Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, May 27th:
NetScout Systems (NTCT - Free Report) : This company, which is a leading provider of business assurance - a powerful combination of service assurance, cybersecurity, and business intelligence solutions - for today's most demanding service provider, enterprise and government networks, has a Zacks Rank #1(Strong Buy), and witnessed the Zacks Consensus Estimate for its current year earnings increasing 7.1% over the last 60 days.
NetScout Systems' shares gained 44.2% over the last three month compared with the S&P 500’s gain of 9.4%. The company possesses a Momentum Score of A.
Murphy USA (MUSA - Free Report) : This company, which is a leading independent retailer of motor fuel and convenience merchandise in the United States, has a Zacks Rank #1, and witnessed the Zacks Consensus Estimate for its current year earnings increasing 23.4% over the last 60 days.
Murphy USA’s shares gained 36.1% over the last three month compared with the S&P 500’s gain of 9.4%. The company possesses a Momentum Score of A.
Fox (FOXA - Free Report) : This company, which is a news, sports and entertainment content provider, has a Zacks Rank #1, and witnessed the Zacks Consensus Estimate for its current year earnings increasing 7.6% over the last 60 days.
Fox’s shares gained 15.9% over the last three month compared with the S&P 500’s gain of 9.4%. The company possesses a Momentum Score of A.
See the full list of top ranked stocks here
Learn more about the Momentum score and how it is calculated here.
Key Takeaways NXST, MUSA, LYB and AVT screened on the basis of PEG, valuation and earnings growth metrics.LyondellBasell projects strong growth, with a 49.4% long-term expected earnings rate.Avnet posted a 43.3% five-year growth rate and holds a Value Score of A. Elevated interest rates, persistent geopolitical tensions and uneven global growth have kept market uncertainty high through mid-2026. As a result, investors are increasingly focusing on companies with stable cash flows, resilient balance sheets and reasonable valuations instead of richly priced speculative names. Moreover, after the sharp rally in several AI and momentum-driven stocks over the past year, valuation disparities across sectors have widened significantly.
This backdrop has created selective opportunities in fundamentally strong but overlooked businesses, making value investing increasingly attractive for investors seeking downside protection alongside sustainable earnings growth. As soon as other investors start selling their stocks at a cheaper rate in times of market uncertainty, value investors take this as an opportunity to pick good stocks at a discounted price.
Several stocks that have surged significantly in the recent past have shown the overwhelming success of this pure-play investment strategy. Here, we discuss four such stocks - Nexstar Media Group (NXST - Free Report) , Murphy USA (MUSA - Free Report) , LyondellBasell Industries (LYB - Free Report) and Avnet (AVT - Free Report) .
However, this apparently simple value investment technique has some drawbacks and not understanding the strategy properly may often lead to “value traps.” In such a situation, these value picks start to underperform over the long run as the temporary problems, which once drove the share price down, turn out to be persistent.
There are many value investment yardsticks, such as dividend yield, P/E or P/B, which are simple and can single out whether a stock is trading at a discount.
However, for investors looking to escape such value traps, it is also vital to determine where the stock would be headed in the next 12 to 24 months. Warren Buffett advises these investors to focus on the earnings growth potential of a stock. This is where lies the importance of a not-so-popular value investing metric, the PEG ratio.
PEG Ratio at a GlanceThe PEG ratio is defined as (Price/ Earnings)/Earnings Growth Rate
A low PEG ratio is always better for value investors.
While P/E alone fails to identify a true value stock, PEG helps find the intrinsic value of a stock.
There are some drawbacks to using the PEG ratio. It doesn’t consider the very common situation of changing growth rates, such as the forecast of the first three years at a very high growth rate, followed by a sustainable but lower growth rate over the long term.
Hence, PEG-based investing can turn out to be even more rewarding if some other relevant parameters are also taken into consideration.
Here are some of the screening criteria for a winning strategy:
PEG Ratio less than X Industry Median
P/E Ratio (using F1) less than X Industry Median (for more accurate valuation purposes)
Zacks Rank #1 (Strong Buy) or 2 (Buy) (Whether good market conditions or bad, stocks with a Zacks Rank #1 or 2 have a proven history of success.)
Market Capitalization greater than $1 billion (This helps us to focus on companies that have strong liquidity.)
Average 20-Day Volume greater than 50,000 (A substantial trading volume ensures that the stock is easily tradable.)
Percentage Change F1 Earnings Estimate Revisions (4 Weeks) greater than 5% (Upward estimate revisions add to the optimism, suggesting further bullishness.)
Value Score of less than or equal to B: Our research shows that stocks with a Style Score of A or B when combined with a Zacks Rank #1, 2 or 3 (Hold) offer the best upside potential.
Our PEG-Driven PicksHere are four stocks that qualified the screening:
Nexstar: It operates television and radio stations across the United States, providing local and national news, sports and entertainment content. The company also owns NewsNation and WGN-AM while offering digital advertising, streaming and multimedia services through various online platforms.
NXST currently has a Zacks Rank #1 and a Value Score of B. Nexstar also has an impressive five-year expected growth rate of 10%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Murphy USA: This is a leading U.S. fuel and convenience retailer operating more than 1,700 stores under the Murphy USA, Murphy Express and QuickChek brands across 27 states. The company primarily operates near Walmart locations and also manages fuel distribution and ethanol production assets.
MUSA currently has a Zacks Rank #1 and a Value Score of B. DVA also has an impressive five-year historical growth rate of 16.6%.
LyondellBasell: This is a global chemicals, plastics and refining company operating across 18 countries. The company produces olefins, polyethylene and polypropylene used in automotive, packaging, construction and electronics industries, generating roughly $30 billion in 2025 revenue.
Apart from a discounted PEG and P/E, LyondellBasell currently has a Zacks Rank #1 and a Value Score of B. LYB has a long-term expected growth rate of 49.4%.
Avnet: It is a global distributor of electronic components and computer products serving customers in more than 140 countries. The company supplies semiconductors, embedded systems and related services through its Electronic Components and Farnell segments to OEMs, EMS providers and resellers.
Avnet has a Zacks Rank #2 and a Value Score of A. AVT also has an impressive five-year historical growth rate of 43.3%.
A month has gone by since the last earnings report for Murphy USA (MUSA - Free Report) . Shares have lost about 13% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Murphy USA due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
MUSA Q1 Earnings Beat Estimates on Strong Fuel ContributionMotor fuel retailer Murphy USA posted first-quarter 2026 earnings of $7.28 per diluted share, up 176.8% from $2.63 a year ago and ahead of the Zacks Consensus Estimate of $5.37 by 35.6%. Total operating revenues rose 6.5% year over year to $4.8 billion and topped the consensus mark of $4.7 billion by 3.9%.
Results reflected a more favorable refined-products environment and solid execution, with total fuel contribution of 35 cents per gallon and total retail fuel volumes up 2.1% year over year.
Fuel Results Benefit From Pricing DynamicsTotal fuel contribution climbed 40.6% year over year to $403.9 million, supported by both higher margins and higher volumes. Retail fuel contribution increased 9.5% to $293 million as retail fuel margin expanded to 25.4 cents per gallon from 23.7 cents a year earlier.
Fuel supply, including RINs, also swung meaningfully positive, contributing 9.6 cents per gallon versus 1.7 cents per gallon in the year-ago quarter. Management attributed the fuel supply lift largely to market-driven pricing effects and the timing of inventory movements during the period.
Merchandise Mix Keeps Increasing ContributionMerchandise contribution increased 7.3% to $210.2 million, driven by higher sales volume and improved unit margins. Merchandise sales advanced 5% year over year to $1 billion, while average unit margin improved to 20% from 19.6%.
On a same-store basis, total merchandise contribution rose 4.9%. Nicotine remained the standout, with nicotine contribution on a same-store basis increasing to $20.2 thousand per store month from $18.5 thousand, while non-nicotine contribution was $19.7 thousand versus $19.9 thousand a year ago.
Management emphasized that customer behavior shifts tend to build as higher pump prices persist. In April, the company indicated volumes were running roughly flat to the prior year on an average per-store month basis, alongside expectations for all-in fuel margins between 35 cents and 40 cents per gallon for the month.
Loyalty metrics were a notable signal of traffic opportunity. Murphy Drive Rewards added about 600,000 members in a month, the highest monthly total since 2022, and management also cited year-over-year increases of 8.5% in active members and about 12% in total transactions, pointing to more frequent visits even as baskets may moderate.
Profitability gains were not limited to fuel and merchandise. Adjusted EBITDA rose to $277.9 million from $157.4 million in the prior-year quarter, reflecting a higher contribution against relatively steady operating cost intensity.
Below the operating line, interest expense increased to $29 million from $25.4 million, while the effective tax rate rose to about 22.6% from 14.1% a year ago. The higher rate reflected lower excess tax benefits tied to share-based compensation, partially offset by federal energy tax credits.
Balance SheetMurphy USA ended the quarter with $118.6 million of cash and cash equivalents and $2.1 billion of long-term debt, with a debt-to-capitalization of 76.4%. Operating cash flow increased to $320 million from $128.5 million a year ago, aided by working capital dynamics.
Capital returns remained active. During the quarter, the company repurchased about 169,000 shares for $70.9 million at an average price of $419.87 per share and paid a quarterly dividend of 63 cents per share. On the growth front, Murphy USA opened six new-to-industry stores and closed three QuickChek sites, ending March with 1,803 stores. It had 28 total sites under construction at quarter-end (including raze-and-rebuild projects) and reiterated that it is on pace to open 45 to 55 new stores in 2026. As of March 31, $221.4 million remained under the 2023 repurchase authorization, with an additional $2 billion authorization set to become effective once that program is completed.
How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 16.83% due to these changes.
VGM ScoresAt this time, Murphy USA has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock has a score of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Murphy USA has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
A strong stock as of late has been Murphy USA (MUSA - Free Report) . Shares have been marching higher, with the stock up 4% over the past month. The stock hit a new 52-week high of $614.24 in the previous session. Murphy USA has gained 51.7% since the start of the year compared to the -0.5% move for the Zacks Retail-Wholesale sector and the 61.9% return for the Zacks Retail - Convenience Stores industry.
What's Driving the Outperformance?The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on April 29, 2026, Murphy USA reported EPS of $7.28 versus consensus estimate of $5.37.
For the current fiscal year, Murphy USA is expected to post earnings of $32.32 per share on $22.18 in revenues. This represents a 34.11% change in EPS on a 14.41% change in revenues. For the next fiscal year, the company is expected to earn $29.56 per share on $21.74 in revenues. This represents a year-over-year change of -8.51% and -1.95%, respectively.
Valuation MetricsMurphy USA may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Murphy USA has a Value Score of B. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 18.9X current fiscal year EPS estimates, which is not in-line with the peer industry average of 31.9X. On a trailing cash flow basis, the stock currently trades at 15.2X versus its peer group's average of 22.1X. Additionally, the stock has a PEG ratio of 2.01. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks RankWe also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Murphy USA currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Murphy USA fits the bill. Thus, it seems as though Murphy USA shares could have potential in the weeks and months to come.
Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, June 12:
Valero Energy Corporation (VLO - Free Report) : This energy company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 49.8% over the last 60 days.
Valero has a PEG ratio of 0.38 compared with 0.49 for the industry. The company possesses a Growth Score of B.
Murphy USA Inc. (MUSA - Free Report) : This retail fuel marketing company carriesa Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 26.7% over the last 60 days.
Murphy has a PEG ratio of 2.01 compared with 2.36 for the industry. The company possesses a Growth Score of A.
Marathon Petroleum Corporation (MPC - Free Report) : This integrated downstream energy company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 39.8% over the last 60 days.
Marathon Petroleum has a PEG ratio of 0.42 compared with 0.49 for the industry. The company possesses a Growth Score of B.
See the full list of top-ranked stocks here.
Learn more about the Growth score and how it is calculated here.
The IPO class of 2016 produced five very different outcomes. Some companies transformed beyond recognition. Others delivered steady compounding. One barely moved.
Five Companies, Five Paths Twilio (NYSE: TWLO | TWLO Price Prediction) went public in June 2016 as a developer-focused cloud communications platform. It rode the COVID-era software boom to stratospheric heights before crashing back. Today it has reinvented itself as artificial intelligence (AI) infrastructure for autonomous customer engagement agents, with FY2025 free cash flow of $945.4 million and over 400,000 active customer accounts.
US Foods (NYSE: USFD) has been the quiet compounder. The second-largest broadline food distributor in the United States had its initial public offer in May 2016 and has spent a decade grinding out margin expansion, posting record adjusted EBITDA of $1.9 billion in FY2025.
Nutanix (NASDAQ: NTNX) endured a painful transition from hardware-bundled appliances to pure software subscriptions. It eventually turned profitable, but the stock has given back significant ground over the past year.
Valvoline (NYSE: VVV) shed its lubricants business and transformed into a pure-play quick-lube operator with roughly 2,400 locations. The strategic clarity is real, but the stock hasn’t rewarded investors much over the decade.
Red Rock Resorts (NASDAQ: RRR) has been a direct play on Las Vegas population growth, opening the Durango Resort in 2023 and paying a special dividend of $1.00/share in February 2026.
The Returns What $1,000 invested at each IPO would be worth today, measured to March 12, 2026:
Twilio (IPO: June 23, 2016)
Initial Investment: $1,000 Current Value: $4,360 Total Return: +335.95% 1-Year Return: +22.08% 5-Year Return: −65.99% S&P 500 (1-year): +19.18% | S&P 500 (5-year): +69.03%
US Foods (IPO: May 26, 2016) Initial Investment: $1,000 Current Value: $3,718 Total Return: +271.78% 1-Year Return: +42% 5-Year Return: +129.06% S&P 500 (1-year): +19.18% | S&P 500 (5-year): +69.03%
Nutanix (IPO: September 30, 2016) Initial Investment: $1,000 Current Value: $1,058 Total Return: +5.76% 1-Year Return: −42.26% 5-Year Return: +43.02% S&P 500 (1-year): +19.18% | S&P 500 (5-year): +69.03%
Valvoline (IPO: September 28, 2016) Initial Investment: $1,000 Current Value: $1,583 Total Return: +58.29% 1-Year Return: −1.5% 5-Year Return: +30.93% S&P 500 (1-year): +19.18% | S&P 500 (5-year): +69.03%
Red Rock Resorts (IPO: May 27, 2016) Initial Investment: $1,000 Current Value: $3,835 Total Return: +283.51% 1-Year Return: +38.17% 5-Year Return: +106.98% S&P 500 (1-year): +19.18% | S&P 500 (5-year): +69.03%
The S&P 500 returned 228.92% over its standard 10-year window. Twilio and Red Rock both cleared that bar. US Foods came close. Nutanix and Valvoline fell well short. Twilio’s decade-long return masks a brutal middle chapter. Anyone who bought near the 2021 peak is still sitting on a 65.99% five-year loss. The full-period gain only materializes for investors who bought near the IPO and held through a 90%+ peak drawdown.
Key Narratives Going Forward US Foods posted a one-year return that beat the S&P 500, with record adjusted EBITDA in FY2025. Analysts will be watching whether restaurant sector trends affect food distribution volumes.
Red Rock Resorts carries a $3.4 billion debt load alongside its Durango expansion and cyclical exposure to Las Vegas consumer spending.
Nutanix posted a 42.26% one-year decline even as its software transition metrics improved. Analysts have noted that divergence. Investors should conduct their own research before making any decisions.
Bridgefront Capital LLC purchased a new stake in shares of Red Rock Resorts, Inc. (NASDAQ: RRR) in the third quarter, according to its most recent disclosure with the SEC. The firm purchased 10,305 shares of the company's stock, valued at approximately $629,000. Several other hedge funds also recently modified their holdings of the
Pre-Market Stock Futures: Futures are trading higher after President Trump signalled that talks with Iran are progressing positively, as we get ready to start another trading week, with the same issues that have dragged the stock market down for four consecutive weeks still in place. While we have had a virtual March Madness in stocks, there are at least some positive developments that could slow the massive rise in energy prices, not the least of which is getting oil tankers through the Strait of Hormuz. All of the major indices closed lower again on Friday, with the Russell 2000 leading the way, finishing the session down 2.61% at 2,429, and is now officially in correction territory, while the Nasdaq closed down 2.01% at 21,647. The S&P 500 was last seen at 6,506, down 1.51%, which could be a bad break for the legacy index, as most technicians have warned that breaking the 6,600 support level could lead to more selling. The Dow Jones Industrial Average held up best, ending the day at 45,577, down 0.96%.
Treasury Bonds: The song remains the same, as yields across the Treasury curve rose again on Friday. The recent rise in inflation and the growing belief across Wall Street that interest rate cuts may be off the table until the summer, with some firms indicating there will be no rate cut this year, have contributed to the selling. The 30-year long bond finished Friday at 4.96%, while the benchmark ten-year note was last seen at 4.38%. One thing is for sure: if you see the 10-year note hit 4.75%, it would make sense to buy that level.
Oil and Gas: Despite the United States trying in numerous ways to increase supply and distribution, oil traded higher on Friday but backed off from levels reached earlier in the day. Despite the efforts, Brent crude still finished the day up 3.62% at $112.60, while West Texas Intermediate continues closing in on the $100 level, and was last seen at $98.29, up 2.87%. Natural gas was a surprise, closing down 2.24% at $3.10.
Gold: Gold and Silver both continued the epic slide that started in earnest about a month ago, on Friday, and this could very well carry through this week. The combination of a stronger US dollar, rising Treasury yields, and reduced expectations of immediate interest rate cuts was cited as a reason for the weakness. The surge in oil prices has intensified inflation concerns, prompting investors to liquidate gold positions to cover margin calls and making it a source of cash in volatile markets, despite its usual role as a safe haven. Gold finished Friday at $4,487, down 3.4%, while Silver closed the session at $67.97, down 6.45%.
Crypto: After a week of heavy swings, the cryptocurrency market attempted to stabilize on Friday, with Bitcoin hovering between $70,000 and $71,000. Despite recovering from recent lows, the crypto market continues to face headwinds from Middle Eastern geopolitical instability and a dip in institutional momentum. At 7 AM EDT, Bitcoin traded at $68,549, while Ethereum traded at $2,048.
24/7 Wall St. reviews dozens of analyst research reports daily to identify new investment ideas for both investors and traders. Some of these daily analyst calls cover stocks to buy. Other calls cover stocks to sell or avoid. Remember that no single analyst call should ever be used as a basis to buy or sell a stock.
Here are some of the top Wall Street analyst upgrades, downgrades, and initiations seen on Monday, March 23, 2026.
Upgrades: APA Corporation (NYSE: APA) | APA Price Prediction was upgraded to Equal Weight from Underweight at Barclays, which has a $35 target price for the oil giant. Cheniere Energy Inc. (NYSE: LNG) was upgraded to Overweight from Equal Weight at Morgan Stanley, which raised the target price for the LNG leader to $313 from $236. MongoDB Inc. (NASDAQ: MDB) was upgraded to Outperform from Neutral at Mizuho, which boosted the target price for the stock to $325 from $290. Valvoline Inc. (NYSE: VVV) was raised to Buy from Hold at Stifel, which nudged their target price for the shares to $42 from $40. Venture Global Inc. (NYSE: VG) was raised to Overweight from Underweight at Morgan Stanley, which lifted the target price for the stock to $22 from $8. Downgrades: Brookfield Renewable Corp. (NYSE: BEPC) was downgraded to Underweight from Overweight at Morgan Stanley, which lowered the target price for the shares to $95 from $120. Crown Castle Inc. (NYSE: CCI) was downgraded to Equal Weight from Overweight at Wells Fargo, which has an $85 target price for the stock. PG&E Corp. (NYSE: PCG) was downgraded to Hold from Buy at Jefferies, which trimmed the target price for the utility to $19 from $20. Super Micro Computer Inc. (NASDAQ: SMCI) was downgraded to Market Perform from Outperform at Northland, with a $22 target price. Zimmer Biomet Holdings Inc. (NYSE: ZBH) was cut to Neutral from Buy at BTIG, without a target price for the company. Initiations: Terawulf Inc. (NASDAQ: WULF) was initiated with a Buy rating at Arete, which has a huge $30 prce target for the company. Hut 8 Corp. (NASDAQ: HUT) was started with a Buy rating at Arete, which has a $136 target price for the shares. Jasper Therapeutics (NASDAQ: JSPR) was assumed with a Neutral rating at UBS, with a $1.50 target price. Red Rock Resorts Inc. (NYSE: RRR) was started with a Buy rating at Benchmark, which has a $67 target price for the iconic Colorado music venue. Odysight.AI Inc. (NASDAQ: ODYS) was initiated with a Buy rating at Benchmark, with a $10 target price objective.
, /PRNewswire/ -- Red Rock Resorts, Inc. ("Red Rock Resorts", "we" or the "Company") (NASDAQ: RRR) announced today that it will release the Company's financial results for the first quarter 2026 on Wednesday, April 29, 2026 and will hold a conference call on the same day at 4:30 p.m. ET (1:30 p.m. PT). The conference call will consist of prepared remarks from the Company and will include a question and answer session.
To listen to the conference call, please dial into the conference operator no later than 4:15 p.m. ET (1:15 p.m. PT) at (888) 317-6003 using the passcode: 1891420. For those of you dialing internationally, your dial in number is (412) 317-6061. A live audio webcast of the call will also be available at www.redrockresorts.com.
A replay of the call will be available through May 6, 2026, by dialing in at (855) 669-9658 or internationally at (412) 317-0088 using conference ID: 9286490. An audio archive of the call will also be available at www.redrockresorts.com.
About Red Rock Resorts
Red Rock Resorts is a holding company that owns an indirect equity interest in and manages Station Casinos LLC ("Station Casinos"). Station Casinos is the leading provider of gaming, hospitality and entertainment to the residents of Las Vegas, Nevada. Station Casinos' properties, which are located throughout the Las Vegas valley, are regional entertainment destinations and include various amenities, including numerous restaurants, entertainment venues, movie theaters, bowling and convention/banquet space, as well as traditional casino gaming offerings such as video poker, slot machines, table games, bingo and race and sports wagering. Station Casinos owns and operates Red Rock Casino Resort Spa, Green Valley Ranch Resort Spa Casino, Durango Casino Resort, Palace Station Hotel & Casino, Boulder Station Hotel & Casino, Sunset Station Hotel & Casino, Santa Fe Station Hotel & Casino, Wildfire Rancho, Wildfire Boulder, Wildfire Sunset, Wildfire Valley View, Wildfire Anthem, Wildfire Lake Mead, Wildfire on Fremont and Seventy Six by Station Casinos (North Lamb, Aliante and Union Village). Station Casinos also owns a 50% interest in Barley's Casino & Brewing Company, Wildfire Casino & Lanes and The Greens.
Investors:
Red Rock Resorts
Stephen L. Cootey
(702) 495-3550
Media:
Michael J. Britt
(702) 495-3693
[email protected]
SG Americas Securities LLC boosted its holdings in Red Rock Resorts, Inc. (NASDAQ:RRR – Free Report) by 135.4% in the 4th quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 25,397 shares of the company’s stock after purchasing an additional 14,608 shares during the quarter. SG Americas Securities LLC’s holdings in Red Rock Resorts were worth $1,573,000 at the end of the most recent reporting period.
A number of other institutional investors have also recently bought and sold shares of the business. Strs Ohio acquired a new position in Red Rock Resorts in the third quarter valued at about $37,000. GAMMA Investing LLC increased its holdings in Red Rock Resorts by 53.8% in the 4th quarter. GAMMA Investing LLC now owns 752 shares of the company’s stock valued at $47,000 after buying an additional 263 shares during the period. Canada Pension Plan Investment Board bought a new position in Red Rock Resorts in the 2nd quarter valued at about $94,000. Russell Investments Group Ltd. raised its position in shares of Red Rock Resorts by 1,385.7% in the 2nd quarter. Russell Investments Group Ltd. now owns 1,872 shares of the company’s stock valued at $97,000 after buying an additional 1,746 shares in the last quarter. Finally, Aster Capital Management DIFC Ltd bought a new stake in shares of Red Rock Resorts during the 3rd quarter worth approximately $136,000. Institutional investors own 47.84% of the company’s stock.
Analyst Ratings Changes Several equities research analysts have weighed in on RRR shares. UBS Group set a $73.00 target price on Red Rock Resorts in a research note on Wednesday, December 24th. Citizens Jmp lifted their price target on Red Rock Resorts from $65.00 to $68.00 and gave the company a “market outperform” rating in a research note on Wednesday, January 14th. Benchmark initiated coverage on Red Rock Resorts in a research report on Monday, March 23rd. They set a “buy” rating and a $67.00 price objective for the company. Mizuho set a $77.00 price objective on Red Rock Resorts in a research note on Wednesday, February 11th. Finally, Barclays lifted their target price on Red Rock Resorts from $65.00 to $69.00 and gave the company an “overweight” rating in a research report on Friday, January 16th. Twelve equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $70.50.
Read Our Latest Research Report on RRR
Red Rock Resorts Stock Performance NASDAQ RRR opened at $55.74 on Tuesday. The firm’s fifty day moving average price is $60.15 and its two-hundred day moving average price is $59.73. The stock has a market cap of $5.85 billion, a PE ratio of 17.81, a PEG ratio of 2.29 and a beta of 1.48. The company has a debt-to-equity ratio of 10.26, a quick ratio of 0.74 and a current ratio of 0.79. Red Rock Resorts, Inc. has a fifty-two week low of $35.09 and a fifty-two week high of $68.99.
Red Rock Resorts (NASDAQ:RRR – Get Free Report) last announced its quarterly earnings results on Tuesday, February 10th. The company reported $0.75 EPS for the quarter, beating analysts’ consensus estimates of $0.41 by $0.34. The firm had revenue of $511.78 million for the quarter, compared to analyst estimates of $500.90 million. Red Rock Resorts had a return on equity of 58.13% and a net margin of 9.35%.The business’s revenue for the quarter was up 3.2% on a year-over-year basis. During the same period last year, the firm posted $0.76 earnings per share. On average, equities analysts expect that Red Rock Resorts, Inc. will post 1.76 EPS for the current fiscal year.
Red Rock Resorts Dividend Announcement The company also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Monday, March 16th were given a dividend of $0.26 per share. The ex-dividend date of this dividend was Monday, March 16th. This represents a $1.04 dividend on an annualized basis and a yield of 1.9%. Red Rock Resorts’s dividend payout ratio is 33.23%.
About Red Rock Resorts (Free Report)
Red Rock Resorts, Inc (NASDAQ: RRR) is a publicly traded gaming and hospitality company headquartered in Summerlin, Nevada. The company owns and operates a diversified portfolio of full-service casino resorts and neighborhood gaming properties in the Las Vegas valley. Its core business activities include resort hotel accommodations, casino gaming, food and beverage operations, entertainment and convention services designed to meet the needs of both leisure and business travelers.
The company’s flagship resort, Red Rock Casino Resort & Spa, features a full range of table games, slot machines, a luxury spa, convention space, multiple signature restaurants and live entertainment venues.
Further Reading Five stocks we like better than Red Rock Resorts Want to see what other hedge funds are holding RRR? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Red Rock Resorts, Inc. (NASDAQ:RRR – Free Report).
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Wall Street expects a year-over-year decline in earnings on higher revenues when Red Rock Resorts (RRR - Free Report) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 29. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.54 per share in its upcoming report, which represents a year-over-year change of -32.5%.
Revenues are expected to be $510.05 million, up 2.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.53% 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 Red Rock Resorts?For Red Rock Resorts, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +20.09%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Red Rock Resorts will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Red Rock Resorts would post earnings of $0.41 per share when it actually produced earnings of $0.75, delivering a surprise of +82.93%.
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.
Red Rock Resorts appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Shares of Red Rock Resorts, Inc. (NASDAQ:RRR – Get Free Report) have received a consensus rating of “Moderate Buy” from the fifteen research firms that are covering the company, Marketbeat Ratings reports. Four investment analysts have rated the stock with a hold rating and eleven have issued a buy rating on the company. The average 1-year price objective among analysts that have updated their coverage on the stock in the last year is $70.6429.
Several research firms have weighed in on RRR. Susquehanna boosted their target price on shares of Red Rock Resorts from $69.00 to $77.00 and gave the company a “positive” rating in a report on Wednesday, February 11th. Jefferies Financial Group reduced their price target on shares of Red Rock Resorts from $79.00 to $74.00 and set a “buy” rating on the stock in a research note on Monday, April 6th. Wells Fargo & Company boosted their price target on shares of Red Rock Resorts from $58.00 to $59.00 and gave the company an “equal weight” rating in a research note on Wednesday, February 11th. JPMorgan Chase & Co. reduced their price target on shares of Red Rock Resorts from $76.00 to $73.00 and set an “overweight” rating on the stock in a research note on Thursday, April 16th. Finally, Truist Financial reduced their price target on shares of Red Rock Resorts from $80.00 to $70.00 and set a “buy” rating on the stock in a research note on Tuesday.
View Our Latest Report on RRR
Red Rock Resorts Stock Performance NASDAQ:RRR opened at $54.08 on Friday. The company has a debt-to-equity ratio of 10.26, a current ratio of 0.79 and a quick ratio of 0.74. The firm has a market capitalization of $5.68 billion, a price-to-earnings ratio of 17.28, a PEG ratio of 2.47 and a beta of 1.48. The company’s 50-day moving average is $58.15 and its two-hundred day moving average is $59.28. Red Rock Resorts has a 1-year low of $41.56 and a 1-year high of $68.99.
Red Rock Resorts (NASDAQ:RRR – Get Free Report) last posted its earnings results on Tuesday, February 10th. The company reported $0.75 earnings per share for the quarter, beating the consensus estimate of $0.41 by $0.34. The company had revenue of $511.78 million for the quarter, compared to analyst estimates of $500.90 million. Red Rock Resorts had a net margin of 9.35% and a return on equity of 58.13%. Red Rock Resorts’s revenue was up 3.2% on a year-over-year basis. During the same period in the previous year, the business posted $0.76 EPS. Analysts forecast that Red Rock Resorts will post 2.12 EPS for the current year.
Red Rock Resorts Dividend Announcement The business also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Monday, March 16th were paid a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date of this dividend was Monday, March 16th. Red Rock Resorts’s payout ratio is 33.23%.
Institutional Investors Weigh In On Red Rock Resorts Institutional investors and hedge funds have recently made changes to their positions in the stock. Salomon & Ludwin LLC purchased a new stake in shares of Red Rock Resorts in the 4th quarter valued at approximately $25,000. Kestra Advisory Services LLC purchased a new stake in shares of Red Rock Resorts in the 4th quarter valued at approximately $27,000. Rockefeller Capital Management L.P. raised its stake in shares of Red Rock Resorts by 1,924.0% in the 4th quarter. Rockefeller Capital Management L.P. now owns 506 shares of the company’s stock valued at $31,000 after acquiring an additional 481 shares during the period. Strs Ohio purchased a new stake in shares of Red Rock Resorts in the 3rd quarter valued at approximately $37,000. Finally, GAMMA Investing LLC raised its stake in shares of Red Rock Resorts by 53.8% in the 4th quarter. GAMMA Investing LLC now owns 752 shares of the company’s stock valued at $47,000 after acquiring an additional 263 shares during the period. 47.84% of the stock is owned by hedge funds and other institutional investors.
Red Rock Resorts Company Profile (Get Free Report)
Red Rock Resorts, Inc (NASDAQ: RRR) is a publicly traded gaming and hospitality company headquartered in Summerlin, Nevada. The company owns and operates a diversified portfolio of full-service casino resorts and neighborhood gaming properties in the Las Vegas valley. Its core business activities include resort hotel accommodations, casino gaming, food and beverage operations, entertainment and convention services designed to meet the needs of both leisure and business travelers.
The company’s flagship resort, Red Rock Casino Resort & Spa, features a full range of table games, slot machines, a luxury spa, convention space, multiple signature restaurants and live entertainment venues.
Further Reading Five stocks we like better than Red Rock Resorts
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Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Red Rock Resorts (RRR - Free Report) , which belongs to the Zacks Gaming industry, could be a great candidate to consider.
This company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 85.91%.
For the most recent quarter, Red Rock Resorts was expected to post earnings of $0.41 per share, but it reported $0.75 per share instead, representing a surprise of 82.93%. For the previous quarter, the consensus estimate was $0.36 per share, while it actually produced $0.68 per share, a surprise of 88.89%.
Price and EPS Surprise
With this earnings history in mind, recent estimates have been moving higher for Red Rock Resorts. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Red Rock Resorts currently has an Earnings ESP of +20.09%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on April 29, 2026.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
, /PRNewswire/ -- Red Rock Resorts, Inc. ("Red Rock Resorts," "we" or the "Company") (NASDAQ: RRR) today reported financial results for the first quarter ended March 31, 2026.
First Quarter Results
Consolidated Operations
Net revenues were $507.3 million for the first quarter of 2026, an increase of 1.9%, or $9.4 million, from $497.9 million in the same period of 2025. Net income was $82.7 million for the first quarter of 2026, a decrease of 3.8%, or $3.3 million, from $86.0 million in the same period of 2025. Adjusted EBITDA(1) was $212.6 million for the first quarter of 2026, a decrease of 1.2%, or $2.5 million, from $215.1 million in the same period of 2025. Las Vegas Operations
Net revenues from Las Vegas operations were $499.5 million for the first quarter of 2026, an increase of 0.9%, or $4.5 million, from $495.0 million in the same period of 2025. Adjusted EBITDA from Las Vegas operations was $232.4 million for the first quarter of 2026, a decrease of 1.5%, or $3.5 million, from $235.9 million in the same period of 2025. Native American
Net revenues from Native American activities were $4.7 million for the first quarter of 2026, with Adjusted EBITDA of $2.9 million, representing activities related to management and development fees. Balance Sheet Highlights
The Company's cash and cash equivalents at March 31, 2026 were $134.0 million and total principal amount of debt outstanding at the end of the first quarter was $3.6 billion.
Quarterly Dividend
The Company's Board of Directors has declared a cash dividend of $0.26 per Class A common share for the second quarter of 2026. The dividend will be payable on June 30, 2026 to all stockholders of record as of the close of business on June 15, 2026.
Prior to the payment of such dividend, Station Holdco LLC ("Station Holdco") will make a cash distribution to all unit holders of record, including the Company, of $0.26 per unit for a total distribution of approximately $28.8 million, approximately $16.9 million of which is expected to be distributed to the Company and approximately $11.9 million of which is expected to be distributed to the other unit holders of record of Station Holdco.
Conference Call Information
The Company will host a conference call today at 4:30 p.m. Eastern Time to discuss its financial results. The conference call will consist of prepared remarks from the Company and include a question and answer session. Those interested in participating in the call should dial (888) 317-6003, or (412) 317-6061 for international callers, approximately 15 minutes before the call start time. Please use the passcode: 1891420. A replay of the call will be available from today through May 6, 2026 at www.redrockresorts.com. A live audio webcast of the call will also be available at www.redrockresorts.com.
Presentation of Financial Information
(1) Adjusted EBITDA is a non-GAAP measure that is presented solely as a supplemental disclosure. We believe that Adjusted EBITDA is a widely used measure of operating performance in our industry and is a principal basis for valuation of gaming companies. We believe that in addition to net income, Adjusted EBITDA is a useful financial performance measurement for assessing our operating performance because it provides information about the performance of our ongoing core operations. Adjusted EBITDA for the three months ended March 31, 2026 and 2025 includes net income plus depreciation and amortization, share-based compensation, write-downs and other, net (including gains and losses on asset disposals, preopening and development, business innovation and technology enhancements and non-routine items), interest expense, net, change in fair value of derivative instruments and provision for income tax.
Company Information and Forward Looking Statements
Red Rock Resorts is a holding company that owns an indirect equity interest in and manages Station Casinos LLC ("Station Casinos"). Station Casinos is the leading provider of gaming, hospitality and entertainment to the residents of Las Vegas, Nevada. Station Casinos' properties, which are located throughout the Las Vegas valley, are regional entertainment destinations and include hotels as well as various amenities, including numerous restaurants, entertainment venues, movie theaters, bowling and convention/banquet space, as well as traditional casino gaming offerings such as video poker, slot machines, table games, bingo and race and sports wagering. Station Casinos owns and operates Red Rock Casino Resort Spa, Green Valley Ranch Resort Spa Casino, Durango Resort & Casino, Palace Station Hotel & Casino, Boulder Station Hotel & Casino, Sunset Station Hotel & Casino, Santa Fe Station Hotel & Casino, Wildfire Rancho, Wildfire Boulder, Wildfire Sunset, Wildfire Valley View, Wildfire Anthem, Wildfire Lake Mead, Wildfire on Fremont and Seventy Six by Station Casinos (North Lamb, Aliante, Union Village and Tropicana). Station Casinos also owns a 50% interest in Barley's Casino & Brewing Company, Wildfire Casino & Lanes and The Greens.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include, without limitation, statements regarding our expectations, hopes or intentions regarding the future. These forward-looking statements can often be identified by their use of words such as "will", "might", "predict", "continue", "forecast", "expect", "believe", "anticipate", "outlook", "could", "would", "target", "project", "intend", "plan", "seek", "estimate", "pursue", "should", "may" and "assume", or the negative thereof, as well as variations of such words and similar expressions referring to the future. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. Certain important factors, including but not limited to, financial market risks, could cause our actual results to differ materially from those expressed in our forward-looking statements. Further information on potential factors which could affect our financial condition, results of operations and business includes, without limitation, the impact of rising inflation, higher interest rates and increased energy costs on consumer demand and the Company's business, financial results and liquidity; the impact of unemployment and changes in general economic conditions on discretionary spending and consumer demand; the impact of our substantial indebtedness; the effects of local and national economic, credit and capital market conditions on consumer spending and the economy in general, and on the gaming and hotel industries in particular; the effects of competition, including locations of competitors and operating and market competition; changes in laws, including increased tax rates, regulations or accounting standards, third-party relations and approvals, and decisions of courts, regulators and governmental bodies; risks associated with construction projects, including disruption of our operations, shortages of materials or labor, unexpected costs, unforeseen permitting or regulatory issues and weather; litigation outcomes and judicial actions, including gaming legislative action, referenda and taxation; acts of war or terrorist incidents, pandemics, natural disasters or civil unrest; risks associated with the collection and retention of data about our customers, employees, suppliers and business partners; and other risks discussed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and in the Company's other current and periodic reports filed from time to time with the Securities and Exchange Commission. All forward-looking statements in this document are made based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement.
View source version on http://redrockresorts.investorroom.com/:
Investors:
Stephen L. Cootey
[email protected]
(702) 495-4214
Media:
Michael J. Britt
[email protected]
(702) 495-3693
Red Rock Resorts, Inc.
Condensed Consolidated Statements of Income
(amounts in thousands, except per share data)
(unaudited)
Three Months Ended
March 31,
2026
2025
Operating revenues:
Casino
$ 340,522
$ 333,245
Food and beverage
90,323
89,272
Room
45,514
50,170
Native American management and development fees
4,737
—
Other
26,223
25,174
Net revenues
507,319
497,861
Operating costs and expenses:
Casino
91,230
89,413
Food and beverage
74,187
73,761
Room
15,604
15,989
Other
7,700
7,243
Selling, general and administrative
114,357
104,711
Depreciation and amortization
55,855
48,331
Write-downs and other, net
4,710
4,060
363,643
343,508
Operating income
143,676
154,353
Earnings from joint ventures
707
712
Operating income and earnings from joint ventures
144,383
155,065
Other (expense) income:
Interest expense, net
(49,504)
(51,110)
Change in fair value of derivative instruments
966
(5,194)
Income before income tax
95,845
98,761
Provision for income tax
(13,125)
(12,811)
Net income
82,720
85,950
Less: net income attributable to noncontrolling interests
39,831
41,201
Net income attributable to Red Rock Resorts, Inc.
$ 42,889
$ 44,749
Earnings per common share:
Earnings per share of Class A common stock, basic
$ 0.74
$ 0.76
Earnings per share of Class A common stock, diluted
$ 0.73
$ 0.75
Weighted-average common shares outstanding:
Basic
58,204
59,203
Diluted
59,369
103,393
Dividends declared per common share
$1.26
$0.25
Red Rock Resorts, Inc.
Segment Information and Reconciliation of Net Income to Adjusted EBITDA
(amounts in thousands)
(unaudited)
Red Rock Resorts (RRR - Free Report) came out with quarterly earnings of $0.73 per share, beating the Zacks Consensus Estimate of $0.54 per share. This compares to earnings of $0.8 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +35.92%. A quarter ago, it was expected that this company would post earnings of $0.41 per share when it actually produced earnings of $0.75, delivering a surprise of +82.93%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Red Rock Resorts, which belongs to the Zacks Gaming industry, posted revenues of $507.32 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 0.54%. This compares to year-ago revenues of $497.86 million. The company has topped consensus revenue estimates two 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.
Red Rock Resorts shares have lost about 10.4% since the beginning of the year versus the S&P 500's gain of 4.3%.
What's Next for Red Rock Resorts?While Red Rock Resorts has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Red Rock Resorts 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 $0.47 on $516.85 million in revenues for the coming quarter and $2.12 on $2.05 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, Gaming is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Wynn Resorts (WYNN - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 7.
This casino operator is expected to post quarterly earnings of $1.18 per share in its upcoming report, which represents a year-over-year change of +10.3%. The consensus EPS estimate for the quarter has been revised 1.9% lower over the last 30 days to the current level.
Wynn Resorts' revenues are expected to be $1.8 billion, up 5.9% from the year-ago quarter.
Red Rock Resorts (RRR - Free Report) reported $507.32 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 1.9%. EPS of $0.73 for the same period compares to $0.80 a year ago.
The reported revenue represents a surprise of -0.54% over the Zacks Consensus Estimate of $510.05 million. With the consensus EPS estimate being $0.54, the EPS surprise was +35.92%.
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 Red Rock Resorts performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Operating Revenues- Casino: $340.52 million compared to the $338.78 million average estimate based on four analysts. The reported number represents a change of +2.2% year over year.Operating Revenues- Room: $45.51 million versus the four-analyst average estimate of $49.37 million. The reported number represents a year-over-year change of -9.3%.Operating Revenues- Other: $26.22 million versus the four-analyst average estimate of $25.37 million. The reported number represents a year-over-year change of +4.2%.Operating Revenues- Food and Beverage: $90.32 million versus the four-analyst average estimate of $92.5 million. The reported number represents a year-over-year change of +1.2%.Net Revenue- Native American management: $4.74 million compared to the $3.17 million average estimate based on three analysts.Net Revenue- Las Vegas operations: $499.52 million compared to the $506.4 million average estimate based on three analysts. The reported number represents a change of +0.9% year over year.Net Revenue- Corporate and other: $3.06 million versus $2.98 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +5.2% change.Adjusted EBITDA- Corporate and other: $-22.71 million versus $-20.9 million estimated by four analysts on average.Adjusted EBITDA- Las Vegas operations: $232.42 million versus the four-analyst average estimate of $226.56 million.Adjusted EBITDA- Native American management: $2.92 million compared to the $3 million average estimate based on two analysts.View all Key Company Metrics for Red Rock Resorts here>>>
Shares of Red Rock Resorts have returned +4.1% over the past month versus the Zacks S&P 500 composite's +12.2% 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.
Exploration and production company Magnolia Oil & Gas saw shares rise as the sharp increase in oil prices drove a broad rally across US-based oil producers. Red Rock Resorts' fundamentals remained solid, though the stock faced pressure in Q1 as investors linked gaming demand to discretionary spending trends. Recent Knowles' strategic initiatives have reshaped the portfolio toward higher-margin, mission-critical end markets with more durable demand drivers.
Red Rock Resorts dominates the Las Vegas locals' gaming market with eighteen outlets and seven major resorts. RRR reported Q1 2026 revenue of $507M (+2% yoy) and adjusted EBITDA of $213M (-1% yoy), with margins pressured by property renovations. Renovations at Durango and Green Valley Ranch are causing short-term EBITDA and margin declines but are expected to drive future growth.
On May 13, 2026, Red Rock Resorts Inc RRR shares fell 3.8% today, bringing the current price to $51.04. Over the last year, the stock has seen a range between a 52-week high of $68.99 and a low of $44.28. The recent price decline adds to a year-to-date drop of 16.0%, despite a 12.3% increase over the last year.
GF Value™ verdict: Current price is $51.04, which is 22.4% below the GF Value™ of $65.79.GF Score™: 84/100, indicating a strong overall assessment of the stock.Most notable signal: No insider transactions have been reported in the last 3 months. Is RRR Overvalued or Undervalued? Red Rock Resorts Inc currently trades at $51.04, significantly below its GF Value™ of $65.79, suggesting that the stock is undervalued by about 22.4%. This margin of safety can be appealing for potential investors looking for undervalued opportunities. The GF Valuation label indicates that RRR is considered "Modestly Undervalued," which may present a buying opportunity for those seeking to capitalize on potential price appreciation. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
However, potential investors should exercise caution, as the company has a Financial Strength rating of only 3/10, which indicates some risk associated with its financial health. This could impact the company's performance and ultimately affect the stock price in the future.
How Does RRR's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 16.4x 17.9x Forward P/E 20.1x N/A RRR's current P/E (TTM) of 16.4x is approximately 8% below its 5-year median P/E of 17.9x, indicating that the stock is trading at a discount compared to its historical valuation. This P/E analysis aligns with the GF Value™ verdict, reinforcing the notion that RRR is undervalued based on both intrinsic value and historical performance.
What Does RRR's GF Score™ Tell Us? Metric Rating GF Score™ 84/100 Financial Strength 3/10 Profitability 8/10 Growth 7/10 Valuation 8/10 Momentum 8/10 The GF Score™ of 84/100 indicates that Red Rock Resorts has a strong overall assessment, particularly in Profitability, Growth, Valuation, and Momentum, where it scored 8/10 each. However, the Financial Strength rating of 3/10 highlights a potential area of concern, suggesting that while the company may be generating profits and showing growth, its financial stability may not be as strong as desired.
What Are Insiders Doing with RRR Stock? There have been no insider transactions reported for Red Rock Resorts in the last 3 months. This lack of activity may suggest that insiders are either confident in the current valuation or are awaiting a more favorable market condition before making any trades.
What This Means for Investors Based on the analysis of GF Value™, Red Rock Resorts Inc appears to be undervalued at its current price of $51.04 compared to the GF Value™ of $65.79. However, potential investors should consider the company's low Financial Strength rating as a risk factor in their investment decisions.
For the complete analysis, visit the Red Rock Resorts Inc RRR stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is RRR's GF Score™?
RRR's GF Score™ is 84/100, indicating a strong overall assessment of the stock's potential for long-term returns.
Is RRR overvalued or undervalued?
RRR is considered undervalued, with a current price of $51.04 that is 22.4% below the GF Value™ of $65.79.
What is RRR's P/E ratio?
RRR's P/E (TTM) is 16.4x, which is below its 5-year median P/E of 17.9x, indicating it is trading at a discount compared to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Investors interested in stocks from the Gaming sector have probably already heard of Churchill Downs (CHDN - Free Report) and Red Rock Resorts (RRR - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Churchill Downs and Red Rock Resorts are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. Investors should feel comfortable knowing that CHDN likely has seen a stronger improvement to its earnings outlook than RRR has recently. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CHDN currently has a forward P/E ratio of 11.72, while RRR has a forward P/E of 30.62. We also note that CHDN has a PEG ratio of 0.57. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. RRR currently has a PEG ratio of 3.56.
Another notable valuation metric for CHDN is its P/B ratio of 5.45. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, RRR has a P/B of 21.87.
These are just a few of the metrics contributing to CHDN's Value grade of A and RRR's Value grade of D.
CHDN stands above RRR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CHDN is the superior value option right now.
It has been about a month since the last earnings report for Red Rock Resorts (RRR - Free Report) . Shares have added about 7.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Red Rock Resorts due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
Red Rock Resorts Q1 Earnings Beat Estimates, Revenues LagRed Rock Resorts reported first-quarter 2026 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top line increased year over year, while the bottom line declined.
In the quarter under review, adjusted earnings per share (EPS) came in at 73 cents, topping the Zacks Consensus Estimate of 54 cents by 35.2%. In the prior-year quarter, the company recorded an adjusted EPS of 75 cents.
Quarterly revenues of $507.3 million missed the Zacks Consensus Estimate of $510 million. However, the top line increased 1.9% year over year.
Consolidated adjusted EBITDA margin held at a still-healthy 41.9%, as steady gaming fundamentals helped offset disruption tied to ongoing property projects.
RRR Keeps the Top-Line Growing With Casino-Led MixCasino revenues remained the anchor in the quarter, increasing to $340.5 million from $333.2 million a year ago. Food and beverage revenues also edged higher to $90.3 million, reflecting continued guest demand across the portfolio’s outlets.
Hotel was the notable soft spot within the mix, with room revenues declining to $45.5 million from $50.2 million in the year-ago quarter. Other revenues increased to $26.2 million, while Native American management and development fees added $4.7 million, tied to the North Fork project.
Red Rock Resorts Highlights Strength in Las Vegas OperationsThe company’s Las Vegas operations continued to set the tone, delivering net revenues of $499.5 million and underscoring management’s view that the locals customer remains resilient despite a choppier macro backdrop later in the quarter.
During the quarter, the company reported sustained traction in carded slot play, helped by robust spend per visit and net theoretical win across local, regional and national customer segments. It also emphasized that Durango’s continued ramp and the associated “backfill” at core properties remain central to the portfolio’s growth strategy.
RRR Absorbs Higher Costs as Renovations Pressure ResultsExpense discipline was mixed in the period. Selling, general and administrative costs increased to $114.4 million from $104.7 million, while depreciation and amortization rose to $55.9 million from $48.3 million, reflecting the company’s elevated reinvestment cycle.
Operationally, management framed much of the year-over-year profitability pressure as project-related, with Green Valley Ranch renovations reducing room nights and creating temporary friction at the property. The company also cited elevated utilities and certain non-recurring items as incremental headwinds during the quarter.
Red Rock Resorts Converts Cash Flow and Returns CapitalRRR generated $107 million of operating free cash flow, or $1.03 per share, converting 50.3% of adjusted EBITDA into operating free cash flow in the quarter. Management said this cash flow supported both the company’s capital program and shareholder returns.
Capital allocation remained active. During the quarter, the company repurchased roughly 635,000 Class A shares at an average price of $60.32 and paid a $1.00 per-share special dividend alongside the regular $0.26 quarterly dividend. The board also declared another $0.26 per-share dividend for the second quarter of 2026, payable June 30, to its shareholders of record June 15.
RRR’s Outlook Centers on Durango and North Fork MilestonesManagement guided to full-year 2026 capital spending of $375-$425 million, including $275-$300 million of investment capital and $100-$125 million of maintenance capital. The spend reflects continued work at Durango, Sunset Station and Green Valley Ranch, where renovations are intended to refresh the product and support higher-value visitation over time.
Two longer-dated growth catalysts also moved forward. The Durango North expansion is slated to add more than 275,000 square feet, including additional gaming and new amenities such as a bowling facility and luxury theaters, with an expected opening in summer 2027 and an estimated cost of about $385 million. Meanwhile, North Fork construction remains on track for an early fourth-quarter 2026 opening, with total project cost held at roughly $750 million and a remaining note balance of $80.6 million due from the Tribe at quarter's end.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -22.63% due to these changes.
VGM ScoresAt this time, Red Rock Resorts has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Red Rock Resorts has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
On May 28, 2026, Caesars Entertainment (NASDAQ: CZR | CZR Price Prediction) announced a definitive agreement to be acquired by Fertitta Entertainment. The all-cash transaction is valued at approximately $17.6 billion, including the assumption of approximately $11.9 billion of outstanding debt. Shareholders get $31.00 per share, a 49% premium to the unaffected price on February 25, 2026. Financing is locked, the board has signed off, and a go-shop period runs through July 11, 2026.
Golden Entertainment (NASDAQ: GDEN) CEO Blake Sartini and affiliates announced a take-private deal on November 6, 2025, that closed on April 30, 2026. VICI Properties acquired seven casino real estate assets for $1.16 billion in a sale-leaseback. Golden set the precedent: the founder rolls over their shares, splits the business operations from the real estate, and uses a REIT sale-leaseback to fund the buyout. The same blueprint now lights up the other names on this list.
The rest of the regional casino sector is now on the clock. Below are three publicly traded casino names most exposed to the next take-private headline, ranked from least to most likely.
3. Bally’s Bally’s (NYSE: BALY) is the cheapest name on the board with the messiest cap table. Market cap is roughly $684.8 million, against $4.41 billion in long-term debt and a price-to-book of 0.85. The asset base is sprawling:
The $4.0 billion Bally’s Bronx integrated resort targeting a 2030 opening Bally’s Chicago under construction A 38% equity stake in Star Entertainment in Australia A 58% controlling stake in Intralot. Standard General has chased it before. Reports of acquisition talks with Evoke are circulating. The strategic options are numerous, but the path forward remains unclear. Shares traded at $13.99 on May 28, 2026, down 15.3% year to date.
2. PENN Entertainment PENN Entertainment (NASDAQ: PENN) has the activist track record and the digital turnaround. Q1 2026 delivered adjusted EPS of $0.11 versus a consensus estimate of $0.0206. Consolidated adjusted EBITDA totaled $265.8 million, up 53.4% year over year. CEO Jay Snowden has guided to 20% segment adjusted EBITDAR growth in 2026 and initially an Interactive break-even. Boyd Gaming already tried once. HG Vora forced a board settlement. Forward P/E is 12x.
Here’s the catch: PENN is an operating company (OpCo) sitting on $247.7 million in quarterly triple-net rent, with lease-adjusted leverage of 6.4x to 6.8x. There is no separable real estate to monetize, which caps the LBO math. The stock has already moved: $19.44 on May 28, up 31.8% year to date. A strategic bidder makes more sense than a sponsor.
1. Red Rock Resorts Red Rock Resorts (NASDAQ: RRR) is the cleanest fit for the Golden Entertainment template, scaled up. Frank Fertitta III and Lorenzo Fertitta (cousins of Tilman Fertitta) already control the company through Class B supervoting shares. That means a friendly family-led take-private is the only realistic path, and that path has just been validated next door.
The asset base is premium and concentrated. Las Vegas operations generated $492.64 million of Q4 2024 revenue, 99.4% of total. That was anchored by Red Rock, Green Valley Ranch, and the $780 million Durango Resort that opened December 5, 2023. Adjusted EBITDA runs at a consistent $200 million-plus quarterly clip. EV/EBITDA is 8.5x, with a $67.25 analyst target that is well above the $57.78 close on May 28. Crucially, Red Rock owns most of its real estate outright, giving any take-private the same VICI-style sale-leaseback option Sartini just executed at Golden. Insider sales in February and March at $58.81 to $66.24 are a near-term flag, but those are executive-level dispositions. The Fertitta family themselves did not signal a retreat from the equity.
The $17.6 billion Caesars deal just redrew the industry playbook. See which regional giants are now in the crosshairs for a massive take-private payout. The Catalyst to Watch Red Rock has the structure, the EBITDA, the unencumbered real estate, and a sitting controlling family who just watched their cousins monetize a sister business at a 49% premium. The first tell will be a 13D amendment or an SEC filing disclosing a sponsor partner. The second will be a quiet pause in the quarterly dividend or capex commentary on the next call. The Caesars deal redrew the regional casino playbook in a single afternoon, and Red Rock is the name with the shortest distance left to travel.
Investors interested in Gaming stocks are likely familiar with Churchill Downs (CHDN) and Red Rock Resorts (RRR). But which of these two companies is the best option for those looking for undervalued stocks?
On May 31, 2026, Ron Baron (Trades, Portfolio) executed a significant stock transaction involving Red Rock Resorts Inc RRR . This transaction saw the addition of 2,924,341 shares at a traded price of $58.40 per share. This strategic move highlights Baron's continued confidence in the gaming and entertainment company, further solidifying its position within the firm's portfolio. The acquisition reflects a calculated decision to enhance the firm's stake in a company that is modestly undervalued, according to its GF Value.
Ron Baron (Trades, Portfolio)'s Investment Philosophy Ron Baron (Trades, Portfolio) is the founder of Baron Capital Management and serves as Co-Portfolio Manager of Baron Asset Fund. Known for investing in small and mid-size growth companies, Baron employs a long-term, value-oriented investment strategy. The firm focuses on companies with open-ended growth opportunities and defensible niches, applying a bottom-up research approach. Baron typically holds investments for over five years, ignoring short-term market fluctuations when the fundamental reasons for purchasing a company remain unchanged. This disciplined approach has been a cornerstone of Baron's investment philosophy.
Red Rock Resorts Inc: A Gaming and Entertainment Leader Red Rock Resorts Inc is a prominent gaming and entertainment company based in the USA, with operations primarily in the Las Vegas valley. The company boasts a market capitalization of $3.36 billion and is considered modestly undervalued with a GF Value of $67.96. Red Rock Resorts operates strategically-located casino and entertainment properties, deriving the majority of its revenue from casinos, followed by food and beverages, rooms, and other services. The company's focus on providing a wide variety of entertainment and dining options has positioned it as a key player in the Travel & Leisure industry.
Impact of the Transaction on Baron's Portfolio The recent acquisition increased Ron Baron (Trades, Portfolio)'s holdings in Red Rock Resorts to 16,337,187 shares, representing 27.94% of the firm's portfolio. This addition had a 0.51% impact on the overall portfolio, with Red Rock Resorts now constituting 2.87% of the total holdings. The transaction underscores Baron's strategic focus on companies with strong growth potential and attractive valuations, aligning with the firm's long-term investment philosophy.
Financial Metrics and Valuation of Red Rock Resorts Red Rock Resorts has a price-to-earnings ratio of 18.45 and a GF Score of 82/100, indicating good outperformance potential. The stock is currently trading at $57.39, slightly below the GF Value, suggesting a modest undervaluation. The company's financial strength is reflected in its Balance Sheet Rank of 3/10 and a Profitability Rank of 8/10, highlighting its robust financial position and profitability.
Performance and Growth Indicators Red Rock Resorts has demonstrated a revenue growth of 7.20% over the past three years, with an operating margin growth of 14.70%. Despite a year-to-date price decline of 8.86%, the stock has gained 210.22% since its IPO in 2016. The company's strong Growth Rank of 7/10 and Momentum Rank of 7/10 further underscore its potential for continued growth and market performance.
Market Position and Other Notable Investors Besides Ron Baron (Trades, Portfolio), notable investor Joel Greenblatt (Trades, Portfolio) also holds shares in Red Rock Resorts. The stock is part of the Travel & Leisure industry, with a strong profitability rank of 8/10. This indicates a solid market position and the potential for sustained profitability. The company's strategic focus on the Las Vegas valley and its diverse revenue streams make it an attractive investment for value-oriented investors.
Conclusion: Strategic Implications of the Transaction The acquisition of additional shares in Red Rock Resorts by Ron Baron (Trades, Portfolio) reflects a strategic decision to capitalize on the company's growth potential and modest undervaluation. This move aligns with Baron's long-term investment philosophy and enhances the firm's portfolio by increasing its exposure to a leading player in the gaming and entertainment industry. The transaction underscores the firm's confidence in Red Rock Resorts' ability to deliver strong financial performance and growth in the coming years.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Key Takeaways HRB posted Q3 adjusted EPS of $6.02, topping estimates by 5.8% and increasing 11.9% year over year.H&R Block reported $2.4 billion in revenues, up 5.3% y/y, led by tax preparation and Wave growth.HRB raised its fiscal 2026 EPS and revenue guidance above current consensus estimates. H&R Block Inc. (HRB - Free Report) reported impressive third-quarter fiscal 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate.
HRB’s adjusted earnings of $6.02 per share beat the Zacks Consensus Estimate by 5.8% and increased 11.9% year over year. Revenues of $2.4 billion topped the Zacks Consensus Estimate by 2.5% and rose 5.3% year over year.
Over the past year, HRB shares have declined 49.7% compared with the industry's 24.9% decline. The Zacks S&P 500 composite has gained 33.4% in the said time frame.
HRB’s Quarterly NumbersRevenues from U.S. tax preparation and related services were $2.2 billion, up 5.1% year over year. Revenues from Financial services totaled $54.8 million, marking a marginal year-over-year rise. International revenues of $70 million rose 16%, while Wave revenues jumped 11.8% to $29.9 million.
Key Balance Sheet & Cash Flow Figures of HRBH&R Block exited the quarter with cash and cash equivalents of $867 million. Long-term debt was $1.5 billion compared with $2.4 billion at the end of the second quarter of fiscal 2026. The company generated $1.5 billion of cash in operating activities, while capital expenditures totaled $18.4 million.
Fiscal 2026 Guidance of HRBHRB guided adjusted earnings in the range of $5.10-$5.20 per share for fiscal 2026. The current Zacks Consensus Estimate for the same is $4.98.
Revenues are expected to be between $3.910 billion and $3.920 billion. The consensus estimate for the same stands at $3.89 billion.
The company guided EBITDA between $1.025 billion and $1.035 billion and an effective tax rate of 14%.
Currently, H&R Block carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings SnapshotsEquifax Inc. (EFX - Free Report) reported better-than-expected first-quarter 2026 results. EFX’s adjusted earnings per share of $1.86 beat the Zacks Consensus Estimate by 10.1% and increased 21.6% from the year-ago quarter. EFX’s revenues of $1.6 billion surpassed the consensus estimate by 2.3% and improved 14.4% year over year.
Waste Connections, Inc. (WCN - Free Report) posted impressive first-quarter 2026 results. WCN’s adjusted earnings of $1.23 per share outpaced the consensus mark by 3.4% and rose 8.9% from the year-ago quarter. WCN’s total revenues of $2.37 billion beat the consensus mark by 0.7% and increased 6.4% year over year.
H&R Block remains a compelling long-term buy, trading at just 7x forward earnings despite double-digit EPS growth. HRB's Q3 FY2026 delivered a triple beat: EPS, revenue, and guidance all exceeded expectations, driving a 26% share price surge. Shareholder yield approaches 13% through aggressive buybacks and a 4.55% dividend, with further dividend increases likely in August.
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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 popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM 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 The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% 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.
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 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.
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: H&R Block (HRB - Free Report) H&R Block Inc. is a leading provider of tax preparation services. The company provides assisted income tax return preparation, do-it-yourself (DIY) tax solutions, and other products and services associated with income tax return preparation in the United States, Canada, and Australia. All these continuing operations are reported under a single segment.
HRB is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 7.28; value investors should take notice.
Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.14 to $5.12 per share. HRB boasts an average earnings surprise of +1.8%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, HRB should be on investors' short list.
Consumer-focused stocks have faced mounting pressure in 2026 as investors weigh tariff concerns, cautious consumer spending patterns, and macroeconomic uncertainty fueled by elevated energy prices.
However, sharp pullbacks can create opportunities for value-minded investors, especially when fundamentally sound companies continue to reward shareholders with attractive dividends.
Three stocks that stand out in this regard right now are H&R Block (HRB - Free Report) ), Kohl’s (KSS - Free Report) ), and Upbound Group (UPBD - Free Report) ).
Each appears technically oversold after recent weakness, offers an enticing dividend yield above 3%, and has earned a Zacks Rank #1 (Strong Buy) thanks to a trend of positive earnings estimate revisions.
H&R Block: Oversold Tax Specialist With Reliable Income
H&R Block shares have cooled off considerably from their highs despite the company continuing to generate solid cash flow and steady earnings growth. The recent weakness has left HRB looking oversold at under $40 a share, potentially creating an attractive entry point for income-focused investors.
The tax preparation giant currently sports a dividend yield above 4.5%, making it appealing for investors seeking dependable portfolio income. H&R Block has also consistently returned cash to shareholders through buybacks as well, and implemented a double-digit dividend increase last July, bumping its quarterly payout from $0.38 per share to $0.42.
Operationally, H&R Block continues to benefit from resilient demand for assisted tax preparation services and expanding digital offerings. Recently topping earnings expectations for its fiscal third quarter earlier in the month, H&R Block has reinforced confidence in its underlying business momentum.
Most importantly for momentum investors, earnings estimates have been trending higher since the Q3 EPS beat. Zacks data shows analysts have raised current-year and next-year EPS estimates by 3% and 5%, in the last 30 days respectively, to projections of $5.12 and $5.57.
With a low forward P/E and P/S valuation, strong cash generation, and a healthy dividend, HRB could appeal to investors looking for a defensive consumer-centric stock that still appears to be oversold.
Kohl’s: Deeply Discounted Retail Play With Attractive Yield
Kohl’s has remained under pressure as investors continue to worry about discretionary retail spending trends. However, the selloff has pushed Kohl’s stock into what could end up being bargain territory at around $11 a share. Furthermore, at current levels, Kohl’s dividend yield is at an attractive 4.25% with a healthy payout ratio of around 30%.
Although retail conditions remain challenging, Kohl’s has shown signs of operational stabilization. To that point, Kohl’s most recently posted a sizable Q4 earnings surprise back in March, demonstrating that expectations may have become too pessimistic.
Kohl’s will be reporting Q1 results on Thursday, May 28, after previously posting Q4 EPS of $1.07, which was nearly 26% above expectations of $0.85 while rising from $0.95 per share a year ago.
Considering its improving earnings outlook, Kohl’s may represent a compelling turnaround candidate for contrarian investors, especially if consumer spending trends stabilize later in the year.
Upbound Group: High-Yield Opportunity Trading Near Depressed Levels
Upbound Group may be one of the most intriguing oversold income plays in the consumer space. Shares of the lease-to-own consumer household products provider and fintech-focused company have struggled amid broader concerns about lower-income consumers. This weakness has pushed Upbound’s dividend yield above 9% with UPBD trading under $20.
Despite the volatility, Upbound continues to generate solid operating performance. Upbound edged Q1 earnings expectations back in late April and maintained guidance that suggests continued profitability.
The improving earnings picture has translated into favorable analyst revisions, and income investors may also appreciate the company’s commitment to shareholder returns. While the elevated yield reflects market concerns, some analysts note that Upbound's dividend remains supported by cash flow generation.
Given Upbound’s depressed valuation of just 4X forward earnings, oversized dividend yield, and improving earnings outlook, UPBD could appeal to aggressive investors looking for a high-risk, high-reward recovery opportunity.
Summary & Final ThoughtsOversold stocks with improving earnings outlooks can often provide fertile ground for investors searching for value and income opportunities. H&R Block, Kohl’s, and Upbound Group each combine generous dividend yields with positive earnings estimate revisions strong enough to earn a Zacks Rank #1 (Strong Buy).
While consumer-focused names may remain volatile in the near term, these three stocks could reward patient investors if improving fundamentals eventually drive a rebound in sentiment.
On May 21, 2026, H&R Block Inc HRB shares fell 4.8% to a current price of $37.89. The stock has experienced a 52-week range of $28.16 to $59.05, showcasing significant volatility over the past year. Despite the recent decline, HRB has shown positive momentum over the last month, increasing by 17.3%.
GF Value™ verdict: Current price is $37.89 versus GF Value™ of $62.23, indicating a 39.1% undervaluation.GF Score™ is 74/100, which suggests the stock is above average in quality based on GuruFocus metrics.Notable signal: There have been no insider transactions in the last 3 months, indicating a lack of insider trading activity. Is HRB Overvalued or Undervalued? According to the GF Value™, H&R Block Inc HRB is significantly undervalued at its current price of $37.89 compared to the estimated fair value of $62.23. This 39.1% margin of safety presents a compelling opportunity for value-oriented investors. The GF Valuation label indicates that the stock is not only undervalued but offers a favorable risk-reward profile for potential investment.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. The current valuation suggests that HRB may be an attractive option, provided that investors consider market conditions and potential risks associated with the company's future earnings and growth prospects.
How Does HRB's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 6.7x 12.2x Forward P/E 6.5x N/A The current P/E (TTM) of 6.7x is significantly below the 5-year median P/E of 12.2x, indicating that the stock is trading at a lower valuation compared to its historical averages. This analysis aligns with the GF Value™ verdict, reinforcing the view that HRB is undervalued based on historical performance metrics.
What Does HRB's GF Score™ Tell Us? Metric Rating GF Score™ 74 Financial Strength 5/10 Profitability 9/10 Growth 8/10 Valuation 4/10 Momentum 1/10 The GF Score™ of 74/100 indicates an above-average stock quality, with notable strengths in Profitability (9/10) and Growth (8/10), suggesting robust operational performance and potential for future expansion. However, the Valuation rank of 4/10 and a low Momentum rank of 1/10 signal caution, as the stock has exhibited weak price movement recently, which could hinder short-term performance.
What Are Insiders Doing with HRB Stock? There have been no insider transactions in the last three months, which suggests a lack of significant buying or selling activity by executives or board members. This inactivity could indicate that insiders are either confident in the company's future prospects or are waiting for more favorable market conditions.
What This Means for Investors Based on the GF Value™ assessment, H&R Block Inc HRB is currently undervalued. With a significant margin of safety and strong profitability metrics, it presents an interesting opportunity for potential investors looking for value stocks. However, investors should remain mindful of the overall market conditions and the company's performance moving forward.
For the complete analysis, visit the H&R Block Inc HRB stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is HRB's GF Score™?
HRB's GF Score™ is 74/100, indicating that it is above average in quality based on key metrics such as financial strength, profitability, growth, valuation, and momentum.
Is HRB overvalued or undervalued?
H&R Block Inc HRB is currently undervalued, with a GF Value™ of $62.23 compared to its price of $37.89, representing a significant margin of safety.
What is HRB's P/E ratio?
HRB's P/E (TTM) is 6.7x, which is 45% below its 5-year median P/E of 12.2x, indicating that the stock is trading at a lower valuation compared to its historical averages.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Here are three stocks with buy ranks and strong growth characteristics for investors to consider today May 27th:
Alliance Laundry Holdings Inc. (ALH - Free Report) : This company, which is a provider of commercial laundry systems, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 3.2% over the last 60 days.
Alliance Laundry has a PEG ratio of 1.17 compared with 1.27 for the industry. The company possesses a Growth Score of A.
ASE Technology (ASX - Free Report) : This company, which is a provider of semiconductor manufacturing services in assembly and testing, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 36.4% over the last 60 days.
ASE Technology has a PEG ratio of 0.78 compared with 1.71 for the industry. The company possesses a Growth Score of A.
H&R Block (HRB - Free Report) : This company, which is a leading provider of tax preparation services, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.8% over the last 60 days.
H&R Block has a PEG ratio of 0.61 compared with 0.87 for the industry. The company possesses a Growth Score of B.
See the full list of top ranked stocks here.
Learn more about the Growth score and how it is calculated here.
Here are three stocks with buy ranks and strong growth characteristics for investors to consider today May 29th:
Sanmina (SANM - Free Report) : This company, which is a global provider of electronics contract manufacturing services, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 11.5% over the last 60 days.
Sanmina has a PEG ratio of 0.84 compared with 1.06 for the industry. The company possesses a Growth Score of A.
Alliance Laundry Holdings Inc. (ALH - Free Report) : This company, which is a provider of commercial laundry systems, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 3.2% over the last 60 days.
Alliance Laundry has a PEG ratio of 1.17 compared with 1.27 for the industry. The company possesses a Growth Score of A.
H&R Block (HRB - Free Report) : This company, which is a leading provider of tax preparation services, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4% over the last 60 days.
H&R Block has a PEG ratio of 0.59 compared with 0.77 for the industry. The company possesses a Growth Score of B.
See the full list of top ranked stocks here.
Learn more about the Growth score and how it is calculated here.
Key Takeaways HRB stock has jumped 26.1% in three months, beating the industry's 22.5% return.HRB's FY26 EPS estimate rose 4% in 60 days to $5.18, suggesting 11.2% y/y growth.HRB's AI Tax Assist aided paid DIY returns; DIY generated $383.7M, 10% of FY25 revenues. Shares of H&R Block (HRB - Free Report) have jumped 26.1% over the past three months, outperforming the industry’s 22.5% return.
What Makes HRB Stock an Attractive Pick?Solid Rank: H&R Block currently sports a Zacks Rank #1 (Strong Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment.
Northward Estimate Revisions: Three estimates for fiscal 2026 moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for fiscal 2026 earnings has moved up 4% in the past 60 days.
Strong Growth Prospects: The Zacks Consensus Estimate for HRB’s earnings is pegged at $5.18 per share, indicating 11.2% year-over-year growth. Earnings are expected to register a 9.2% increase in fiscal 2027.
AI Tax Assist Boost Top Line: HRB integrated AI Tax Assist into DIY tax preparation, which is improving its top line. This technology enhances customer experience as it aids clients who prepare a paid DIY online return without extra changes. In fiscal 2025, the company generated $383.7 million in DIY tax preparation, representing 10% of the total revenues.
Active Share Repurchases: In fiscal 2023, 2024 and 2025, the company distributed $177.9 million, $179.8 million and $197.3 million in dividends, respectively. Additionally, it returned $569 million, $379.6 million and $437.1 million through share repurchases in fiscal 2023, 2024 and 2025, respectively. This strategy improves shareholder value and their confidence in the business's long-term potential.
Solid Liquidity Profile: H&R Block’s ratio at the end of the third quarter of fiscal 2026 was 1, higher than the industry’s 0.92. While the company is positioned to precisely cover its short-term obligations, it held $887 million in cash as of the end of the third quarter of fiscal 2026, hinting at a cash-heavy balance sheet.
Image Source: Zacks Investment Research
Other Stocks to ConsiderSome other top-ranked stocks from the broader Zacks Consumer Discretionary sector are PVH Corp. (PVH - Free Report) and Flexsteel Industries, Inc. (FLXS - Free Report) , each currently flaunting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
PVH Corp has a long-term earnings growth expectation of 7.5%. PVH delivered a trailing four-quarter earnings surprise of 14.2%, on average.
Flexsteel Industries has a long-term earnings growth expectation of 12%. FLXS delivered a trailing four-quarter earnings surprise of 59%, on average.
Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, June 2:
H&R Block, Inc. (HRB - Free Report) : This DIY tax return preparation services company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4% over the last 60 days.
H&R Block has a PEG ratio of 0.59 compared with 0.78 for the industry. The company possesses a Growth Score of B.
DaVita Inc. (DVA - Free Report) : This dialysis services company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.4% over the last 60 days.
DaVita has a PEG ratio of 0.64 compared with 2.21 for the industry. The company possesses a Growth Score of B.
Lifetime Brands, Inc. (LCUT - Free Report) : This home appliances company dealing primarily in kitchenware carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 19.7% over the last 60 days.
Lifetime Brands has a PEG ratio of 0.84 compared with 1.16 for the industry. The company possesses a Growth Score of A.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Learn more about the Growth score and how it is calculated here.
Key Takeaways Rising P/E ratios often signal investor confidence, earnings strength and further upside potential. The screen identifies stocks with accelerating earnings growth and sustained price momentum. ADBE, HRB, GLBE, ADSK and INTU pair rising P/Es with strong earnings performance. Investors often opt for the stock-picking approach that involves stocks with a low price-to-earnings (P/E) ratio. This strategy is based on the notion that the lower the P/E ratio is, the higher the stock value. The reasoning behind this is straightforward — when a stock's current market price does not adequately reflect its higher earnings, it suggests potential for growth.
But there is more to this whole P/E story. Because not only low P/E, stocks with a rising P/E can also fetch strong returns. In this regard, investors can bet on the likes of Adobe (ADBE - Free Report) , H&R Block (HRB - Free Report) , Global-E Online (GLBE - Free Report) , Autodesk (ADSK - Free Report) and Intuit (INTU - Free Report) .
Rising P/E: A Useful ToolThe concept is that as earnings rise, so should the price of the stock. As forecasts for expected earnings come in higher, strong demand for the stock should continue to push up its prices. After all, astock's P/E gives an indication of how much investors are ready to shell out per dollar of earnings.
Suppose an investor wants to buy a stock with a P/E ratio of 30. This means that he is willing to shell out $30 for only $1 worth of earnings as he expects earnings of the company to rise at a faster pace in the future owing to strong fundamentals.
So, if the P/E of a stock is rising steadily, it means that investors are assured of its inherent strength and expect some strong positives out of it.
Also, studies have revealed that stocks have seen their P/E ratios jump over 100% from their breakout point in the cycle. So, if you can pick stocks early in their breakout cycle, you can end up seeing considerable gains.
The Winning StrategyIn order to shortlist stocks that are exhibiting an increasing P/E, we chose the following as our primary screening parameters.
EPS growth estimate for the current year is greater than or equal to last year’s actual growth
Percentage change in last year EPS should be greater than or equal zero
(These two criteria point to flat earnings or a growth trend over the years.)
Percentage change in price over four weeks greater than the percentage change in price over 12 weeks
Percentage change in price over 12 weeks greater than percentage change in price over 24 weeks
(These two criteria show that price of the stock is increasing consistently over the said timeframes.)
Percentage price change for four weeks relative to the S&P 500 greater than the percentage price change for 12 weeks relative to the S&P 500
Percentage price change for 12 weeks relative to the S&P 500 greater than the percentage price change for 24 weeks relative to the S&P 500
(Here, the case for consistent price gains gets even stronger as it displays percentage price changes relative to the S&P 500.)
Percentage price change for 12 weeks is 20% higher than or equal to the percentage price change for 24 weeks, but it should not exceed 100%
(A 20% increase in the price of a stock from the breakout point gives cues of an impending uptrend. But a jump of over 100% indicates that there is limited scope for further upside and that the stock might be due for a reversal.)
In addition, we place a few other criteria that lead us to some likely outperformers.
Zacks Rank less than or equal to 2: Only companies with a Zacks Rank #1 (Strong Buy) or 2 (Buy) can get through.
Average 20-day Volume greater than or equal to 50,000: High trading volume implies that the stocks have adequate liquidity.
Just these few criteria narrowed down the universe from over 7,700 stocks to just 65.
Here are five out of the 65 stocks:
Adobe: This leading technology company, currently with a Zacks Rank #2 (Buy),offers a personalized digital experience through the infusion of artificial intelligence (AI) in its solutions. You can see the complete list of today’s Zacks #1 Rank stocks here.
The average four-quarter earnings surprise of ADBE is 2.46%.
H&R Block: The Zacks Rank #1 company is a leading provider of tax preparation services.
The average four-quarter earnings surprise of HRB is 1.75%.
Global-E Online: The Zacks Rank #2 company provides a platform to enable and accelerate global, direct-to-consumer cross-border e-commerce.
The average four-quarter earnings surprise of GLBE is 56.95%.
Autodesk: The Zacks Rank #2 develops model-based design, engineering and documentation software. The company serves customers in architecture, engineering and construction; product design and manufacturing; and digital media and entertainment industries.
The average four-quarter earnings surprise of ADSK is 7.07%.
Intuit: The Zacks Rank #2 business and financial software company develops and sells financial, accounting and tax preparation software, and related services for small businesses, consumers and accounting professionals globally.
The average four-quarter earnings surprise of INTU is 6.87%.
Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, June 4:
H&R Block, Inc. (HRB - Free Report) : This DIY tax return preparation services company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4% over the last 60 days.
H&R Block has a PEG ratio of 0.60 compared with 0.76 for the industry. The company possesses a Growth Score of B.
DaVita Inc. (DVA - Free Report) : This dialysis services company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.4% over the last 60 days.
DaVita has a PEG ratio of 0.62 compared with 2.15 for the industry. The company possesses a Growth Score of B.
Valero Energy Corporation (VLO - Free Report) : This transportation fuels and petrochemical products company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 67.2% over the last 60 days.
Vareo has a PEG ratio of 0.38 compared with 0.49 for the industry. The company possesses a Growth Score of B.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Learn more about the Growth score and how it is calculated 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.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: H&R Block (HRB - Free Report) H&R Block Inc. is a leading provider of tax preparation services. The company provides assisted income tax return preparation, do-it-yourself (DIY) tax solutions, and other products and services associated with income tax return preparation in the United States, Canada, and Australia. All these continuing operations are reported under a single segment.
HRB is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 7.33; value investors should take notice.
Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.20 to $5.18 per share. HRB boasts an average earnings surprise of +1.8%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, HRB should be on investors' short list.
Here are three stocks with buy ranks and strong growth characteristics for investors to consider today June 5th:
Pitney Bowes (PBI - Free Report) : This global technology company, which is powering billions of transactions - physical and digital - in the connected and borderless world of commerce, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 11% over the last 60 days.
Pitney Bowes has a PEG ratio of 0.75 compared with 0.91 for the industry. The company possesses a Growth Score of A.
Centene (CNC - Free Report) : This well-diversified healthcare company, that primarily provides a set of services to the government sponsored healthcare programs, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 15.3% over the last 60 days.
Centene has a PEG ratio of 0.49 compared with 1.05 for the industry. The company possesses a Growth Score of A.
H&R Block (HRB - Free Report) : This company, which is a leading provider of tax preparation services, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4% over the last 60 days.
H&R Block has a PEG ratio of 0.58 compared with 1.12 for the industry. The company possesses a Growth Score of B.
See the full list of top ranked stocks here.
Learn more about the Growth score and how it is calculated here.
It has been about a month since the last earnings report for H&R Block (HRB - Free Report) . Shares have added about 3.3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is H&R Block due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for H&R Block, Inc. before we dive into how investors and analysts have reacted as of late.
H&R Block Reports Q3 Earnings BeatH&R Block reported impressive third-quarter fiscal 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate.
HRB’s adjusted earnings of $6.02 per share beat the Zacks Consensus Estimate by 5.8% and increased 11.9% year over year. Revenues of $2.4 billion topped the Zacks Consensus Estimate by 2.5% and rose 5.3% year over year.
HRB’s Quarterly NumbersRevenues from U.S. tax preparation and related services were $2.2 billion, up 5.1% year over year. Revenues from Financial services totaled $54.8 million, marking a marginal year-over-year rise. International revenues of $70 million rose 16%, while Wave revenues jumped 11.8% to $29.9 million.
Key Balance Sheet & Cash Flow FiguresH&R Block exited the quarter with cash and cash equivalents of $867 million. Long-term debt was $1.5 billion compared with $2.4 billion at the end of the second quarter of fiscal 2026. The company generated $1.5 billion of cash in operating activities, while capital expenditures totaled $18.4 million.
HRB’s FY26 OutlookHRB guided adjusted earnings in the range of $5.10-$5.20 per share for fiscal 2026. Revenues are expected to be between $3.910 billion and $3.920 billion.
The company guided EBITDA between $1.025 billion and $1.035 billion and an effective tax rate of 14%.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -6.43% due to these changes.
VGM ScoresCurrently, H&R Block has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, H&R Block has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry PlayerH&R Block belongs to the Zacks Consumer Services - Miscellaneous industry. Another stock from the same industry, Cimpress (CMPR - Free Report) , has gained 5.4% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Cimpress reported revenues of $886.21 million in the last reported quarter, representing a year-over-year change of +12.3%. EPS of $0.55 for the same period compares with -$0.33 a year ago.
Cimpress is expected to post earnings of $1.00 per share for the current quarter, representing a year-over-year change of +198%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.5%.
Cimpress has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, June 8:
Valero Energy Corporation (VLO - Free Report) : This energy company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 55.2% over the last 60 days.
Valero has a PEG ratio of 0.38 compared with 0.49 for the industry. The company possesses a Growth Score of B.
H&R Block, Inc. (HRB - Free Report) : This DIY tax return preparation services company carriesa Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4% over the last 60 days.
H&R Block has a PEG ratio of 0.59 compared with 1.06X for the industry. The company possesses a Growth Score of A.
Marathon Petroleum Corporation (MPC - Free Report) : This integrated downstream energy company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 53.5% over the last 60 days.
Marathon Petroleum has a PEG ratio of 0.42 compared with 0.49 for the industry. The company possesses a Growth Score of B.
See the full list of top-ranked stocks here.
Learn more about the Growth score and how it is calculated here.
Key Takeaways AI valuation concerns are rising as investors reassess lofty earnings multiples and spending levels.Rising infrastructure costs, critical-mineral demand and geopolitical risks may pressure AI investments.CrossAmerica Partners, Global Partners, H&R Block and B&G Foods offer attractive shareholder yields. Artificial intelligence remains the dominant investment theme of 2026, but the spectacular rally in AI-linked stocks is increasingly raising concerns about stretched valuations. Investors have poured capital into semiconductor makers, hyperscalers and Artificial Intelligence (AI) software firms on expectations of transformative long-term growth. However, recent market action suggests that enthusiasm may be running ahead of fundamentals.
Reuters recently reported that technology shares sold off sharply as investors reassessed lofty AI-related valuations amid changing interest-rate expectations. Market participants cited elevated earnings multiples, concentration of capital in a handful of AI leaders and growing speculative activity in private AI companies as key sources of vulnerability. Reuters also noted that concerns are rising over whether massive AI spending can generate returns quickly enough to justify current valuations.
Skepticism is not centered on AI's ability to reshape the global economy, but on whether equity markets have already priced in much of the anticipated growth. Against this backdrop, companies with a proven track record of returning cash to shareholders may offer greater resilience.
Stocks with strong shareholder yield not only provide income through dividends but also support valuations through buybacks and disciplined capital allocation. As geopolitical risks and AI volatility persist in 2026, these companies may serve as an important anchor for investor portfolios navigating turbulent markets.
Among companies offering attractive shareholder yields are H&R Block (HRB - Free Report) , Global Partners (GLP - Free Report) , CrossAmerica Partners (CAPL - Free Report) and B&G Foods (BGS - Free Report) . These stocks also carry favorable Zacks Ranks and Style Scores, suggesting potential upside in their share prices this year and enhancing their ability to generate long-term shareholder value.
What Is Driving Premium AI Valuations?The premium valuations assigned to AI-related companies are being fueled by an unprecedented surge in capital spending. Leading technology firms are investing heavily in semiconductors, cloud infrastructure, data centers and AI models as they compete to establish long-term leadership positions.
Reuters reported that major technology companies are engaged in an escalating competition for AI talent, computing power and infrastructure. The race has prompted record investment commitments from companies such as Microsoft, Alphabet, Meta Platforms, Amazon and Nvidia. At the same time, AI-related private companies continue to command extraordinary valuations as investors chase exposure to the sector’s growth potential.
Demand forecasts remain compelling. The U.S. Energy Information Administration projects power consumption to reach new records in 2026 and 2027, driven in part by surging demand from AI data centers. Reuters also reported that AI, robotics and defense applications are expected to drive a 50% increase in global copper demand by 2040, highlighting the scale of infrastructure required to support the AI revolution.
Rising Input Costs and Geopolitical Risks Add PressureWhile AI growth prospects remain attractive, the sector faces mounting cost pressures.
Copper, rare earth elements and other critical minerals are becoming increasingly important inputs for AI infrastructure. Reuters reported that demand for strategic minerals is accelerating as governments and corporations compete to secure supply chains for advanced technologies and defense systems. Industry analysts continue to warn about potential shortages of critical materials required for data centers, power infrastructure and semiconductor production.
Geopolitical risks are creating additional uncertainty. Competition for critical minerals, export controls, supply-chain realignment and regional conflicts continue to threaten the stability of global technology supply chains. These risks could lead to higher operating costs and lower returns on massive AI infrastructure investments.
Why Shareholder Yield Matters in This EnvironmentAs valuation concerns grow, investors may increasingly favor companies with strong shareholder yield rather than firms relying solely on future growth expectations.
Shareholder yield combines dividend payments, share repurchases and debt reduction to measure the total capital returned to investors. Companies with strong shareholder yield typically generate substantial free cash flow, maintain healthy balance sheets and demonstrate disciplined capital allocation.
These characteristics become particularly valuable when market leadership is concentrated and valuation risk is high. Dividend income can help cushion portfolio volatility, while buybacks support earnings per share and provide a degree of downside protection. Debt reduction further strengthens financial flexibility during uncertain periods.
In contrast to highly valued growth stocks whose returns depend heavily on future expectations, shareholder-yield companies provide investors with a tangible source of return.
A More Balanced Approach to 2026The long-term AI opportunity remains significant, but rising valuation concerns, increasing infrastructure costs and growing geopolitical risks suggest investors should remain selective. As markets become more sensitive to earnings delivery and return on investment, companies with strong shareholder yield may offer a useful counterbalance to expensive growth stocks.
By combining dividends, buybacks and balance-sheet strength, shareholder-yield companies provide a measure of stability that can help investors weather volatility while still participating in long-term wealth creation.
Our Shareholder Yield Screen makes it easy to identify high-potential stocks at any given time — just like the ones mentioned above.
Ready to uncover more transformative thematic investment ideas? Explore 37 cutting-edge investment themes with Zacks Thematic Screens and discover your next big opportunity.
4 Stocks With Strong Shareholders’ YieldH&R Block stands out as a strong candidate for high shareholder yield due to its attractive dividend payments, consistent share buybacks and effective debt management. The company offers a good dividend yield of around 4.41%.
HRB has increased its dividend payout five times in the past five years, reflecting an annualized dividend growth rate of 11.2%. The payout ratio of 32% indicates that the company is paying less than its income, which is sustainable over the long term. This also reflects that Eni is keeping funds for better investment opportunities.
H&R Block has also repurchased shares worth $400.1 million in the first nine months of fiscal 2026, preceded by another $400.1 million worth of repurchase in fiscal 2025. The company currently has remaining authorization of $700 million. It also reduced its long-term debt from $1.98 billion (in 2021) to $1.49 billion (as of March 2026-end).
H&R Block’s shareholder yield remains impressive, making it a compelling choice for investors seeking a combination of income and capital appreciation while benefiting from disciplined capital allocation.
HRB currently sports a Zacks Rank #1 (Strong Buy) and a Zacks VGM Score of A, implying strong potential for continued uptrend. You can see the complete list of today’s Zacks #1 Rank stocks here.
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General Partners owns, controls or has access to one of the largest terminal networks of refined petroleum products in New England. The company can offer stability to investors’ portfolios through its strong shareholder yield. It offers a dividend yield of around 6.23%.
GLP has increased its dividend payout 17 times in the past five years, reflecting an annualized dividend growth rate of 7.1%. The payout ratio of 84% indicates that the company is paying less than its income, which is sustainable over the long term. This also reflects that GLP is keeping funds for better investment opportunities.
The company has repurchased 1,734,658 common units since launching its repurchase program in May 2009 through Dec. 31, 2025. As of Feb. 27, 2026, it remained authorized to repurchase up to an additional 865,929 common units. The company has also strengthened its balance sheet, reducing long-term debt from $1.68 billion in 2024 to $1.65 billion as of March 31, 2026.
General Partners’ shareholder yield remains impressive, making it a compelling choice for investors seeking a combination of income and capital appreciation while benefiting from disciplined capital allocation.
GLP currently flaunts a Zacks Rank of 1 and a Zacks VGM Score of B, implying strong upside potential.
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CrossAmerica Partners engages in the wholesale distribution of motor fuels, with the potential to offer stability amid rising volatility through its attractive dividend payments and effective debt management. The company offers a solid dividend yield of around 9.5%.
It has also reduced its long-term debt from $1.62 billion in 2021 to $726 million as of March 2026-end.
CAPL’s shareholder yield remains impressive, making it a compelling choice for investors seeking a combination of income and capital appreciation while benefiting from disciplined capital allocation.
CrossAmerica Partners currently sports a Zacks Rank #1 and a Zacks VGM Score of A, implying continued upside potential.
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B&G Foods is another strong candidate for high shareholder yield due to its attractive dividend payments and effective debt management. The company offers a solid dividend yield of around 19.49%.
It has also reduced its long-term debt from $2.34 billion in 2022 to $2 billion as of March 2026-end.
B&G Foods’ shareholder yield remains impressive, making it a compelling choice for investors seeking a combination of income and capital appreciation while benefiting from disciplined capital allocation.
BGS currently carries a Zacks Rank of 2 and a Zacks VGM Score of A, implying moderate upside potential for the stock.
DaVita Inc. (DVA - Free Report) : This kidney dialysis company has a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.4% over the last 60 days.
DaVita Inc. has a PEG ratio of 0.65 compared with 2.13 for the industry. The company possesses a Growth Score of A.
H&R Block, Inc. (HRB - Free Report) : This DIY tax return preparation services company carriesa Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4% over the last 60 days.
H&R Block has a PEG ratio of 0.59 compared with 1.05 for the industry. The company possesses a Growth Score of A.
Pitney Bowes Inc. (PBI - Free Report) : This shipping and mailing services company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 11% over the last 60 days.
Pitney Bowes has a PEG ratio of 0.75 compared with 0.86 for the industry. The company possesses a Growth Score of A.
See the full list of top ranked stocks here.
Learn more about the Growth score and how it is calculated here.
H&R Block (HRB - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for H&R Block basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for H&R Block imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for H&R BlockThis tax preparer is expected to earn $5.18 per share for the fiscal year ending June 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for H&R Block. Over the past three months, the Zacks Consensus Estimate for the company has increased 3.9%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of H&R Block to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
First Trust Advisors LP lifted its position in shares of J and J Snack Foods Corp. (NASDAQ: JJSF) by 19.9% during the undefined quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 404,461 shares of the company's stock after purchasing an additional 67,028 shares during
The cost of GLP-1 drugs is falling, and pill versions are hitting the U.S. market. For restaurant chains and snacking giants, higher adoption of weight loss and diabetes treatments poses a threat to their sales — or an opportunity.
GLP-1 drugs slow digestion, suppress users' appetites and increase satiety. For many restaurants and packaged food manufacturers, those reactions will likely mean weaker sales. Adults who use GLP-1s consume 21% fewer calories and spend nearly a third less on grocery bills on average, according to KPMG. JPMorgan estimates the growing use of the medications could wipe out $30 billion to $55 billion in annual sales for the food and beverage industry as soon as 2030.
About one in every eight U.S. adults is currently taking a GLP-1 drug like Ozempic or Zepbound, according to the KFF Health Tracking Poll conducted from Oct. 27 to Nov. 2. That number doesn't include consumers who have discontinued their use of the drugs; 18% of respondents said that they have taken a GLP-1 medication at some point.
Those numbers are expected to keep climbing, especially after Novo Nordisk launched its Wegovy pill in January and Eli Lilly prepares to roll out its own oral drug this year. By 2030, more than 30 million Americans could be on a GLP-1 treatment, up from 10 million in 2026, based on J.P. Morgan estimates.
But the shift also presents an opportunity for restaurants and food and beverage companies.
With new protein- and fiber-rich options, many businesses are hoping to win over GLP-1 consumers and mollify investors' concerns about how the treatments will affect their bottom lines.
"Whether it is labeling as GLP-1 friendly, decreasing the serving size, emphasizing protein content, or even when you shift over to the beverage world, because hydration is certainly a concern, there are a number of players that are starting to react to this," said Don K. Johnson, principal of strategy and execution for EY-Parthenon.
Skipping snacks and breakfastAbout half of GLP-1 users report consuming fewer calories while taking the medications, according to UBS Evidence Lab. But the effects aren't even across the industry, and "certain categories are more impacted than others," Johnson said.
Snacking, once one of the fastest-growing grocery segments, has taken the biggest hit. About 70% of GLP-1 users who report consuming fewer calories said that they are snacking less, according to a survey conducted by EY-Parthenon last spring.
"I think it is about the specific type of snack, but I do think they're also snacking less ... Having said that, we do see that there is a shift to healthier foods, and that certainly will include healthier snacking," Johnson said.
Think more yogurt, nuts or fruit, and fewer chips or pretzels.
Since GLP-1 drugs lead patients to lower their caloric intake, every calorie consumed means more. Protein intake is more important to prevent muscle loss. So, too, is fiber to support gut health and digestion. And staying hydrated helps mitigate some of the drugs' side effects, like nausea and headaches.
The effects of eating less extend to restaurants. About 60% of those respondents to the EY-Parthenon survey said that they are dining out less frequently.
The shift could also hit full-service restaurants where diners order a drink with their meals. Roughly 45% of survey respondents who are eating and drinking less said that they are drinking less alcohol.
Surveys conducted by Bernstein indicate that the frequency of restaurant visits among GLP-1 users can fall by as much as 45%, depending on the category of food and the nature of the occasion, analyst Danilo Gargiulo of Bernstein wrote in a research note published on Tuesday.
The pullback in restaurant visits isn't spread evenly across times of day, according to Dana Baggett, executive director of restaurant client strategy at RRD, which works with more than 200 restaurant brands.
Lunch, so far, hasn't been impacted, she said. But breakfast has taken a hit, particularly from high-income GLP-1 users, who represent a bigger percentage of current patients, she said. In practice, that means fewer sugary coffee drinks and doughnuts, although options like Starbucks' protein cold foam could encourage those consumers to return.
Dinner, especially at fast-food restaurants, has taken the brunt of the damage so far.
Dinner traffic has fallen 6% among consumers who have been taking the medication regularly, according to Baggett; in other words, overall restaurant sales during dinner hours have declined about 0.4% due to GLP-1 use, she said. But as the number of consumers who use the drug consistently grows, so too will the pressure on restaurant traffic.
And snacking isn't confined to grocery store aisles. For limited-service restaurants, like McDonald's or Taco Bell, snacking accounts for 12% of spending, according to Bank of America Global Research.
Even so, threats to those large restaurants chains may only be gradual, which gives them time to adapt.
"I think there shouldn't be this panic out there in the marketplace, but this is a trend that's not going away," Baggett said. "This is an amazing opportunity for brands to start repositioning themselves and focusing on what consumers want: less sugar, higher protein and that focus on fiber."
How Big Food is evolvingIf recent earnings conference calls are any example, restaurant and food executives also think that it isn't time to panic just yet. For some companies, the trend offers a chance to reach new customers through healthier options.
"I think there are more opportunities than threats, but there are both," PepsiCo CEO Ramon Laguarta told Wall Street analysts on the company's earnings conference call in early February.
In recent months, Pepsi has released protein-packed Doritos, relaunched Gatorade and unveiled fiber-rich varieties of SunChips and Smartfood popcorn. Those moves are part of the company's broader strategy to modernize its portfolio and boost sales by appealing to health-conscious consumers, but they also align with Laguarta's assumption that GLP-1 medications will be adopted more broadly.
Domino's Pizza CEO Russell Weiner sounded unshaken when he told analysts last month that the pizza chain hasn't seen GLP-1 drugs affect its sales yet.
"Dinner, for us, is a sharing occasion, so perhaps that's why we're not seeing any impact, but we're going to continue to watch it," he said. "But if there needs to be menu innovation around that, we will do that."
RRD's Baggett told CNBC that she thinks portions and snack sizing will be key for restaurants to attract consumers who are on GLP-1 treatments.
When asked about the drugs on McDonald's earnings conference call last month, CEO Chris Kempczinski touted the burger chain's existing protein options. But he added that the preferences of GLP-1 users are also being considered as the chain creates new menu items.
"We're also seeing changes around maybe less snacking, changes in some of the beverages that they drink, less sugary drinks, and so all of those things are factoring into some of what we're out there experimenting with and testing with," he said.
Other restaurant chains have already launched options that appeal to diners on GLP-1 drugs, even if the medications weren't the key impetus. For example, Chipotle launched grab-and-go protein cups in December, aiming to cash in on the protein and snacking crazes as its restaurant sales struggled.
And Olive Garden, owned by Darden Restaurants, released a Lighter Portions menu last year, downsizing a handful of its classic entrees at a lower price. Darden CEO Rick Cardenas said that the chain introduced the new menu to give all of its customers more options.
"It just so happens to benefit the consumers that might want smaller portions that are on GLP-1 medications, and we have a lot of options like that in all of our menus," Cardenas said on the company's earnings conference call in December.
Marketing to GLP-1 usersOther companies have explicitly appealed to GLP-1 users, particularly when it comes to innovation.
In 2024, Nestle led the pack when it launched Vital Pursuit, a frozen-food brand targeting GLP-1 users. While the packaging initially didn't call out that it was "GLP-1 friendly," the food company updated it later to include it prominently, boosting sales.
"It's a big initiative for Nestle," Nestle USA CEO Marty Thompson told CNBC at a media event earlier in March. "There will be those things that are designed for GLP-1, and there will be those things that will be sort of a companion to GLP-1, clearly calling out protein and fiber, but not necessarily designed portion-size wise or whatever for GLP-1."
Nestle's focus will extend beyond food, too. Thompson said that the company plans to expand into beverages and listed protein shakes as one potential way to appeal to GLP-1 customers.
Even food companies without much exposure to GLP-1 users are broadening their portfolios to reach them.
For example, Dippin' Dots and Icee owner J&J Snack Foods makes most of its sales in stadiums, theme parks and malls. Because of its "experiential" focus, CEO Dan Fachner told CNBC that he thinks that J&J is more insulated from the effect of GLP-1 drugs compared with its snacking peers.
"I still think that in most cases, even people on GLP-1 drugs will still use those occasions for snacking," he said.
Even still, more than a year ago, Fachner presented employees with a challenge for the company's grocery business, which accounts for 13.5% of annual sales.
"Take the core products — pretzels and churros and Icees and Dippin' Dots and frozen novelties — tell me how we can make them more GLP-1 friendly as it continues to grow," he said.
This year, J&J has a number of new products hitting the freezer aisle. Protein has been added to its soft pretzels, now available in a smaller portion size. And Luigi's Italian Ice, traditionally sold in a cup, will come in a "mini pop size," with a formula that includes more antioxidants or helps hydration, according to Fachner. If the new products succeed in grocery stores, then J&J plans to take them to the company's food service customers, as well.
J&J's new products also have the benefit of appealing to a wider audience than just consumers who are on GLP-1 medication. For example, Fachner expects the new Luigi's mini pops will appeal to health-conscious moms as a snack for their kids.
Uptake could change strategiesFor restaurants and food suppliers, current data on the eating and drinking habits of GLP-1 users are informing their efforts to appeal to those consumers. But that behavior can still fluctuate.
About 5% of users lapse in taking the medications, due to cost, side effects or hitting their weight goal. After quitting, they tend to maintain the same eating habits for a couple of months before eventually returning to a higher caloric intake.
"I think that we don't spend enough time talking about the fact that there may be sort of a cycle of behaviors — people going on and off of the drugs — that will have sort of an interesting impact on manufacturers of food because there's no 'before' and 'after,'" EY's Johnson said. "It's a process."
And a whole new group of consumers could soon be taking daily pill versions of GLP-1 medications. It's too soon to tell if oral GLP-1 drugs will result in more consistent usage or higher quit rates and to know who exactly is trying the pill version over the injectable.
"I don't have a crystal ball, but my guess is from our survey that the folks using the oral version of the drug will be a new set of people, because one of the barriers to trial was — as can be expected — a lot of people don't like to take shots of injections," Johnson said.
There is one prediction that is widely accepted: the pill version will mean much higher adoption of GLP-1 drugs.
DAVENPORT and Co LLC trimmed its position in shares of J and J Snack Foods Corp. (NASDAQ: JJSF) by 5.6% during the undefined quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 233,408 shares of the company's stock after selling 13,836 shares during the
Allspring Global Investments Holdings LLC lifted its position in shares of J & J Snack Foods Corp. (NASDAQ:JJSF – Free Report) by 1.6% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 1,739,411 shares of the company’s stock after acquiring an additional 26,975 shares during the quarter. Allspring Global Investments Holdings LLC owned 9.16% of J & J Snack Foods worth $157,451,000 at the end of the most recent quarter.
A number of other institutional investors and hedge funds have also recently bought and sold shares of the business. Ballentine Partners LLC grew its position in J & J Snack Foods by 6.1% in the third quarter. Ballentine Partners LLC now owns 2,195 shares of the company’s stock worth $211,000 after buying an additional 127 shares during the last quarter. Nicolet Advisory Services LLC increased its position in J & J Snack Foods by 5.8% in the 3rd quarter. Nicolet Advisory Services LLC now owns 2,592 shares of the company’s stock worth $246,000 after purchasing an additional 143 shares during the last quarter. RK Asset Management LLC raised its stake in shares of J & J Snack Foods by 0.5% during the 3rd quarter. RK Asset Management LLC now owns 29,948 shares of the company’s stock worth $2,878,000 after purchasing an additional 144 shares in the last quarter. Amalgamated Bank raised its stake in shares of J & J Snack Foods by 3.5% during the 3rd quarter. Amalgamated Bank now owns 4,584 shares of the company’s stock worth $440,000 after purchasing an additional 153 shares in the last quarter. Finally, GAMMA Investing LLC lifted its stake in J & J Snack Foods by 38.0% in the third quarter. GAMMA Investing LLC now owns 966 shares of the company’s stock valued at $93,000 after acquiring an additional 266 shares during the last quarter. Institutional investors and hedge funds own 76.04% of the company’s stock.
Wall Street Analyst Weigh In JJSF has been the topic of a number of recent research reports. Weiss Ratings restated a “sell (d+)” rating on shares of J & J Snack Foods in a report on Friday. Benchmark reiterated a “buy” rating on shares of J & J Snack Foods in a report on Tuesday, January 20th. Finally, Zacks Research downgraded shares of J & J Snack Foods from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 19th. One research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $130.00.
Check Out Our Latest Research Report on J & J Snack Foods
J & J Snack Foods Stock Up 1.1% Shares of JJSF stock opened at $80.70 on Tuesday. J & J Snack Foods Corp. has a 12 month low of $73.75 and a 12 month high of $142.69. The company has a market cap of $1.53 billion, a PE ratio of 25.70 and a beta of 0.34. The business’s 50 day moving average is $85.05 and its two-hundred day moving average is $89.80.
J & J Snack Foods (NASDAQ:JJSF – Get Free Report) last issued its quarterly earnings data on Tuesday, February 3rd. The company reported $0.33 earnings per share for the quarter, topping analysts’ consensus estimates of $0.32 by $0.01. The business had revenue of $343.78 million during the quarter, compared to analysts’ expectations of $365.95 million. J & J Snack Foods had a net margin of 3.92% and a return on equity of 8.79%. J & J Snack Foods’s revenue for the quarter was down 5.2% on a year-over-year basis. During the same period in the previous year, the company earned $0.33 earnings per share. As a group, equities analysts expect that J & J Snack Foods Corp. will post 4.75 EPS for the current fiscal year.
J & J Snack Foods Dividend Announcement The company also recently announced a quarterly dividend, which will be paid on Tuesday, April 7th. Shareholders of record on Tuesday, March 17th will be given a dividend of $0.80 per share. The ex-dividend date of this dividend is Tuesday, March 17th. This represents a $3.20 dividend on an annualized basis and a yield of 4.0%. J & J Snack Foods’s payout ratio is currently 101.91%.
J & J Snack Foods announced that its Board of Directors has initiated a stock buyback plan on Tuesday, February 3rd that allows the company to repurchase $50.00 million in outstanding shares. This repurchase authorization allows the company to purchase up to 2.8% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s board believes its stock is undervalued.
J & J Snack Foods Company Profile (Free Report)
J & J Snack Foods (NASDAQ: JJSF) is a U.S.-based manufacturer and distributor of branded snack foods and frozen beverages. Headquartered in Pennsauken, New Jersey, the company develops, produces and markets a broad array of proprietary and licensed products for retail, concession and foodservice customers. Its offerings span soft pretzels, frozen novelties, real Italian ice, churros and packaged beverages under well-known names such as ICEE, SuperPretzel, Luigi’s and ChurroMan.
Founded in 1971 by Gerald B.
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Phocas Financial Corp. purchased a new stake in shares of J & J Snack Foods Corp. (NASDAQ:JJSF – Free Report) in the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor purchased 40,358 shares of the company’s stock, valued at approximately $3,647,000. Phocas Financial Corp. owned about 0.21% of J & J Snack Foods as of its most recent filing with the Securities & Exchange Commission.
Other institutional investors have also modified their holdings of the company. EverSource Wealth Advisors LLC grew its position in shares of J & J Snack Foods by 902.9% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 351 shares of the company’s stock worth $40,000 after buying an additional 316 shares during the last quarter. MassMutual Private Wealth & Trust FSB lifted its position in J & J Snack Foods by 897.7% during the fourth quarter. MassMutual Private Wealth & Trust FSB now owns 439 shares of the company’s stock valued at $40,000 after acquiring an additional 395 shares during the last quarter. Assetmark Inc. boosted its stake in J & J Snack Foods by 19,000.0% in the third quarter. Assetmark Inc. now owns 955 shares of the company’s stock valued at $92,000 after acquiring an additional 950 shares in the last quarter. GAMMA Investing LLC boosted its stake in J & J Snack Foods by 38.0% in the third quarter. GAMMA Investing LLC now owns 966 shares of the company’s stock valued at $93,000 after acquiring an additional 266 shares in the last quarter. Finally, Covestor Ltd grew its holdings in J & J Snack Foods by 71.1% in the third quarter. Covestor Ltd now owns 1,013 shares of the company’s stock worth $97,000 after purchasing an additional 421 shares during the last quarter. 76.04% of the stock is currently owned by institutional investors.
Analyst Ratings Changes Several analysts have recently commented on the company. Benchmark reiterated a “buy” rating on shares of J & J Snack Foods in a report on Tuesday, January 20th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of J & J Snack Foods in a research report on Friday, March 27th. Finally, Zacks Research cut J & J Snack Foods from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 19th. One equities research analyst has rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, J & J Snack Foods has a consensus rating of “Hold” and a consensus target price of $130.00.
Read Our Latest Analysis on J & J Snack Foods
J & J Snack Foods Stock Performance NASDAQ:JJSF opened at $79.22 on Monday. J & J Snack Foods Corp. has a twelve month low of $73.75 and a twelve month high of $142.69. The company has a market cap of $1.51 billion, a PE ratio of 25.23 and a beta of 0.38. The company’s 50 day moving average is $83.77 and its two-hundred day moving average is $89.13.
J & J Snack Foods (NASDAQ:JJSF – Get Free Report) last posted its quarterly earnings results on Tuesday, February 3rd. The company reported $0.33 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.32 by $0.01. J & J Snack Foods had a net margin of 3.92% and a return on equity of 8.79%. The business had revenue of $343.78 million during the quarter, compared to analysts’ expectations of $365.95 million. During the same quarter last year, the company posted $0.33 earnings per share. The business’s quarterly revenue was down 5.2% on a year-over-year basis. As a group, analysts expect that J & J Snack Foods Corp. will post 4.75 EPS for the current fiscal year.
J & J Snack Foods Dividend Announcement The company also recently announced a quarterly dividend, which will be paid on Tuesday, April 7th. Investors of record on Tuesday, March 17th will be paid a $0.80 dividend. The ex-dividend date is Tuesday, March 17th. This represents a $3.20 dividend on an annualized basis and a yield of 4.0%. J & J Snack Foods’s dividend payout ratio (DPR) is 101.91%.
J & J Snack Foods announced that its Board of Directors has approved a share buyback plan on Tuesday, February 3rd that permits the company to repurchase $50.00 million in outstanding shares. This repurchase authorization permits the company to buy up to 2.8% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.
J & J Snack Foods Company Profile (Free Report)
J & J Snack Foods (NASDAQ: JJSF) is a U.S.-based manufacturer and distributor of branded snack foods and frozen beverages. Headquartered in Pennsauken, New Jersey, the company develops, produces and markets a broad array of proprietary and licensed products for retail, concession and foodservice customers. Its offerings span soft pretzels, frozen novelties, real Italian ice, churros and packaged beverages under well-known names such as ICEE, SuperPretzel, Luigi’s and ChurroMan.
Founded in 1971 by Gerald B.
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