Regeneron's blockbuster earnings sent its stock soaring, but the real story is how that move ripples through the health care ETFs sitting inside millions of retirement accounts, and whether fund holders are more exposed than they realize.
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Regeneron (NASDAQ:REGN | REGN Price Prediction) shares rose 13.55% in Friday’s session, trading at $929.69 as of 9:45 AM ET on Oct 30, 2026. For a biotech worth roughly $94.03 billion, a double-digit move matters for more than its own shareholders. It flows straight into the health care and biotech index funds that sit in millions of retirement accounts.
Earnings Beat Lit the Fuse Before the Open The catalyst was Regeneron’s third-quarter earnings report, released before the market opened. Non-GAAP EPS came in at $20.07, well ahead of the $16.1941 consensus estimate. Revenue reached $5.1158 billion, up 36.27% year over year and beating the $4.56194128 billion estimate.
Sanofi collaboration revenue climbed 68% to $2.724 billion on Dupixent strength and the full repayment of the Sanofi development balance. U.S. EYLEA HD sales rose 62% and Libtayo grew 51%. Management also raised full-year non-GAAP gross margin guidance to approximately 86% from 84%–85%. The chief executive called it “an exceptional quarter by every measure.”
Which Health Care ETFs Own Regeneron Right Now Regeneron is a component of the S&P 500 and the Nasdaq-100, so it appears in broad index funds, though at a weight small enough that today’s move barely shows. The sector funds tell a more useful story.
ETF REGN Weight Today’s Move Expense Ratio XLV 1.08% +1.8% Not disclosed XBI 0.96% Not available Not disclosed IBB Not disclosed +1.25% 0.44% VHT Not disclosed Not available 0.09% The Health Care Select Sector SPDR Fund (NYSEARCA:XLV) held 705,889 Regeneron shares worth $440,150,027.06 as of June 30, 2026. At about 1.08% of assets, Regeneron’s surge adds roughly 0.15 percentage points to the fund. XLV’s 1.8% gain this morning therefore reflects a broader health care bid, with Regeneron providing only part of the lift.
The SPDR S&P Biotech ETF (NYSEARCA:XBI) uses an equal-weighted approach, so Regeneron sits beside small-cap names like Apogee Therapeutics at 1.49% and Moderna at 1.41%. Its June weight means a contribution of roughly 0.13 percentage points from today’s move.
The cap-weighted iShares Biotechnology ETF (NASDAQ:IBB) rose 1.25% early in the session. Because IBB weights by market value, a mega-cap like Regeneron typically ranks near the top of the fund, making it the most direct ETF channel for this rally. The Vanguard Health Care ETF (NYSEARCA:VHT) offers similar broad sector exposure to XLV at a 0.09% expense ratio.
Regeneron Trailed Its Sector Funds Until Today Even after this jump, Regeneron is up 20.91% year to date, behind XLV’s 22.52% and IBB’s 30.83%. The one-month picture looks different: Regeneron gained 23.87%, against 9.73% for XLV and 4.53% for IBB. Fund holders got this catch-up rally automatically, without picking the stock.
Overlap Risk Retirement Savers Often Miss Concentration in XLV comes mainly from Eli Lilly, at 16.51% of net assets, and Johnson & Johnson, at 10.64%. Regeneron is a mid-tier position. Overlap builds up when an investor piles funds: an S&P 500 index fund, a Nasdaq-100 fund, a health care ETF and a cap-weighted biotech fund can all own the same large biotechs. Each layer adds exposure to the same handful of names.
Investors who want broader biotech participation with less single-name dependence can compare XBI’s equal-weight design with IBB’s cap weighting. The two funds will respond very differently the next time a mega-cap biotech jumps or falls on a single earnings report.
Upcoming Catalysts That Could Move These Funds Again Regeneron expects an FDA decision on cemdisiran in generalized myasthenia gravis next month. It also hosts an investor roundtable on November 10, 2026, and a $1.0 billion Sanofi up-front payment will be recorded as revenue in the fourth quarter. On the risk side, U.S. sales of the original EYLEA fell 41% under biosimilar pressure. ETF holders should keep an eye on the stock, along with each fund’s next holdings update, to see what portion of this rally reaches their portfolios.
Contact [email protected] for any questions or corrections.
TSMC (TSM - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this chip company have returned -6%, compared to the Zacks S&P 500 composite's +0.7% change. During this period, the Zacks Semiconductor - Circuit Foundry industry, which TSMC falls in, has lost 5.5%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
TSMC is expected to post earnings of $5.22 per share for the current quarter, representing a year-over-year change of +66.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +11.3%.
For the current fiscal year, the consensus earnings estimate of $17.07 points to a change of +60.3% from the prior year. Over the last 30 days, this estimate has changed +3.1%.
For the next fiscal year, the consensus earnings estimate of $22.44 indicates a change of +31.5% from what TSMC is expected to report a year ago. Over the past month, the estimate has changed +5.7%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for TSMC.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For TSMC, the consensus sales estimate for the current quarter of $53.58 billion indicates a year-over-year change of +58.9%. For the current and next fiscal years, $171.11 billion and $227.39 billion estimates indicate +39.8% and +32.9% changes, respectively.
Last Reported Results and Surprise HistoryTSMC reported revenues of $46.72 billion in the last reported quarter, representing a year-over-year change of +41.2%. EPS of $4.6 for the same period compares with $2.92 a year ago.
Compared to the Zacks Consensus Estimate of $45.62 billion, the reported revenues represent a surprise of +2.42%. The EPS surprise was +3.37%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
TSMC is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about TSMC. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
Taiwan Semiconductor Manufacturing (TSM -5.43%), popularly known as TSMC, is one of the most important companies in the semiconductor ecosystem, as it is the world's largest semiconductor foundry, manufacturing chips for other companies.
TSMC doesn't design any chips of its own. It manufactures chips for fabless chipmakers, including Nvidia, Advanced Micro Devices, and Broadcom, as well as consumer electronics giants such as Apple and Sony. The chips made by TSMC find their way into multiple applications, such as data center servers, vehicles, personal computers, and smartphones.
Not surprisingly, TSMC stock has been an outstanding investment in recent years. A $10,000 investment made in TSMC five years ago is now worth over $38,000. The good news is that it isn't too late to buy this semiconductor stock. Let's look at the reasons why it is a good idea to put $10,000 into TSMC even after the terrific gains it has clocked over the past five years.
Image source: Taiwan Semiconductor Manufacturing.
TSMC's addressable market is getting biggerTSMC dominates the global pure-play foundry market with an estimated market share of 73%, according to Counterpoint Research. However, TSMC is now more than just a pure-play foundry company. It also provides advanced packaging, testing, and photomasking services. TSMC calls this expanded market Foundry 2.0, which encompasses the overall semiconductor manufacturing ecosystem, excluding memory chips.
Counterpoint Research notes that the global Foundry 2.0 market's revenue increased by an impressive 25% year over year in Q2 to $96.6 billion, up from the 24% increase in Q1. TSMC is the biggest player in Foundry 2.0, controlling 42% of this space in Q2. Notably, TSMC's share of the Foundry 2.0 market has increased from 38% at the end of 2025.
Even better, Counterpoint Research expects TSMC's Foundry 2.0 revenue to grow by 50% year over year in the second half of 2026, implying an improvement over the 34% revenue growth seen in Q2. So, TSMC's share of the Foundry 2.0 market is likely to get even better by the end of the year.
Importantly, the Foundry 2.0 market is anticipated to keep growing at a healthy pace over the long run. Market research firm IDC expects the Foundry 2.0 market's revenue to exceed $360 billion in 2026. Even better, the firm expects this market to clock a compound annual growth rate (CAGR) of 11% through 2030, indicating that TSMC's addressable opportunity could increase to almost $550 billion by the end of the decade.
I won't be surprised to see TSMC's Foundry 2.0 share increasing further by the end of the decade, driven by the strong demand for its advanced chip manufacturing. Specifically, TSMC sees demand for its advanced manufacturing nodes used in artificial intelligence (AI) applications increasing at a high 50% CAGR through 2029.
So, there is a strong chance that TSMC will outpace the broader market over the next four years. Also, the stronger market share will improve TSMC's pricing power. The foundry giant is expected to implement price hikes of up to 10% in 2027, as Reuters reported in July. TSMC is therefore on track to benefit from strong volumes and favorable pricing, which should ensure robust top- and bottom-line growth for the company.
Here's why it is a good idea to invest $10,000 in this stockTSMC's dominant position in the foundry market, the secular growth of this space, and the price hikes that it is on track to implement explain why the company's earnings are poised to increase at a nice pace through 2028.
TSM EPS Estimates for Current Fiscal Year data by YCharts
According to the chart above, TSMC's earnings could jump by 34% next year and by 27% in 2028. For comparison, its earnings are projected to jump by 64% this year. However, don't be surprised to see TSMC's earnings per share (EPS) growth outpacing the market's expectations in the future. Analysts have already raised their long-term EPS growth estimates and may become more bullish given the factors discussed above.
TSM EPS LT Growth Estimates data by YCharts
Assuming TSMC's earnings increase by 40% a year in 2029 and 2030, its EPS could jump to $58.45 by the end of the decade (using 2028's projected EPS of $29.82 as the base). If this semiconductor stock trades at even 19 times earnings at that time, in line with the S&P 500 index's forward earnings multiple, its price could reach $1,110, implying 153% upside.
So, a $10,000 investment in TSMC right now could be worth more than $25,000 by 2030, suggesting investors can still consider buying this semiconductor giant in anticipation of further gains.
Key Takeaways LLY lifts 2026 revenue guidance to $91-$92 billion as Q3 sales jump 39% to $24.40 billion.LLY's Mounjaro and Zepbound sales exceed $16 billion combined, while Medicare GLP-1 prescriptions top 500,000.Lilly's Foundayo generates $184 million in Q3 sales as retatrutide trials show promising weight-loss results.
Eli Lilly and Company (LLY - Free Report) highlighted strong global demand for its obesity and diabetes treatments, expanding Medicare coverage and encouraging clinical developments during its third-quarter 2026 earnings call.
Management raised its full-year revenue outlook, emphasizing sustained growth for Mounjaro and Zepbound, the global rollout of Foundayo and progress across its oncology, immunology and neuroscience portfolios. Executives also addressed pricing pressures, long-term demand opportunities and investments in manufacturing capacity.
LLY Q3 Earnings Beat Estimates on Strong Revenue GrowthEli Lilly reported third-quarter 2026 non-GAAP earnings of $7.48 per share, surpassing the Zacks Consensus Estimate of $5.38 by 39%. Earnings increased 7% year over year from $7.02 per share.
Revenues surged 39% year over year to $24.40 billion, exceeding the Zacks Consensus Estimate of $22.11 billion by 10.4%. Revenue growth reflected a 53% increase in volume, partially offset by a 15% decline in realized prices.
Non-GAAP gross margin expanded 80 basis points to 84.4%, supported by favorable product mix and improved manufacturing efficiency. The non-GAAP performance margin improved 590 basis points to 54.2%.
Mounjaro revenues climbed 65% to $10.72 billion, while Zepbound sales increased 49% to $5.35 billion. Combined revenues from the two products exceeded $16 billion.
Eli Lilly Raises 2026 Revenue GuidanceChief financial officer Lucas Montarce raised the company's 2026 revenue guidance to $91-$92 billion from the previous range of $85-$87 billion, citing stronger demand across domestic and international markets.
The company also increased its non-GAAP performance margin outlook to 52%-52.5% from 49%-50.5%.
However, non-GAAP earnings guidance was revised to $35-$36 per share from $35.50-$36.50. The revision reflected $4.57 per share in acquired in-process research and development charges, which more than offset a $4.07 improvement in underlying earnings expectations at the midpoint.
During questioning from JPMorgan, Montarce emphasized that stronger-than-anticipated Medicare adoption and international consumer demand supported the upward revenue revisions.
He noted that incretin penetration remains relatively low, reaching approximately one in 10 eligible patients in the United States and two in 100 internationally, suggesting substantial opportunities for future expansion.
LLY Sees Strong Medicare GLP-1 AdoptionCEO David Ricks highlighted the Medicare GLP-1 Bridge Program as an important driver of expanding access to obesity treatments.
Since its July launch, more than 500,000 patients have filled prescriptions for Lilly medicines through the program. Approximately 70% of new program participants selected a Lilly obesity treatment.
During questioning from Berenberg, Ilya Yuffa, president of Lilly USA and Global Customer Capabilities, said that injectable treatments accounted for approximately 75% of program prescriptions.
He added that nearly 80% of patients receiving treatment through the program were new to incretin therapy, reinforcing management's view that expanded coverage is attracting previously untreated patients.
During questioning from Cantor Fitzgerald, Ricks expressed optimism about the program's longer-term sustainability and the possibility of transitioning coverage into Medicare Part D for 2028. However, such an extension remains uncertain.
Foundayo Expands Across International MarketsManagement highlighted the commercial progress of Foundayo, Lilly's oral GLP-1 obesity treatment, which generated $184 million in third-quarter revenues.
Montarce reported that approximately four in 10 patients starting oral obesity treatment in the United States selected Foundayo. New patient starts doubled sequentially during the quarter.
During questioning from Goldman Sachs, Yuffa highlighted improving consumer awareness, increased physician adoption and continued progress toward maintenance dosing.
Internationally, Foundayo has launched in four markets outside the United States, including the United Kingdom, Saudi Arabia, Mexico and the United Arab Emirates.
Patrik Jonsson, president of Lilly International, said early launches were progressing broadly in line with expectations. Management anticipates a wider global rollout during 2027, with regulatory reviews underway in more than 40 additional countries.
Lilly Highlights Retatrutide and Pipeline ProgressChief scientific and product officer Daniel Skovronsky emphasized encouraging clinical results from retatrutide, Lilly's investigational triple agonist.
In a Phase III head-to-head study involving patients with type 2 diabetes, retatrutide achieved a 2.2% reduction in A1c compared with 1.8% for semaglutide.
Patients receiving retatrutide experienced approximately 20%-21% weight loss compared with 9.4% in the semaglutide treatment group.
Management also highlighted Phase II results for EloraTZP, a combination of eloralintide and tirzepatide, which delivered 23.3% weight loss at 48 weeks in patients with obesity and type 2 diabetes.
Skovronsky acknowledged higher discontinuation rates due to adverse events at the highest EloraTZP dose. Lilly plans to use a more gradual dose-escalation schedule in Phase III trials to potentially improve tolerability.
Beyond cardiometabolic treatments, Lilly received regulatory approvals for Onswik, an expanded Jaypirca indication and the combination of Inluriyo with Verzenio.
Eli Lilly Expands Manufacturing and Diversifies PipelineManagement reiterated its commitment to expanding manufacturing capacity and developing treatments beyond obesity.
The company broke ground on two U.S. manufacturing facilities, representing investments of $6.5 billion in Houston, TX, and $5 billion in Richmond, VA.
During questioning from BMO Capital Markets, Skovronsky identified oncology, neuroscience and immunology as important long-term growth opportunities.
He highlighted eight oncology medicines or major new indications approaching or undergoing Phase III development, alongside recent acquisitions intended to strengthen Lilly's neuroscience and immunology capabilities.
The company's recent business development activities included acquiring AtaiBeckley and Merida Biosciences.
Ricks emphasized that approximately three-quarters of Lilly's clinical pipeline focuses on diseases outside obesity, providing opportunities to broaden the company's revenue base over time.
LLY Faces Pricing Pressures Despite Growth OpportunitiesDespite strong demand, management acknowledged that declining realized prices and changing reimbursement patterns could affect future revenue growth.
Montarce said U.S. realized prices declined 7% during the third quarter, while prices outside the United States fell 29%.
During questioning from RBC Capital Markets, Yuffa indicated that broader Medicare and Medicaid coverage in 2027 could shift sales toward channels with lower net realized prices.
Management expects volume growth to continue offsetting pricing headwinds, supported by expanding treatment access and international market penetration.
Lilly also cautioned that approximately $2 billion in nonrecurring benefits recorded during 2026, primarily from milestone payments and adjustments to rebate and discount estimates, are unlikely to recur in 2027.
The company plans to provide its formal 2027 financial guidance during its fourth-quarter earnings call in January.
LLY's Growth Outlook Remains Supported by Strong DemandEli Lilly's third-quarter performance demonstrated continued commercial momentum across its cardiometabolic portfolio, supported by expanding insurance coverage, international demand and new product launches.
The company's raised revenue outlook and encouraging pipeline developments reinforce management's confidence in its long-term growth opportunities.
However, declining realized prices, increasing acquired research and development expenses, and the nonrecurrence of favorable revenue adjustments remain important considerations for investors.
Eli Lilly currently carries a Zacks Rank #3 (Hold), with a Growth Score of A, Value Score of D, Momentum Score of F and VGM Score of C. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.82% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Anheuser-Busch Inbev (BUD - Free Report) Anheuser-Busch InBev, alias AB InBev, is a global brewing company with more than 500 iconic brands. The company’s leading position in majority of its markets and strong global footprint provide economies-of-scale advantages and support the global growth of its multi-country brands. Its strategy is based on efforts to develop a portfolio of brands that cater to extensive consumer needs within the market, in terms of price range, flavor profiles and brand meaning.
BUD is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 18.15; value investors should take notice.
Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.00 to $4.38 per share. BUD also boasts an average earnings surprise of +7.3%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, BUD should be on investors' short list.
Morgan Stanley (MS - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this investment bank have returned +1.1%, compared to the Zacks S&P 500 composite's +0.7% change. During this period, the Zacks Financial - Investment Bank industry, which Morgan Stanley falls in, has lost 1.4%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Morgan Stanley is expected to post earnings of $2.93 per share, indicating a change of +9.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +2.9% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $12.83 points to a change of +25.7% from the prior year. Over the last 30 days, this estimate has changed +0.4%.
For the next fiscal year, the consensus earnings estimate of $13.33 indicates a change of +3.9% from what Morgan Stanley is expected to report a year ago. Over the past month, the estimate has changed +2.1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Morgan Stanley is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Morgan Stanley, the consensus sales estimate for the current quarter of $20 billion indicates a year-over-year change of +11.8%. For the current and next fiscal years, $82.38 billion and $86.18 billion estimates indicate +16.6% and +4.6% changes, respectively.
Last Reported Results and Surprise HistoryMorgan Stanley reported revenues of $20.34 billion in the last reported quarter, representing a year-over-year change of +11.6%. EPS of $3.03 for the same period compares with $2.8 a year ago.
Compared to the Zacks Consensus Estimate of $19.74 billion, the reported revenues represent a surprise of +3.04%. The EPS surprise was +7.07%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Morgan Stanley is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Morgan Stanley. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about ServiceNow (NOW - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
ServiceNow currently has an average brokerage recommendation (ABR) of 1.38, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 47 brokerage firms. An ABR of 1.38 approximates between Strong Buy and Buy.
Of the 47 recommendations that derive the current ABR, 39 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 83% and 6.4% of all recommendations.
Brokerage Recommendation Trends for NOW
Check price target & stock forecast for ServiceNow here>>>
While the ABR calls for buying ServiceNow, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is NOW a Good Investment?Looking at the earnings estimate revisions for ServiceNow, the Zacks Consensus Estimate for the current year has declined 0.5% over the past month to $4.05.
Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for ServiceNow. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, it could be wise to take the Buy-equivalent ABR for ServiceNow with a grain of salt.
On its third-quarter 2026 earnings call, held on Oct. 22, 2026, Reliance (RS -0.67%) announced record quarterly net sales driven by elevated metal pricing and higher shipment volumes. The metals service center, a distributor that processes metal products for manufacturers, is translating tight domestic supply into market share gains and operating leverage.
Three things management said stand out.
1. Public Infrastructure Contracts Are Boosting Net ProfitsThe company's participation in the U.S. Department of Homeland Security border wall contract boosted shipment volumes and overall profitability. While the contract carried lower gross margins, its lower operating cost per ton expanded pre-tax margins and generated non-GAAP, or non-generally accepted accounting principles, earnings per share well above guidance.
Our non-GAAP earnings per diluted share grew 120% year-over-year to $8.02, with the U.S. border wall project contributing $0.74 per share, exceeding our expectation of approximately $0.60 per share.
-- Arthur Ajemyan, Senior Vice President and Chief Financial Officer2. Shipment Growth Outpaces Industry StandardsReliance leveraged its relationships with domestic mills to secure metal inventory during a period of constrained market supply. That inventory access allowed the company to outpace broader industry shipments reported by the Metals Service Center Institute, a trade association tracking distributor metal sales.
Third quarter year-over-year growth in tons sold of 15.6% outperformed the industrywide increase of 10.1% reported by the Metals Service Center Institute.
-- Stephen Koch, Executive Vice President and Chief Operating Officer3. Accounting Reserves Offer a Cushion Against Price FallsSurging carbon steel prices increased full-year LIFO, or last-in, first-out accounting method, expenses above original projections. While higher LIFO costs reduced reported gross margins in the quarter, the accumulated reserve acts as a financial buffer if metal prices decline.
At the end of the third quarter, the LIFO reserve on our balance sheet was nearly $890 million, which remains available to support future operating results by partially mitigating the impact of future metal price declines.
-- Arthur Ajemyan, Senior Vice President and Chief Financial OfficerLooking AheadDemand is accelerating across key end markets such as semiconductor, infrastructure, and aerospace, and management is not hiding its satisfaction about it. Scale, mill relationships, and processing capabilities give Reliance structural advantages to capture market share while management watches supply constraints and pricing discipline.
Looking ahead to the fourth quarter, we expect healthy demand and tight supply across our key products and end markets will continue, subject to ongoing risks from domestic and international trade policy and geopolitical conditions as well as normal seasonality.
-- Arthur Ajemyan, Senior Vice President and Chief Financial OfficerWith full-year capital expenditures planned at approximately $300 million and a $2.5 billion share repurchase authorization, the business continues to prioritize both footprint expansion and stockholder returns.
Together, our proven business model, outstanding team, and current market dynamics give us confidence in our ability to gain market share and invest through cycles to continue driving profitable growth and strong stockholder returns through the remainder of the year and into 2027.
-- Karla Lewis, President and Chief Executive OfficerThe Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Not every rising dividend yield signals good news, but four familiar companies just handed shareholders bigger checks while their stock prices climbed. The distinction separating these raisers from the rest is worth understanding before you buy.
A dividend yield can rise for two reasons. The share price can drop while the payout stays the same, which usually signals trouble ahead. Or the company can raise the payout faster than the stock rises, putting more cash in your account while your principal holds up. The second kind is the focus here. Visa (NYSE: V) gave the clearest example recently, raising its quarterly dividend by 16%. Visa and the three names below all raised their payouts while their shares finished the past year higher. Their starting yields are low, so the appeal is a payout that grows every year.
Visa Keeps Writing Bigger Checks as the Stock Climbs Visa runs one of the world’s largest electronic payments networks, connecting consumers, merchants and banks across more than 200 countries and territories. It makes its revenue by collecting fees on the transactions that run over its network.
The new quarterly dividend is $0.78 per share, up from $0.67, for an annualized forward payout of $3.12. At $415 a share, that works out to a forward yield of about 0.75%. The starting yield is small. The growth is what matters: Visa’s dividend record shows a higher quarterly rate every year since 2016, when it paid $0.14 a quarter. Since the $0.375 rate declared in 2021, the payout has risen 108%. Over the past year, the stock returned 22.57%, so the yield rose entirely because the dividend did.
Coverage is wide. Trailing dividends of $2.79 come to about 22.6% of trailing earnings of $12.32 per share. In fiscal 2026, operating cash flow of $23.728 billion less capital spending of $1.671 billion left roughly $22.06 billion of free cash flow. That was enough to fund $20.5 billion of buybacks on top of the dividend, and Visa still has $24.4 billion left under its repurchase authorization.
The case for more increases comes straight from the income statement. Fiscal 2026 revenue rose 14.76% to $45.903 billion, and processed transactions reached 74.2 billion in the fourth quarter. The chief executive called fiscal 2026 “a milestone year”. The risk to watch is the ongoing interchange multidistrict litigation, which already has significant provisions and could drain cash otherwise headed to shareholders.
JPMorgan Chase Turns Record Profits Into Steady Raises JPMorgan Chase (NYSE: JPM | JPM Price Prediction) is the largest U.S. bank, with $5.0 trillion in assets spread across consumer banking under the Chase brand, investment banking, and asset management.
The bank’s latest quarterly dividend is $1.65, a 10% increase from $1.50. The annualized forward payout is $6.60, which, at $345.44 a share, comes to a forward yield of about 1.91%, the highest on this list. The dividend has increased six times since the $1.00 quarterly rate in early 2023, for a cumulative gain of 65%. The shares rose 15.23% over the past year, so the payout beat a rising stock.
The safety read is solid. Trailing dividends of $6.15 equal about 25.8% of trailing earnings of $23.84 per share. For a bank, capital is the better test: JPMorgan reported a CET1 ratio of 14.3% and authorized a new $50 billion buyback program. Excluding one-time gains, second-quarter adjusted EPS was $6.14, up 13% year over year, with a 23% return on tangible common equity.
For income investors, the bull case is breadth. Investment banking fees jumped 30% and net interest income rose 10%, so the dividend draws on several profit drivers at once. The catch is credit. The card net charge-off rate stood at 3.33%, and the allowance for credit losses rose 12% to $31.4 billion. Jamie Dimon, the CEO at the time of the release, warned that risks are “shifting below the surface like tectonic plates.”
Unlike Broadcom, Walmart Extends a Decades-Long Habit of Higher Payouts For contrast, consider Broadcom (NASDAQ: AVGO). Broadcom’s quarterly dividend has held at $0.65 for four straight payments while its shares fell 13.52% over the past year, so its yield is rising from the price side.
Walmart (NASDAQ: WMT) runs more than 10,900 stores in 19 countries, serving about 280 million customers a week. Its quarterly dividend rose to $0.2475 from $0.235, a 5.3% increase, for a forward annual payout of $0.99. At $121.25, that is a yield of about 0.82%. The dividend record shows a higher quarterly rate every year from 2000 through 2023. After a 3-for-1 stock split that took effect in February 2024, the split-adjusted rate rose from $0.2075 to $0.235, and today it is higher still. The stock gained 19.33% over the past year.
Coverage is comfortable. The trailing payout of $0.9775 equals about 35.4% of trailing earnings of $2.76 per share. Walmart’s free cash flow yield of 1.55% sits above its dividend yield. The debt-to-equity ratio is 0.67, interest coverage is 10.66 times, and the company still has $25.1 billion left on a $30 billion buyback authorization.
The bull case is a retailer becoming a higher-margin platform. Second-quarter revenue rose 5.9% to $187.94 billion, global e-commerce grew 23%, and advertising rose 38%. Management raised its full-year adjusted EPS outlook to $2.80 to $2.87. The risk is spending. Capital expenditures of $6.7 billion drove first-quarter free cash flow to negative $1.9 billion, and at that time capex guidance was raised to about 4.0% of net sales.
Caterpillar Lifts the Payout While Orders Stack Up Caterpillar (NYSE: CAT) makes construction and mining equipment, drivers, industrial gas turbines and locomotives, and it finances customers through Cat Financial. Its quarterly dividend rose to $1.63 from $1.51, a 7.9% raise, for a forward annual payout of $6.52. At $634, the forward yield is about 1.03%. Over the long run, the quarterly rate has risen from $0.42 in the 2009 and 2010 records to today’s level.
The shares are up 9.21% over the past year and 11.62% year to date, but they dropped 23.12% over the past month as the stock slid after its third-quarter report. Part of the latest bump in yield therefore comes from the pullback. Over the full year, the dividend increase drove most of the gain.
Coverage leaves plenty of room. Trailing dividends of $6.28 equal about 27.0% of trailing earnings of $23.23 per share. In the third quarter, operating cash flow of $4.4 billion covered $0.7 billion of dividends and $1.2 billion of buybacks, and the company ended the period with $7.929 billion in cash.
The bull case is demand. Third-quarter revenue rose 17.3% to $20.682 billion, and Power Generation sales jumped 30% on turbines and drivers for data centers. The CEO cited “strong order rates and a record backlog.” The risk is trade policy: tariffs are lifting material costs, and Caterpillar operates in a cyclical industry where a slowdown would squeeze the cash that funds increases.
Who These Four Dividend Raisers Suit Best Visa, JPMorgan Chase, Walmart, and Caterpillar all pay out well under half of their earnings and keep raising the dividend while their stocks finish the year higher. That profile tends to match investors with a long horizon who want growing income and can accept starting yields at or below 2%. Investors focused on high current income may find these yields too low. Investors building a paycheck for the next decade may want to research these names further (we ranked ten long-tenured dividend growers by valuation in a free Dividend Kings report, here).
Contact [email protected] for any questions or corrections.
Shares of Intel, Advanced Micro Devices AMD and Broadcom fell sharply on Friday as investors reassessed semiconductor demand following a dismal forecast from Intel.
The retreat was led by Intel after the chipmaker issued a weaker-than-expected forecast, while Amazon’s latest results added to concerns over the cost of building AI infrastructure.
At 11:30 AM EST, Intel shares plunged as much as 28%, putting the stock on track for its worst one-day decline on record. The selloff erased more than $120 billion from its market value.
AMD fell roughly 9.5%, while Broadcom declined around 5%. The Philadelphia Semiconductor Index dropped 6.65%.
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Intel’s weak outlook is driving the selloff across semiconductors.
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Intel’s third-quarter results beat expectations on adjusted earnings, but its forecast for the current quarter fell well short of Wall Street estimates.
Revenue rose 21% from a year earlier to $16.5 billion, matching forecasts. Adjusted earnings came in at 52 cents per share, above the consensus estimate of about 40 cents.
The outlook overshadowed that performance.
Intel expects fourth-quarter revenue of $15 billion to $16 billion, compared with analysts’ estimate of around $17 billion. It forecast adjusted earnings of 25 cents per share, against expectations of roughly 43 cents.
The company also warned that gross margins would come under pressure.
A key weakness is the personal computer market, which remains a significant source of Intel’s revenue.
The company expects PC-related sales to fall by more than 20% sequentially in the current quarter.
Management pointed to a memory-chip shortage, as strong demand from AI data centres tightens supplies and raises component costs.
Higher costs and limited availability are weighing on consumer and business PC purchases. Intel expects the pressure to persist at least through the first half of 2027.
The forecast prompted analysts to lower expectations and renew questions about Intel’s competitive position.
BofA Securities downgraded the stock to Neutral from Buy and cut its price target to $100 from $145, saying Intel had yet to show enough progress in attracting outside foundry customers.
Roth Capital analyst Suji Desilva also moved to Neutral from Buy and reduced his price target to $70 from $120.
Morgan Stanley analysts led by Joseph Moore said the shares remained unattractive despite the steep decline, citing the risk that Intel could lose market share to fabless rivals with lower capital spending needs.
AMD fell alongside Intel as investors considered the read-across for PC demand and competition in server processors.
AMD is due to report quarterly results on November 3.
BofA said weakness in the PC market could create a headwind of as much as $750 million for AMD, although stronger server CPU revenue could partly offset the impact.
Broadcom, a major supplier of networking equipment and custom AI chips, fell less sharply but was caught in the wider semiconductor retreat.
Despite its exposure to AI infrastructure demand, the stock moved lower alongside other chipmakers as investors reassessed valuations and spending expectations.
Recently, William Blair trimmed Broadcom from Outperform to Market Perform, highlighting increased valuation risks as the stock trades at over 40 times earnings. This puts shares at risk during sector-wide technology sell-offs.
The pressure on the broader market intensified after Amazon reported its third-quarter results on Thursday.
The company recorded a substantial free-cash-flow drain linked to heavy investment in AI data centres, sending trailing 12-month free cash flow deeply negative. Amazon shares also fell.
The results revived questions about how quickly spending on data centres, chips and related infrastructure will generate returns.
Intel’s weaker outlook raised concerns about demand for traditional computing, while Amazon’s cash-flow figures highlighted the financial burden of AI expansion.
Together, the developments weighed on semiconductor stocks and broader technology sentiment.
Key Takeaways Stryker lowers 2026 organic sales growth guidance to 6.5%-7% and adjusted EPS outlook to $14.80-$14.90.SYK faces slower hip and knee procedures, supply constraints and commercial disruptions affecting execution.MedSurg and Neurotechnology sales grew 9.1%, while operating margin rose 60 basis points to 26.2%.
Stryker Corporation (SYK - Free Report) lowered its 2026 outlook after third-quarter performance fell short of management's expectations, reflecting weaker hip and knee procedures, peripheral vascular supply disruptions and commercial execution challenges.
During the earnings call, executives discussed slowing joint replacement demand, corrective actions and a strong medical technology pipeline. Management also emphasized continued capital equipment demand, margin expansion and opportunities in surgical robotics heading into 2027.
Third-quarter adjusted earnings per share of $3.52 missed the Zacks Consensus Estimate of $3.56. Revenues of $6.52 billion missed the Zacks Consensus Estimate of $6.57 billion by 0.90%.
SYK Cuts 2026 Outlook Amid Procedure WeaknessStryker revised its full-year organic sales growth guidance to 6.5%-7% and adjusted earnings per share guidance to $14.80-$14.90.
Chairman and CEO Kevin Lobo attributed the revision to weaker joint replacement procedures and operational distractions. CFO Preston Wells indicated that fourth-quarter organic growth should remain broadly comparable to the third quarter.
Stryker Faces Slower Hip and Knee DemandLobo identified affordability pressures, higher insurance deductibles and increased preauthorization denials as factors delaying joint replacement procedures.
During the Q&A, a JPMorgan analyst questioned the extent of the slowdown. Lobo estimated annual hip and knee market growth at approximately 2.5%, below historical levels.
Management also acknowledged weaker competitive conversion activity. The earlier cybersecurity incident and July SAP implementation disrupted commercial execution, particularly for Mako RPS and Triathlon Gold.
SYK Highlights Strength in Medical TechnologyMedSurg and Neurotechnology delivered 9.1% organic growth, supported by Endoscopy, Medical and capital equipment demand.
Wells reported 13% U.S. organic Endoscopy growth, reflecting operating room infrastructure investment and Sports Medicine strength. U.S. Medical sales advanced 10%, supported by Sage and Smart Care.
Orthopaedics organic sales increased 5.9%, with Ortho Tech benefiting from strong Mako installations and orthopedic power tools. Management expects Trauma and Extremities to deliver stronger growth in the fourth quarter.
Third-quarter sales benefited from a one-time regulatory milestone payment associated with the company's China joint venture. Management expects inventory availability to normalize through year-end.
During the Q&A, a Piper Sandler analyst questioned the recovery trajectory. Lobo highlighted the planned commercialization of AVS' intravascular lithotripsy platform in 2027 and anticipated PEERLESS II clinical data as future growth opportunities.
SYK Expands Robotics and Innovation InvestmentsStryker announced a strategic investment in CMR Surgical alongside an agreement to become the exclusive U.S. sales agent for its Versius robotic platform.
Responding to a Wells Fargo analyst, Lobo described the investment structure as a way to limit financial and development exposure while establishing a U.S. commercial presence. He indicated that Stryker ultimately intends to acquire the business.
Management also highlighted upcoming product introductions, including Neptune, Sonopet 3, System 10 and the 1888 endoscopy platform. A powered hip impaction solution is planned for 2027 to strengthen competitive positioning.
Stryker Maintains Margin and Capital DisciplineAdjusted operating margin increased 60 basis points to 26.2%, supported by operational efficiencies and expense management.
Wells emphasized that margin improvements helped offset the earnings impact of weaker sales. During the Q&A, management reaffirmed its commitment to further manufacturing efficiencies despite unfavorable Orthopaedics sales mix.
Stryker repurchased $1 billion of shares during the quarter and received an additional $3 billion repurchase authorization. Wells reiterated that strategic acquisitions remain the primary capital allocation priority.
SYK Focuses on Execution Ahead of Leadership TransitionLobo expressed confidence in Stryker's diversified portfolio and innovation pipeline while acknowledging uncertainty surrounding joint replacement recovery.
The company's priorities include improving commercial execution, restoring supply availability and maintaining strong capital equipment demand. Incoming CEO Spencer Stiles will inherit these objectives as Stryker prepares its 2027 operating plans.
Zacks Rank and Style Scores Reflect CautionSYK currently carries a Zacks Rank #4 (Sell), reflecting an unfavorable near-term earnings estimate revision outlook. Its Value Score of D indicates relatively weak valuation characteristics, while its Growth Score of B reflects more favorable growth attributes. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock's Momentum Score of C and VGM Score of C indicate neutral characteristics in these categories. Although its Growth Score is favorable, the Zacks Rank #4 remains a cautionary signal under the Zacks framework. The rank can change as analysts revise earnings estimates following the third-quarter results.
Gold prices plunged below $3,900 on Friday, reaching a new year-to-date (YTD) low even though expectations that the Federal Reserve will tighten policy are trimmed by investors. The XAU/USD dives almost 3% at the time of writing.
General Dynamics (GD - Free Report) reported $14.57 billion in revenue for the quarter ended September 2026, representing a year-over-year increase of 12.9%. EPS of $4.49 for the same period compares to $3.88 a year ago.
The reported revenue represents a surprise of +6.43% over the Zacks Consensus Estimate of $13.69 billion. With the consensus EPS estimate being $4.14, the EPS surprise was +8.45%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how General Dynamics performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Technologies: $3.68 billion versus $3.47 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +10.8% change.Revenue- Marine Systems: $4.96 billion versus $4.33 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +21.1% change.Revenue- Combat Systems: $2.39 billion compared to the $2.46 billion average estimate based on four analysts. The reported number represents a change of +6% year over year.Revenue- Aerospace: $3.54 billion versus the four-analyst average estimate of $3.41 billion. The reported number represents a year-over-year change of +9.3%.Operating earnings- Aerospace: $513 million compared to the $489.16 million average estimate based on three analysts.Operating earnings- Combat Systems: $330 million compared to the $340.17 million average estimate based on three analysts.Operating earnings- Technologies: $346 million versus $322.37 million estimated by three analysts on average.Operating earnings- Marine Systems: $391 million versus $325.23 million estimated by three analysts on average.Operating earnings- Corporate: $-53 million versus $-52.5 million estimated by two analysts on average.View all Key Company Metrics for General Dynamics here>>>
Shares of General Dynamics have returned +11.5% over the past month versus the Zacks S&P 500 composite's +0.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Key Takeaways General Dynamics reported Q3 earnings of $4.49 per share, beating estimates by 8.5% and rising 15.7%.Revenues grew 12.9% to $14.57 billion, led by Marine Systems, while backlog doubled to $220.34 billion.Free cash flow rose to $4.83 billion, as GD reduced debt by $500 million and paid $429 million in dividends. General Dynamics Corporation (GD - Free Report) reported third-quarter 2026 earnings of $4.49 per share, which beat the Zacks Consensus Estimate of $4.14 by 8.5%. The bottom line increased 15.7% from $3.88 in the year-ago quarter, reflecting higher operating earnings and lower net interest expenses.
Total Revenues of GDRevenues of $14.57 billion surpassed the consensus mark of $13.69 billion by 6.4% and rose 12.9% year over year. Growth across all four segments, led by Marine Systems, supported the top line. The company's total backlog reached $220.34 billion, increasing 100.6% year over year.
GD’s Segmental PerformanceAerospace revenues increased 9.3% year over year to $3.54 billion. Operating earnings surged 19.3% to $513 million. The segment's operating margin expanded 120 basis points (bps) to 14.5%, reflecting improved operational performance.
Marine Systems revenues advanced 21.1% year over year to $4.96 billion, driven by higher business volume across all shipyards. Operating earnings jumped 34.4% to $391 million from $291 million in the prior-year quarter. The segment's operating margin expanded 80 bps to 7.9%, supported by improved operational performance.
Combat Systems revenues increased 6% year over year to $2.39 billion. However, operating earnings declined 1.5% to $330 million from $335 million in the prior-year quarter. The segment's operating margin contracted 110 bps to 13.8%, indicating that higher revenues did not translate into improved profitability.
Technologies revenues rose 10.8% year over year to $3.68 billion. Operating earnings improved 5.8% to $346 million from $327 million a year ago. However, the operating margin declined 40 bps to 9.4%, reflecting slower earnings growth relative to revenues.
Operational Highlights of GDOperating earnings totaled $1.53 billion, up 14.7% from the year-ago quarter's $1.33 billion. The operating margin expanded 20 bps to 10.5%.
Operating costs and expenses increased 12.6% year over year to $13.04 billion. Net interest expenses declined to $45 million from $74 million in the prior-year quarter.
Net earnings rose 16.1% to $1.23 billion from $1.06 billion a year ago, reflecting improved overall profitability.
Financial Condition of GDAs of Oct. 4, 2026, cash and cash equivalents totaled $4.39 billion compared with $2.33 billion as of Dec. 31, 2025.
Long-term debt totaled $6.26 billion, down from $7.01 billion as of 2025-end. Total debt was $7.02 billion, while net debt amounted to $2.63 billion.
During the first nine months of 2026, cash generated by operating activities totaled $5.75 billion compared with $3.56 billion in the year-ago period. Free cash flow increased to $4.83 billion from $3.01 billion.
During the third quarter, General Dynamics paid $429 million in dividends, invested $481 million in capital expenditures and reduced total debt by $500 million.
GD’s Zacks RankThe company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Release The Boeing Company (BA - Free Report) incurred an adjusted loss of 34 cents per share in the third quarter of 2026, wider than the Zacks Consensus Estimate of a loss of 21 cents. The reported figure improved from the year-ago quarter’s reported loss of $7.47 per share.
BA’s revenues amounted to $24.19 billion, which marginally missed the Zacks Consensus Estimate of $24.28 billion by 0.4%. However, the top line increased 3.9% from the year-ago quarter’s reported figure of $23.27 billion.
Lockheed Martin Corporation (LMT - Free Report) reported third-quarter 2026 adjusted earnings of $7.97 per share, which beat the Zacks Consensus Estimate of $7.49 by 6.4%. The bottom line increased 14.7% from the year-ago quarter's figure of $6.95.
LMT’s net sales were $20.71 billion, which beat the Zacks Consensus Estimate of $20.44 billion by 1.4%. The top line inched up 11.3% from $18.61 billion reported in the year-ago quarter.
Northrop Grumman Corporation (NOC - Free Report) reported third-quarter 2026 adjusted earnings of $7.89 per share, which beat the Zacks Consensus Estimate of $7.22 by 9.3%. The bottom line also increased 2.9% from the year-ago quarter’s level of $7.67.
NOC’s total sales of $11.12 billion beat the Zacks Consensus Estimate of $11.06 billion by 0.6%. The top line improved 6.7% from $10.42 billion reported in the year-ago quarter.
Republic Services NYSE: RSG reported third-quarter 2026 results marked by higher pricing, improving commercial volume trends and growth in its Environmental Solutions business, while elevated diesel costs and healthcare expenses weighed on margins.
Key Takeaways Booking Holdings is set to report Q3 2026 earnings on Nov. 4, with revenues seen at $9.56B and EPS at $4.48.Middle East travel disruptions may hurt BKNG's bookings; FX could shave about 1 point off reported growth.Marketing costs may pressure margins, but Connected Trip growth and Genius loyalty could buoy bookings. Booking Holdings (BKNG - Free Report) is scheduled to report its third-quarter 2026 results after market close on Nov. 4.
For the third quarter of 2026, the company expects total revenues to grow 4% to 6% and constant-currency revenues to grow 5% to 7% year over year.
The Zacks Consensus Estimate for revenues is pegged at $9.56 billion, suggesting growth of 6.17% from the year-ago quarter’s reported figure.
The consensus mark for earnings is pegged at $4.48 per share, indicating 12.56% growth from the year-ago quarter’s reported figure. The estimate has remained unchanged over the past 30 days but increased by 3 cents over the past 60 days.
BKNG’s earnings beat estimates in each of the trailing four quarters, with an average beat of 3.02%.
Let’s see how things have shaped up for the upcoming announcement.
Factors Likely to Shape BKNG’s Q3 ResultsBooking Holdings is likely to have faced headwinds from the Middle East conflict in the to-be-reported quarter. Elevated airfares, reduced airline capacity on certain routes and softer long-haul international travel demand are expected to have affected travel bookings. In the second quarter, international room nights increased only slightly, compared with high-single-digit domestic growth. With these disruptions expected to persist through the third quarter, BKNG’s room-night growth and flight-related bookings are likely to have suffered, despite resilient domestic travel demand.
Adverse foreign currency movements are expected to have weighed on BKNG’s third-quarter performance. Based on management's exchange-rate assumptions, currency fluctuations were projected to reduce year-over-year reported growth in gross bookings, revenues and adjusted EBITDA by approximately one percentage point. Consequently, anticipated constant-currency growth of 5-7% in gross bookings and revenues translates into reported growth guidance of 4-6%. This currency headwind is likely to have constrained reported revenue and adjusted EBITDA growth in the quarter under review, despite relatively stable underlying travel demand.
Higher customer acquisition costs are likely to have pressured Booking Holdings’ profitability in the third quarter. The company anticipates declining organic search traffic in the short to medium term, potentially increasing its dependence on paid marketing channels. In the second quarter, marketing expenses increased 11% year over year, outpacing gross bookings growth of 9%. Marketing expenses represented 4.7% of gross bookings, compared with 4.6% a year earlier. Continued investments in paid marketing, changing traffic mix and competitive promotional activities are likely to have constrained marketing efficiency and margin expansion in the to-be-reported quarter.
However, expanding adoption of Booking.com's Connected Trip strategy and growing engagement among Genius loyalty members are likely to have strengthened BKNG's performance in the quarter under review. Connected Trip transactions increased in the low double digits in the second quarter, more than twice Booking.com's overall transaction growth. Meanwhile, Level 2 and Level 3 Genius members accounted for a high-50% share of room nights and more than 30% of its active customer base. Stronger repeat bookings, cross-selling opportunities and higher direct-booking engagement are expected to have supported transaction growth and customer retention.
What Our Model Says for BKNG StockOur proven model does not conclusively predict an earnings beat for Booking Holdings this time. Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, this is not the case here, as you can see below.
Booking Holdings currently has an Earnings ESP of +0.88% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to ConsiderHere are some companies worth considering, as our model shows that these have the right combination of elements to beat earnings in their upcoming releases:
FIGS, Inc. (FIGS - Free Report) currently has an Earnings ESP of +5.00% and carries a Zacks Rank #2. FIGS’ shares have surged 90.8% year to date. FIGS is set to report its third-quarter 2026 results on Nov. 5. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sweetgreen (SG - Free Report) presently has an Earnings ESP of +4.26% and a Zacks Rank #2. SG’s shares have jumped 68.6% year to date. SG is set to report its third-quarter 2026 results on Nov. 5.
Marriott International (MAR - Free Report) presently has an Earnings ESP of +1.56% and a Zacks Rank #2. MAR’s shares have gained 28.7% year to date. MAR is set to report its third-quarter 2026 results on Nov. 2.
Wall Street analysts expect CVS Health (CVS - Free Report) to post quarterly earnings of $1.62 per share in its upcoming report, which indicates a year-over-year increase of 1.3%. Revenues are expected to be $105.04 billion, up 2.1% from the year-ago quarter.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
That said, let's delve into the average estimates of some CVS Health metrics that Wall Street analysts commonly model and monitor.
The average prediction of analysts places 'Revenue- Health Care Benefits' at $35.86 billion. The estimate indicates a change of -0.4% from the prior-year quarter.
Analysts expect 'Net revenue- Health Services segment' to come in at $51.75 billion. The estimate points to a change of +5% from the year-ago quarter.
Analysts forecast 'Revenue- Pharmacy & Consumer Wellness Segment' to reach $35.51 billion. The estimate points to a change of -1.9% from the year-ago quarter.
According to the collective judgment of analysts, 'Revenue- Health Care Benefits Segment- Services' should come in at $1.86 billion. The estimate suggests a change of +7% year over year.
The collective assessment of analysts points to an estimated 'Medical membership - Total' of 25.99 million. The estimate is in contrast to the year-ago figure of 26.70 million.
It is projected by analysts that the 'Medical membership - Insured - Commercial' will reach 2.47 million. Compared to the current estimate, the company reported 3.54 million in the same quarter of the previous year.
The consensus estimate for 'Medical membership - Insured - Medicare Supplement' stands at $1.18 billion. The estimate compares to the year-ago value of $1.22 billion.
The combined assessment of analysts suggests that 'Medical membership - Medicaid - Total' will likely reach $2.31 billion. Compared to the current estimate, the company reported $2.37 billion in the same quarter of the previous year.
Based on the collective assessment of analysts, 'Medical membership - ASC - Commercial' should arrive at 15.83 million. Compared to the present estimate, the company reported 15.31 million in the same quarter last year.
The consensus among analysts is that 'Medical benefit ratio (MBR)' will reach 92.4%. The estimate compares to the year-ago value of 92.8%.
Analysts predict that the 'Medical membership - Commercial - Total' will reach 18.30 million. The estimate is in contrast to the year-ago figure of 18.85 million.
Analysts' assessment points toward 'Medical membership - Medicare Advantage - Total' reaching 4.20 million. The estimate is in contrast to the year-ago figure of 4.27 million.
View all Key Company Metrics for CVS Health here>>>
Shares of CVS Health have experienced a change of +6% in the past month compared to the +0.7% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), CVS is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Coinbase just reported a blockbuster quarter, yet five banks responded by slashing their price targets, with one analyst taking aim far below where the stock currently trades. The gap between the headline number and what it actually reveals about the…
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Coinbase (NASDAQ: COIN | COIN Price Prediction) announced third-quarter net income of $719 million on October 29th, up 66% from $433 million a year earlier. Despite the strong profit, five banks have lowered their price targets. Barclays now holds the lowest target, cutting it to $120 from $149.
Coinbase shares trade at $151 in premarket trading, down 6.2% and 33.4% year to date. Bitcoin (CRYPTO: BTC) trades at $77,370, down 3.3% over 24 hours, indicating that both the stock and the cryptocurrency took a hit after the profit announcement.
Coinbase’s reported profit is closely tied to its Bitcoin holdings and its collaboration on USD Coin (CRYPTO: USDC), a stablecoin co-founded with Circle Internet Group (NYSE: CRCL).
What Is Inside Coinbase’s $719 Million Profit?
The $719 million profit is a GAAP figure, meaning it adheres to standard accounting principles. This includes valuing the cryptocurrency held for investment at current market prices each quarter, which produced $715 million of gains on these holdings plus $39 million on other investments. Bitcoin’s surge from $62,772 on August 1 to a 90-day high on September 21 contributed significantly to this increase.
However, adjusted net income—which excludes those gains, a $113 million tax impact, and a few other minor adjustments—drops to $78 million. Operating income, which represents profit from Coinbase’s core business operations, plummeted 87.2% year over year to $61.7 million, and revenue of $1.22 billion fell short of expectations by 0.5%, down 35.0% from the previous year.
Where Did Coinbase Generate Revenue in the Third Quarter?
Most of Coinbase’s operating segments exceeded forecasts. Transaction revenue, which comes from trade fees, reached $590 million, surpassing expectations of $527 million. Additionally, subscriptions and services, the recurring revenue stream, generated $570 million, also above the expected $562 million.
Stablecoin revenue, Coinbase’s share of the interest earned on USDC reserves, was the highlight of recurring revenue at $307 million, up 5% from the second quarter. This uptick reflects an average of $22 billion in USDC held in Coinbase products. Blockchain rewards, which Coinbase earns by staking cryptocurrency on behalf of clients, contributed another $86 million.
Adjusted EBITDA, a measure of cash profit, rose 60% from the second quarter to $333 million, beating expectations of $290 million and suggesting the core business operated more efficiently even as overall revenue declined.
Coinbase is also pivoting away from direct crypto trading. CFO Alesia Haas noted a 10% decrease in spot trading volume from the second quarter, while event contracts—which allow users to trade based on future events—crossed $200 million in annualized run-rate revenue, with event contracts and derivatives now accounting for about 25% of total transaction revenue.
In October, Coinbase completed integrating INTX (its international exchange) and Deribit (the options venue it acquired) into a single regulated global derivatives exchange. Haas said Coinbase captures about 50% of USDC’s overall economics.
Why Did Five Banks Lower Their Coinbase Price Targets?
Despite Coinbase’s strong earnings report, several banks have lowered their price targets. Jefferies cut its target from $183 to $174, Wells Fargo revised to $174 from $200, Canaccord adjusted to $275 from $300, Mizuho cut its target to $145, and Barclays lowered its target to $120 from $149.
Barclays has yet to release a detailed explanation for its change. However, the large gap between the $715 million gain and Coinbase’s operating income of $61.7 million appears to have raised concerns. Analysts generally focus on recurring earnings when valuing exchanges, and the lower operating income leads to a less favorable outlook.
Moreover, the fourth quarter began with lower transaction revenue, approximately $165 million through October 25, a trend Coinbase cautioned against assuming would continue. The decline in crypto volatility to multi-year lows and a 7.4% drop in Bitcoin prices over 30 days add to the uncertainty.
While management expressed optimism about future volumes, their statements invite some skepticism. Haas said event contracts are not cannibalizing spot trading, a hopeful view from the CFO’s perspective. CEO Brian Armstrong announced a rebound in trading volumes, but Coinbase acknowledged near-term volatility as traders adapt to the new platform structure.
USDC also faces competition, primarily from its creator, Circle—an ally and rival. Coinbase is also listing other dollar tokens like PYUSD and OUSD, making USDC just one of many options on the platform.
Coinbase has flagged risks related to lower off-platform USDC balances and interest-rate sensitivity, suggesting that declining rates could impact the revenue from the $307 million generated in stablecoin income.
Can Bitcoin or USDC Rise on Coinbase’s Quarter? No, because the cause runs from Bitcoin to Coinbase, so the $719 million profit records Bitcoin’s third-quarter rally after the fact. Bitcoin is up 23.3% since August 1; Coinbase’s balance sheet gets part of that move as the $715 million gain, and a company booking a gain on a coin adds no new demand beyond whatever Bitcoin Coinbase keeps buying. USDC is built to hold $1, so the earnings leave its price at $1.
Barclays’ cut most likely reflects a profit mostly from Bitcoin’s price, while operating income fell 87.2%. If Bitcoin closes December 31 below its September 30 price of $83,576, Coinbase’s fourth quarter could swap the $715 million gain for a loss. So does a Coinbase price target of $120 still look like an outlier? Only if Bitcoin recovers above that level.
Contact [email protected] for any questions or corrections.
Key Takeaways Coinbase's Q3 revenues held relatively flat despite a 10% sequential decline in crypto spot trading volumes.Prediction markets topped a $200M annualized revenue run rate, while derivatives helped offset spot weakness.Coinbase is expanding into AI agents and tokenized equities, which have generated $3B in trading volume. Coinbase Global, Inc. (COIN - Free Report) emphasized revenue diversification, artificial intelligence and its expanding financial services platform during the third-quarter 2026 earnings call. Management highlighted growing contributions from prediction markets, derivatives and stablecoins despite softer cryptocurrency spot trading activity.
CEO Brian Armstrong and CFO Alesia Haas outlined plans to deepen institutional engagement, expand tokenized assets and develop AI-enabled financial infrastructure as Coinbase advances its Everything Exchange strategy.
The company reported quarterly revenues of $1.22 billion, exceeding the Zacks Consensus Estimate of $1.20 billion. Quarterly earnings per share were 28 cents in contrast to the Zacks Consensus Estimate of a loss of 16 cents.
COIN Diversifies as Spot Trading WeakensHaas said cryptocurrency spot trading volumes declined 10% sequentially during the quarter. However, growth across newer trading products helped offset the weakness, keeping revenues relatively flat quarter over quarter.
Prediction markets emerged as a significant contributor. Launched in February, the business surpassed $200 million in annualized revenue run rate during the third quarter.
Haas noted that prediction markets and derivatives together represented approximately 25% of transaction revenues. She emphasized that these offerings generated incremental trading activity rather than replacing existing spot transactions.
Coinbase Expands Stablecoin DistributionStablecoins remain central to Coinbase's strategy of developing financial infrastructure beyond cryptocurrency trading. Haas reaffirmed the company's commitment to USDC while supporting other regulated stablecoins.
During the Q&A, a William Blair analyst questioned Coinbase's relationship with Circle, particularly where their payment infrastructure initiatives overlap. Haas acknowledged competition in certain areas while emphasizing their shared economic interests.
Coinbase captures approximately 50% of USDC economics and holds roughly 30% of circulating USDC on its platform, according to Haas. Management highlighted distribution, customer relationships and integration across derivatives and Base as important competitive strengths.
COIN Sees Growing Opportunity in AI AgentsArmstrong identified AI-powered financial services as an important emerging opportunity. Coinbase for Agents enables third-party AI agents to connect with customer accounts for trading, payments and borrowing.
During an exchange with an Artemis analyst, Armstrong said agentic trading volume was increasing approximately 20% weekly, although activity remained relatively small compared with Coinbase's established trading operations.
Management envisions AI agents conducting financial transactions with appropriate spending controls and permissions. Armstrong emphasized that Coinbase is investing in infrastructure designed to support automated commerce and trading across multiple asset classes.
Coinbase Advances Tokenization and DerivativesTokenized equities represent another expansion opportunity. Haas said Base sequencer fees currently provide the most direct monetization channel, while deeper liquidity and broader asset utility could create additional opportunities.
Management disclosed that tokenized Coinbase equities generated $3 billion in trading volume since the product's launch for non-U.S. customers. Armstrong emphasized that Coinbase's tokenized securities are designed to preserve underlying ownership rights.
Derivatives expansion also remains a priority. Armstrong highlighted progress integrating Deribit into Coinbase's global trading infrastructure, combining perpetual futures, options and futures. He also confirmed plans to relaunch the advanced trading platform under the Coinbase Pro brand.
COIN Addresses Security and Regulatory PrioritiesDuring a discussion with an Arc analyst, Armstrong distinguished potential AI-related cryptographic vulnerabilities from longer-term quantum computing threats.
He confirmed that Coinbase has begun upgrading custody infrastructure for post-quantum security. The company is also participating in industry discussions concerning potential blockchain security improvements.
On regulation, Armstrong described improving cooperation between U.S. regulators as supportive of expanded product availability. He also indicated that his personal attention would increasingly shift toward customers and product improvements in 2027.
Coinbase Maintains Its Platform Expansion FocusManagement's commentary reflected continued emphasis on building an integrated financial platform spanning consumers, institutions, businesses and developers.
Armstrong identified shared infrastructure and access to multiple customer segments as distinguishing features.
Subscription and services revenues represented approximately 49% of net revenues, reinforcing management's diversification message.
COIN's Zacks Rank and Style Scores Signal CautionCOIN currently carries a Zacks Rank #3 (Hold), indicating a neutral near-term earnings estimate revision outlook. The ranking places the stock outside the top two categories historically favored by the Zacks methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Its Value Score of F and VGM Score of F indicate unfavorable characteristics across valuation and the combined value, growth and momentum framework. Growth Score and Momentum Score of C reflect middle-range standings in those categories.
The combination signals a less favorable screening profile than stocks carrying top Zacks Ranks alongside A or B Style Scores. However, the Zacks Rank remains subject to change as analysts revise earnings estimates following the recently reported results.
Roblox beat Wall Street on bookings and losses yet still triggered one of its worst single-day selloffs in years, and the reason behind that gap tells investors everything they need to know about where the platform stands heading into the…
A third-quarter beat on bookings and losses isn’t protecting one of gaming’s biggest platforms from a steep selloff. Roblox (NYSE:RBLX | RBLX Price Prediction) stock trades at $42.67 in early action, down 19%. The stock closed the prior session at $52.46. This decline leaves Roblox stock down 46% year to date (YTD).
On October 29, Roblox reported that its Q3 2026 bookings fell 12% year over year (YoY) to $1.7 billion, exceeding the $1.62 billion Wall Street analysts expected. Revenue at Roblox rose 16% to $1.572 billion, and its $0.32 loss per share beat the $0.43 Wall Street analysts forecast. Investors focused instead on daily active users (DAUs), which fell 9% YoY to 138 million versus the 145.8 million Wall Street analysts expected.
Roblox Guidance Bakes In a Grand Theft Auto Headwind
Roblox guided Q4 2026 bookings to $1.89 billion to $2 billion, a 10% to 15% YoY decline that sits below the $2.02 billion Wall Street analysts expected. CFO Naveen Chopra said the outlook builds in “a modest headwind from the release of GTA in the quarter,” meaning the November 19 launch of Grand Theft Auto VI.
Profit guidance from Roblox also turned negative, with adjusted EBITDA of negative $70 million to negative $10 million expected after $138 million of positive adjusted EBITDA in Q3. On free cash flow, Roblox expects negative $190 million to negative $105 million as AI infrastructure costs and marketing aimed at adults rise. Planned Q4 capital spending at Roblox is $380 million, including approximately $140 million shifted from Q3.
Roblox Payers Shrink as Adult Users Climb
Roblox averaged 30 million monthly unique payers in Q3, down 16% YoY, while bookings per payer rose 5%. Chopra said monetization pressures continued. He pointed to younger U.S. users as a particular concern and stated, “We don’t assume short-term improvement in monetization.” Bloomberg reported that child-safety measures such as age verification weighed on growth earlier this year amid lawsuits from state attorneys general.
Daily users at Roblox rose 12% from Q2, and hours climbed 17% to nearly 34 billion. CEO David Baszucki noted U.S. users aged 18 and over grew 18% YoY and monetize 50% or more above the under-18 cohort. Baszucki also cited the highest seasonally adjusted platform retention since 2021. Freedom Capital Markets analyst Nick McKay warned that optimism over the impact of hit game Steal an Egg could be overdone.
Roblox’s Cash Cushion Funds Its AI Push
Roblox ended September with $6.24 billion in cash and investments against $1.01 billion in long-term debt. The company also bought back $580 million of stock in the first nine months of 2026. That buffer gives Roblox room to keep spending on AI tools and adult marketing through a cash-burning quarter.
On October 30, Roth MKM cut its Roblox price target to $54 from $60. BTIG held a Sell rating with a $42 target ahead of the report.
What the Peer Group Says About Roblox
Unity Software (NYSE:U) stock is at $37.84, down 4%. The game-engine maker’s software powers many titles, and Unity is decline alongside Roblox in the gaming selloff.
Grand Theft Auto VI is a far bigger deal. It is a major event for Take-Two Interactive (NASDAQ:TTWO), which reaffirmed its fiscal-year net bookings outlook of $8 billion to $8.2 billion on August 7 and pointed to the game’s launch. Take-Two stock is at $191.87, down 0.8%. Like Roblox, Take-Two stock is down sharply this year, off 25% YTD. The company’s next report, expected November 9, should show its holiday-quarter guidance.
Tech stocks broadly are under pressure after the NASDAQ Composite closed more than 1% lower on October 29 on AI spending worries. That background adds to the selling in Roblox and its peers.
How Roblox’s Platform Differs From Unity and Take-Two
Roblox runs a user-generated platform where creators build experiences and players spend Robux, so its results hinge on daily engagement and paying users.
Unity sells development tools and ad technology to professional studios, earning money across mobile, PC and console wherever a hit lands, while Take-Two is a title-driven publisher whose Rockstar Games, 2K and Zynga labels depend on blockbuster releases and in-game spending.
What Roblox’s Holiday Quarter Has to Prove
Roblox now faces the question of whether holiday bookings, much of which arrive in the last week of December, land within its guidance as Grand Theft Auto VI competes for players’ time. Watch for daily user trends, payer counts and the broader U.S. release of Roblox Build in December.
The strongest retention since 2021, a growing adult audience and a balance sheet that can fund AI work all favor the bulls. Shrinking payers, a cash-burning Q4 and an untested competitive threat support the bear case for Roblox. Investors may want to hold off until the Roblox holiday bookings picture resolves.
Contact [email protected] for any questions or corrections.
Snap (SNAP - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this company behind Snapchat have returned +0.5% over the past month versus the Zacks S&P 500 composite's +0.7% change. The Zacks Internet - Software industry, to which Snap belongs, has lost 6.5% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Snap is expected to post earnings of $0.16 per share for the current quarter, representing a year-over-year change of +166.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -3.5%.
The consensus earnings estimate of $0.58 for the current fiscal year indicates a year-over-year change of +75.8%. This estimate has changed -21.2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $0.74 indicates a change of +26.2% from what Snap is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Snap is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Snap, the consensus sales estimate of $1.72 billion for the current quarter points to a year-over-year change of +14.3%. The $6.78 billion and $7.49 billion estimates for the current and next fiscal years indicate changes of +14.4% and +10.4%, respectively.
Last Reported Results and Surprise HistorySnap reported revenues of $1.6 billion in the last reported quarter, representing a year-over-year change of +18.9%. EPS of $0.06 for the same period compares with -$0.01 a year ago.
Compared to the Zacks Consensus Estimate of $1.53 billion, the reported revenues represent a surprise of +4.31%. The EPS surprise was -14.29%.
Over the last four quarters, Snap surpassed consensus EPS estimates two times. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Snap is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Snap. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Key Takeaways Strategy's Q3 EPS soared 431.5% to $44.75, beating the consensus estimate of $21.50.A $20.91 billion gain on digital assets drove operating income higher, lifting net income to $19.53 billion.Strategy's bitcoin holdings reached 848,517, while USD Assets climbed to $5.07 billion as of Oct. 25.
Strategy Inc. (MSTR - Free Report) reported third-quarter 2026 earnings of $44.75 per share, surpassing the Zacks Consensus Estimate of $21.50. The figure soared 431.5% from $8.42 a year earlier, largely reflecting a sharp increase in gains on its bitcoin holdings.
Total revenues declined 2.5% year over year to $125.43 million, missing the consensus estimate of $130.40 million. Despite weaker software sales overall, subscription services revenues grew 49.2%. Strategy's bitcoin holdings reached 848,517 as of Oct. 25, 2026.
MSTR's Digital Asset Gains Drive Operating IncomeOperating income reached $20.91 billion, up from $3.89 billion in the prior-year quarter. The results included a $20.91 billion gain on digital assets compared with $3.89 billion a year earlier, reflecting changes in the fair value of Strategy's bitcoin.
Net income rose to $19.53 billion from $2.79 billion. Net income attributable to common stockholders totaled $19.12 billion compared with $2.65 billion a year ago. Because digital assets are marked to market, fluctuations in bitcoin prices can substantially affect reported profitability.
Strategy's Software Revenue Mix Remains UnevenSubscription services revenues increased to $68.59 million from $45.97 million. However, product license revenues plunged 78% year over year to $3.83 million from $17.37 million.
Product support revenues decreased 26.3% to $37.68 million from $51.12 million, weighing on overall sales. Other services revenues increased 7.7% to $15.33 million. The contrasting trends highlight the growing contribution of subscriptions alongside declines in traditional product categories.
MSTR's Gross Margin Improves Despite Lower SalesGross profit declined 1.2% year over year to $89.63 million compared with $90.68 million a year ago. However, the gross margin improved to 71.5% from 70.5%. Total cost of revenues fell 5.8% to $35.79 million from $38.01 million.
Sales and marketing expenses increased 7.9% to $32.27 million, while research and development costs grew 6.5% to $24.06 million. General and administrative expenses, in contrast, fell 5.9% to $35.91 million.
Strategy Continues to Expand Bitcoin HoldingsStrategy held 847,666 bitcoins at September-end compared with 846,000 at June-end. During the quarter, it purchased 7,218 bitcoins for $588.09 million and sold 5,552 bitcoins. Proceeds from the sales helped fund preferred dividends and STRC stock repurchases.
As of Oct. 25, its holdings had increased to 848,517 bitcoins, up 26% year to date. Those holdings carried an original cost of $64.02 billion and a market value of $68.90 billion, based on the Oct. 23 bitcoin price of $81,200. However, BTC Yield, which measures bitcoin changes held per assumed share, was negative 3.7% year to date.
MSTR Raises Funds and Builds Its Dollar ReservesStrategy generated $5.41 billion in net proceeds through its at-the-market common stock offering during the third quarter. Year-to-date capital raised totaled $21.23 billion as of Oct. 25. The company also received $58.7 million in additional ATM proceeds from Oct. 1 through Oct. 23.
Cash and cash equivalents reached $2.50 billion at September-end compared with $1.71 billion at June-end. Short-term investments rose to $3.40 billion from $736.1 million. By Oct. 25, Strategy reported $5.07 billion in USD Assets, providing approximately 3.4 years of coverage for preferred dividends and debt interest.
Currently, MSTR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Earnings ReleasesWe now look forward to the earnings releases of other companies from the financial miscellaneous services industry, like Chime Financial, Inc. (CHYM - Free Report) , slated to report on Nov. 4, and IREN Limited (IREN - Free Report) , on Nov. 5.
The Zacks Consensus Estimate for Chime Financial, Inc.’s third-quarter 2026 EPS is pegged at 9 cents, implying a significant year-over-year increase. CHYM currently sports a Zacks Rank #1.
The consensus estimate for IREN’s third-quarter 2026 EPS is pegged at negative 46 cents, calling for a 35.3% year-over-year decline. IREN currently carries a Zacks Rank #3.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.82% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Southern Copper (SCCO - Free Report) Phoenix, AZ-based Southern Copper engages in mining, exploring, smelting and refining copper and other minerals. The company conducts exploration activities in Argentina, Chile, Mexico and Peru.
SCCO is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. SCCO has a Growth Style Score of A, forecasting year-over-year earnings growth of 53.2% for the current fiscal year.
Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.42 to $8.03 per share. SCCO boasts an average earnings surprise of +5.7%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, SCCO should be on investors' short list.
CrowdStrike Holdings (CRWD - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this cloud-based security company have returned -1.9%, compared to the Zacks S&P 500 composite's +0.7% change. During this period, the Zacks Security industry, which CrowdStrike falls in, has lost 2.3%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, CrowdStrike is expected to post earnings of $0.31 per share, indicating a change of +29.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -7.7% over the last 30 days.
The consensus earnings estimate of $1.26 for the current fiscal year indicates a year-over-year change of +35.5%. This estimate has changed -0.6% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $1.61 indicates a change of +28.2% from what CrowdStrike is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, CrowdStrike is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of CrowdStrike, the consensus sales estimate of $1.53 billion for the current quarter points to a year-over-year change of +23.8%. The $6 billion and $7.36 billion estimates for the current and next fiscal years indicate changes of +24.8% and +22.6%, respectively.
Last Reported Results and Surprise HistoryCrowdStrike reported revenues of $1.47 billion in the last reported quarter, representing a year-over-year change of +25.8%. EPS of $0.31 for the same period compares with $0.23 a year ago.
Compared to the Zacks Consensus Estimate of $1.44 billion, the reported revenues represent a surprise of +2.15%. The EPS surprise was +6.9%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
CrowdStrike is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about CrowdStrike. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
The third-quarter 2026 earnings season is revealing a familiar healthcare divide: demand is holding up, but not every business is turning that demand into stronger profits. Laboratories are ordering more equipment, cancer testing continues to expand, and animal health innovation is attracting customers. Meanwhile, pricing pressure, uneven research spending and higher operating costs leave little room for mistakes.
Investors want to know whether this improvement extends to Medical companies awaiting results. Viatris Inc. (VTRS - Free Report) , Revvity, Inc. (RVTY - Free Report) , Elanco Animal Health Incorporated (ELAN - Free Report) and Veracyte, Inc. (VCYT - Free Report) offer four different ways to assess the sector's momentum. Each has favorable earnings indicators and business trends that could support results above consensus expectations.
According to the latest Earnings Trends report, the medical sector (one of the 16 broad Zacks sectors within the Zacks Industry) is projected to experience a 0.9% decline in earnings for the third quarter, even as revenues are anticipated to rise by 5%. The disconnect reflects ongoing margin pressure.
Factors at Play for Medical Stocks in Q3The medical sector encompasses a broad range of businesses, including hospitals, physician groups, nursing care facilities, insurers, pharmaceutical manufacturers, medical device makers, life sciences tools and diagnostics, outpatient and home care providers and animal health medicines.
The clearest positive signal comes from companies supplying laboratories and drug developers. Thermo Fisher’s organic growth and Danaher’s better end-market commentary suggest pharmaceutical and biotechnology customers are becoming more willing to spend. Still, orders for major instruments can be delayed when research funding remains tight. Recurring reagents, screening services and consumables may prove more dependable than equipment purchases. Revvity’s life sciences business faces these conflicting forces, while diagnostic testing offers a more stable source of demand.
Cancer diagnostics is benefiting from a longer shift toward treatment decisions guided by molecular information. Physicians increasingly need tools that distinguish patients who require aggressive intervention from those who may avoid it. Broader clinical evidence and reimbursement coverage could expand adoption, but test volumes alone do not guarantee higher profits. Laboratories must secure payments, maintain pricing and control processing costs. Abbott’s recent cancer diagnostics momentum offers a constructive industry signal, particularly for companies such as Veracyte.
For pharmaceutical manufacturers, demand for affordable medicines remains durable, even as competition squeezes older products. Complex generics, branded treatments and specialty launches can improve the sales mix, but manufacturing reliability remains critical. Disruptions may have delayed some shipments, triggering remediation expenses and weakening operating leverage. Viatris faces precisely that balance between commercial opportunities and supply constraints, with investors also watching whether savings offset pricing erosion.
In animal health, longer parasite seasons and greater emphasis on preventive treatment are helping sustain interest in innovative pet medicines. Digital fulfillment and repeat prescriptions could improve compliance and revenue visibility. However, veterinary visits and discretionary spending remain sensitive to household budgets.
Merck's third-quarter animal health sales rose 4%, with companion animal revenues advancing 6% and livestock revenues increasing 2%. New products supported pet care growth. The results point to an opportunity for Elanco's expanding portfolio, although spending by pet owners, competition and farm economics could create uneven results across categories.
How We Selected Potential Earnings WinnersBacked by in-depth research and market insight, we have leveraged the Zacks Stock Screener to identify top healthcare names that stand out ahead of their earnings releases. These stocks have the ideal combination of two ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to surpass expectations.
Our research shows that for stocks with this combination, the chances of an earnings beat are as high as 70%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Our Picks in the Medical SectorViatris is scheduled to announce results on Nov. 5. Its Earnings ESP of +0.31% and Zacks Rank #3 point to a possible beat. The Zacks Consensus Estimate for VTRS is pegged at 64 cents per share for the bottom line and $3.78 billion in revenues. The estimate remained stable over the week. Branded products, new launches and savings initiatives could support results, while mature-drug pricing remains a drag.
The Zacks Consensus Estimate for net sales in developed markets indicates a 1.2% decline in the to-be-reported quarter. Nevertheless, the same in Greater China is expected to rise. Notably, Viatris beat earnings estimates in each of the past four quarters, with an average of 10.2%.
Revvity is scheduled to report earnings on Nov. 3. Its Earnings ESP stands at +1.03%, alongside a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate implies roughly 9.3% year-over-year EPS growth to $1.29. It remained stable over the past week. Revenues are expected to have increased 1.2% to $707 million. A recovery in pharmaceutical research spending could improve orders for reagents and instruments, although academic funding remains uncertain.
The consensus estimate for net sales in Life Sciences signals 4% year-over-year growth, while the same in Diagnostics suggests 2.1% decline. Nevertheless, both units are likely to have witnessed increased adjusted operating income in the fiscal third quarter. RVTY beat earnings estimates in each of the past four quarters, with an average of 6.6%.
Elanco Animal Health follows on Nov. 6, currently carrying a +3.70% Earnings ESP and Zacks Rank #3. The Zacks Consensus Estimate for earnings stands at 20 cents per share, up 5.3% from a year ago, while revenues are expected to jump 6.1% to $1.21 billion.
Credelio Quattro’s expanding clinic reach and Zenrelia’s international uptake offer growth opportunities, particularly as pet owners seek year-round parasite and dermatology care. The Zacks Consensus Estimate for total pet health revenues indicate 8.4% year-over-year growth in the to-be reported quarter, while the same from total farm animal predicts a 3.6% increase.
Revenues from domestic and international markets are expected to increase. ELAN beat earnings estimates in each of the past four quarters, with an average surprise of 27%.
Veracyte reports its results on Nov. 4 and carries an Earnings ESP of +3.45% with a Zacks Rank #3. The consensus mark calls for earnings of 44 cents per share on revenues of $147.25 million, implying 11.7% sales growth. The earnings estimate has witnessed one upward revision over the past month against no movement in the opposite direction.
Demand for Decipher prostate and Afirma thyroid tests remains central to the story. Newer offerings, including Prosigna and TrueMRD, broaden its reach, but commercialization costs and reimbursement timing could limit near-term contributions. VCYT also beat earnings estimates in each of the past four quarters, with an average surprise of 41.8%.
Canadian National (CNI - Free Report) came out with quarterly earnings of $1.54 per share, beating the Zacks Consensus Estimate of $1.49 per share. This compares to earnings of $1.33 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +3.36%. A quarter ago, it was expected that this railroad would post earnings of $1.39 per share when it actually produced earnings of $1.5, delivering a surprise of +7.91%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
CN, which belongs to the Zacks Transportation - Rail industry, posted revenues of $3.41 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 4.12%. This compares to year-ago revenues of $3.02 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
CN shares have added about 25.5% since the beginning of the year versus the S&P 500's gain of 12.8%.
What's Next for CN?While CN has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for CN was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.54 on $3.41 billion in revenues for the coming quarter and $5.80 on $13.15 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Rail is currently in the bottom 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the broader Zacks Transportation sector, Matson (MATX - Free Report) , is yet to report results for the quarter ended September 2026. The results are expected to be released on November 4.
This ocean transportation and logistics services company is expected to post quarterly earnings of $6.09 per share in its upcoming report, which represents a year-over-year change of +43.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Matson's revenues are expected to be $1.06 billion, up 20.4% from the year-ago quarter.
For the quarter ended September 2026, Canadian National (CNI - Free Report) reported revenue of $3.41 billion, up 12.7% over the same period last year. EPS came in at $1.54, compared to $1.33 in the year-ago quarter.
The reported revenue represents a surprise of +4.12% over the Zacks Consensus Estimate of $3.27 billion. With the consensus EPS estimate being $1.49, the EPS surprise was +3.36%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how CN performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Operating Ratio: 63.7% versus 61.5% estimated by five analysts on average.Carloads - Total: 1.36 million compared to the 1.37 million average estimate based on four analysts.Carloads - Coal: 109 thousand versus the four-analyst average estimate of 111.33 thousand.Carloads - Forest products: 69 thousand versus the four-analyst average estimate of 68.99 thousand.Carloads - Automotive: 56 thousand compared to the 55.42 thousand average estimate based on four analysts.Carloads - Intermodal: 542 thousand versus the four-analyst average estimate of 553.56 thousand.Revenue Ton Miles - Petroleum and chemicals: 12.26 billion versus the four-analyst average estimate of 12.29 billion.Carloads - Petroleum and chemicals: 171 thousand versus the four-analyst average estimate of 171.82 thousand.Revenue Ton Miles (RTMs): 59.38 billion versus the four-analyst average estimate of 58.72 billion.Revenue Ton Miles - Metals and minerals: 7.31 billion versus 7.18 billion estimated by four analysts on average.Revenue Ton Miles - Automotive: 933 million versus the four-analyst average estimate of 862.84 million.Carloads - Metals and minerals: 236 thousand versus the four-analyst average estimate of 231.55 thousand.View all Key Company Metrics for CN here>>>
Shares of CN have returned +5.9% over the past month versus the Zacks S&P 500 composite's +0.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Wall Street analysts expect Coupang, Inc. (CPNG - Free Report) to post quarterly loss of -$0.23 per share in its upcoming report, which indicates a year-over-year decline of 560%. Revenues are expected to be $9.75 billion, up 5.2% from the year-ago quarter.
The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
Given this perspective, it's time to examine the average forecasts of specific Coupang metrics that are routinely monitored and predicted by Wall Street analysts.
It is projected by analysts that the 'Net Revenue- Developing Offerings' will reach $1.51 billion. The estimate suggests a change of +17.7% year over year.
The consensus among analysts is that 'Net Revenue- Product Commerce' will reach $8.23 billion. The estimate indicates a change of +3.2% from the prior-year quarter.
Analysts expect 'Product Commerce Active Customers' to come in at 25.22 million. Compared to the present estimate, the company reported 24.70 million in the same quarter last year.
According to the collective judgment of analysts, 'Adjusted EBITDA- Product Commerce' should come in at $355.74 million. The estimate compares to the year-ago value of $705.00 million.
View all Key Company Metrics for Coupang here>>>
Over the past month, Coupang shares have recorded returns of +5.6% versus the Zacks S&P 500 composite's +0.7% change. Based on its Zacks Rank #3 (Hold), CPNG will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
The upcoming report from Allstate (ALL - Free Report) is expected to reveal quarterly earnings of $7.03 per share, indicating a decline of 37.1% compared to the year-ago period. Analysts forecast revenues of $17.84 billion, representing an increase of 4.9% year over year.
The current level reflects an upward revision of 4.6% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
That said, let's delve into the average estimates of some Allstate metrics that Wall Street analysts commonly model and monitor.
It is projected by analysts that the 'Property-Liability- Net Premiums Earned' will reach $15.12 billion. The estimate indicates a year-over-year change of +4.1%.
The combined assessment of analysts suggests that 'Underwriting Income- Property-Liability' will likely reach $1.28 billion. The estimate suggests a change of -55.7% year over year.
According to the collective judgment of analysts, 'Property-Liability- Net Investment Income' should come in at $832.78 million. The estimate points to a change of -4.6% from the year-ago quarter.
Analysts forecast 'Property-Liability- Other Revenue' to reach $557.69 million. The estimate suggests a change of +7.7% year over year.
The average prediction of analysts places 'Allstate Protection - Auto Insurance - Combined Ratio' at 88.6%. Compared to the present estimate, the company reported 82.0% in the same quarter last year.
The consensus estimate for 'Allstate Protection - Auto Insurance - Expense Ratio' stands at 21.6%. The estimate compares to the year-ago value of 21.4%.
Based on the collective assessment of analysts, 'Allstate Protection - Homeowners Insurance - Loss Ratio' should arrive at 71.8%. The estimate is in contrast to the year-ago figure of 48.5%.
Analysts predict that the 'Allstate Protection - Auto Insurance - Loss Ratio' will reach 67.0%. The estimate compares to the year-ago value of 60.6%.
The consensus among analysts is that 'Allstate Protection - Homeowners Insurance - Combined Ratio' will reach 94.2%. Compared to the present estimate, the company reported 71.5% in the same quarter last year.
Analysts' assessment points toward 'Allstate Protection - Homeowners Insurance - Expense Ratio' reaching 22.4%. Compared to the present estimate, the company reported 23.0% in the same quarter last year.
The collective assessment of analysts points to an estimated 'Loss Ratio - Allstate Protection' of 68.5%. Compared to the present estimate, the company reported 58.3% in the same quarter last year.
Analysts expect 'Expense Ratio - Allstate Protection' to come in at 21.5%. The estimate is in contrast to the year-ago figure of 21.8%.
View all Key Company Metrics for Allstate here>>>
Over the past month, shares of Allstate have returned +14% versus the Zacks S&P 500 composite's +0.7% change. Currently, ALL carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Gen Digital (GEN - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Business Services sector should help us answer this question.
Gen Digital is a member of our Business Services group, which includes 244 different companies and currently sits at #6 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Gen Digital is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for GEN's full-year earnings has moved 1.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, GEN has gained about 3.7% so far this year. At the same time, Business Services stocks have lost an average of 10.2%. This means that Gen Digital is outperforming the sector as a whole this year.
Another Business Services stock, which has outperformed the sector so far this year, is Crane NXT (CXT - Free Report) . The stock has returned 27.9% year-to-date.
In Crane NXT's case, the consensus EPS estimate for the current year increased 2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Gen Digital is a member of the Technology Services industry, which includes 123 individual companies and currently sits at #99 in the Zacks Industry Rank. This group has lost an average of 21.5% so far this year, so GEN is performing better in this area. Crane NXT is also part of the same industry.
Gen Digital and Crane NXT could continue their solid performance, so investors interested in Business Services stocks should continue to pay close attention to these stocks.
The upcoming report from Riot Platforms, Inc. (RIOT - Free Report) is expected to reveal quarterly loss of -$0.24 per share, indicating a decline of 192.3% compared to the year-ago period. Analysts forecast revenues of $161.46 million, representing a decline of 10.4% year over year.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 7.8% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
In light of this perspective, let's dive into the average estimates of certain Riot Platforms, Inc. metrics that are commonly tracked and forecasted by Wall Street analysts.
The average prediction of analysts places 'Revenue- Bitcoin Mining' at $112.85 million. The estimate indicates a year-over-year change of -29.8%.
Analysts forecast 'Revenue- Engineering' to reach $29.63 million. The estimate indicates a change of +55.2% from the prior-year quarter.
Based on the collective assessment of analysts, 'Quantity of Bitcoin mined' should arrive at 1,628 . Compared to the current estimate, the company reported 1,406 in the same quarter of the previous year.
Analysts' assessment points toward 'Gross Profit- Bitcoin Mining' reaching $40.19 million. Compared to the present estimate, the company reported $65.03 million in the same quarter last year.
The consensus estimate for 'Gross Profit- Engineering' stands at $7.66 million. Compared to the current estimate, the company reported $12.21 million in the same quarter of the previous year.
View all Key Company Metrics for Riot Platforms, Inc. here>>>
Riot Platforms, Inc. shares have witnessed a change of -29.9% in the past month, in contrast to the Zacks S&P 500 composite's +0.7% move. With a Zacks Rank #3 (Hold), RIOT is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
JD.com, Inc. (JD - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this company have returned -2.8%, compared to the Zacks S&P 500 composite's +0.7% change. During this period, the Zacks Internet - Commerce industry, which JD.com falls in, has lost 1.7%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, JD.com is expected to post earnings of $1.05 per share, indicating a change of +101.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -4.4% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $3.25 points to a change of +27.5% from the prior year. Over the last 30 days, this estimate has changed -2.9%.
For the next fiscal year, the consensus earnings estimate of $3.8 indicates a change of +16.9% from what JD.com is expected to report a year ago. Over the past month, the estimate has changed -2.8%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, JD.com is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For JD.com, the consensus sales estimate for the current quarter of $46.27 billion indicates a year-over-year change of +10.2%. For the current and next fiscal years, $201.84 billion and $211.45 billion estimates indicate +9.9% and +4.8% changes, respectively.
Last Reported Results and Surprise HistoryJD.com reported revenues of $51.05 billion in the last reported quarter, representing a year-over-year change of +2.5%. EPS of $0.93 for the same period compares with $0.69 a year ago.
Compared to the Zacks Consensus Estimate of $51.55 billion, the reported revenues represent a surprise of -0.96%. The EPS surprise was +8.14%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates two times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
JD.com is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about JD.com. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
A downtrend has been apparent in Fortinet (FTNT - Free Report) lately with too much selling pressure. The stock has declined 22.2% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.
Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.
So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.
However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.
Why FTNT Could Bounce Back Before LongThe RSI reading of 27.57 for FTNT is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand.
The RSI value is not the only factor that indicates a potential turnaround for the stock in the near term. On the fundamental side, there has been strong agreement among the sell-side analysts covering the stock in raising earnings estimates for the current year. Over the last 30 days, the consensus EPS estimate for FTNT has increased 1%. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.
Moreover, FTNT currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
In its upcoming report, Royalty Pharma (RPRX - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $1.18 per share, reflecting an increase of 0.9% compared to the same period last year. Revenues are forecasted to be $876.39 million, representing a year-over-year increase of 7.7%.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
That said, let's delve into the average estimates of some Royalty Pharma metrics that Wall Street analysts commonly model and monitor.
Analysts' assessment points toward 'Portfolio Receipts- Royalty Receipts- Products- Cabometyx/Cometriq' reaching $23.14 million. The estimate suggests a change of +10.2% year over year.
The consensus estimate for 'Portfolio Receipts- Royalty Receipts- Products- Tremfya' stands at $76.13 million. The estimate points to a change of +55.4% from the year-ago quarter.
Analysts forecast 'Portfolio Receipts- Royalty Receipts- Products- Trodelvy' to reach $14.61 million. The estimate points to a change of +21.7% from the year-ago quarter.
The average prediction of analysts places 'Portfolio Receipts- Royalty Receipts- Products- Other products' at $115.89 million. The estimate indicates a change of +13.6% from the prior-year quarter.
According to the collective judgment of analysts, 'Portfolio Receipts- Royalty Receipts- Products- Royalty Receipts' should come in at $873.89 million. The estimate suggests a change of +7.8% year over year.
The consensus among analysts is that 'Portfolio Receipts- Royalty Receipts- Products- Trelegy' will reach $89.87 million. The estimate indicates a change of -6.4% from the prior-year quarter.
Based on the collective assessment of analysts, 'Portfolio Receipts- Royalty Receipts- Products- Spinraza' should arrive at $13.57 million. The estimate indicates a change of -3.1% from the prior-year quarter.
Analysts predict that the 'Portfolio Receipts- Royalty Receipts- Products- Cystic fibrosis franchise' will reach $221.60 million. The estimate indicates a year-over-year change of -0.2%.
Analysts expect 'Portfolio Receipts- Royalty Receipts- Products- Tysabri' to come in at $66.96 million. The estimate points to a change of -1.5% from the year-ago quarter.
It is projected by analysts that the 'Portfolio Receipts- Royalty Receipts- Products- Imbruvica' will reach $31.44 million. The estimate suggests a change of -23.3% year over year.
The combined assessment of analysts suggests that 'Portfolio Receipts- Royalty Receipts- Products- Xtandi' will likely reach $51.65 million. The estimate points to a change of +3.3% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Portfolio Receipts- Royalty Receipts- Products- Promacta' of $6.37 million. The estimate suggests a change of -83.2% year over year.
View all Key Company Metrics for Royalty Pharma here>>>
Over the past month, shares of Royalty Pharma have returned +14.4% versus the Zacks S&P 500 composite's +0.7% change. Currently, RPRX carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
In its upcoming report, Aflac (AFL - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $1.80 per share, reflecting a decline of 27.7% compared to the same period last year. Revenues are forecasted to be $4.2 billion, representing a year-over-year decrease of 11.3%.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 1.6% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
That said, let's delve into the average estimates of some Aflac metrics that Wall Street analysts commonly model and monitor.
Analysts forecast 'Revenues- Other income (loss)' to reach $31.98 million. The estimate indicates a change of +23% from the prior-year quarter.
The combined assessment of analysts suggests that 'Revenues- Net investment income' will likely reach $956.22 million. The estimate indicates a change of -10.4% from the prior-year quarter.
It is projected by analysts that the 'Revenues- Total net earned premiums' will reach $3.24 billion. The estimate indicates a year-over-year change of -3.8%.
Based on the collective assessment of analysts, 'Total adjusted revenues- Corporate and other' should arrive at $292.79 million. The estimate indicates a change of -14.6% from the prior-year quarter.
According to the collective judgment of analysts, 'Total adjusted revenues- Aflac Japan' should come in at $2.15 billion. The estimate points to a change of -7.8% from the year-ago quarter.
Analysts' assessment points toward 'Total adjusted revenues- Aflac Japan- Total net earned premiums' reaching $1.52 billion. The estimate indicates a change of -8.5% from the prior-year quarter.
Analysts expect 'Total adjusted revenues- Aflac Japan- Net investment income' to come in at $636.96 million. The estimate points to a change of -6.1% from the year-ago quarter.
The average prediction of analysts places 'Total adjusted revenues- Aflac U.S.- Other income' at $22.33 million. The estimate indicates a year-over-year change of +17.5%.
The consensus estimate for 'Total Benefit /Premium - Aflac Japan' stands at 62.6%. The estimate is in contrast to the year-ago figure of 27.8%.
The consensus among analysts is that 'Total Adjusted Expenses/Total Adjusted Revenue - Aflac U.S.' will reach 38.1%. The estimate compares to the year-ago value of 38.9%.
The collective assessment of analysts points to an estimated 'Total Benefit /Premium - Aflac U.S.' of 49.4%. The estimate compares to the year-ago value of 45.6%.
Analysts predict that the 'Total Adjusted Expenses/Total Adjusted Revenue - Aflac Japan' will reach 20.4%. The estimate compares to the year-ago value of 19.8%.
View all Key Company Metrics for Aflac here>>>
Aflac shares have witnessed a change of +11.1% in the past month, in contrast to the Zacks S&P 500 composite's +0.7% move. With a Zacks Rank #3 (Hold), AFL is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Franklin Templeton (BEN - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on November 6, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis investment manager is expected to post quarterly earnings of $0.78 per share in its upcoming report, which represents a year-over-year change of +16.4%.
Revenues are expected to be $2.36 billion, up 0.7% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.91% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Franklin Templeton?For Franklin Templeton, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.13%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Franklin Templeton will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Franklin Templeton would post earnings of $0.66 per share when it actually produced earnings of $0.72, delivering a surprise of +9.09%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Franklin Templeton doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAnother stock from the Zacks Financial - Investment Management industry, Victory Capital Holdings (VCTR - Free Report) , is soon expected to post earnings of $2 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +22.7%. Revenues for the quarter are expected to be $415.75 million, up 15.1% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Victory Capital has been revised 1.4% up to the current level. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #2 (Buy), makes it difficult to conclusively predict that Victory Capital will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Choosing between high-growth technology and established luxury heritage is a classic investor dilemma. Here is how Lucid Group (LCID -5.78%) and Ferrari N.V. (RACE -0.56%) compare for investors looking at the road ahead in 2026.
Lucid represents a bet on the future of electric transportation, focusing on high-end performance and long-range battery technology. Ferrari, by contrast, relies on a decades-long legacy of exclusivity and premium pricing. Both companies target wealthy consumers but operate with entirely different business models, financial profiles, and manufacturing scales.
The case for LucidLucid sells high-performance electric vehicles through its own retail stores and service centers, bypassing traditional third-party dealerships. The company focuses on the ultra-luxury segment with its Lucid Air sedan and the newer Lucid Gravity SUV. It maintains a critical commercial agreement with the government of Saudi Arabia, which has committed to purchasing up to 100,000 vehicles over ten years. Customer concentration like this adds a layer of risk to the business, as a single entity holds significant influence over the order book.
In FY 2025, revenue reached about $1.35 billion, which represents a significant 68% increase compared to the prior year. Despite this rapid growth, the company reported a net loss of approximately $3.7 billion for the same period. This indicates that the costs of building out manufacturing facilities and developing new technology still far exceed current sales levels.
As of its December 2025 balance sheet, the company holds a debt-to-equity ratio of nearly 1.2x. This ratio, which compares total debt to shareholders' equity, suggests the company is using a moderate amount of borrowed capital relative to its own capital. Its current ratio, a measure of the company's ability to cover short-term debts with short-term assets, is approximately 1.3x. Free cash flow, which is the cash left over after paying for operations and building new factories, was roughly negative $3.8 billion for the fiscal year.
The case for Ferrari N.V.Ferrari designs and sells some of the world's most exclusive performance sports cars through a global network of authorized dealers. Its business model relies on scarcity and brand prestige, catering to high-net-worth individuals across North America, Europe, and Asia. This focus on luxury helps the company maintain a strong position within the broader market for consumer discretionary stocks.
In FY 2025, revenue reached around $7.95 billion (converted to dollars from Euros as of this writing), representing a nearly 9% increase over the previous fiscal year in its reporting currency of Euros. The company reported a net income of approximately $1.8 billion (also converted to USD as of the date of this writing), resulting in a healthy net margin of roughly 22%. This net margin shows the percentage of every dollar in sales that remains as profit after all expenses are paid.
As of the December 2025 balance sheet, the debt-to-equity ratio is approximately 0.7x. This indicates a relatively conservative approach to borrowing compared to the equity invested in the business. Its current ratio is roughly 2.0x, suggesting a comfortable cushion for meeting short-term financial obligations. Free cash flow reached nearly $1.6 billion (converted to USD), providing the company with significant capital to reinvest or return to shareholders.
Risk profile comparisonLucid faces risks from its limited operating history and its reliance on just two main vehicle models. The company is currently defending itself against shareholder lawsuits alleging it misled investors about supplier quality and delivery schedules for its Gravity SUV. Operational hurdles also include a heavy dependence on single-source suppliers and the difficulty of scaling up high-volume production. Additionally, the company must navigate a transition to a new CEO, Silvio Napoli, while addressing these legal and transparency concerns.
Ferrari N.V. must manage risks related to shifting environmental regulations that could impact high-performance internal combustion engines. While the brand is iconic, it faces increasing competition from luxury electric offerings from companies like Tesla Inc. (TSLA -0.69%). Maintaining its exclusive brand image while transitioning to hybrid or electric powertrains requires careful execution. Any economic downturn that impacts the wealth of its core customer base could also reduce demand for high-priced luxury goods.
Valuation comparisonLucid appears cheaper based on sales multiples, while Ferrari offers the stability of established earnings for investors willing to pay a premium.
MetricLucidFerrari N.V.Forward P/En/a35.6xP/S ratio0.7x8.4xValuation metrics include those sourced from Financial Modeling Prep (FMP) and may differ from those of other data providers.
The P/S ratio measures a company's market price against its sales over the past twelve months. Ferrari commands a much higher multiple here, reflecting investor confidence in its consistent profitability. Meanwhile, the Forward P/E compares the current price to future earnings estimates. Lucid lacks a meaningful figure here due to its current net losses, whereas Ferrari trades at a premium compared to many other automakers.
Which stock would I buy in 2026?In a decade where a slew of EV start-ups never made it to market, Lucid has successfully gotten its high-end EVs to consumers and struck a deal with Saudi Arabia that could bring meaningful revenue in the future. But more recent performance raises some concerns. For instance, its 2025 sales rate was about 43 vehicles a day.
New CEO Napoli has been blunt with investors that the way the business has been operating has to change. In part, Lucid has lost sales by failing to fulfill orders and help potential customers. Napoli says the company will increase the number of technicians and dedicated staff supporting our customers by 35% and mobile service capacity by more than 20%. Together with improvements in parts availability, service operations, and capacity, Lucid expects to reduce wait times by more than 30%. Longer-term, the company is excited about the prospects of the robotaxi market. But in the near term, it expects sales to be on the slower side, with Wall Street seeing revenue tick up to about $1.5 billion this year and the net loss narrowing to $800 million. It has a long road ahead.
Ferrari, meanwhile, has its own troubles. In a world where EVs are seen as the (eventual) future, the market for its highly inefficient but powerful sports cars could diminish. Its EV rollout this year, however, fell flat, with Ferrari fans calling the design uninspired and 'iPhone-like' (not in a good way.)
The company's long-term goal of getting 60% of sales from EVs and hybrids brings a lot of risk to long-term growth, since it has yet to prove it can produce and sell those types of cars.
Still, the Italian automaker has excellent pricing power, big margins, and a very valuable F1 racing team that serves as a halo program. Sales and net income are seen increasing steadily, if not impressively. Most importantly, it does make profits. That separates Ferrari from Lucid as the stock to buy in 2026.
VANCOUVER, Wash.--(BUSINESS WIRE)--ZoomInfo (NASDAQ: GTM), the all-in-one AI GTM platform, has confirmed that ZoomInfo MCP and the ZoomInfo API are now available in Snowflake, the AI Data Cloud. Business users can ask questions of ZoomInfo data in natural language inside Snowflake CoWork, and data teams can enrich Snowflake tables in real time or in bulk. Both connections run through GTM.AI, ZoomInfo's headless GTM context layer. ZoomInfo Intelligence Now Available Inside Snowflake CoWork ZoomI.
Key Takeaways Five stocks offer dividend growth potential following Alphabet's historic $500 billion plunge.GormanRupp combines positive dividend, sales and earnings growth with strong growth prospects.SU and PAA offer earnings growth potential and annual dividend yields of 2.23% and 6.28%. Wall Street ended yesterday in the red zone, dragged down by Alphabet’s (GOOGL - Free Report) historic single-day plunge following a weak quarterly report. Alphabet’s unprecedented $500 billion loss in market cap proved too severe for the broader market to absorb, overshadowing gains across most individual stocks in the major U.S. indices.
With mega-cap tech stocks driving broader market momentum, investor sentiment remains mixed amid contrasting earnings results, as Amazon fell short of earnings expectations yesterday while Intel comfortably surpassed both revenue and earnings estimates.
Amid this high-stakes tech volatility, investors looking for steadier ground may want to pivot toward dividend growth stocks. Rather than relying on high growth drivers, a dividend-focused approach builds long-term wealth through compounding income and reliable cash flow.
Stocks with a strong history of year-over-year dividend growth can help build a resilient portfolio with greater potential for capital appreciation compared to simple dividend-paying or high-yield stocks.
We have selected five dividend growth stocks like GormanRupp (GRC - Free Report) , Micron Technology (MU - Free Report) , Corning (GLW - Free Report) , Suncor Energy (SU - Free Report) and Plains All American Pipeline (PAA - Free Report) that could be solid choices for your portfolio.
Why Is Dividend Growth Better?Stocks with a strong history of dividend growth are typically associated with mature companies that are less prone to sharp market swings, allowing them to serve as a hedge against economic or political uncertainty as well as broader market volatility. Their steadily rising payouts provide some measure of downside protection.
These companies are generally backed by solid fundamentals, making them attractive long-term dividend-growth investments. Key strengths include durable business models, consistent profitability, expanding cash flows, healthy liquidity, strong balance sheets and attractive valuations.
A consistent history of dividend growth underscores the potential for continued growth ahead.
Although these stocks do not necessarily have the highest yields, they have outperformed the broader stock market and other dividend-paying stocks over an extended period.
As a result, selecting dividend-growth stocks appears to be a winning strategy when other key parameters are taken into account.
5-Year Historical Dividend Growth Greater Than Zero: This selects stocks with a solid dividend growth history.
5-Year Historical Sales Growth Greater Than Zero: This represents stocks with a strong record of growing revenues.
5-Year Historical EPS Growth Greater Than Zero: This represents stocks with a solid earnings growth history.
Next 3-5 Year EPS Growth Rate Greater Than Zero: This represents the rate at which a company's earnings are expected to grow. Improving earnings should help companies sustain dividend payments.
Price/Cash Flow Less Than M-Industry: A ratio lower than the industry median indicates that a stock is undervalued within its industry, meaning an investor would pay less for the company’s cash flow.
52-Week Price Change Greater Than S&P 500 (Market Weight): This ensures that a stock has appreciated more than the S&P 500 over the past year.
Top Zacks Rank: Stocks having a Zacks Rank #1 (Strong Buy) or 2 (Buy) generally outperform their peers in all types of market environments.
Growth Score of B or Better: Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.
These few criteria alone narrowed the universe from more than 7,700 stocks to just 16.
Here are five of the 16 stocks that fit the bill:
Ohio-based GormanRupp designs, manufactures and sells pumps and related equipment (pump and motor controls) for use in water, wastewater, construction, industrial, petroleum, original equipment, agricultural, fire protection, military and other liquid-handling applications. The Zacks Consensus Estimate for GRC’s 2026 revenues suggests a year-over-year improvement of 6.5%. The stock boasts a long-term (three-to-five years) earnings growth rate of 13% and has an annual dividend yield of 1.02%.
GRC currently carries a Zacks Rank #2 and has a Growth Score of A.
Idaho-based Micron Technology manufactures and markets high-performance memory and storage technologies, including Dynamic Random Access Memory, NAND flash memory, NOR Flash and other technologies. The Zacks Consensus Estimate for MU’s fiscal 2028 revenues suggests a year-over-year improvement of 108.4%. The stock boasts a long-term earnings growth rate of 32.60% and has an annual dividend yield of 0.06%.
MU currently sports a Zacks Rank #1 and has a Growth Score of A.
Headquartered in New York, Corning is a multinational technology company specializing in specialty glass, ceramics and optical physics. The Zacks Consensus Estimate for GLW's 2026 revenues suggests a year-over-year improvement of 16.9%. The stock boasts a long-term earnings growth rate of 24.10% and an annual dividend yield of 0.85%.
GLW currently sports a Zacks Rank #1 and a Growth Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.
Canada-based Suncor Energy is an integrated energy company that extracts, refines, and sells petroleum products, crude oil and lower-carbon power. The Zacks Consensus Estimate for SU’s 2026 revenues suggests a year-over-year improvement of 29.6%. The stock boasts a long-term earnings growth rate of 33.50% and an annual dividend yield of 2.23%.
SU currently sports a Zacks Rank #1 and a Growth Score of B.
Headquartered in Texas, Plains All American Pipeline is involved in the transportation, storage, terminalling and marketing of crude oil, natural gas, natural gas liquids (NGL) and refined products in the United States and Canada. The Zacks Consensus Estimate for PAA’s 2026 revenues suggests a year-over-year improvement of 42%. The stock boasts a long-term earnings growth rate of 1.60% and an annual dividend yield of 6.28%.
PAA currently carries a Zacks Rank #2 and a Growth Score of B.
DraftKings (DKNG - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this company have returned +7.1%, compared to the Zacks S&P 500 composite's +0.7% change. During this period, the Zacks Gaming industry, which DraftKings falls in, has gained 2.4%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, DraftKings is expected to post a loss of $0.18 per share, indicating a change of +30.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -7.1% over the last 30 days.
The consensus earnings estimate of $0.85 for the current fiscal year indicates a year-over-year change of +28.8%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $1.75 indicates a change of +105.9% from what DraftKings is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, DraftKings is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of DraftKings, the consensus sales estimate of $1.39 billion for the current quarter points to a year-over-year change of +21.6%. The $6.68 billion and $7.69 billion estimates for the current and next fiscal years indicate changes of +10.3% and +15.2%, respectively.
Last Reported Results and Surprise HistoryDraftKings reported revenues of $1.44 billion in the last reported quarter, representing a year-over-year change of -4.6%. EPS of $0.09 for the same period compares with $0.38 a year ago.
Compared to the Zacks Consensus Estimate of $1.5 billion, the reported revenues represent a surprise of -3.84%. The EPS surprise was -59.09%.
Over the last four quarters, DraftKings surpassed consensus EPS estimates times. The company topped consensus revenue estimates just once over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
DraftKings is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about DraftKings. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Philadelphia, Pennsylvania--(Newsfile Corp. - October 30, 2026) - Berger Montague, a leading national plaintiffs' law firm, announces that a class action lawsuit has been filed against FuelCell Energy, Inc. (NASDAQ: FCEL) ("FuelCell Energy" or the "Company") on behalf of investors who purchased or acquired FuelCell Energy securities during the period from June 24, 2026 through September 1, 2026 (the "Class Period"). The deadline to apply for lead plaintiff is November 10, 2026.
Q&A
What is this lawsuit about?
The complaint filed in this class action alleges that throughout the Class Period, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts, about the Company's business, operations, and prospects. Specifically, defendants failed to disclose to investors that: (1) the Company's manufacturing capacity was inadequate to generate the production rate required under its capital equipment purchase agreement ("CEPA") with Fit Energy USA LP ("Fit Energy"); (2) the Company's annualized production rate for deliveries under the CEPA with Fit Energy was slower than expected; (3) the Company was incurring higher product costs and manufacturing overhead expenses; (4) as a result of the slower production rate, the Company was reasonably likely to incur charges in connection with the CEPA.
On September 2, 2026, before the market opened, FuelCell reported its fiscal third quarter 2026 financial results, reporting a net loss of $45.3 million. According to the Company's press release, this reflected a higher gross loss than the prior year period, which was caused by product costs and manufacturing overhead that currently exceed the contractual pricing established under the CEPA with Fit Energy. Further, FuelCell reported that the annualized production rate was below the production volume at which it expects its cost structure to align with market-based pricing for orders of this scale, and as a result, the Company recorded a $17 million charge to reflect the impact of contractual pricing provisions associated with specific inventory and firm purchase commitments arising from Phase 0 of the CEPA.
On this news, FuelCell shares fell $2.68, or 15.69%, to close at $14.40 per share on September 2, 2026, thereby injuring investors.
Who is FuelCell Energy?
FuelCell Energy, headquartered in Danbury, Conn., is a global energy company that designs, manufactures, undertakes project development, installs, operates, and maintains megawatt-scale fuel cell systems.
What do I need to do?
Investor Deadline: Investors who purchased or acquired FuelCell Energy securities during the Class Period may, no later than November 10, 2026, seek to be appointed as a lead plaintiff representative of the class.
If you are a FuelCell Energy investor and would like to learn more about this action, or to discuss your rights, please contact Berger Montague: Andrew Abramowitz at [email protected] or (215) 875-3015 or Caitlin Adorni at [email protected] or (267) 764-4865 or visit our website.
About Berger Montague
Berger Montague is one of the nation's preeminent law firms focusing on complex civil litigation, class actions, and mass torts in federal and state courts throughout the United States. With more than $2.4 billion in 2025 post-trial judgments alone, the Firm is a leader in the fields of complex litigation, antitrust, consumer protection, defective products, environmental law, employment law, securities, and whistleblower cases, among many other practice areas. For over 55 years, Berger Montague has played leading roles in precedent-setting cases and has recovered over $50 billion for its clients and the classes they have represented. Berger Montague is headquartered in Philadelphia and has offices in Chicago; Malvern, PA; Minneapolis; San Diego; San Francisco; Toronto, Canada; Washington, D.C., and Wilmington, DE.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/321746
Source: Berger Montague
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Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses In FuelCell To Contact Him Directly To Discuss Their Options
If you purchased or acquired securities in FuelCell between June 24, 2026 and September 1, 2026 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
[You may also click here for additional information]
New York, New York--(Newsfile Corp. - October 30, 2026) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against FuelCell Energy, Inc. ("FuelCell" or the "Company") (NASDAQ: FCEL) and reminds investors of the November 10, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) that the Company's manufacturing capacity was inadequate to generate the production rate required under the CEPA; (2) that, as a result, the Company's annualized production rate for deliveries under the CEPA with Fit Energy was slower than expected; (3) that, as a result, the Company was incurring higher product costs and manufacturing overhead expenses; (4) that, as a result of the slower production rate, the Company was reasonably likely to incur charges in connection with the CEPA; (5) that the foregoing was a known trend affecting the Company's profitability; and (6) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On September 2, 2026, before the market opened, FuelCell reported its fiscal third quarter 2026 financial results, reporting a net loss of $45.3 million. According to the Company's press release, this reflected "a higher gross loss than the prior year period," which was caused by "product costs and manufacturing overhead that currently exceed the contractual pricing established under the CEPA with Fit Energy." Further, FuelCell reported that the annualized production rate was "below the production volume at which we expect our cost structure to align with market-based pricing for orders of this scale," and as a result, the Company recorded a $17 million charge to "reflect the impact of contractual pricing provisions associated with specific inventory and firm purchase commitments" arising from Phase 0 of the CEPA.
On this news, FuelCell shares fell $2.68, or 15.69%, to close at $14.40 per share on September 2, 2026, thereby injuring investors.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding FuelCell's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the FuelCell Energy class action, go to www.faruqilaw.com/FCEL or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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Frequently Asked Questions (FAQ) for Investors Regarding the FuelCell Securities Class Action Lawsuit:
What is the FuelCell securities fraud lawsuit about?
The lawsuit alleges FuelCell Energy misled investors about its manufacturing capacity, production rates, costs, and financial risks associated with its CEPA with Fit Energy.
Who may be eligible to participate in the lawsuit?
Investors who purchased or acquired FuelCell Energy (NASDAQ: FCEL) securities between June 24, 2026 and September 1, 2026 may be eligible if they suffered losses.
What is a lead plaintiff, and how can I seek appointment?
A lead plaintiff represents the proposed class during the litigation. Eligible investors must file a motion with the court by November 10, 2026. Investors may participate without serving as lead plaintiff.
Why should investors contact Faruqi & Faruqi, LLP?
Faruqi & Faruqi, LLP has represented investors in securities litigation for decades and has recovered hundreds of millions of dollars for shareholders. Investors who purchased FuelCell securities during the Class Period may contact the firm to discuss their legal rights, potential claims, and the lead plaintiff process at no cost or obligation.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/321598
Source: Faruqi & Faruqi LLP
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When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Let's take a look at what these Wall Street heavyweights have to say about Lam Research (LRCX - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Lam Research currently has an average brokerage recommendation (ABR) of 1.57, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 34 brokerage firms. An ABR of 1.57 approximates between Strong Buy and Buy.
Of the 34 recommendations that derive the current ABR, 22 are Strong Buy and four are Buy. Strong Buy and Buy respectively account for 64.7% and 11.8% of all recommendations.
Brokerage Recommendation Trends for LRCX
Check price target & stock forecast for Lam Research here>>>
The ABR suggests buying Lam Research, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Should You Invest in LRCX?In terms of earnings estimate revisions for Lam Research, the Zacks Consensus Estimate for the current year has increased 2.8% over the past month to $9.59.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Lam Research. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Lam Research may serve as a useful guide for investors.
Applied Materials (AMAT - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this maker of chipmaking equipment have returned -20.3%, compared to the Zacks S&P 500 composite's +0.7% change. During this period, the Zacks Electronics - Semiconductors industry, which Applied Materials falls in, has lost 10.8%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Applied Materials is expected to post earnings of $4.06 per share for the current quarter, representing a year-over-year change of +87.1%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of $12.79 points to a change of +35.8% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $18.28 indicates a change of +42.9% from what Applied Materials is expected to report a year ago. Over the past month, the estimate has changed -0.1%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Applied Materials.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Applied Materials, the consensus sales estimate of $10.3 billion for the current quarter points to a year-over-year change of +51.4%. The $34.25 billion and $45.65 billion estimates for the current and next fiscal years indicate changes of +20.7% and +33.3%, respectively.
Last Reported Results and Surprise HistoryApplied Materials reported revenues of $9.12 billion in the last reported quarter, representing a year-over-year change of +24.8%. EPS of $3.5 for the same period compares with $2.48 a year ago.
Compared to the Zacks Consensus Estimate of $9 billion, the reported revenues represent a surprise of +1.31%. The EPS surprise was +3.55%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Applied Materials is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Applied Materials. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Key Takeaways Mondelez's Q3 earnings beat estimates at 78 cents per share, while revenues rose 2.3% but missed.
MDLZ's gross margin expanded 380 basis points to 34.2%, aided by lower costs and higher pricing.
Mondelez reaffirmed its 2026 outlook for at least 2% organic sales growth and $3B in free cash flow.
Mondelez International, Inc. (MDLZ - Free Report) reported third-quarter 2026 results, wherein the bottom line beat the Zacks Consensus Estimate, while the top line missed. Net revenues increased year over year, supported by volume growth and favorable currency movements.
Adjusted earnings were 78 cents per share, up 5.5% on a constant-currency (cc) basis. The metric beat the Zacks Consensus Estimate of 72 cents. The increase was driven by stronger operating performance and fewer outstanding shares, partially offset by higher income taxes, interest and other expenses, and lower equity-method investment earnings.
Net revenues rose 2.3% year over year to $9,967 million, missing the Zacks Consensus Estimate of $9,977 million. Organic net revenues increased 2.1% year over year, driven by favorable volume/mix and higher net pricing, contributing 1.8 and 0.3 percentage points, respectively.
Volume/mix growth marked the strongest performance since the third quarter of 2023, reflecting improving commercial execution and investments in brands, innovation and distribution. The company recorded its third consecutive quarter of sequential volume/mix improvement, with all four regions delivering flat to positive performances. Growth was supported by resilient snacking demand, particularly in emerging markets, despite cautious consumer spending.
Mondelez's Segment Performance: Key InsightsRevenues from emerging markets increased 4.9% year over year to $4,072 million, with organic growth of 4.1%. Volume/mix contributed 2.2 percentage points, supported by India, China, Mexico and Southeast Asia.
Revenues from developed markets increased 0.5% to $5,895 million, with organic growth of 0.8%. Volume/mix improved 1.5 percentage points, reflecting solid North American performance and Europe's return to positive volume growth.
Region-wise, reported revenues rose 12% in Latin America, 8.2% in Asia, the Middle East and Africa (AMEA), and 1.1% in North America while declining 3.3% in Europe. On an organic basis, revenues increased 6.9% in Latin America, 7.7% in AMEA and 1.6% in North America while dropping 2.1% in Europe.
Biscuits and Baked Snacks recorded organic revenue growth of 2.2%, supported by Oreo, Ritz and the cakes and pastries portfolio. Chocolate grew 0.6%, benefiting from Cadbury innovation and improving European volumes. Gum and Candy posted 6.9% organic growth, supported by Sour Patch Kids innovation and gum strength in Latin America and China.
MDLZ's Adjusted Margin and Profitability SnapshotAdjusted gross profit increased 14% at constant currency to $3,407 million on a reported-currency basis. Adjusted gross margin expanded 380 basis points to 34.2%, benefiting from lower raw material costs, manufacturing productivity, favorable volume/mix and higher net pricing.
Adjusted operating income rose 17% at constant currency to $1,384 million on a reported-currency basis. Adjusted operating margin expanded 190 basis points to 13.9%. Lower manufacturing costs and higher pricing supported profitability, partially offset by increased selling, general and administrative expenses and higher advertising and consumer promotion costs.
Mondelez's Financial Health SnapshotMDLZ ended the quarter with cash and cash equivalents of $1,628 million and long-term debt of $16,351 million. For the nine months ended Sept. 30, 2026, net cash provided by operating activities totaled $2,606 million compared with $2,117 million in the year-ago period.
Free cash flow reached $1,659 million during the first nine months. Capital expenditures totaled $947 million compared with $881 million a year earlier.
The company returned $2,772 million to shareholders through dividends and share repurchases during the first nine months, comprising $1,927 million in dividends and $845 million in share repurchases.
MDLZ Reaffirms 2026 OutlookFor 2026, Mondelez reaffirmed its expectation of at least 2% organic net revenue growth. Management continues to project adjusted earnings growth ranging from flat to 5% on a constant-currency basis and free cash flow of approximately $3,000 million.
The company expects adjusted interest expense of approximately $350 million, an adjusted effective tax rate in the mid-20s and share repurchases of up to $2,000 million. Currency translation is expected to add approximately 1.5 percentage points to net revenue growth and about 4 cents to adjusted earnings per share.
Despite inflationary pressures and macroeconomic volatility, management continues to anticipate strong earnings growth in 2027, supported by improving volumes, productivity initiatives, cost savings and continued brand investments.
This Zacks Rank #3 (Hold) stock has risen 8.8% over the past year against the industry’s decline of 15.1%.
Stocks to ConsiderLamb Weston Holdings, Inc. (LW - Free Report) , a leading global manufacturer, marketer and distributor of value-added frozen potato products, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Lamb Weston’s current fiscal-year EPS implies growth of 7.6% from the year-ago figure. LW delivered a trailing four-quarter earnings surprise of 22.1%, on average.
Mama's Creations, Inc. (MAMA - Free Report) , a prepared-foods company focused on fresh, ready-to-eat and deli products, currently carries a Zacks Rank of 2 (Buy). MAMA delivered a trailing four-quarter earnings surprise of 121.7%, on average.
The Zacks Consensus Estimate for Mama's Creations’ current fiscal-year sales and EPS indicates an increase of 30.3% and 66.7%, respectively, from the year-ago period.
The J.M. Smucker Company (SJM - Free Report) , a leading manufacturer and marketer of branded food, beverage, pet food and pet snack products, currently carries a Zacks Rank #2. SJM delivered a trailing four-quarter earnings surprise of 13.8%, on average.
The Zacks Consensus Estimate for The J.M. Smucker’s current fiscal-year EPS implies growth of 17.1% from the year-ago figure.
On its fourth-quarter 2026 earnings conference call, held on Oct. 29, 2026, D.R. Horton (DHI -1.08%) announced $1 billion in consolidated pre-tax income on revenues of $9.4 billion while outlining plans to manage through elevated mortgage rates. High interest rates and cautious consumer sentiment continue to compress gross profit margin (the percentage of revenue remaining after direct housing costs), forcing homebuilders to rely on pricing incentives and operational discipline. For long-term investors, the company's ability to maintain strong cash generation and market share during cyclical housing downturns highlights its structural cost advantages.
Three things management said stand out.
1. Incentives Will Keep Gross Margin Under Short-Term PressureManagement expects mortgage rate buydowns (where a builder pays to lower a buyer's interest rate) and price concessions to remain elevated into fiscal 2027. Higher financing costs and cautious consumer sentiment limit the company's ability to offset construction expenses, driving home sales gross margin down to an expected range of 18% to 18.5% in the first quarter.
We expect continued pressure on our home sales gross margin in the first quarter reflecting a lower average sales price and higher incentive costs at current mortgage rates and we expect our incentive levels to remain elevated in fiscal 2027.
-- Jessica Hansen, Senior Vice President of Communications2. Flexible Lot Control Protects Balance Sheet EfficiencyTo protect capital, management reduced housing starts by 45% sequentially and relies on controlling 77% of its lot supply (plots of land prepared for home construction) through purchase contracts rather than outright ownership. This land-light model limits inventory risk and preserves operating cash flow when home demand slows.
This approach enhances our capital efficiency, returns, and operational flexibility. Our owned lot position of 131,000 lots is down 11% from a year ago and represents a 1.5-year supply.
-- Michael J. Murray, Chief Operating OfficerDespite revenue headwinds, the company generated $3.5 billion in operating cash flow in fiscal 2026 and returned $4.1 billion to shareholders through dividends and share buybacks. Management plans to repurchase $3 billion of common stock in fiscal 2027, reducing outstanding share count to support future earnings per share.
In fiscal 2027, we expect to further reduce our outstanding share count through share repurchases, which provide support to our future earnings per share.
-- Bill W. Wheat, Chief Financial OfficerLooking AheadElevated mortgage rates and cautious buyer sentiment continue to weigh on housing demand, but management is not hiding its focus on operational discipline. The company relies on its scale, national lot option network, and industry-leading market share to manage inventory levels and maintain pricing discipline.
We will stay disciplined as we navigate the current housing market and broader economy, and keep our focus on delivering long term value for both our homebuyers and shareholders.
-- Paul J. Romanowski, President and Chief Executive OfficerEven as short-term absorption rates (the pace at which homes sell within a market) remain muted, management's conservative balance sheet leaves room for market share gains as weaker competitors struggle.
We are well positioned to drive future growth and stronger returns when market conditions improve.
-- Paul J. Romanowski, President and Chief Executive OfficerThe Motley Fool has positions in and recommends D.R. Horton. The Motley Fool has a disclosure policy.
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D.R. Horton, the nation’s largest homebuilder by volume, has signed a multiyear commercial agreement with Promise Robotics to use the startup’s robotic factory capacity on more than 1,250 homes. The deal, announced October 13, makes D.R. Horton the first major U.S. builder to sign on to Promise Robotics’s factory-as-a-service model.
On a typical jobsite, framing crews build walls by hand, cutting studs, nailing them together, and standing them up on the foundation. That labor-intensive, weather-dependent work is where builders feel labor shortages most. Promise Robotics moves much of the framing into a factory, where robots assemble wall panels from the builder’s existing plans. The panels are then trucked to the site and set in place, which is far faster than framing from scratch.
D.R. Horton closed 84,863 homes in fiscal 2025, so the around 1,250 homes planned with Promise Robotics amount to about 1.5% of a single year’s volume. To start, this looks more like a measured test than a wholesale shift in how D.R. Horton builds.
In metro Phoenix, where Promise Robotics tells ResiClub all the 1,250 homes will be built and located, it’s a different story: 1,250 homes is more than half a year of D.R. Horton’s recent annual combined closings across Arizona’s Maricopa, Pinal, and Pima counties. The structure of the deal matters, too. D.R. Horton isn’t buying robots or building a factory. It’s renting automated production capacity from a third party that owns the plants, the software, and the robotics—and that says it can now replicate the model market by market, starting with a factory in Gilbert, Arizona.
The dealUnder the agreement, D.R. Horton will tap the Promise Robotics production platform to help build 1,250-plus homes. The companies did not disclose financial terms, a delivery timeline, or which Phoenix communities the homes will go to.
Brad Conlon, D.R. Horton’s senior vice president of strategic growth and innovation, framed the deal around three operating goals: faster cycle times, more production capacity, and more consistency and predictability. He called the Promise Robotics platform a new capability for pursuing those goals.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Toyota Motor Corporation (TM - Free Report) .
Toyota Motor currently has an average brokerage recommendation (ABR) of 1.25, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 12 brokerage firms. An ABR of 1.25 approximates between Strong Buy and Buy.
Of the 12 recommendations that derive the current ABR, 10 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 83.3% and 8.3% of all recommendations.
Brokerage Recommendation Trends for TM
Check price target & stock forecast for Toyota Motor here>>>
While the ABR calls for buying Toyota Motor, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is TM a Good Investment?Looking at the earnings estimate revisions for Toyota Motor, the Zacks Consensus Estimate for the current year has increased 4% over the past month to $21.18.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Toyota Motor. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Toyota Motor may serve as a useful guide for investors.
