the Zacks Consensus Estimate of $1.51 per share, representing a surprise of 5.96%. For the previous quarter, the company was expected to post earnings of $1.58 per share and it actually produced earnings of $1.66 per share, delivering a surprise of 5.06%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for eBay lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. 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.
eBay currently has an Earnings ESP of +0.47%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #2 (Buy) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on October 28, 2026.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a growth stock that can live up to its true potential can be a tough task.
In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.
However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.
Airbnb, Inc. (ABNB - Free Report) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.
Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.
While there are numerous reasons why the stock of this company is a great growth pick right now, we have highlighted three of the most important factors below:
Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Airbnb is 22.8%, investors should actually focus on the projected growth. The company's EPS is expected to grow 31.2% this year, crushing the industry average, which calls for EPS growth of 28.3%.
Impressive Asset Utilization RatioAsset utilization ratio -- also known as sales-to-total-assets (S/TA) ratio -- is often overlooked by investors, but it is an important indicator in growth investing. This metric shows how efficiently a firm is utilizing its assets to generate sales.
Right now, Airbnb has an S/TA ratio of 0.52, which means that the company gets $0.52 in sales for each dollar in assets. Comparing this to the industry average of 0.51, it can be said that the company is more efficient.
While the level of efficiency in generating sales matters a lot, so does the sales growth of a company. And Airbnb is well positioned from a sales growth perspective too. The company's sales are expected to grow 15.8% this year versus the industry average of 3.2%.
Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The current-year earnings estimates for Airbnb have been revising upward. The Zacks Consensus Estimate for the current year has surged 0.2% over the past month.
Bottom LineAirbnb has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination indicates that Airbnb is a potential outperformer and a solid choice for growth investors.
Dollar Tree and Dollar General shares are bleeding out at a pace several times worse than the broader retail sector, and neither company has said a word to explain it. With the holiday season approaching and core shoppers already strained,…
Selling in discount retail is landing hardest on the two largest U.S. dollar store chains, while the broader sector is giving up far less ground. Dollar Tree (NASDAQ:DLTR | DLTR Price Prediction) shares are down 6% to $123.50, a slide that leaves the stock up only 0.4% year to date (YTD) and gives back nearly all of its 2026 gains.
Meanwhile, Dollar General (NYSE:DG) shares are down 6% to $131.27, nearly matching the drop in Dollar Tree stock and leaving it up 0.5% YTD. That lockstep move points to pressure on the dollar store model itself, since Dollar Tree and Dollar General sit in the same discount stores niche of the Consumer Defensive sector.
Retail as a whole is holding up far better, with the SPDR S&P Retail ETF (NYSEARCA:XRT) down 2% to $87.58. Large caps are sliding even less, as the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.4% to $760.90. Such a wide gap keeps the selling centered directly on Dollar Tree and Dollar General shares.
Dollar Store Selling Runs Several Times Deeper Than Retail Neither Dollar Tree nor Dollar General has issued a press release since late September. Both declines run several times deeper than the XRT retail fund’s slide, and each chain raised full-year guidance at its latest report, which argues against company-specific trouble.
Although Dollar General and Dollar Tree shares trade as a pair, the two businesses reach shoppers through distinct formats. Smaller stores concentrated in rural communities form the backbone of Dollar General, which operates more than 21,000 locations. Fixed low price points in largely suburban areas define Dollar Tree, which now runs its multi-price format in about 6,600 stores.
Weighing Dollar Tree’s Financials Dollar Tree’s Q2 FY2026 report showed GAAP diluted EPS of $2.70, exceeding expectations, though $1.31 per share came from tariff refunds. Leadership then lifted the company’s full-year adjusted EPS outlook to $7.70 to $8.05, a sign of confidence in the core business. That refund boost moderates how much weight the beat deserves when judging the underlying trend.
Consumer mood adds another layer of risk to the dollar store trade heading into the year’s busiest shopping stretch. The University of Michigan’s consumer sentiment index sliding to 48.1 in September from 51.7 in August. Weaker confidence can squeeze spending at Dollar Tree and Dollar General, especially in seasonal and home categories.
For Dollar General, the consumer picture cuts both ways. Management stated on the August 27 call, “The customer is obviously strained.” Middle- and higher-income shoppers kept trading down into Dollar General stores during that quarter, which gives the chain a buffer if household budgets tighten further and more families hunt for value.
Holiday Trade-Down Becomes the Dollar Stores’ Next Test The dollar store group’s next test is whether shoppers keep trading down to discount chains during the holiday season. That flow has been steady at Dollar General, which described higher-income trade-in as an increasingly everyday habit, and Dollar Tree’s multi-price assortment courts the same value-seeking crowd.
Dollar Tree’s Q3 FY2026 report will test whether its guided diluted EPS of $0.80 to $0.95 holds up after an approximately $0.50 hit from reinvesting tariff refunds. The question is whether Dollar Tree and Dollar General shares stay above their 2026 starting levels, which the recent selling has nearly reached.
Stressed core shoppers at Dollar Tree and Dollar General give the bear case real weight, while raised full-year guidance keeps the bull case intact. Position sizes in DLTR and DG shares should stay modest until holiday-quarter results arrive.
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Palantir Technologies (PLTR +0.04%) has been one of the biggest winners of the artificial intelligence (AI) boom, with its stock gaining more than 1,000% over the last three years. But investors who think the company's best days are behind it may be in for a surprise when Palantir reports its third-quarter results on Nov. 2.
That's because Palantir has developed a habit of beating its own revenue guidance -- and its margins are widening.
The company's guidance was for third-quarter revenue between $2.160 billion and $2.164 billion, which would amount to another impressive quarter of growth. But based on Palantir's performances in the first half of the year, I think that forecast is far too conservative.
In fact, I wouldn't be surprised if Palantir delivers more than $2.3 billion in revenue, easily surpassing its own expectations.
Here's why.
Image source: The Motley Fool.
Palantir keeps raising the bar Palantir has been on an incredible run this year, fueled by demand for its Artificial Intelligence Platform (AIP), which helps businesses and government agencies analyze enormous amounts of information and use AI to make decisions.
But what's particularly interesting is how Palantir consistently underestimates its own growth. When the company issued its first-quarter guidance in February, it projected revenue between $1.532 billion and $1.536 billion. Instead, it delivered $1.633 billion -- about 6.4% above the midpoint of that range.
The second quarter's beat was even better. Management projected revenue between $1.797 billion and $1.801 billion, but Palantir generated $1.935 billion -- approximately 7.5% more than projected.
The company's growth is accelerating, too. Revenue increased 16% sequentially in the first quarter, followed by a 19% increase in the second quarter. Year-over-year revenue growth reached 93% in Q2, up from 85% in Q1.
Now look at the company's third-quarter guidance.
PLTR Palantir Technologies$196.26+$0.07 (+0.04%)
NASDAQ · As of 2:00 PM ET 10/23/26
Palantir's forecast of approximately $2.16 billion represents sequential growth of just under 12%. That would be a significant slowdown in growth from the previous quarter.
That doesn't make much sense to me, particularly when Palantir's commercial business has been expanding so rapidly. If the company simply matches its second-quarter sequential growth rate of 19%, third-quarter revenue would reach approximately $2.3 billion. And I think there's a reasonable chance Palantir will do even better.
Commercial demand is driving the growth The biggest reason for my optimism is Palantir's U.S. commercial business, which has been growing at an extraordinary pace. Second-quarter U.S. commercial revenue increased 149% year over year to $764 million, while sequential growth reached 28%.
But revenue only tells part of the story. During the second quarter, Palantir closed 220 deals valued at $1 million or more, including 73 deals worth at least $10 million. Total contract value reached $3.37 billion, while U.S. commercial remaining deal value increased 124% year over year to $6.24 billion.
Those numbers suggest Palantir has plenty of business in the pipeline, although contract values don't necessarily translate into immediate revenue.
It has been expanding its emphasis on AI sovereignty -- giving businesses and governments greater control over their AI systems, sensitive information, and operational decisions.
Palantir recently conducted two sovereignty boot camps that attracted nearly 200 organizations, introducing potential customers to its technology and demonstrating how they can use AI without surrendering control of their data.
I've previously argued that these boot camps could generate another wave of commercial business. While it's too early to know how much revenue they'll lead to, they give Palantir another way to reach customers seeking practical AI applications.
Meanwhile, the company's government business remains a powerful source of growth. Its U.S. government revenue increased 90% year over year in the second quarter to $809 million, reflecting demand for its defense and intelligence applications.
Why I'm expecting another earnings beat While there are no guarantees in investing, it's hard to argue against Palantir's performance. It exceeded its revenue guidance by increasingly large margins in each of the last two quarters, while its commercial business continues to expand at triple-digit percentage rates.
For me, the most important question the Nov. 2 report will answer won't be whether Palantir beat its $2.16 billion forecast. I expect that to happen. I'll be watching to see whether its revenue crossed $2.3 billion, and whether its growth has kept accelerating.
I remain bullish on Palantir for the long term. And I suspect its next earnings report will give investors another reason to be excited.
Palantir trades near all-time highs while Wall Street sees almost no room left to run, yet one number looming on the 2027 horizon suggests analysts may be thinking far too small.
Palantir Technologies (NASDAQ:PLTR | PLTR Price Prediction) has grown into the operating system that both the Pentagon and corporate America use for AI. Gotham handles government work, Foundry runs commercial data, and AIP turns large language models into working agents.
Chief executive Alex Karp summed up the second quarter this way: “Demand for AI sovereignty has now been unleashed.”
The stock is up 12.17% year to date at $199.38. It has climbed 87% from its 52-week low of $106.37. The number I’m watching for 2027 is $300, and several catalysts could get Palantir there.
Wall Street Sees Little Upside, but Estimates Keep Rising
The consensus price target is $206.43, which implies only 3.5% upside. Analysts are split, with 19 Buy ratings against 9 Holds. Valuation explains the caution better than the fundamentals do.
For 2027, analysts expect revenue of $12.33 billion, up 50%. They see EPS of $2.3505, up 45%. Ninety days ago, the 2027 EPS forecast was $2.0945, so it has risen 12% since then.
Here’s the Math Behind a $300 Palantir
Today Palantir trades at about 85x estimated 2027 earnings. At $300, that multiple would rise to roughly 128x. That’s steep, but Palantir’s Rule of 40 score is 155% and its adjusted operating margin is 62%.
Few software companies have combined growth and profitability at this level. If 2027 earnings come in above forecasts, the multiple needed at $300 shrinks.
How might Palantir reach $300?
A long beat streak: Palantir has topped estimates for 10 straight quarters. In Q2, EPS of $0.41 beat the estimate by 46.43%.
Karp’s stretch goal: Karp said he is “driving the business to grow at a rate equal or above to what we have in U.S. commercial for the next 18 months.” U.S. commercial revenue grew 149% in Q2.
Backlog: Remaining deal value reached $13.1 billion, up 83%. Net dollar retention hit 157%.
Defense spending: The FY2027 Department of War budget request includes $46 billion for a sovereign AI toolkit. It also sets aside $2.3 billion for the Maven Smart System, a program Palantir already supports.
Palantir’s History Says 50% Gains Are Within Reach
Reaching $300 requires a gain of about 50%. Palantir has passed that bar several times. Shares rose 167% in 2023, 340% in 2024, and 135% in 2025.
Volatility cuts both ways, though. In 2022, the stock fell 65%. Its beta of 1.602 means a market pullback would hit Palantir harder than most stocks.
$300 Is a Stretch, but Here’s Why It’s Possible
Removing $300 means a gain of about 50%, far above what Wall Street’s target implies. Even so, the business is speeding up. Full-year 2026 revenue guidance calls for 82% growth, estimates are still climbing, and Palantir keeps beating them.
The main risks are the stock’s high valuation and its heavy reliance on U.S. customers. If AIP keeps converting pilot programs into large contracts and defense AI budgets come through, $300 is a reachable goal.
The traits that showed up early in past monster tech runs are the ones we cataloged in a free playbook on spotting the next Nvidia. Returns like this come unevenly from year to year, and this is the path for Palantir to post another outsized gain in 2027.
Contact [email protected] for any questions or corrections.
Key Takeaways Bristol Myers Squibb gains an edge with a lower valuation, higher dividend yield and more favorable outlook.AbbVie's Skyrizi and Rinvoq growth offsets Humira declines, but competition and pricing pressures persist.BMY trades at 9.68X forward earnings versus ABBV's 18.21X, while offering a 4% dividend yield. Bristol Myers Squibb (BMY - Free Report) and AbbVie (ABBV - Free Report) are two leading pharma/biotech players with diversified portfolios and a strong global presence.
BMY has built a robust portfolio comprising drugs for oncology, hematology, immunology, cardiovascular, neuroscience and other therapeutic areas.
AbbVie is a global, diversified biopharmaceutical company with a dominant position across key therapeutic areas, including immunology, neuroscience, oncology, aesthetics and eye care.
Both biopharma/biotech giants have strong footholds in their targeted businesses, delivering consistent returns to shareholders. Against this backdrop, choosing one stock over the other can be tricky. Let us delve into their fundamentals, growth prospects, challenges and valuation levels to make a prudent choice.
The Case for BMYBristol Myers Squibb’s growth portfolio remains the cornerstone of its revenue trajectory, led by key therapies such as Opdivo, Opdivo Qvantig, Orencia, Yervoy, Reblozyl, Camzyos, Breyanzi, Opdualag, Zeposia, Abecma, Sotyktu, Krazati and Cobenfy.
The portfolio generated approximately 56% of total revenues in the first half of 2026, highlighting its importance to the company’s growth strategy.
Growth is led by the immuno-oncology franchise, with newer products such as Camzyos, Breyanzi and Reblozyl gaining momentum and helping offset declines in the legacy portfolio.
Although sales of blockbuster immuno-oncology drug Opdivo declined, primarily due to the ongoing shift to the subcutaneous Opdivo Qvantig in the United States, strong uptake of Qvantig across approved tumor types is helping cushion the decline. Qvantig has already surpassed $1 billion in annualized revenues.
Opdualag continues to benefit from strong global demand and its leading position as a first-line melanoma standard of care in the United States.
Reblozyl, developed in partnership with Merck, is delivering strong growth, supported by solid uptake in first-line MDS-associated anemia, sustained demand in the second-line setting and increasing penetration among first-line RS-negative patients.
Breyanzi is also generating solid sales momentum, fueled by its differentiated profile and growing demand across approved large B-cell lymphoma indications in the United States and international markets.
Cardiovascular drug Camzyos continues to gain traction, supported by promotional efforts, a growing base of new prescribers and deeper penetration in community settings.
In immunology, Sotyktu is an important growth driver, with its recent approval in psoriatic arthritis expanding its commercial opportunity in rheumatology. Ongoing Phase III studies in systemic lupus erythematosus and Sjögren’s disease could further expand its addressable market, if successful.
Newer products such as Cobenfy for schizophrenia provide additional long-term growth potential, with early launch momentum and opportunities for label expansion.
However, the portfolio transition remains a key challenge. Legacy products, including Eliquis, Revlimid, Pomalyst, Sprycel and Abraxane, still account for 44% of revenues and continue to face significant erosion following the loss of exclusivity for Revlimid, Pomalyst, Sprycel and Abraxane.
BMY’s recent pipeline progress strengthens its long-term growth prospects and could help offset pressure from its legacy portfolio.
The FDA recently granted accelerated approval to iberdomide, in combination with daratumumab and hyaluronidase-fihj and dexamethasone (ZDd), under the brand name Zenbexus, for adults with multiple myeloma who have received at least one prior line of therapy. Zenbexus is the first FDA-approved cereblon E3 ligase modulator (CELMoD), representing a novel class of cereblon-modulating protein degraders for multiple myeloma.
BMY is also advancing several candidates with multi-billion-dollar commercial potential, including milvexian, an oral Factor XIa inhibitor; admilparant, an LPA1 antagonist; and pumitamig, a PD-L1 x VEGF-A bispecific antibody. The company continues to pursue strategic acquisitions and collaborations to expand its pipeline. The acquisition of Orbital Therapeutics adds OTX-201, a preclinical RNA CAR-T therapy designed to reprogram cells in vivo for autoimmune diseases, along with Orbital’s RNA platform.
In 2025, Bristol Myers partnered with BioNTech to co-develop the bispecific antibody pumitamig for solid tumors. Early phase II data in triple-negative breast cancer showed encouraging antitumor activity and manageable safety with chemotherapy. By targeting both PD-L1 and VEGF-A, pumitamig could offer a differentiated approach in solid tumors and provide another long-term growth opportunity for BMY.
Bristol Myers is focusing on cost optimization to support margins. However, its aggressive deal-making strategy has significantly increased leverage. As of June 30, 2026, the company reported a debt-to-capital ratio of 65.9%, with $11.5 billion in cash and equivalents versus $42.1 billion in long-term debt, highlighting a key financial risk alongside its growth ambitions.
The Case for ABBVAbbVie’s flagship drug Humira has lost patent protection in the United States and Europe. Biosimilar competition significantly eroded the drug’s sales.
Nonetheless, AbbVie has successfully navigated this headwind by launching two other successful new immunology drugs, Skyrizi and Rinvoq. Both these drugs are witnessing strong uptake across their approved indications, especially in the popular inflammatory bowel disease space, which includes two conditions, ulcerative colitis and Crohn’s disease. Strong sales of these drugs have enabled AbbVie to offset the decline in sales of the blockbuster drug Humira.
However, AbbVie expects a low single-digit pricing headwind for both Skyrizi and Rinvoq in 2026 and over the next few years. Competition has also intensified for Skyrizi with the launch of J&J’s new oral pill for moderate-to-severe plaque psoriasis, Icotyde, which can impact the product’s prescription trends.
AbbVie’s oncology franchise comprises drugs like Venclexta, Imbruvica and Elahere. While Imbruvica is facing generic erosion, Venclexta and Elahere maintain momentum.
The robust neuroscience portfolio is driven by higher sales of Botox Therapeutic, depression drug Vraylar, newer migraine drugs Ubrelvy and Qulipta, and new Parkinson’s disease drug Vyalev.
Approval of new drugs further expands ABBV’s portfolio.
AbbVie has been active in M&A in recent years to strengthen its early-stage pipeline and support long-term growth. Its recent acquisition of Apogee Therapeutics bolsters its immunology pipeline with a diverse portfolio of assets targeting dermatologic, respiratory and other inflammatory and immunological diseases.
AbbVie has a robust pipeline, with several important data readouts, regulatory submissions and potential approvals expected over the next couple of years, which could support future growth.
The company faces near-term headwinds, including continued Humira biosimilar erosion, slowing oncology sales and weakness in its Aesthetics business amid persistent macroeconomic challenges and economic uncertainty.
A Look at Estimates: BMY versus ABBVThe Zacks Consensus Estimate for BMY’s 2026 sales implies a year-over-year increase of 3.4%, while that for earnings per share (EPS) suggests an increase of 6.7%. The Zacks Consensus Estimate for 2026 EPS has moved south to $6.56 from $6.86 in the past 60 days, while that for 2027 EPS has moved up to $6.50 from $6.44 in the same time frame.
BMY’s Estimate Movement
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ABBV’s 2026 sales implies a year-over-year increase of 10.6%, while that for EPS suggests a rise of 39.6%. The Zacks Consensus Estimate for 2026 earnings has declined from $14.06 per share to $13.96 over the past 60 days, while that for 2027 earnings has dropped from $16.16 to $16.06 per share.
ABBV Estimate Movement
Image Source: Zacks Investment Research
Price Performance and Valuation of BMY and ABBVFrom a price-performance perspective, ABBV has fetched better returns than BMY in the year-to-date period. ABBV shares have rallied 28.5%, outperforming BMY’s 19.3% gain. The large-cap pharma industry has gained 19.3% in the said period.
Image Source: Zacks Investment Research
From a valuation standpoint, we use the P/E ratio of the large-cap pharma industry to compare these companies. Going by the same, ABBV shares currently trade at 18.21X forward earnings, higher than 9.68X for BMY. The industry is trading at 19.01X.
Image Source: Zacks Investment Research
GILD and BMY’s attractive dividend yield is a strong positive for investors. However, ABBV’s dividend yield of 2.43% is lower than BMY’s 4%.
Which Stock Is a Better Pick for Now?While BMY carries a Zacks Rank #3 (Hold), ABBV has a Zacks Rank #4 (Sell), giving BMY the edge in this faceoff. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Overall, Bristol Myers Squibb appears to be the more attractive investment option at present, despite AbbVie’s stronger revenue and earnings growth outlook and superior year-to-date stock performance. BMY trades at a significant valuation discount to both ABBV and the industry, while offering a higher dividend yield and a more favorable Zacks Rank. However, its reliance on successful pipeline execution, declining sales of legacy drugs and elevated debt levels remain key concerns.
AbbVie continues to benefit from robust growth in Skyrizi and Rinvoq. However, its premium valuation, intensifying competition and downward revisions to earnings estimates remain key concerns for its prospects.
Bristol Myers Squibb & Co. (NYSE:BMY) stock is trading lower on Friday after the company reported one patient death in an investigational CD19-directed CAR T cell therapy trial.
