SHERIDAN, Wyo., April 21, 2026 (GLOBE NEWSWIRE) -- Registered Agents Inc (RAI), the largest registered agent and business formation service in the U.S. announced today it is once again increasing its equity position in LegalZoom, acquiring 55,000 additional shares of its publicly-traded competitor. This marks the company’s third purchase of LegalZoom stock, bringing its overall total to 170,000 shares.
The move reflects RAI’s conviction that LegalZoom has the most brand awareness in the industry and is timed deliberately in the wake of LegalZoom’s widely publicized partnership with GoDaddy.
“While LegalZoom has strong brand recognition in the business formation space, this latest move tells us the company needs a partner's platform to find new customers," said Regina Blunder, Equity Portfolio Manager at RAI. "Publicly available formation data from multiple jurisdictions, including Georgia, Illinois and New Jersey shows LegalZoom currently has an acceptable market share position. The earnings per share are currently horrible, and their cash on hand is concerning relative to their unearned prepaid income position, but we believe the stock price is so low because LegalZoom is the clear leader in Share of Voice, Sentiment, and Brand Mention Volume, over other business formation specialists like ZenBusiness, Bizee, and Northwest Registered Agent.”
“Our investment reflects confidence in the broader direction of the industry,” said Allen Costly, RAI's Director of Mergers and Acquisitions. “As more Americans turn to entrepreneurship, we know companies that balance trust, accessibility and value will be best positioned to capture the next wave of business formations. Or maybe LegalZoom's stock has taken such a beating lately that they'll be an obvious target for a public to private transaction soon, and we'll luck out and get our money back or at least average out of our losses so far.”
RAI believes LegalZoom's Human in the Loop go-forward strategy could truly innovate with AI forward automation in a meaningful way, despite the discrepancy between the company's cash on hand relative to their unearned income, with their new agentic AI registration partnership with GoDaddy to create a cryptographically verifiable ANS.
"You never know," added Blunder, "maybe GoDaddy will beat OpenAi, Anthropic, Facebook, Google, Microsoft, Salesforce, and Cisco in creating trust for AI Agents, and maybe LegalZoom will explode in tech-enabled agentification with the last mile Human in the Loop customer service that everyone still wants: the perfect hybrid of humans and AI. With LegalZoom’s industry leading share of voice, they are uniquely positioned for AI growth... or an acceptable buy out offer from GoDaddy.”
Registered Agents Inc has no plans to seek a controlling interest in LegalZoom and characterizes its shareholding as a passive market investment.
For additional Q1 formation data, please visit: https://www.registeredagentsinc.com/market-share/.
About Registered Agents Inc
Registered Agents Inc is an independently owned tech enabled business services company and the nation’s largest provider of registered agent services, compliance solutions and full identity services. The company helps hundreds of thousands of entrepreneurs every year start their own business and establish a legitimate, professional presence online and in their communities. Because of its extensive internal data, Registered Agents Inc also releases its monthly Business Formation Report using real-time state-level filings, cross-referenced with U.S. Census data, to offer exclusive insights into how the small business economy is performing.
MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)-- #SMB--LegalZoom (Nasdaq: LZ), America's #1 online legal services company, today released a new survey revealing how small business owners are navigating a complex environment shaped by fluctuating costs, evolving technology, and economic volatility. The survey comes at a time when more Americans are stepping into entrepreneurship: LinkedIn data shows a 69% year-over-year increase in U.S. members adding “founder” to their profiles, underscoring a growing shift t.
MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)-- #ai--LegalZoom (Nasdaq: LZ), America's #1 online legal services company, today extended an open offer of free trademark legal services to Taylor Swift, who last week filed three trademark applications with the U.S. Patent and Trademark Office aimed at protecting her voice and likeness from unauthorized AI-generated content — including two never-before-tested "sound marks" registering the spoken phrases "Hey, it's Taylor Swift" and "Hey, it's Taylor." The filin.
The market expects LegalZoom (LZ - Free Report) to deliver flat earnings compared to the year-ago quarter on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on May 6, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis online platform for legal services is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents no change from the year-ago quarter.
Revenues are expected to be $202.39 million, up 10.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 13.33% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
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 LegalZoom?For LegalZoom, 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 +4.48%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that LegalZoom 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 LegalZoom would post earnings of $0.18 per share when it actually produced earnings of $0.17, delivering a surprise of -5.56%.
The company has not been able to beat consensus EPS estimates in any of the last four quarters.
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.
LegalZoom 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.
Editor’s Note: I’ve been doing this long enough to know what a structural shift looks like.
It doesn’t announce itself. It doesn’t show up in the headlines. It shows up first in the data —pressure building beneath the surface of stocks that everyone assumes are safe.
Right now, I’m seeing that pressure building inside the business models of some of Wall Street’s most widely held software and AI companies.
The math changed before the narrative did at Enron.
It changed before the narrative did at Lehman. At Silicon Valley Bank. At every major blowup I’ve tracked across four decades of building quantitative models.
The stock charts looked fine. But the numbers underneath told a completely different story.
Right now, my models are picking up that same kind of stress again.
Not in the credit markets. Not in the broader economy. But inside the business models of some of the most widely held software and AI stocks on Wall Street; companies that most investors still think are bulletproof.
Most investors aren’t seeing it yet. The stocks still look fine and the narrative is still bullish. But the underlying dynamics are shifting in a big way.
My colleague Thomas Yeung has been tracking this more carefully than anyone I know. In the essay below, Tom explains what is driving this divergence — specifically, a new class of AI that operates without waiting for instructions, and what that means for the companies most investors still consider untouchable.
He also points you to a free presentation from Eric Fry, who has been studying this transition for months. Eric’s conclusion: this isn’t just volatility. It’s the early innings of a major rotation — one that could separate the next generation of big winners from the companies quietly being left behind.
I’d encourage you to read Tom’s essay carefully, and then watch Eric’s full presentation here.
The window to act is still open. But these windows have a habit of closing faster than anyone expects…
Imagine waking up one morning to find your bank account drained… your phone locked… and your passwords no longer work.
At the same time, systems you rely on every day — payments, communications, even parts of the power grid — start to glitch or go dark.
All this with no warning, no explanation, and no obvious point of entry.
Just chaos.
This is what could happen if hackers armed with AI exploited “zero-day” vulnerabilities: hidden flaws in software that no one knows exist and, therefore, has had zero days to fix.
On April 7, Anthropic released a limited version of Claude Mythos, an AI system so capable that the company immediately restricted access to it.
Mythos uncovered zero-day vulnerabilities in every major operating system, including one that had gone undetected for 27 years.
These hidden weaknesses can be exploited to steal data, seize control of computer systems, cripple critical infrastructure, and more.
Anthropic didn’t program Mythos to do this. The hacking capabilities emerged on their own.
As the company explained: “We did not explicitly train Mythos to have these capabilities. Rather, they emerged as a downstream consequence of general improvements in code, reasoning, and autonomy.”
The reaction at the highest levels was immediate. Federal Reserve Chair Jerome Powell and Treasury Secretary Scott Bessent held a closed-door meeting with top bank CEOs to discuss risks to the global financial system. Shares of major cybersecurity firms fell by double digits.
Most investors missed it entirely. The usual noise — Middle East tensions, gas prices, tariffs — drowned out what may be the single most consequential technological development of our generation.
Because Mythos isn’t just a more powerful chatbot.
It’s a signal that AI has crossed a threshold that I’ve been watching for, and writing about, for months now. We’ve moved from AI as a tool that responds to instructions… to AI that can act, adapt, and solve complex problems entirely on its own.
In my work tracking hypergrowth opportunities across decades of market cycles, shifts like this don’t just change the technology landscape. They reshuffle the entire investment landscape with them.
The companies on the right side of this shift could see the kind of explosive, compounding growth that defined the early cloud winners and the best AI infrastructure plays of the last three years.
The companies on the wrong side may not survive it.
Which side your portfolio is on right now matters more than almost anything else.
This Shift Is Already Underway To understand why Mythos matters, you need to understand what’s been building underneath it.
A new kind of AI that doesn’t just respond to prompts… but can execute complex tasks on its own.
A year ago, a Chinese startup called Manus AI introduced a system that could analyze financial transactions, screen job candidates, and navigate complex digital workflows without step-by-step human input. Retired New York Times writer Craig S. Smith called it a “game-changer.”
That forced every major Western AI company to respond. Within months, OpenAI and Anthropic released similar systems capable of handling multistep tasks, managing workflows, and making decisions with minimal oversight.
Then last November came OpenClaw, a free, open-source platform that exploded to 30 million monthly users. At Nvidia Corp.’s (NVDA) GTC conference, CEO Jensen Huang called it “probably the single most important release of software… probably ever.”
These aren’t chatbots. They’re digital workers – handling emails, moving files, managing information, writing code, reviewing contracts… and doing it around the clock without asking for a raise.
I’ve seen this firsthand. With Claude Code, I can now give an AI assistant raw financial data and ask it to build a quantitative model. It runs off by itself to write thousands of lines of code. Then it tests the model… critiques it… asks for more data… and suggests improvements. It’s no longer a robotic mecha-suit that needs a human pilot. It’s the whole machine, replacing entire teams of analysts and coders.
And if I can do that as one analyst, imagine what Anthropic’s 1,500-person engineering team came up with when they used these tools for themselves…
So even if Mythos isn’t the endpoint, it’s a clear step-change in what these systems can do. New generations of AI models typically appear six to 12 months after a major launch, and I wouldn’t be surprised if a “Mythos V2” arrives by December.
Why Your “Safe” AI Stocks May Be the Most Exposed Here’s where things get uncomfortable.
The same technology behind Mythos is now dismantling the business models behind some of Wall Street’s most popular stocks.
On Feb. 4, Anthropic released a legal plug-in for Claude Cowork. The effect on Wall Street was immediate.
Shares of Thomson Reuters Corp. (TRI) gapped down 19%. LexisNexis parent RELX Plc (RELX) dropped 15%. LegalZoom.com Inc. (LZ) crashed 20%. Wall Street has been calling this the “SaaSpocalypse,” a rolling collapse in software-as-a-service (SaaS) stocks that has now spread far beyond legal tech.
Will AI replace customer service platforms?
Real estate brokerages?
Financial services?
Business automation?
That fear isn’t misplaced. For 15 years, the SaaS profit machine worked like this: Build a dashboard, connect it to a database, charge companies $30 to $100 per month per employee to use it. The more workers a client hired, the more money software companies made. No one questioned the 95%-plus gross margins these firms routinely earned.
But agentic AI doesn’t need dashboards. It connects directly to underlying systems, pulls data, updates records, and triggers next steps automatically. When one AI agent can do the work of five junior analysts or paralegals, companies don’t just need fewer employees. They need fewer software licenses.
And if these systems get powered by a model as powerful as Mythos, the pressure on SaaS business models could accelerate very quickly.
Meanwhile, the companies you’d expect to benefit – the pure-play AI names – are trading at valuations that assume perfection.
We saw this movie before during the dot-com hysteria. Many sought-after internet darlings like Cisco Systems Inc. (CSCO), Lucent, and AOL failed to deliver… and so did firms like Borders and Circuit City that were disrupted by the internet era.
So, the question isn’t whether AI is a big deal.
That debate is over.
The question is: As investors, how can we profit?
The Coming AI Reckoning My InvestorPlace colleague Eric Fry believes the big profit opportunities will be in the “Appliers.” These aren’t the firms building AI. They’re the ones using it to transform entire industries.
Think sensors, robotics, industrial systems, and security infrastructure. Companies with hard-to-replicate data edges and real-world integration that can’t be vibe-coded away.
He sees this “AI Reckoning” as a major inflection point. In the coming months, he believes we’re going to see a wealth shift from those holding the wrong stocks to those positioned in AI Applier companies that connect this digital technology to the physical world.
He’s put together a free presentation that goes far deeper than I can here – naming the specific stocks he believes are most at risk, and the ones positioned to capture the upside as this shift accelerates.
The scenario we started with may sound extreme.
But the forces behind it are already here—and they’re beginning to reshape which companies win, and which ones don’t.
If you own any AI-adjacent stocks (and at this point, who doesn’t?), it’s worth seeing what he found – especially before this shift becomes more obvious to the broader market.
Thomas Yeung, CFA
Market Analyst, InvestorPlace
P.S. A lot of investors think the biggest AI gains are already behind us. Eric Fry believes the opposite may be true… but only for a specific group of companies that most people aren’t watching. In his latest presentation, he explains why some of today’s biggest winners could struggle from here, and how a lesser-known group could deliver outsized gains in the next phase of the cycle. It’s worth a look if you haven’t seen it yet.
FAQ What is agentic AI and why does it matter for investors? Agentic AI refers to artificial intelligence systems that can act autonomously — executing complex tasks, making decisions, and solving problems without step-by-step human input. Unlike traditional AI chatbots that respond to prompts, agentic AI operates more like a self-directed digital worker. For investors, it matters because it threatens the business models of widely held SaaS companies while simultaneously creating a new class of winners among companies that deploy it effectively.
What is the “SaaSpocalypse” and which stocks are most at risk? The “SaaSpocalypse” refers to the rolling collapse in software-as-a-service stocks triggered by agentic AI. For 15 years, SaaS companies charged businesses per employee per month to access software dashboards — a model that produced 95%+ gross margins. Agentic AI bypasses those dashboards entirely, connecting directly to underlying systems and automating the work those licenses supported. Companies most at risk are those whose value proposition is access rather than irreplaceable data or deep workflow integration.
What are “AI Appliers” and why does Eric Fry believe they represent the next big opportunity? AI Appliers are companies that use artificial intelligence to transform physical industries — think sensors, robotics, industrial systems, and security infrastructure — rather than companies building the underlying AI models themselves. Eric Fry believes these companies represent the next phase of the AI wealth transfer because they combine hard-to-replicate data advantages with real-world integration that can’t easily be automated away. Many are still under the radar while the market remains fixated on richly valued AI builders.
What is Claude Mythos and what makes it different from previous AI systems? Claude Mythos is an AI system released by Anthropic in April 2025 that was so capable the company immediately restricted access to it. What made it significant wasn’t just its power — it was the fact that it autonomously discovered zero-day cybersecurity vulnerabilities in every major operating system, including one that had gone undetected for 27 years. Anthropic confirmed it never programmed Mythos to do this. The capabilities emerged on their own as a byproduct of advances in reasoning and autonomy — a signal that AI development has crossed an important threshold.
W.W. Grainger (GWW - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 7. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis seller of maintenance and other supplies is expected to post quarterly earnings of $10.20 per share in its upcoming report, which represents a year-over-year change of +3.5%.
Revenues are expected to be $4.57 billion, up 6.1% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.04% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for W.W. Grainger?For W.W. Grainger, 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 +2.27%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that W.W. Grainger 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 W.W. Grainger would post earnings of $9.43 per share when it actually produced earnings of $9.44, delivering a surprise of +0.11%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
W.W. Grainger 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.
Expected Results of an Industry PlayerAmong the stocks in the Zacks Industrial Services industry, LegalZoom (LZ - Free Report) , is soon expected to post earnings of $0.13 per share for the quarter ended March 2026. This estimate indicates no change from the year-ago quarter. This quarter's revenue is expected to be $202.39 million, up 10.5% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for LegalZoom has been revised 13.3% up to the current level. Nevertheless, the company now has an Earnings ESP of +4.48%, reflecting a higher Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that LegalZoom will most likely beat the consensus EPS estimate. The company could not beat consensus EPS estimates in any of the last four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Revenue of $206.8 million, up 13% year-over-year; reflecting continued growth in higher-value subscriptions and contributions from compliance product enhancements Subscription revenue of $130.2 million up 12% year-over-year, driven by growth in differentiated human-in-the-loop service offeringsNet income of $1.1 million and net income margin of 1%Adjusted EBITDA of $36.5 million and Adjusted EBITDA margin of 18%Commitment to shareholder returns; completed $43.5 million of share repurchases in the quarter
Ended the quarter with cash and cash equivalents of $183.2 million, delivered $47.3 million in cash from operating activities and $41.0 million in free cash flow with no debt outstanding as of March 31, 2026
MOUNTAIN VIEW, Calif., May 06, 2026 (GLOBE NEWSWIRE) -- LegalZoom (Nasdaq: LZ), America’s #1 online legal services company, today announced results for its first quarter ended March 31, 2026.
“LegalZoom delivered another strong quarter, clearly illustrating that our strategy is working,” said Jeff Stibel, Chairman and Chief Executive Officer of LegalZoom. “In an AI-driven world, we win by getting customers to the finish line, combining technology with real human expertise to complete the last mile.”
Noel Watson, LegalZoom’s Chief Operating Officer and Chief Financial Officer, added, “We delivered strong first quarter results, with 13% revenue growth ahead of expectations. Our performance was driven by momentum in higher-value subscriptions and increased seasonal strength in annual report filings from our enhanced compliance offering. Importantly, our core growth drivers continue to build and will scale through the back half of the year, supporting our increased full-year revenue outlook.”
First Quarter 2026 Highlights
Revenue was $206.8 million for the quarter, up 13% year-over-year. Transaction revenue of $76.6 million increased 15% year-over-year.Subscription revenue of $130.2 million grew 12% year-over-year. Net income was $1.1 million for the quarter, or 1% of revenue, compared to $5.1 million, or 3% of revenue, in the same period in 2025.Adjusted EBITDA was $36.5 million for the quarter, or 18% of revenue, compared to $37.0 million, or 20% of revenue, in the same period in 2025.Non-GAAP net income was $22.1 million for the quarter compared to $23.8 million in the same period in 2025.Cash and cash equivalents were $183.2 million as of March 31, 2026 compared to $203.1 million as of December 31, 2025.Cash flows provided by operating activities were $47.3 million for the quarter ended March 31, 2026 compared to $50.7 million in the same period in 2025.Free cash flow was $41.0 million for the quarter ended March 31, 2026 compared to $41.3 million in the same period in 2025.Basic and diluted net income per share was $0.01 for the quarter compared to a basic and diluted net income per share of $0.03 for the same period in 2025. Basic and diluted Non-GAAP net income per share was $0.13 and $0.12, respectively, for the quarter in 2026 compared to basic and diluted Non-GAAP net income per share of $0.13 for the same period in 2025. Key Business Metrics and Non-GAAP Financial Measures
(Unaudited, in thousands except AOV, ARPU and percentages)
Three Months Ended
March 31, % Growth (Decline) 2026 2025 YOYTotal revenue$206,781 $183,110 13%Transaction revenue$76,623 $66,853 15%Subscription revenue$130,158 $116,257 12%Gross profit$132,253 $116,550 13%Gross margin 64% 64% —%Net Income$1,104 $5,127 (78)%Net income margin 1% 3% (67)%Net Income per share — basic:$0.01 $0.03 Net Income per share — diluted:$0.01 $0.03 Net cash provided by operating activities$47,282 $50,703 (7)%Non-GAAP Financial Measures Non GAAP net income$22,070 $23,822 (7)%Non GAAP net income per share — basic:$0.13 $0.13 Non GAAP net income per share — diluted:$0.12 $0.13 Adjusted EBITDA$36,462 $37,012 (1)%Adjusted EBITDA margin 18% 20% (10)%Free cash flow$40,974 $41,325 (1)%Key Business Metrics Transaction units 375 341 10%Business formations 142 131 8%Average order value (AOV)$205 $196 5%Subscription units at period end 1,920 1,924 —%Average revenue per subscription unit (ARPU) at period end$263 $252 4%Certain percentages may not recalculate due to rounding. Financial Guidance and Outlook
LegalZoom is increasing its revenue outlook and maintaining its Adjusted EBITDA outlook for the full year ending December 31, 2026 as follows:
Revenue is expected to be in the range of $810 million to $830 million, or 8% year-over-year growth at the midpoint. This compares to the Company’s previous revenue outlook in the range of $805 million to $825 million. LegalZoom’s outlook reflects the continued scaling of our higher-value growth initiatives and ongoing momentum from our partner channel through the remainder of the year. Adjusted EBITDA is expected to be in the range of $190 million to $200 million, or 13% year-over-year growth at the midpoint, reflecting improved gross margin, disciplined cost management and AI-driven efficiencies realized in the back-half of the year.
For the second quarter ending June 30, 2026 LegalZoom expects:
Revenue in the range of $203 million to $207 million, or 6% year-over-year growth at the midpoint. Relative to the first quarter, this growth rate reflects a full lapping of the Formation Nation acquisition as well as a reduced volume of annual reports filings due to seasonality. Adjusted EBITDA in the range of $40 million to $42 million, a 5% year-over-year increase at the midpoint.
Webcast and Conference Call Information
A webcast and conference call to discuss first quarter 2026 results is scheduled for today, May 6, 2026, at 4:30 p.m. Eastern time/1:30 p.m. Pacific time. Those interested in participating in the conference call are invited to register Here.
A live audio webcast of the event will be available on the LegalZoom Investor Relations website: https://investors.legalzoom.com/. An archived replay of the webcast also will be available shortly after the live event.
Forward-Looking Statements
This press release contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts contained in this press release may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “forecasts,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions. Forward-looking statements contained in this press release include, but are not limited to, statements regarding our quarterly and annual guidance.
The forward-looking statements in this press release are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to the following: our dependence on business formations; our dependence on customers expanding the use of our platform, including converting our transactional customers to subscribers and our subscribers renewing their subscriptions with us; the impact of macroeconomic challenges or uncertainty on our business; our ability to sustain our revenue growth rate and remain profitable in the future; our ability to provide high-quality products and services, customer care and customer experience; our ability to continue to innovate and provide a platform that is useful to our customers and that meets our customers’ expectations; the competitive legal solutions market; our dependence on our brand and reputation; our ability to maintain and expand strategic relationships with third parties; our ability to hire and retain top talent and motivate our employees; risks and costs associated with complex and evolving laws and regulations; our ability to maintain effective in our internal control over financial reporting; and any factors discussed in the section titled “Risk Factors” included in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission (the “SEC”) on February 23, 2026, as well as any factors in our subsequent filings with the SEC. The forward-looking statements in this press release are based upon information available to us as of the date of this press release, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.
You should read this press release with the understanding that our actual future results, levels of activity, performance and achievements may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained in this press release, whether as a result of any new information, future events or otherwise.
About Non-GAAP Financial Measures
This press release includes non-GAAP financial measures including Adjusted EBITDA, Adjusted EBITDA margin, Non-GAAP net income, Non-GAAP net income margin, Non-GAAP net income per share and free cash flow. We use these non-GAAP financial measures to better understand and evaluate our core operating performance. We believe that these non-GAAP financial measures provide management and our investors with useful information about our financial performance and liquidity, enhance the overall understanding of our past performance and future prospects and allow for greater transparency with respect to important measures used by our management for financial and operational decision-making. We also believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry. These non-GAAP measures should not be considered in isolation of, or as a substitute or an alternative to, measures prepared and presented in accordance with GAAP.
We define Adjusted EBITDA as net income adjusted to exclude interest expense, interest income, provision for (benefit from) income taxes, depreciation and amortization, other expense (income), net, stock-based compensation and certain non-recurring income and expenses from time to time. We define Adjusted EBITDA margin as Adjusted EBITDA as a percentage of revenue.
Adjusted EBITDA is one of the primary performance measures used by our management and our board of directors to understand and evaluate our financial performance and operating trends, including period-to-period comparisons, preparing and approving our annual budget and operational planning. In assessing our performance, we exclude certain expenses that we believe are not comparable period over period or that we believe are not indicative of our underlying operating performance. There are a number of limitations related to the use of Adjusted EBITDA rather than net income, which include that Adjusted EBITDA:
may be calculated differently by other companies in our industry, limiting its usefulness as a comparative measure;does not reflect our capital expenditures, future requirements for capital expenditures or contractual commitments;excludes depreciation and amortization and, although these are non-cash expenses, the assets being depreciated may be replaced in the future;does not reflect changes in, or cash requirements for, our working capital needs;excludes stock-based compensation expense, which has been, and will continue to be, a significant recurring expense for our business and an important part of our compensation strategy; anddoes not reflect certain expenses that we do not consider representative of our underlying operating performance, but that reduce cash available to us. We define Non-GAAP net income as net income adjusted to exclude amortization of acquired intangible assets, stock-based compensation expense and certain non-recurring income and expenses from time to time, net of related income tax impacts. We define net income margin as net loss as a percentage of revenue. We define Non-GAAP net income margin as Non-GAAP net income as a percentage of revenue. We define Non-GAAP net income per share attributable to common stockholders as Non-GAAP net income divided by basic and diluted weighted-average common stock.
Free cash flow is a liquidity measure used by management in evaluating the cash generated by our operations after purchases of property and equipment including capitalized internal-use software. We believe free cash flow provides useful information to management and investors about the amount of cash generated by our business that can be used for strategic opportunities, including investing in our business and strengthening our balance sheet, once our business needs and obligations are met. The usefulness of free cash flow as an analytical tool has limitations because it excludes certain items that are settled in cash, does not represent residual cash flow available for discretionary expenses, does not reflect our future contractual commitments, and may be calculated differently by other companies in our industry.
We are not providing a reconciliation for our non-GAAP outlook on a forward-looking basis (including the information under “Financial Guidance and Outlook” above), as we are unable to provide a meaningful calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or amount of various items that would impact the most directly comparable forward-looking GAAP financial measure that have not yet occurred, are out of LegalZoom’s control and/or cannot be reasonably predicted. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.
The tables in this press release contain more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures.
LegalZoom
LegalZoom is a leading online platform for legal services, transforming how individuals and small businesses navigate the legal system. By combining intuitive technology with access to experienced attorneys—whether through our vast independent attorney network or the LegalZoom-owned law firm—we offer the tools and guidance people need to confidently manage everything from business formation and compliance to estate planning and ongoing legal support.
With over two decades of experience and millions of customers served, LegalZoom helps individuals and small businesses navigate legal needs with confidence. For more information, please visit www.legalzoom.com.
LegalZoom.com, Inc.
Unaudited Condensed Consolidated Balance Sheets
(In thousands, except par values)
March 31,
2026 December 31,
2025Assets Current assets: Cash and cash equivalents$183,152 $203,100 Accounts receivable, net of allowance 24,573 20,589 Prepaid expenses and other current assets 20,551 18,234 Total current assets 228,276 241,923 Property and equipment, net 55,589 58,045 Goodwill 140,705 140,705 Intangible assets, net 16,542 18,152 Operating lease right-of-use assets 14,199 13,414 Deferred income taxes 29,446 31,884 Other assets 7,101 7,399 Total assets$491,858 $511,522 Liabilities and stockholders’ equity Current liabilities: Accounts payable$38,126 $27,167 Accrued expenses and other current liabilities 57,373 83,361 Deferred revenue 223,242 203,653 Operating lease liability 4,743 4,338 Total current liabilities 323,484 318,519 Operating lease liability, non-current 10,479 10,025 Deferred revenue 260 277 Other liabilities 10,727 10,819 Total liabilities 344,950 339,640 Commitments and contingencies Stockholders’ equity: Preferred stock, $0.001 par value; 100,000 shares authorized at March 31, 2026 and December 31, 2025, none issued or outstanding at March 31, 2026 and December 31, 2025 — — Common stock, $0.001 par value; 1,000,000 shares authorized; 173,402 shares and 177,624 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively 175 179 Additional paid-in capital 1,323,587 1,305,936 Accumulated deficit (1,177,128) (1,134,414)Accumulated other comprehensive (loss) income 274 181 Total stockholders’ equity 146,908 171,882 Total liabilities and stockholders’ equity$491,858 $511,522 LegalZoom.com, Inc.
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
Three Months Ended
March 31, 2026 2025 Revenue $206,781 $183,110 Cost of revenue 74,528 66,560 Gross profit 132,253 116,550 Operating expenses: Sales and marketing 78,668 61,378 Technology and development 19,605 21,322 General and administrative 31,216 39,221 Gain on sale of assets held for sale — (14,337)Total operating expenses 129,489 107,584 Income from operations 2,764 8,966 Interest expense (676) (182)Interest income 1,648 1,483 Other income, net 81 347 Income before income taxes 3,817 10,614 Provision for income taxes 2,713 5,487 Net income $1,104 $5,127 Net income attributable to common stockholders—basic and diluted Net income per share — basic: $0.01 $0.03 Net income per share — diluted: $0.01 $0.03 Weighted-average shares used to compute net income per share — basic: 174,866 176,829 Weighted-average shares used to compute net income per share — diluted: 177,013 180,616 LegalZoom.com, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(In thousands)
Three Months Ended
March 31, 2026 2025 Cash flows from operating activities Net income$1,104 $5,127 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 11,137 10,406 Amortization of debt issuance costs 47 56 Amortization of right-of-use assets 968 618 Stock-based compensation 21,314 29,756 Gain on sale of assets held for sale — (14,337)Change in fair value of other equity security — (302)Loss on disposal of property and equipment — 99 Deferred income taxes 2,438 1,996 Change in fair value of other equity security — (302)Unrealized foreign exchange loss 143 76 Changes in operating assets and liabilities, net of effects of business combination: Accounts receivable (3,984) (9,148)Prepaid expenses and other current assets (2,348) (2,238)Other assets 412 204 Accounts payable 11,248 5,329 Accrued expenses and other liabilities (13,882) (3,247)Operating lease liabilities (896) (536)Income tax payable 7 6 Deferred revenue 19,574 26,838 Net cash provided by operating activities 47,282 50,703 Cash flows from investing activities Acquisition, net of cash acquired — (48,123)Purchase of property and equipment (6,308) (9,378)Proceeds from sale of assets held for sale — 37,051 Net cash used in investing activities (6,308) (20,450)Cash flows from financing activities Repayment of capital lease obligations — (2)Payment of deferred consideration from business acquisition (12,514) — Repurchase of common stock (43,467) — Shares surrendered for settlement of minimum statutory tax withholding (4,887) (5,942)Proceeds from issuance of stock under employee stock plans 16 43,548 Net cash (used in) provided by financing activities (60,852) 37,604 Effect of exchange rate changes on cash and cash equivalents (70) 52 Net (decrease) increase in cash and cash equivalents (19,948) 67,909 Cash and cash equivalents, at beginning of the period 203,100 142,064 Cash and cash equivalents, at end of the period$183,152 $209,973 Adjusted EBITDA and Adjusted EBITDA Margin
The following table presents a reconciliation of net income to Adjusted EBITDA for each of the periods indicated (unaudited):
Three Months Ended
March 31, 2026 2025 (in thousands, except percentages)Reconciliation of net income to Adjusted EBITDA Net income $1,104 $5,127 Interest expense 676 182 Interest income (1,648) (1,483)Provision for income taxes 2,713 5,487 Depreciation and amortization 11,137 10,406 Other income, net (81) (347)Stock-based compensation 21,314 29,756 Transaction-related expenses(1) 604 1,543 Gain on sale of assets held for sale — (14,337)Restructuring costs(2) 643 678 Adjusted EBITDA $36,462 $37,012 Net income margin 1% 3%Adjusted EBITDA margin 18% 20% (1)For 2025, transaction-related expenses are primarily related to our acquisition of Formation Nation. For 2026, transaction-related expenses are related to the evaluation and pursuit of strategic transactions.(2)For 2026 and 2025, restructuring costs are related to the reduction of our U.S. headcount. Non-GAAP Net Income, Non-GAAP Net Income Margin and diluted Non-GAAP Net Income Per Share
The following table presents a reconciliation of net income to Non-GAAP net income for each of the periods indicated (unaudited):
Three Months Ended
March 31, 2026 2025 (in thousands, except per share amounts)Reconciliation of net income to Non-GAAP net income Net income $1,104 $5,127 Amortization of acquired intangible assets 1,610 1,647 Stock-based compensation 21,314 29,756 Transaction-related expenses(1) 604 1,543 Restructuring costs(2) 643 678 Gain on sale of assets held for sale — (14,337)Income tax effects(3) (3,205) (592)Non-GAAP net income 22,070 23,822 Net income margin 1% 3%Non-GAAP net income margin 11% 13%Net income per share — basic $0.01 $0.03 Net income per share — diluted $0.01 $0.03 Non-GAAP net income per share — basic $0.13 $0.13 Non-GAAP net income per share — diluted $0.12 $0.13 Weighted-average shares used to compute net income per share — basic 174,866 176,829 Weighted-average shares used to compute net income per share — diluted 177,013 180,616 Weighted-average shares used to compute Non-GAAP net income per share — basic 174,866 176,829 Weighted-average shares used to compute Non-GAAP net income per share — diluted 177,013 180,616 (1)For 2025, transaction-related expenses are primarily related to our acquisition of Formation Nation. For 2026, transaction-related expenses are related to the evaluation and pursuit of strategic transactions.(2)For 2026 and 2025, restructuring costs are related to the reduction of our U.S. headcount.(3)The estimated income tax effect of the non-GAAP pre-tax adjustments is determined by applying the statutory rate of the originating jurisdiction, if applicable. The following table shows the computation of basic and diluted Non-GAAP net income per share (unaudited):
Three Months Ended
March 31, 2026 2025 (in thousands, except per share amounts)Non-GAAP net income and Non-GAAP net income per share: Non-GAAP net income $22,070 $23,822Reconciliation of denominator for net income per share to Non-GAAP net income per share: Weighted-average shares used to compute net income per share — basic: 174,866 176,829Effect of potentially dilutive securities: Options to purchase common stock 36 60RSUs and PSUs 2,111 3,713Employee stock purchase plan — 14Weighted-average common stock used in computing Non-GAAP net income per share — diluted 177,013 180,616Non-GAAP net income per share — basic $0.13 $0.13Non-GAAP net income per share — diluted $0.12 $0.13 Free Cash Flow
The following table presents a reconciliation of net cash provided by operating activities to free cash flow (unaudited):
Three Months Ended
March 31, 2026 2025 (in thousands)Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow Net cash provided by operating activities 47,282 50,703 Purchase of property and equipment (6,308) (9,378)Free cash flow $40,974 $41,325
LegalZoom (LZ - Free Report) came out with quarterly earnings of $0.12 per share, missing the Zacks Consensus Estimate of $0.13 per share. This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -10.45%. A quarter ago, it was expected that this online platform for legal services would post earnings of $0.18 per share when it actually produced earnings of $0.17, delivering a surprise of -5.56%.
Over the last four quarters, the company has not been able to surpass consensus EPS estimates.
LegalZoom, which belongs to the Zacks Industrial Services industry, posted revenues of $206.78 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 2.17%. This compares to year-ago revenues of $183.11 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
LegalZoom shares have lost about 32.4% since the beginning of the year versus the S&P 500's gain of 6%.
What's Next for LegalZoom?While LegalZoom 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 LegalZoom 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 $0.16 on $206.21 million in revenues for the coming quarter and $0.75 on $816.38 million 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, Industrial Services is currently in the top 40% 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.
Eos Energy Enterprises, Inc. (EOSE - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 13.
This company is expected to post quarterly loss of $0.28 per share in its upcoming report, which represents a year-over-year change of -40%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Eos Energy Enterprises, Inc.'s revenues are expected to be $56.44 million, up 439.6% from the year-ago quarter.
LegalZoom (LZ - Free Report) reported $206.78 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 12.9%. EPS of $0.12 for the same period compares to $0.13 a year ago.
The reported revenue represents a surprise of +2.17% over the Zacks Consensus Estimate of $202.39 million. With the consensus EPS estimate being $0.13, the EPS surprise was -10.45%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how LegalZoom performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Average revenue per subscription unit (ARPU) at period end: $0.26 million versus the three-analyst average estimate of $0.26 million.Subscription units at period end: 1,920 versus the three-analyst average estimate of 1,952.Average order value (AOV): $205.00 compared to the $206.59 average estimate based on three analysts.Transaction units: 375 compared to the 336 average estimate based on three analysts.Business formations: 142 versus 146 estimated by two analysts on average.Revenue- Subscription: $130.16 million versus the three-analyst average estimate of $130.15 million. The reported number represents a year-over-year change of +12%.Revenue- Transaction: $76.62 million versus the three-analyst average estimate of $72.03 million. The reported number represents a year-over-year change of +14.6%.View all Key Company Metrics for LegalZoom here>>>
Shares of LegalZoom have returned +12% over the past month versus the Zacks S&P 500 composite's +10.3% 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.
MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)-- #SMB--LegalZoom (Nasdaq: LZ), America's #1 online legal services company, today announced a major reinvention of LegalZoom Virtual Mail service for business customers. The updated and enhanced offering combines LegalZoom's trusted legal and compliance solutions with a best-in-class AI-powered digital mailroom, giving business customers a cleaner, faster way to protect their privacy, manage postal mail from any device, and reclaim lost time. Most of the largest.
Investors with an interest in Industrial Services stocks have likely encountered both LegalZoom (LZ - Free Report) and Fastenal (FAST - 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
LegalZoom and Fastenal are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that LZ has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
LZ currently has a forward P/E ratio of 8.37, while FAST has a forward P/E of 36.28. We also note that LZ has a PEG ratio of 0.49. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FAST currently has a PEG ratio of 2.85.
Another notable valuation metric for LZ is its P/B ratio of 6.48. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, FAST has a P/B of 12.87.
Based on these metrics and many more, LZ holds a Value grade of A, while FAST has a Value grade of D.
LZ stands above FAST thanks to its solid earnings outlook, and based on these valuation figures, we also feel that LZ is the superior value option right now.
May 11, 2026 09:00 ET | Source: LegalZoom.com, Inc.
MOUNTAIN VIEW, Calif., May 11, 2026 (GLOBE NEWSWIRE) -- LegalZoom. (Nasdaq: LZ), America’s #1 online legal services company, today announced that Jeff Stibel, Chairman and Chief Executive Officer, and Noel Watson, Chief Operating Officer and Chief Financial Officer, will present at the J.P. Morgan 2026 Global Technology, Media and Communications Conference in Boston, Massachusetts on Monday, May 18, 2026.
Management’s fireside chat will begin at 9:45 a.m. ET. A live audio webcast and replay of the presentation will be available on the LegalZoom Investor Relations website at https://investors.legalzoom.com.
About LegalZoom
LegalZoom is a leading online platform for legal services, transforming how individuals and small businesses navigate the legal system. By combining intuitive technology with access to experienced attorneys—whether through our vast independent attorney network or our own law firm—we offer the tools and guidance people need to confidently manage everything from business formation and compliance to intellectual property protection and ongoing business management and legal support.
As AI reshapes how legal work gets done, LegalZoom is at the forefront of the human-in-the-loop approach, ensuring that the speed and efficiency of AI is always backed by the judgment and accountability of qualified professionals. With over two decades of experience and millions of customers served, LegalZoom helps individuals and small businesses navigate legal needs with confidence. For more information, please visit www.legalzoom.com.
LegalZoom maintains a Hold rating as Q1 growth was aided by one-off items and margin weakness persists. The higher-value subscription strategy is gaining traction, with registered agent and legal advisory revenues up 17% and 25% y/y, respectively. Partnerships, notably with GoDaddy, are expanding LZ's distribution, but subscription units remained flat y/y at 1.92 million.
LegalZoom remains a compelling buy as overblown AI-driven pessimism has driven shares to deeply discounted valuation multiples. LZ's Q1 results beat expectations, with 13% y/y revenue growth and a guidance raise, demonstrating resilience amid macro headwinds and AI disruption fears. The company's shift toward higher-value subscription packages, including its concierge suite, is driving ARPU growth and deeper, more durable customer relationships.
Jeffrey M. Stibel, Chief Executive Officer of LegalZoom.com (LZ +0.68%), reported an open-market purchase of 125,000 shares, valued at approximately ~$769,000, according to a SEC Form 4 filing dated May 11, 2026.
Transaction summaryMetricValueShares traded125,000Transaction value~$769,000Post-transaction shares (direct)2,955,609Post-transaction value (direct ownership)~$18.18 millionTransaction and post-transaction values based on SEC Form 4 weighted average purchase price ($6.15).
Key questionsHow does this purchase compare to Stibel's historical trading activity?
This is Stibel’s only reported open-market buy in the past year, following a series of 12 administrative (non-economic) filings and a 68.19% decrease in aggregate holdings since May 2025.What was the market context for this transaction?
The purchase was executed at a weighted average price of $6.15 per share, slightly above the May 11, 2026 market close of $6.10, with LegalZoom.com shares down 35.2% year-over-year as of the transaction date.What is the impact on Stibel’s ownership structure?
The transaction increased direct holdings to 2,955,609 shares, while indirect holdings — primarily through entities such as Bryant-Stibel Fund I LLC and several trusts — remain at 6,461,127 shares, maintaining a split between direct and indirect control.Does this activity indicate a change in sentiment or capacity?
Given the lack of prior buy or sell trades and the large prior reduction in holdings, this purchase reflects both available capacity and a potential inflection point in Stibel's approach to LegalZoom.com equity exposure.Company overviewMetricValuePrice (as of market close May 11, 2026)$6.15Market capitalization$1.03 billionRevenue (TTM)$756.04 millionNet income (TTM)$15.43 million* 1-year performance is calculated using May 11, 2026 as the reference date.
Company snapshotLegalZoom.com offers an online platform for legal and compliance solutions, including business formations, estate planning, intellectual property protection, attorney access, and tax and bookkeeping services.The company serves small businesses and individual consumers seeking accessible, affordable legal and compliance solutions.LegalZoom.com operates at scale as a leading provider of online legal and compliance services, leveraging technology to streamline access to essential business and personal legal solutions.
The company’s strategy centers on simplifying complex legal processes and expanding its digital platform to capture demand from small businesses and individuals. LegalZoom.com’s competitive edge lies in its broad service portfolio, established brand, and ability to deliver cost-effective legal support nationwide.
What this transaction means for investorsLegalZoom CEO Jeffrey Stibel’s May 11 purchase of company shares is a noteworthy event for investors. Stibel already owned millions of shares. Therefore, his buy suggests he’s bullish on LegalZoom stock, and that the price had dropped to such an attractive level, he felt it made sense to add to his already plentiful position.
As a shareholder in the company, I agree with his move. LegalZoom stock was battered this year when Wall Street suddenly became fearful artificial intelligence could take away its business. This led to shares reaching a 52-week low of $5.28 on April 10.
The threat from AI is overblown. Legal matters are too important to trust to unproven AI solutions. Some law firms discovered this the hard way last year when they got in hot water for using AI to create court briefs, which cited legal cases that didn’t exist.
Moreover, LegalZoom’s business is healthy. Its first quarter sales grew 13% year over year to $206.8 million. It raised 2026 full-year revenue guidance to a range between $810 million to $830 million, representing growth from 2025’s $756 million.
LegalZoom’s forward price-to-earnings ratio of six is about half what it was a year ago. This suggest shares are cheap, making now a good time to buy.
MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)-- #AI--LegalZoom (Nasdaq: LZ), America's #1 online legal services company, today released findings from a comprehensive survey of 1,000 respondents — 500 aspiring founders and 500 current business owners — across the United States. The survey examined AI adoption rates, how and when founders rely on AI tools, the perceived value it provides, and what concerns remain. The results paint a picture of a business community that is rapidly embracing AI, with both enth.
Key Takeaways CLF reported a narrower Q1 adjusted loss of 40 cents, beating estimates and improving year over year. CLF posted revenues of $4.92B, topping estimates, with higher steel prices and modest volume decline. Cleveland-Cliffs reaffirmed 2026 outlook, maintaining shipment, capex, and expense projections. Cleveland-Cliffs Inc.’s (CLF - Free Report) first-quarter 2026 adjusted loss was 40 cents per share, narrower than the Zacks Consensus Estimate of a loss of 44 cents. It reported an adjusted loss of 93 cents per share in the prior-year quarter.
Revenues increased 6.3% year over year to $4,922 million. The top line beat the Zacks Consensus Estimate of $4,834.5 million.
Cleveland-Cliffs Inc. Price, Consensus and EPS SurpriseCLF’s Operational HighlightsThe company reported Steelmaking revenues of roughly $4.8 billion, up around 6.5% year over year.
The average net selling price per net ton of steel products was $1,048 in the quarter, up around 6.9% year over year. The metric was below the consensus estimate of $1,056.
External sales volumes for steel products were roughly 4.1 million net tons, down around 0.7% year over year. The figure surpassed the consensus estimate of 4.06 million net tons.
Financial Position of CLFCleveland-Cliffs ended the first quarter with cash and cash equivalents of $45 million, down around 21% from the prior quarter. Long-term debt increased 7% sequentially to $7,763 million.
As of March 31, 2026, the company had $3.1 billion in total liquidity.
CLF’s OutlookThe company reaffirmed its full-year 2026 outlook, maintaining expectations for steel shipment volumes of roughly 16.5-17 million net tons. It continues to project capital expenditures of about $700 million and selling, general, and administrative (SG&A) expenses of approximately $575 million. Depreciation, depletion, and amortization are expected to total around $1.1 billion, while cash pension and OPEB payments and contributions are anticipated to remain near $125 million.
Price Performance of CLFShares of CLF have gained 26.1% over the past year compared with an 81.4% rise in its industry.
Image Source: Zacks Investment Research
CLF’s Zacks Rank & Key PicksCLF currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth a look in the basic materials space are Galiano Gold Inc. (GAU - Free Report) , Materion Corporation (MTRN - Free Report) , and Nexa Resources S.A. (NEXA - Free Report) .
Galiano is slated to report quarterly results on May 13. The Zacks Consensus Estimate for earnings is pegged at 17 cents per share. GAU has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Materion is expected to report first-quarter results on April 29. The Zacks Consensus Estimate for MTRN’s first-quarter earnings is pegged at $1.24 per share. MTRN currently carries a Zacks Rank #2.
NEXA is scheduled to report first-quarter results on May 6. The Zacks Consensus Estimate for NEXA’s first-quarter earnings is pegged at 61 cents per share. NEXA currently carries a Zacks Rank #2.
On April 20, two of America's largest steel companies reported earnings at a time that should have been bullish for steel companies. Imports are at a 17-year low in a tariff-sheltered market. However, having protected pricing is only bullish if a company can profit from it.
That’s where the outlook for Steel Dynamics NASDAQ: STLD and Cleveland-Cliffs NYSE: CLF diverges. For Q1 2026, Steel Dynamics made $403 million; Cleveland-Cliffs lost $229 million. Understanding the why behind those numbers is essential before investors decide how to approach each stock.
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Why Steel Tariffs Aren’t an Automatic Buy SignalThe 50% tariff on imported steel has helped choke off foreign competition and push buyers toward domestic suppliers. In Q1 2026, U.S. steel imports hit their lowest quarterly level since 2009. Domestic producers are capturing demand that used to go offshore.
But the tariff is a floor, not a rocket. And how high a steelmaker can go depends entirely on how cheaply they can make steel. This is where the business models of Cleveland-Cliffs and Steel Dynamics diverge sharply.
The Old Model and the New ModelAt its core, Cleveland-Cliffs is an integrated steelmaker. The process is expensive, requires a lot of energy, and the costs are largely fixed. That is, you can't easily throttle a blast furnace up or down when demand shifts. It also comes with a cost structure that includes infrastructure and workforce obligations.
Adding to those obligations, Cliffs has a heavily unionized labor force and, despite a remarkable 95% reduction in pension and OPEB liabilities since its ArcelorMittal acquisition, still operates with a debt load that means the company has to prioritize repayment before growth.
Steel Dynamics Today
$279.55 +11.21 (+4.18%)
As of 06/11/2026 04:00 PM Eastern
52-Week Range$119.89▼
$281.59Dividend Yield0.76%
P/E Ratio29.90
Price Target$224.64
By contrast, Steel Dynamics runs 100% on electric arc furnace (EAF) technology. EAF mills melt recycled scrap metal using electricity, skipping the iron ore and blast furnace entirely, and can be dialed up or down with demand.
Plus, EAF steelmaking uses roughly one-quarter of the energy of traditional blast furnace production and generates a fraction of the emissions.
It's faster, cheaper to operate and structurally more flexible.
STLD also owns its own scrap recycling network through OmniSource, one of the largest nonferrous recyclers in North America, which gives it a cost advantage on raw materials that integrated producers simply can't replicate.
How the Business Models Showed Up in EarningsHigher steel prices have benefited both companies with higher revenue per ton. But after that, the fundamentals come down to the spread between revenue and cost.
Steel Dynamics was able to convert $5.2 billion in revenue into $700 million of adjusted EBITDA, a 13% margin. That allowed the company to repurchase $115 million in stock and increase its dividend payout by 6%. STLD shot up over 10% in the days following the earnings release.
Cleveland-Cliffs converted $4.9 billion in revenue into $95 million of adjusted EBITDA, a margin of roughly 2%. Plus, it still posted a net loss of $229 million after interest and other charges. It’s not lost on investors that CLF doesn’t pay a dividend and fell over 8% in the days after the earnings release.
Where and Why Investors Need to Look Before They LeapHaving said that, earnings reports are backward-looking, and Cleveland-Cliffs is saying that the coming quarter will be better. They could be right.
On Sept. 17, 2025, the company signed a Memorandum of Understanding (MOU) with POSCO, Korea’s largest steelmaker and one of the top 10 global steelmakers. This could be a win-win. POSCO is looking to support and grow its established customer base in the United States, which has now become a favorable market.
Current Price$13.70High Forecast$15.01Average Forecast$12.85Low Forecast$9.00Cleveland-Cliffs Stock Forecast Details
However, the two companies have not reached a final agreement, and management says that will only happen if the deal is for “full and fair value.” Putting that not inconsequential detail to the side, analysts have a Hold rating on CLF, and Morgan Stanley lowered its price target to $12 from $18. But that’s in line with a consensus price target of $12.19; a 33% upside that suggests a belief in more than just hope.
On the other hand, Steel Dynamics is expanding into aluminum. Currently, that’s driving a loss of $65 million every quarter. In the long run, analysts believe this is a growth investment and not a liability.
But analysts are mixed. STLD gets a Hold rating with a consensus price target of $185.11, which is a downside of over 15%.
Nevertheless, analysts are raising their price targets, although the highest price rating still implies downside from recent prices.
Should You Invest $1,000 in Steel Dynamics Right Now?Before you consider Steel Dynamics, you'll want to hear this.
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Cleveland-Cliffs (CLF +10.47%), a steel producer offering hot-rolled, cold-rolled, and coated products in the U.S. and Canada, closed Monday at $10.62, up 8.86%. The stock moved higher after investors digested last week’s first-quarter results that modestly beat revenue expectations and showed a narrower loss. Domestic steel sector stocks will continue reporting first-quarter results this week.
Trading volume reached 41.9 million shares, coming in about 123% above its three-month average of 18.8 million shares. Cleveland-Cliffs IPO'd in 1987 and has grown 518% since going public.
How the markets moved todayThe S&P 500 (^GSPC +1.75%) inched up 0.12% to 7,174, while the Nasdaq Composite (^IXIC +2.54%) added 0.20% to finish at 24,887. Among steel industry peers, Nucor (NUE +4.16%) closed at $215.05, up 0.35%, and Steel Dynamics (STLD +4.18%) finished at $225.04, down 0.77%, underscoring mixed sentiment across producers.
What this means for investorsInvestors are watching steel sector earnings to assess fundamental company strength in a strong demand and pricing environment. Cleveland-Cliffs shares initially dropped after its Q1 report last week as investors focused on a net loss exacerbated by one-time energy costs.
Amid a strong steel market, however, Cliffs shipments and revenue increased. Investors looking toward future results are now reacting to peers Steel Dynamics and Nucor confirming strong order book demand and pricing. That should also translate into improved earnings for Cleveland-Cliffs.
Investors should hone in on automotive demand, specifically, as it drives more business for Cliffs than its peers. The company cited that as a headwind in Q1.
Howard Smith has positions in Nucor and has the following options: short June 2026 $200 calls on Nucor, short May 2026 $190 calls on Nucor, and short May 2026 $230 calls on Nucor. The Motley Fool recommends Steel Dynamics. The Motley Fool has a disclosure policy.
CLEVELAND--(BUSINESS WIRE)--Cleveland-Cliffs Inc. (NYSE: CLF) today announced it has entered a strategic partnership with Palantir Technologies to deploy advanced AI‑driven solutions across its footprint. The recently executed three‑year agreement puts Palantir's best-in-class AI technology at the center of Cliffs' key internal processes in operations and commercial. The partnership represents a significant step forward in Cleveland‑Cliffs' ongoing effort to modernize its systems across its man.
Cleveland-Cliffs (CLF - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this mining company have returned +23.9%, compared to the Zacks S&P 500 composite's +12.2% change. During this period, the Zacks Steel - Producers industry, which Cleveland-Cliffs falls in, has gained 22.8%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Cleveland-Cliffs is expected to post a loss of $0.11 per share for the current quarter, representing a year-over-year change of +78%. Over the last 30 days, the Zacks Consensus Estimate has changed -145.5%.
The consensus earnings estimate of -$0.41 for the current fiscal year indicates a year-over-year change of +83.5%. This estimate has changed +6.2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $0.43 indicates a change of +205.2% from what Cleveland-Cliffs is expected to report a year ago. Over the past month, the estimate has changed -32.8%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Cleveland-Cliffs is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Cleveland-Cliffs, the consensus sales estimate of $5.26 billion for the current quarter points to a year-over-year change of +6.6%. The $20.42 billion and $21.09 billion estimates for the current and next fiscal years indicate changes of +9.8% and +3.3%, respectively.
Last Reported Results and Surprise HistoryCleveland-Cliffs reported revenues of $4.92 billion in the last reported quarter, representing a year-over-year change of +6.3%. EPS of -$0.4 for the same period compares with -$0.92 a year ago.
Compared to the Zacks Consensus Estimate of $4.83 billion, the reported revenues represent a surprise of +1.81%. The EPS surprise was +9.09%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates two times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Cleveland-Cliffs is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Cleveland-Cliffs. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Shares of Cleveland-Cliffs Inc (NYSE:CLF) are trading 4.5% lower at $10.64, continuing a choppy pattern up the charts after bouncing off their mid-March lows and enjoying an upbeat first-quarter report. Despite yesterday tapping its highest mark in eight weeks, the steel name sports a nearly 20% year-to-date deficit. A bullish signal is now flashing, however, suggesting a surge could be on the way for CLF.
The trendline in question is the stock's 80-day moving average. Per Schaeffer's Senior Quantitative Analyst Rocky White, this “crossover” event has happened 17 times in the last 10 years, after which CLF was higher one month later 71% of the time, averaging a gain of 5.3%. From its current perch, a similar move higher would put the shares back near their February highs.
The stock is also ripe for a squeeze. Shorts have been piling on, with short interest up 16.5% in the past two reporting periods, now accounting for 14.9% of the stock's available float. At CLF's average pace of trading, it would take shorts nearly five days to buy back these bets.
The stock's Schaeffer's Volatility Scorecard (SVS) comes in at 83 out of 100. In other words, the shares have consistently realized higher volatility than its options have priced in over the past 12 months.
The materials sector accounts for just 1.9% of the S&P 500, barely nudging out real estate for 10th place among the 11 sectors represented in that index. Despite that diminutive status, the materials sector is delivering for investors this year. As represented by a bellwether exchange-traded fund (ETF), the materials stocks residing in the S&P 500 are beating the parent index by 700 basis points so far in 2026.
Imagine what that gap would look like if an industrial boom were to come to fruition.
Some experts believe that scenario is playing out right now, proclaiming that artificial intelligence (AI) is the linchpin of the "fourth industrial revolution." And if prognostications are correct that this revolution is still in its infancy, the following stocks could have more upside in store for smart investors.
These materials stocks could be leaders in a new industrial revolution. Image source: Getty Images
Forged in steel, remaking itself with AI help In a bygone era of AI investing -- say, maybe, just two years ago -- few investors would have flocked to steel stocks as AI plays, but today, that notion is to be embraced, not scoffed at. Up nearly 50% over the past year, Cleveland-Cliffs (CLF +10.47%), the largest producer of flat-rolled steel in the U.S., has AI legitimacy, and not just because it's looking to sell idled mills to data center companies to reduce debt.
Obviously, any new data center being constructed needs steel, potentially representing another end market for Cleveland-Cliffs, but the company's AI ties run even deeper than that. All the talk about energy as a "bottleneck" or "chokepoint" for hyperscalers is relevant to investors considering this steel stock, because upgrading or building new transmission cores requires grain-oriented electrical steel (GOES).
Guess who has the U.S. monopoly on GOES? Cleveland-Cliffs. From 2025 through 2030, the GOES market is expected to grow at a compound annual growth rate (CAGR) of 5.6%, but in North America, where Cleveland-Cliffs does business, that CAGR is estimated to be 6.1%.
And for good measure, the steelmaker recently inked a deal with Palantir Technologies to use AI in its logistics and manufacturing processes. That could result in operational efficiencies over time.
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Not a chip stock, but... Air Products and Chemicals (APD +0.58%) definitely isn't a semiconductor stock, but what's good for the chip industry can benefit this materials name because it's a major supplier of the industrial gases needed to manufacture electronic components, and that's a big reason the company is sitting on a $9 billion order backlog.
As just one example of Air Products' enviable positioning on the picks-and-shovels side of the AI trade, the materials company recently notched a deal to construct and operate a specialty gas facility for Samsung Electronics. Yes, that Samsung. The South Korean company, a giant in dynamic random-access memory, is working to address a key AI bottleneck.
Air Products isn't just an AI story. It's an execution story. The shares are up 23.5% year to date, in part because management is navigating a tough environment with aplomb, and Wall Street is taking note. There's a belief that Air Products is out of its "show me" phase and can engineer earnings growth, aided by pricing power.
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Gassing up, Part 2 Linde (LIN +1.23%) is another producer of industrial gas, and in the helium realm, it forms an oligopoly with Air Products. These companies' podium positions in the global helium market are worth noting because supplies of that industrial gas are currently constrained by the war in Iran, as a significant share of helium flows through the Strait of Hormuz. The other issue confounding the helium market is that Russia is a major producer of the gas, and, because of Western sanctions, companies like Linde can't source it there.
That's rough on chipmakers because helium is essential for wafer cooling and contamination prevention. In a telling anecdote, the word "helium" was mentioned roughly a dozen times on Linde's first-quarter earnings conference call with sell-side analysts.
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Linde notes it's well-positioned to meet current helium demand, supported by long-term commitments it's working to secure. Linde's ability to keep helium customers satisfied in a challenging environment is commendable and could pave the way for long-term share appreciation, as helium is irreplaceable in chip manufacturing.
So, without helium, there is no fourth industrial revolution, which supports the case for Linde and rival Air Products.
On May 18, 2026, Cleveland-Cliffs Inc CLF shares rose 3.4% today, currently trading at $10.66. The stock has experienced significant volatility over the past year, with a 52-week high of $16.70 and a low of $5.63.
GF Value™ verdict: The current price of $10.66 is 10.0% below the GF Value™ of $11.85, indicating a potential upside.GF Score™: CLF scores 76/100, which is classified as Above Average, suggesting strong potential for long-term returns.Most notable signal: There have been no insider transactions in the last 3 months, indicating stable insider confidence. Is CLF Overvalued or Undervalued? According to the GF Value™, Cleveland-Cliffs Inc CLF is currently trading at $10.66, which is 10.0% below the fair value estimate of $11.85. This suggests that the stock may be undervalued, providing a margin of safety for potential investors. The GF Valuation label indicates that CLF is modestly undervalued, which presents an opportunity for those considering entering the stock. However, it is important to note that while the stock appears undervalued based on its GF Value™, this does not guarantee future performance, and investors should be cautious of market volatility and other risks.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
How Does CLF's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 541.8x 15.2x Cleveland-Cliffs Inc CLF is currently trading at a TTM P/E ratio of 541.8x, which is significantly above its 5-year median P/E of 15.2x. This suggests that the stock is trading well above its historical valuation levels, which contradicts the GF Value™ verdict indicating the stock is undervalued. Therefore, while the GF Value™ suggests a potential opportunity, the high P/E ratio raises concerns regarding overvaluation based on historical standards.
What Does CLF's GF Score™ Tell Us? Metric Rating GF Score™ 76/100 Financial Strength 3/10 Profitability 7/10 Growth 5/10 Valuation 10/10 Momentum 8/10 The GF Score™ of 76/100 reflects a solid position for Cleveland-Cliffs Inc CLF in terms of potential long-term returns. The strongest area is Valuation, which scores a perfect 10/10, indicating that the stock is considered a good value based on current metrics. However, the Financial Strength rating of 3/10 suggests weaknesses in this area, indicating that CLF may struggle to maintain its operations or respond to adverse market conditions. Overall, while the stock shows promise in terms of valuation and momentum, investors should be cautious of its financial strength.
What Are Insiders Doing with CLF Stock? In the last three months, there have been no insider transactions reported for Cleveland-Cliffs Inc CLF . This lack of insider activity suggests that company executives and directors may not see immediate opportunities to buy or sell shares, which can indicate a level of confidence in the company's current valuation and strategy. However, the absence of insider buying might also imply that insiders are not optimistic about short-term performance.
What This Means for Investors Based on the GF Value™ assessment, Cleveland-Cliffs Inc CLF is currently undervalued with a price of $10.66 compared to the GF Value™ of $11.85. However, caution is warranted due to the extremely high P/E ratio compared to its historical median, which raises concerns about potential overvaluation in the market context. Investors may find opportunities, but should carefully consider the risks involved.
For the complete analysis, visit the Cleveland-Cliffs Inc CLF 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 CLF's GF Score™?
CLF's GF Score™ is 76/100, indicating an Above Average potential for generating long-term returns based on various financial metrics.
Is CLF overvalued or undervalued?
CLF is currently undervalued according to the GF Value™, trading at $10.66 compared to the GF Value™ of $11.85, suggesting a 10.0% upside potential.
What is CLF's P/E ratio?
CLF's TTM P/E ratio is 541.8x, significantly higher than its 5-year median P/E of 15.2x, suggesting that the stock is trading at an elevated valuation compared to its historical levels.
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].
Cleveland-Cliffs (CLF - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this mining company have returned +11.2% over the past month versus the Zacks S&P 500 composite's +3.3% change. The Zacks Steel - Producers industry, to which Cleveland-Cliffs belongs, has gained 5.1% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Cleveland-Cliffs is expected to post a loss of $0.14 per share for the current quarter, representing a year-over-year change of +72%. Over the last 30 days, the Zacks Consensus Estimate has changed -1280%.
For the current fiscal year, the consensus earnings estimate of -$0.46 points to a change of +81.5% from the prior year. Over the last 30 days, this estimate has changed -27.8%.
For the next fiscal year, the consensus earnings estimate of $0.3 indicates a change of +165% from what Cleveland-Cliffs is expected to report a year ago. Over the past month, the estimate has changed -44.4%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Cleveland-Cliffs is rated Zacks Rank #4 (Sell).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Cleveland-Cliffs, the consensus sales estimate for the current quarter of $5.21 billion indicates a year-over-year change of +5.5%. For the current and next fiscal years, $20.38 billion and $21.08 billion estimates indicate +9.5% and +3.4% changes, respectively.
Last Reported Results and Surprise HistoryCleveland-Cliffs reported revenues of $4.92 billion in the last reported quarter, representing a year-over-year change of +6.3%. EPS of -$0.4 for the same period compares with -$0.92 a year ago.
Compared to the Zacks Consensus Estimate of $4.83 billion, the reported revenues represent a surprise of +1.81%. The EPS surprise was +9.09%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates two times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Cleveland-Cliffs is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Cleveland-Cliffs. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
A month has gone by since the last earnings report for Cleveland-Cliffs (CLF - Free Report) . Shares have added about 11.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Cleveland-Cliffs due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Cleveland-Cliffs Inc. before we dive into how investors and analysts have reacted as of late.
Cleveland-Cliffs’ Q1 Earnings and Revenues Outpace EstimatesCleveland-Cliffs’ first-quarter 2026 adjusted loss was 40 cents per share, narrower than the Zacks Consensus Estimate of a loss of 44 cents. It reported an adjusted loss of 93 cents per share in the prior-year quarter.
Revenues increased 6.3% year over year to $4,922 million. The top line beat the Zacks Consensus Estimate of $4,834.5 million.
Operational HighlightsThe company reported Steelmaking revenues of roughly $4.8 billion, up around 6.5% year over year.
The average net selling price per net ton of steel products was $1,048 in the quarter, up around 6.9% year over year. The metric was below the consensus estimate of $1,056.
External sales volumes for steel products were roughly 4.1 million net tons, down around 0.7% year over year. The figure surpassed the consensus estimate of 4.06 million net tons.
Financial PositionCleveland-Cliffs ended the first quarter with cash and cash equivalents of $45 million, down around 21% from the prior quarter. Long-term debt increased 7% sequentially to $7,763 million.
As of March 31, 2026, the company had $3.1 billion in total liquidity.
OutlookThe company reaffirmed its full-year 2026 outlook, maintaining expectations for steel shipment volumes of roughly 16.5-17 million net tons. It continues to project capital expenditures of about $700 million and selling, general, and administrative (SG&A) expenses of approximately $575 million. Depreciation, depletion, and amortization are expected to total around $1.1 billion, while cash pension and OPEB payments and contributions are anticipated to remain near $125 million.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -1280% due to these changes.
VGM ScoresAt this time, Cleveland-Cliffs has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock has a grade of F on the value side, putting it in the lowest quintile 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 Cleveland-Cliffs has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
CLEVELAND--(BUSINESS WIRE)--Cleveland-Cliffs Inc. (NYSE: CLF) was named 2025 GM Supplier of the Year by General Motors at its 34th annual Supplier of the Year event. Cleveland-Cliffs was the only North American steel producer recognized this year. This is the ninth time the company has received the award. Shilpan Amin, Senior Vice President, Global Chief Procurement and Supply Chain Officer, General Motors stated, “Supplier of the Year is one of those key moments our whole team looks forward to.
Cleveland-Cliffs Inc. (NYSE: CLF) was named 2025 GM Supplier of the Year by General Motors at its 34th annual Supplier of the Year event. Cleveland-Cliffs was the only North American steel producer recognized this year. This is the ninth time the company has received the award.
Shilpan Amin, Senior Vice President, Global Chief Procurement and Supply Chain Officer, General Motors stated, “Supplier of the Year is one of those key moments our whole team looks forward to every year because it highlights the partnerships behind every vehicle we build. The results our suppliers deliver throughout the entire product development cycle are central to our ability to deliver world-class vehicles to our customers. When our suppliers, such as Cleveland-Cliffs, lean in with us on new technology and flawless execution, we can move faster, compete harder and unlock more value across the entire supply chain.”
Lourenco Goncalves, Cleveland-Cliffs’ Chairman, President and Chief Executive Officer said, “It is a tremendous honor for Cleveland-Cliffs -- once again and for the ninth time -- to be recognized by General Motors as a Supplier of the Year. This award distinguishes Cleveland-Cliffs as the leading supplier of automotive steel and the only steel producer in North America recognized by GM this year. We remain fully committed to supporting its North American manufacturing footprint with a secure, dependable domestic supply chain and best-in-class steel products and solutions.”
In 2025, GM’s 34th annual Supplier of the Year and Overdrive awards recognize 103 suppliers of several materials and other inputs spanning 14 countries. These suppliers deliver outstanding performance, partnership and innovation in support of GM’s global operations. Awardees are selected by a global GM team based on performance across key categories such as safety, innovation, execution, resilience and customer support, along with their alignment to GM’s core values and strategic priorities.
About Cleveland-Cliffs Inc.
Cleveland-Cliffs is a leading North America-based steel producer with focus on value-added sheet products, particularly for the automotive industry. The Company is vertically integrated from the mining of iron ore, production of pellets and direct reduced iron, and processing of ferrous scrap through primary steelmaking and downstream finishing, stamping, tooling, and tubing. Headquartered in Cleveland, Ohio, Cleveland-Cliffs employs approximately 25,000 people across its operations in the United States and Canada.
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Cleveland-Cliffs Inc (NYSE:CLF) stock is up 7.2% to trade at $12.85 today, on track for its best single-session gain in over a month. The steel company was awarded General Motors’ (GM) Supplier of the Year for 2025 earlier in the month, and has reaped the benefits of elevated steel prices from the spring. Thanks to a 24% one-week gain and five-day win streak, the Ohio-based, flat-rolled steel manufacturer is trading at its highest level since a 16.4% post-earnings bear gap on Feb. 9.
This torrid rally has bullish quantitative implications, if past is precedent. Per Schaeffer’s Senior Quantitative Analyst Rocky White, CLF has cleared its 100-day moving average. Per White, this “crossover” event has happened 11times in the last 10 years, after which CLF was higher one month later 73% of the time, averaging a gain of 6.7%. From its current perch, a similar move higher would put the shares back above their year-to-date breakeven level.
CLF Stock Chart With SI and RSI
Schaeffer's
Cleveland-Cliffs- stock is now up 101.5% in the last 12 months, and flashed a similar bullish signal earlier in May. Keep in mind the trendline connecting October highs, plus CLF’s 14-Day Relative Strength Index (RSI) on the cusp of “overbought” territory at 70.
A short squeeze could keep the wind at the equity’s back. Bearish bettors have stagnated in the two most recent reporting periods, yet the 4.61 million shares sold short account for roughly 15% of CLF’s total available float. At the stock’s average pace of trading, it would take shorts nearly five full trading days to buy back their bearish bets.
Keep an eye on analyst sentiment as well. Of the 14 brokerages covering CLF, 12 maintain “hold” or worse ratings, while the consensus 12-month price target of $10.86 is a 16.3% discount to its current perch. A round of overdue bull notes could also support this bullish thesis for the summer. The shift could already be in motion; Barclays initiated coverage on CLF with an “underweight” rating and $9 price target last week.
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Good news for options traders is the stock’s Schaeffer’s Volatility Scorecard (SVS) comes in at 89out of 100. In other words, the shares have consistently realized higher volatility than its options have priced in over the past 12 months.
In the latest trading session, Cleveland-Cliffs (CLF - Free Report) closed at $13.60, marking a +2.33% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.22%. Meanwhile, the Dow experienced a rise of 0.72%, and the technology-dominated Nasdaq saw an increase of 0.21%.
The stock of mining company has risen by 30.29% in the past month, leading the Basic Materials sector's gain of 2.87% and the S&P 500's gain of 6.04%.
The investment community will be closely monitoring the performance of Cleveland-Cliffs in its forthcoming earnings report. The company is forecasted to report an EPS of -$0.14, showcasing a 72% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $5.21 billion, reflecting a 5.49% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of -$0.46 per share and a revenue of $20.38 billion, representing changes of +81.45% and +9.53%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Cleveland-Cliffs. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 10.38% lower. Cleveland-Cliffs presently features a Zacks Rank of #4 (Sell).
The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
On June 02, 2026, Cleveland-Cliffs Inc CLF shares rose 8.6%, bringing the current price to $14.75. This price is significantly influenced by a strong performance over the past month, with shares gaining 40.3%. Over the last year, CLF has seen a remarkable rise of 105.4%, although it has traded within a 52-week range of $6.71 to $16.70.
GF Value™ verdict: Current price of $14.75 vs GF Value™ of $11.86 indicates that CLF is 24.4% overvalued.GF Score™ of 74/100 suggests that CLF is ranked as above average in terms of its overall quality and potential.Most notable signal: CLF has not experienced any insider transactions in the last 3 months, indicating a lack of insider confidence or activity. Is CLF Overvalued or Undervalued? The current price of Cleveland-Cliffs Inc CLF at $14.75 is substantially above the GF Value™ estimate of $11.86, which classifies the stock as 24.4% overvalued. This suggests that there may be a lack of margin of safety for potential investors. The GF Valuation label indicates that the stock is modestly overvalued, which may present risks for those looking to invest at this price point. If CLF's performance does not align with market expectations, there could be downward pressure on the stock price in the future.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given the current valuation, investors should exercise caution as the overvaluation could lead to potential losses if the market corrects itself.
How Does CLF's Valuation Compare to Its History? Metric Current Historical P/E Ratio (TTM) 749.8x 15.2x (5-Year Median) The current P/E ratio of 749.8x is significantly higher than the 5-year median P/E of 15.2x, indicating that the stock is trading well above its historical valuation. This analysis agrees with the GF Value™ verdict, reinforcing the argument that CLF is overvalued at its current price. Such a high P/E ratio may further suggest that investor expectations are exceedingly optimistic, which could lead to volatility if those expectations are not met.
What Does CLF's GF Score™ Tell Us? Metric Rating GF Score™ 74 Financial Strength 3/10 Profitability 7/10 Growth 5/10 Valuation 6/10 Momentum 10/10 The GF Score™ of 74/100 indicates a solid overall performance, with particularly strong momentum at a perfect score of 10/10. However, the financial strength score of 3/10 suggests weaknesses in the company’s financial stability, which may raise concerns among potential investors. Profitability and valuation ranks of 7/10 and 6/10 respectively indicate that while the company is somewhat profitable, there are better investment opportunities available in the market.
What Are Insiders Doing with CLF Stock? There have been no insider transactions in the last three months for Cleveland-Cliffs Inc CLF . This lack of activity can suggest that insiders may not have confidence in the stock's performance at its current valuation or that they are anticipating a downturn. Insider buying can often be a positive signal, whereas inactivity may point to caution among those closest to the company.
What This Means for Investors Based on the GF Value™ assessment, Cleveland-Cliffs Inc CLF is currently overvalued. The significant gap between the current stock price and the GF Value™ suggests that investors may want to proceed with caution due to the potential for price corrections in the future.
For the complete analysis, visit the Cleveland-Cliffs Inc CLF 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 CLF's GF Score™?
CLF's GF Score™ is 74/100, indicating that it is ranked as above average based on key investment criteria.
Is CLF overvalued or undervalued?
CLF is currently overvalued, with a GF Value™ of $11.86 compared to its current price of $14.75, suggesting a 24.4% overvaluation.
What is CLF's P/E ratio?
CLF's current P/E ratio is 749.8x, which is significantly above its 5-year median P/E of 15.2x, indicating that the stock is trading well above 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].
Cleveland-Cliffs (CLF - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this mining company have returned +26.9%, compared to the Zacks S&P 500 composite's +4.6% change. During this period, the Zacks Steel - Producers industry, which Cleveland-Cliffs falls in, has gained 18.5%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Cleveland-Cliffs is expected to post a loss of $0.14 per share, indicating a change of +72% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The consensus earnings estimate of -$0.46 for the current fiscal year indicates a year-over-year change of +81.5%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $0.3 indicates a change of +165% from what Cleveland-Cliffs is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Cleveland-Cliffs.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Cleveland-Cliffs, the consensus sales estimate for the current quarter of $5.21 billion indicates a year-over-year change of +5.5%. For the current and next fiscal years, $20.38 billion and $21.08 billion estimates indicate +9.5% and +3.4% changes, respectively.
Last Reported Results and Surprise HistoryCleveland-Cliffs reported revenues of $4.92 billion in the last reported quarter, representing a year-over-year change of +6.3%. EPS of -$0.4 for the same period compares with -$0.92 a year ago.
Compared to the Zacks Consensus Estimate of $4.83 billion, the reported revenues represent a surprise of +1.81%. The EPS surprise was +9.09%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates two times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Cleveland-Cliffs is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Cleveland-Cliffs. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
In the latest close session, Cleveland-Cliffs (CLF - Free Report) was up +1.98% at $14.43. The stock outperformed the S&P 500, which registered a daily gain of 0.41%. On the other hand, the Dow registered a gain of 1.73%, and the technology-centric Nasdaq decreased by 0.09%.
Heading into today, shares of the mining company had gained 26.91% over the past month, outpacing the Basic Materials sector's gain of 3.22% and the S&P 500's gain of 4.59%.
Market participants will be closely following the financial results of Cleveland-Cliffs in its upcoming release. In that report, analysts expect Cleveland-Cliffs to post earnings of -$0.14 per share. This would mark year-over-year growth of 72%. Alongside, our most recent consensus estimate is anticipating revenue of $5.21 billion, indicating a 5.49% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of -$0.46 per share and revenue of $20.38 billion, which would represent changes of +81.45% and +9.53%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cleveland-Cliffs. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Cleveland-Cliffs boasts a Zacks Rank of #4 (Sell).
The Steel - Producers industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 78, finds itself in the top 32% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
President Trump’s second-term trade agenda has hardened into a structural policy regime, with U.S. steel imports sitting at their lowest levels since the global financial crisis. That backdrop has turned the under-$40 corner of the industrial market into one of the most asymmetric setups in the market, where a single multi-quarter pricing cycle can re-rate a stock several times over. For retail investors scanning the wreckage of 2025’s commodity selloff, the names worth a second look share three traits: domestic production, automotive exposure, and direct leverage to tariff enforcement.
With that in mind, here is one industrial stock trading well under $40 that fits the Trump tariff supercycle thesis cleanly.
Cleveland-Cliffs (NYSE: CLF) Cleveland-Cliffs (NYSE:CLF | CLF Price Prediction) is the largest flat-rolled steel producer in North America, with leadership positions in automotive, electrical, stainless, and plate steel.
Shares recently closed near $12. The stock sits 84.88% above its level a year ago, though it remains down 9.79% year to date. For a retail investor, that combination of a near-$12 handle and a $6.4 billion market capitalization means meaningful upside is achievable without the share price needing to do anything heroic.
The fundamentals are inflecting. Q1 2026 revenue came in at $4.92 billion, up 6.33% year over year and beating the $4.79 billion consensus. Adjusted EPS of -$0.40 beat the -$0.416 estimate, and adjusted EBITDA swung to +$95 million from -$179 million a year earlier, despite an $80 million one-time energy cost from extreme cold weather. The average selling price climbed to $1,048 per net ton, and shipments hit 4.1 million net tons.
Wall Street remains split. The consensus 12-month target sits at $10.50, with one strong buy, one buy, nine holds, and one strong sell. Morgan Stanley keeps an Overweight rating with a $12 target, while bears at JPMorgan moved to $10. Forward earnings are projected to swing from a loss to $0.30 per share next year.
The bull case is straightforward. CEO Lourenco Goncalves put it plainly: “Trade enforcement in the United States is working exactly as intended, with steel imports at their lowest levels since the global financial crisis.” Cliffs has signed multi-year contracts with all major automotive OEMs, was just named 2025 GM Supplier of the Year as the sole North American steel producer honored, and inked a three-year Palantir AI partnership the CEO called a “game changer.” The three headwinds that crushed 2025 (weak automotive production, a value-destructive slab supply contract, and an adverse Canadian market) have all eased, and management guides to healthy positive free cash flow in Q2 2026 with a $500 million EBITDA tailwind from the expired slab contract.
The risk that cuts against the thesis is leverage. Total debt stands at roughly $7.76 billion against just $45 million in cash, and FY2025 closed with a $1.478 billion net loss. Q1 free cash flow was -$477 million, and the POSCO partnership negotiations stalled on valuation disagreements. The thesis depends on tariff enforcement remaining intact and automotive demand holding.
With pricing power, policy tailwinds, and a sequential earnings ramp visible quarter by quarter, Cleveland-Cliffs looks like the cleanest pure-play on the tariff supercycle available under $40.
The Bottom Line Cleveland-Cliffs carries real balance sheet risk alongside its tariff-driven upside, and the consensus rating across major brokerages currently sits closer to neutral than bullish. Investors should weigh leverage, customer concentration, and trade policy durability against the operating inflection, then size positions according to their own risk tolerance and time horizon.
Pre-Market Stock Futures: Futures are trading higher after the bulls tried to rally stocks on Monday, after the drubbing they took on Friday, and it looks the same way today. While it was a partial victory on Monday, by the close, the huge gains from the morning were cut in half, and the Dow Jones Industrial Average actually ended the day lower, closing at 50,786, down 0.17%, while the S&P 500 closed at 7,405, up 0.30%. The Nasdaq finished with what would have ususally been considered a strong day, but sellers came in hard, and the tech-heavy index closed at 25,929, up 0.87%. The small-cap Russell 2000 was last seen up 0.77% at 2,855. While the SpaceX IPO is sure to generate massive investor interest, the gigantic deal may not be the cure for what ails a still-overbought and frothy market.
Treasury Bonds: One of the reasons the bulls were unable to hold on to the huge opening gains was that, while the S&P 500 posted its largest opening gap in 8 weeks, interest rates continued to rise, with yields on the belly and long end of the curve trading higher on Monday. When the closing bell finally rang, the 30-year-long bond closed at 5.04%, while the benchmark 10-year note closed the session at 4.56%. The 10-year note is critical, as mortgages are priced off the current rate, with additional data known as the mortgage spread factored in.
Oil and Gas: Oil traded higher as conflicting news headlines kept traders guessing on Monday. With global oil inventories continuing to be drained despite ceasefire efforts, and Iran even saying the fight with Israel is over, despite an exchange of missile barrages, many feel that the price for the two benchmarks could be getting ready to surge higher. The final trade for Brent Crude was recorded at $94.22, up 1.21%, while West Texas Intermediate finished the day at $91.27, up 0.87%. Natural gas closed down 2.66% at $3.14.
Gold: After a wild up and down day, Gold finished Monday virtually unchanged at $4,329, up just 0.03%, while Silver, which was hammered last Friday, closed at $68.05, up 0.49%. Both precious metals have been locked in a wide trading range since late March and will need serious tailwinds to break out and return to, and surpass, the February highs.
Crypto: Cryptocurrency markets staged a steady recovery on Monday, with Bitcoin climbing back to nearly $64,200. The rebound followed a brutal week in which the asset shed roughly $235 billion in market value. The broader crypto sector members stabilized in line with recovering equity markets, though investor sentiment remains guarded after the sharp weekend sell-offs. At 8 AM EDT, Bitcoin traded at $62,590, and Ethereum at $1,671.
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 Tuesday, June 9, 2026.
Upgrades: Cleveland-Cliffs (NYSE: CLF) | CLF Price Prediction was raised to Hold from Sell at Sidoti, without a target price. FuelCell Energy (NASDAQ: FCEL) was upgraded to Buy from Hold at Canaccord, which raised the price target to $30 from $12. PAR Technology (NYSE: PAR) was upgraded to Neutral from Underweight at JPMorgan, which bumped the price target for the stock to $16 from $12. Toll Brothers (NYSE: TOL) was upgraded to Outperform from Market Perform at Keefe Bruyette & Woods, which nudged the target price for the luxury home builder to $161 from $158. West Pharmaceutical Services (NYSE: WST) was raised to Overweight from Equal Weight at Barclays, which boosted the target price for the shares to $400 from $310. Downgrades: Equity Residential Properties Trust (NYSE: EQR) was downgraded to Sector Perform from Outperform at RBC Capital Markets, which bumped the target price to $70 from $69. Ingredion (NYSE: INGR) was cut to Perform from Outperform at Oppenheimer without a target price, as the company is proposing an acquisition of Tate & Lyle. Lennar (NYSE: LEN) was downgraded to Underperform from Market Perform at Keefe Bruyette & Woods, which lowered the price target to $86 from $97. Initiations: Cerebras Systems (NASDAQ: CBRS) was initiated with a Buy rating at Craig-Hallum, with a $325 target price.
Gold.com (NYSE: GOLD) was initiated with a Buy rating at Canaccord, with a $70 target price. Grand Canyon Education (NASDAQ: LOPE) was initiated with a Buy rating at Truist, with a $100 target price. Luckin Coffee (OTCPK: LKNCY) was initiated with a Buy rating at Jefferies, with a $43.60 target price. VEON (NASDAQ: VEON) was started with an Outperform rating at Northland, with a $70 target price.
In the latest trading session, Cleveland-Cliffs (CLF - Free Report) closed at $12.41, marking a -2.44% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 1.62% for the day. Meanwhile, the Dow lost 1.87%, and the Nasdaq, a tech-heavy index, lost 1.98%.
Shares of the mining company have appreciated by 17.89% over the course of the past month, outperforming the Basic Materials sector's loss of 5.57%, and the S&P 500's loss of 0.03%.
Analysts and investors alike will be keeping a close eye on the performance of Cleveland-Cliffs in its upcoming earnings disclosure. The company is expected to report EPS of -$0.14, up 72% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $5.21 billion, indicating a 5.49% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of -$0.46 per share and revenue of $20.38 billion, which would represent changes of +81.45% and +9.53%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Cleveland-Cliffs. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Cleveland-Cliffs is carrying a Zacks Rank of #4 (Sell).
The Steel - Producers industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 95, finds itself in the top 39% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Key Dates and Disclosure Events Shareholders Need to Know
, /PRNewswire/ -- Levi & Korsinsky, LLP encourages investors who suffered losses in Snowflake Inc. (NYSE: SNOW) to contact the firm. WHO IS AFFECTED: Those who purchased SNOW securities between June 27, 2023 and February 28, 2024 may be entitled to recover damages. Find out if you are eligible to recover losses. You may also contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.
Snowflake shares fell $41.72 per share, an 18.14% decline, after the Company disclosed consumption headwinds and withdrew its $10 billion product revenue target. The window to apply for lead plaintiff closes on April 27, 2026.
June 27, 2023: Investor Day Optimism
Snowflake hosted an Investor Day presentation where management reaffirmed confidence that the Company would reach $10 billion in product revenue by 2029. Management characterized consumption as "back where we'd expect it to be" and portrayed Iceberg Tables as a workload expansion opportunity in "full alignment" with the business model. The lawsuit contends these statements omitted known risks that efficiency gains and new product formats would cannibalize consumption revenue.
August 23, 2023: Q2 Fiscal 2024 Earnings Call
Management described consumption as "good" and told analysts that "stabilization is the right term." The action claims management touted upcoming product launches, including Streamlit, Unistore, and Containerized Services, as catalysts for revenue growth reacceleration, while failing to disclose material headwinds already affecting the consumption model.
November 29, 2023: Q3 Fiscal 2024 Earnings Call
Management reported "strong consumption from a broad base of customers" and highlighted new large-account wins. As alleged, tiered storage pricing had already begun rolling out to the Company's biggest customers, and large customers had already communicated their plans to adopt Iceberg Tables, yet these headwinds were not disclosed.
February 28, 2024: The Corrective Disclosure
After the market closed, Snowflake disclosed Q4 and full fiscal year 2024 results and provided guidance that shocked investors:
Acknowledged "increased revenue headwinds" from product efficiency gains, tiered storage pricing, and Iceberg Table adoption Revealed a 6.2% to 6.3% revenue impact from efficiency gains alone Lowered FY 2025 product revenue guidance to 22% year-over-year growth versus the 30% market expectation Withdrew the long-standing $10 billion 2029 product revenue target Disclosed that tiered storage pricing had started rolling out in Q3 and ramped through Q4 Submit your claim before the deadline or call Joseph E. Levi, Esq. at (212) 363-7500.
"Timely disclosure of material developments is fundamental to fair and efficient markets. The chronology in this case raises questions about the gap between when certain headwinds were known internally and when they were communicated to the investing public." -- Joseph E. Levi, Esq.
ABOUT THE FIRM -- For over two decades, Levi & Korsinsky has represented shareholders in securities class actions. Ranked in ISS Top 50 for seven consecutive years. Those wishing to serve as lead plaintiff must act by April 27, 2026.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171
Important Information Regarding Section 20(a) Individual Liability Claims
, /PRNewswire/ -- Levi & Korsinsky, LLP alerts investors in NuScale Power Corporation (NYSE: SMR) of a pending securities class action naming two senior executives as individual defendants under Section 20(a) of the Securities Exchange Act of 1934. Find out if you qualify to recover losses or contact Joseph E. Levi, Esq. at [email protected] | (212) 363-7500.
NuScale shares fell from a Class Period high above $57 to just $17, a decline exceeding 70%, allegedly caused by misrepresentations about the Company's exclusive commercialization partner. The Court has set April 20, 2026 as the deadline to apply for lead plaintiff appointment.
The Named Individual Defendants
John L. Hopkins, who has served as NuScale's Chief Executive Officer and Board member since December 2012, and Robert Ramsey Hamady, who has served as Chief Financial Officer since August 2023, are both named as individual defendants. The action contends that both executives directly participated in drafting, reviewing, and disseminating statements about ENTRA1 Energy LLC that allegedly misrepresented the partner's experience and capabilities in nuclear power plant development.
Section 20(a) Control Person Framework
The lawsuit asserts control person liability under Section 20(a) against Hopkins and Hamady based on their senior positions, their direct involvement in public communications with investors and analysts, and their authority over NuScale's SEC filings, press releases, and conference call statements throughout the Class Period of May 13, 2025 through November 6, 2025.
Alleged Control Person Liability
The complaint charges that each individual defendant:
Controlled the content of SEC filings, including the 1Q25 Form 10-Q and the September 2025 Form 8-K, which incorporated the Strategic Alliance Agreement and Partnership Milestones Agreement with ENTRA1 Hosted quarterly conference calls during which they allegedly made materially misleading representations about ENTRA1's qualifications as a nuclear power plant developer Had access to information revealing ENTRA1's lack of operational history prior to or shortly after issuing public statements touting the partner's capabilities Failed to correct prior misleading statements about ENTRA1 even as NuScale committed hundreds of millions in milestone payments under the PMA Sarbanes-Oxley Certification Obligations
Under Sections 302 and 906 of the Sarbanes-Oxley Act, both Hopkins and Hamady personally certified the accuracy of NuScale's periodic SEC filings during the Class Period. These certifications carry personal liability and require each officer to attest that filings do not contain untrue statements of material fact or omit material facts necessary to make statements not misleading.
Submit your information to join the recovery or call Joseph E. Levi, Esq. at (212) 363-7500.
"Corporate officers have a duty to ensure their companies' public statements are accurate and complete. When executives personally certify SEC filings and host investor calls where material representations are made, they bear individual responsibility for the accuracy of those communications." -- Joseph E. Levi, Esq.
Levi & Korsinsky, LLP -- Top 50 securities litigation firm (ISS, seven consecutive years). Over 70 professionals. Hundreds of millions recovered.
Notice to Pension Funds, Asset Managers, and Fiduciaries
, /PRNewswire/ -- Institutional investors holding positions in Navan, Inc. (Nasdaq: NAVN) acquired pursuant or traceable to the Company's October 31, 2025 initial public offering may wish to evaluate lead plaintiff opportunities in a pending securities class action. Request an institutional investor loss assessment. You may also contact Joseph E. Levi, Esq. at [email protected] or ☎(212) 363-7500.
Shares purchased at the $25 IPO price have declined to as low as $9.20 before the lawsuit was filed. The Court has set April 24, 2026 as the deadline to apply for lead plaintiff appointment.
Fiduciary Obligations and Recovery Options
Pension funds, mutual funds, and asset managers that acquired NAVN shares in the IPO owe fiduciary duties to their beneficiaries to evaluate all avenues for loss recovery. The Private Securities Litigation Reform Act of 1995 favors institutional investors as lead plaintiffs, recognizing their capacity to oversee complex securities litigation on behalf of a broader class.
Key considerations for fiduciaries include:
Institutions that purchased NAVN shares at $25 in the October 2025 IPO and held through December 16, 2025 experienced per-share losses of approximately $12.10 based on the post-disclosure closing price The PSLRA presumes that the investor with the largest financial interest should serve as lead plaintiff, a role well suited to institutional holders Lead plaintiff appointment carries no additional financial obligation; counsel fees are paid from any recovery obtained for the class Fiduciaries who fail to evaluate participation in securities recoveries may face questions from beneficiaries regarding their oversight responsibilities The lawsuit asserts strict liability and negligence claims under §§11, 12, and 15 of the Securities Act of 1933, which do not require proof of fraudulent intent Portfolio Impact Assessment
The action contends that Navan's Offering Documents omitted material information about a 39% surge in sales and marketing expenses during the quarter ending October 31, 2025, the same day as the IPO. This omission allegedly rendered statements about the Company's "rapid growth" and key financial metrics misleading to investors who relied on the Offering Documents when making allocation decisions.
Contact us for institutional recovery options or call ☎(212) 363-7500.
Case Summary
The class action was filed in the United States District Court for the Northern District of California on behalf of all persons and entities that purchased Navan common stock issued pursuant or traceable to the IPO.
"Institutional investors play a critical role in securities class actions. Their participation strengthens the class and ensures that fiduciary interests are represented by parties with the resources and standing to oversee litigation involving alleged IPO disclosure failures of this magnitude." -- Joseph E. Levi, Esq.
INSTITUTIONAL INVESTOR REPRESENTATION -- Levi & Korsinsky, LLP provides sophisticated counsel to institutional investors evaluating lead plaintiff opportunities. The firm has recovered hundreds of millions of dollars. Ranked among ISS Top 50 for seven consecutive years.
Shareholders Who Acquired Shares in the January 2025 Offering Urged to Review Options
, /PRNewswire/ -- Levi & Korsinsky, LLP announces that a securities class action has been filed against Lakeland Industries, Inc. (NASDAQ: LAKE).
YOU MAY BE AFFECTED IF YOU:
Purchased LAKE stock between December 1, 2023 and December 9, 2025 Lost money on your Lakeland Industries investment Acquired shares in or traceable to the Company's January 2025 public offering Find out if you qualify for recovery or contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.
Lakeland raised approximately $46 million in gross proceeds through an underwritten public offering of 2,093,000 shares at $22.00 per share in January 2025. By December 10, 2025, shares closed at $9.16, a decline of over 58% from the offering price, representing a loss of $12.84 per share for offering participants.
The Alleged Offering Conducted on Artificially Inflated Shares
Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 prohibit making untrue statements of material facts or omitting facts necessary to prevent existing statements from being misleading. The action contends that Lakeland's January 2025 offering occurred while the Company's stock price was artificially inflated by misleading representations about the performance and prospects of its Pacific Helmets and Jolly acquisitions.
At the time of the offering, the lawsuit asserts, Lakeland had already experienced a revenue miss in Q2 FY2025, with management attributing the shortfall to "shipment timing" and delayed Jolly orders. Despite this warning, the Company continued to reaffirm adjusted EBITDA guidance of $18 million to $21.5 million for FY2025 and proceeded to raise capital from public investors at $22.00 per share.
What the Offering Documents Allegedly Misrepresented
As pleaded in the complaint, investors in the January 2025 offering were not adequately informed of material adverse conditions:
Lakeland was experiencing significant, sustained shipping delays and production issues at Pacific Helmets and Jolly A large Jolly fire boots order initially expected in Q2 FY2025 had already shown signs of slippage The rollout of new products from both Pacific Helmets and Jolly was proceeding far slower than represented to investors Management's financial guidance of "at least $18 million" in adjusted EBITDA was unreliable given known operational headwinds The Company's widely promoted SSQ M&A strategy was not delivering the integration benefits and accretion promised to investors Subsequent results confirmed FY2025 adjusted EBITDA of only $17.4 million, below the floor of guidance, while FY2026 guidance was ultimately withdrawn entirely Alleged Offering Proceeds and Defendant Motivation
The complaint contends that Lakeland's January 2025 offering generated approximately $46 million in gross proceeds while shares traded at artificially inflated levels. Plaintiffs allege this offering provided a direct financial motivation for maintaining optimistic public statements about the Company's acquisition strategy and financial outlook.
"The PSLRA provides important protections for investors harmed by alleged securities violations. When companies raise capital from the public, investors are entitled to receive complete and accurate information about known risks that could materially affect the value of their investment." -- Joseph E. Levi, Esq.
Start your claim now or contact Joseph E. Levi, Esq. at (212) 363-7500.
WHY LEVI & KORSINSKY -- Ranked in ISS Securities Class Action Services' Top 50 Report for seven consecutive years, Levi & Korsinsky, LLP is a nationally recognized leader in shareholder rights litigation. With a team of over 70 professionals, the firm has recovered hundreds of millions of dollars for investors. Motions for lead plaintiff must be filed with the Court by April 24, 2026.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171
Important Information Regarding Section 20(a) Individual Liability Claims
, /PRNewswire/ -- Levi & Korsinsky, LLP alerts investors in PayPal Holdings, Inc. (NASDAQ: PYPL) of a pending securities class action naming senior executives as individual defendants. Class Period: February 25, 2025 through February 2, 2026. Find out if you qualify to recover losses or contact Joseph E. Levi, Esq. at [email protected] | (212) 363-7500.
Two senior officers of PayPal are named as individual defendants in a securities class action filed in the United States District Court for the Northern District of California. Shares fell $10.63 per share, a 20.31% single-day decline, after alleged misrepresentations were revealed on February 3, 2026.
The Named Individual Defendants
James Alexander Chriss served as President, Chief Executive Officer, and Director of PayPal throughout the Class Period until his termination on February 3, 2026. The complaint identifies Chriss as the executive who led the Company's February 25, 2025 Analyst/Investor Day presentation, where ambitious 2027 financial targets and Branded Checkout growth projections were communicated to investors.
Jamie S. Miller served as Executive Vice President, Chief Financial Officer, and Chief Operating Officer throughout the Class Period. Miller assumed the additional roles of Interim President and Interim Chief Executive Officer on February 3, 2026, the same day the Company disclosed disappointing results and withdrew its 2027 targets.
Section 20(a) Control Person Framework
The action asserts claims under Section 20(a) of the Securities Exchange Act of 1934, which imposes liability on individuals who controlled a company that violated Section 10(b). As pleaded, both Chriss and Miller possessed the power and authority to control the contents of PayPal's SEC filings, press releases, and presentations to analysts and institutional investors. Each was allegedly provided with copies of the Company's public statements prior to or shortly after issuance and had the ability to prevent their release or cause corrections.
Sarbanes-Oxley Certification Obligations
Under SOX Sections 302 and 906, Chriss and Miller personally certified the accuracy of PayPal's quarterly and annual filings with the SEC The complaint contends both defendants knew that adverse facts about the Company's salesforce readiness and deployment capabilities had not been disclosed Each allegedly had access to material non-public information showing that the Company's staff was "too optimistic" about changing customer adoption The action charges that positive representations about 2027 growth targets were made while concealing operational limitations across all regions Scienter Allegations
The complaint charges that the Individual Defendants knew, or were severely reckless in not knowing, that PayPal's salesforce was not equipped to execute on the growth potential communicated to investors. Both defendants allegedly participated directly in crafting the narratives presented at the February 2025 Analyst/Investor Day and the April 2025 earnings call, where they reiterated confidence in targets that were later withdrawn.
"Corporate officers have a duty to ensure their companies' public statements are accurate and complete. When executives personally certify financial disclosures while allegedly concealing known operational shortcomings, Section 20(a) provides shareholders a path to hold those individuals accountable." -- Joseph E. Levi, Esq.
Submit your information to join the recovery or call Joseph E. Levi, Esq. at (212) 363-7500.
Levi & Korsinsky, LLP -- Top 50 securities litigation firm (ISS, seven consecutive years). Over 70 professionals. Hundreds of millions recovered. The Court has set April 20, 2026 as the deadline to apply for lead plaintiff appointment.
Levi Strauss (NYSE: LEVI | LEVI Price Prediction) and Nike (NYSE: NKE) are both consumer apparel giants, but right now only one of them is actually growing. The question for retirement-focused investors is straightforward: given societal trends, which one deserves a place in your portfolio today?
The heritage consumption trend is the focus of this comparison. Consumers are gravitating toward classic, legacy brands with authentic cultural roots over performance-driven athleisure. Levi’s, with its 172-year heritage, sits squarely in that current. Nike, built on performance innovation and aspirational athlete marketing, is fighting a structural headwind it did not anticipate.
1. Growth Trajectory The gap here is significant. Levi’s posted Q1 FY2026 revenue of $1.742 billion, up 14.1% year over year, with net income rising 31.19% to $177.1 million. Management then raised full-year guidance, now targeting reported net revenue growth of 5.5% to 6.5% and adjusted diluted earnings per share (EPS) of $1.42 to $1.48. The direct-to-consumer channel, now 52% of revenues, grew 16%, and Europe surged 24% in the quarter.
Nike’s trajectory runs the other direction. Q3 FY2026 revenue was essentially flat at $11.279 billion, up just 0.09% year over year, while net income fell 34.51% to $520 million. For the full fiscal year 2025, annual revenue declined 9.84% and net income dropped 43.53%. Converse, a heritage sub-brand that should theoretically benefit from the same trend lifting Levi’s, saw revenue collapse 35% in the most recent quarter.
Winner: Levi’s.
2. Valuation Levi’s trades at a compelling discount to Nike on a forward earnings basis. With a current price of $22.33 and FY2026 EPS guidance midpoint of $1.45, the stock trades at roughly 15x forward earnings. Analyst consensus sits at 13 Buy ratings, two Holds, and zero Sells, with a consensus target price of $26.87.
Nike carries a trailing P/E of 29x despite earnings in freefall. Its forward P/E of 22x assumes a recovery that has yet to materialize in the revenue line. The stock trades at $45.08, down 28.3% year to date and 16.7% over the past year, against a 52-week high of $80.17. Paying a premium multiple for a business with quarterly earnings declining 34.8% year over year is a difficult case to make.
Winner: Levi’s.
3. Yield and Income This is the one dimension where Nike has a legitimate claim. Nike pays a dividend yield of 3.7%, backed by 24 consecutive years of dividend increases. That streak carries real weight for income-focused retirees. Levi’s pays $0.14 per share quarterly, a meaningfully lower yield at current prices. However, Levi’s dividend was recently increased and is supported by free cash flow of $152.1 million in Q1 FY2026 alone, up from $11.9 million in the prior-year period. Nike’s dividend streak is real, but the payout is now funded by a business generating a profit margin of just 4.84% with gross margins compressing across every recent quarter.
Winner: Nike on yield, with an asterisk on sustainability.
Verdict For a retiree who wants income above all else and is willing to accept a stagnant stock price in exchange for a 24-year dividend growth record, Nike fits that narrow profile. But the income argument is the only one Nike wins right now.
For the retirement investor who wants a stock that is actually growing, trading at a reasonable valuation, and riding a structural consumer trend, Levi’s is the clear choice. The stock is up 55.3% over the past year, management has raised guidance twice in recent quarters, and the heritage consumption trend is a structural tailwind, not a cyclical blip. The gap is stark. Nike’s “Win Now” turnaround is, by CEO Elliott Hill’s own description, still in the “middle innings.” Levi’s is already scoring.
Amazon pressured major brands like Levi Strauss & Co. and Hanes to inflate prices of listings on rival online marketplaces as part of wide-ranging price-fixing scheme, according to California Attorney General Rob Bonta.
The newly unsealed documents released on Monday are part of a 2022 antitrust lawsuit alleging Amazon stifled competition and increased the prices that consumers pay across the internet. The complaint zeroes in on Amazon's agreements with its millions of vendors, which Bonta says "keep prices artificially high" on competing platforms.
Vendors are compelled to agree to Amazon's demands because of its dominant position in online retail, Bonta argued.
Amazon has previously disputed Bonta's claims. An Amazon spokesperson told CNBC in a statement that it will respond in court "at the appropriate time."
"The Attorney General's motion is a transparent attempt to distract from the weakness of its case, coming more than three years after filing its complaint and based on supposedly 'new' evidence it has had for years," the spokesperson said in a statement.
The documents released Monday include 2022 communications between Amazon and undergarments maker Hanes, where it sent the vendor links to listings on Target and Walmart's websites showing lower prices than those on Amazon.
Hanes confirmed that it "reached out to Target and Walmart to have the prices increased," the filing states.
In another case, Amazon alerted Allergan that it temporarily suppressed listings for its eye drops once it found they were being sold for less elsewhere. The medical products company replied saying, "Walmart got their price back up" to $16.99 and asked Amazon to unsuppress the product. Amazon agreed, according to the filing.
Read more CNBC tech newsBezos opens up about AI startup Prometheus after $12 billion raise: 'We're not being secretive'DoorDash lets customers use photos, prompts to order food and book reservations in latest AI pushAs OpenAI leans into enterprise business, Apple and Google set sights on the massesPalantir's Karp says businesses are 'unhappy' with the frontier AI labsAmazon also allegedly pressed Levi's to ask Walmart to hike the price of its khaki pants, which were being offered for less than Amazon's listings. Walmart raised its prices, the filing states.
Representatives from Hanes, Levi's and AbbVie-owned Allergan didn't respond to requests for comment.
Bonta's office has asked a San Francisco Superior Court judge to prevent Amazon from engaging in the alleged price-fixing practices while the lawsuit proceeds. The office has also requested the court to appoint an independent monitor to oversee Amazon's compliance. The case is slated to go to trial in 2027.
"Amazon has strong-armed vendors into raising prices elsewhere or pulling products from competing retailers altogether so that Amazon can protect its profit margins," Bonta said Monday on a call with reporters. "That's not competition. It's price fixing, and under California law, it's illegal."
Amazon controls as much as 50% of the U.S. e-commerce market, based on various estimates. The company has long argued that its pricing policies enable it to keep prices low for consumers.
Several antitrust complaints take aim at its pricing mechanisms.
The Federal Trade Commission and 17 states sued Amazon in 2023, accusing it of wielding its monopoly power to squeeze merchants, resulting in higher prices on rival websites. Washington, D.C.'s attorney general sued Amazon in 2021 over its pricing polices, while European regulators have also scrutinized the issue.
Third-party sellers on Amazon, which account for more than 60% of goods sold by the retailer, have also argued that the company uses pricing algorithms to prevent it from offering lower prices elsewhere on the web. They say that doing so puts them at risk of losing the "Buy Box," or the portion of an Amazon listing where shoppers click "Buy Now" or "Add to Cart."
Analysts estimate that about 80% of Amazon sales flow through the Buy Box.
Bonta said his office released the new filings Monday to show how Amazon "coordinates" with vendors and major retailers, including Target, Walmart, Chewy, Best Buy and Home Depot, to raise prices across the market.
"We're not speaking generally anymore," Bonta told reporters. "We're calling out the conduct and the companies behind it."
Key Takeaways Retail sales jumped 1.7% in March, topping estimates, with strong gains across multiple categories.Rising oil prices and inflation drove a 15.5% surge in gasoline station receipts, boosting totals.FIVE, JD, TPR, LEVI, CASY stand out with solid earnings growth and improving estimates. Retail sales rose in March, surpassing expectations as the ongoing conflict with Iran saw gasoline prices climb more than 30% over the past month. Although oil prices played a major role in boosting retail sales in March, the overall sector performed well.
The retail sector has put up a great show despite facing inflationary and tariff challenges. Sales have been on the rise this year, and the sector is poised to grow in the near term. It would be ideal to invest in retail stocks with a strong online presence. We have selected five stocks, namely, Five Below, Inc. (FIVE - Free Report) , JD.com, Inc. (JD - Free Report) , Tapestry (TPR - Free Report) , Levi Strauss & Co. (LEVI - Free Report) and Casey's General Stores, Inc. (CASY - Free Report) .
Retail Sales SoarRetail sales jumped 1.7% in March, the highest level in the past 12 months, after rising 0.7% in February. The jump was higher than the consensus estimate of a rise of 1.4%. The jump was expected, given that the U.S.-Iran war saw oil prices rise sharply over the past month.
Year over year, retail sales jumped 4% in March, surpassing the consensus estimate of a rise of just 0.7%.
Global oil prices have surged over 30% since the start of the war, while inflation soared to its highest level in nearly a year, with the consumer price index (CPI) rising 0.9% sequentially in March. This saw a 15.5% surge in receipts at gasoline stations.
However, consumers continued to spend even then. Retail sales excluding automobiles, gasoline, building materials and food services rose 0.7% in March. Sales at auto dealerships climbed 0.5% in March, while sales at electronics and appliance retailers rose 0.9%. Sales at furniture stores jumped 2.2%.
Online sales jumped 1%, while sales at restaurants and drinking places increased 0.1% in March. Higher demand and continued spending are boosting retail sales, and the sector is not only holding its ground but also preparing for growth in the near term.
5 Retail Stocks With UpsideFive Below, IncFive Below, Inc. is a specialty value chain retailer that provides a wide range of premium quality and trendy merchandise for $5 or below. FIVE mainly targets teenagers or pre-teen shoppers for its products, which include certain brands and licensed merchandise. Notably, these products belong to categories such as Style, Room, Sports, Tech, Create, Party, Candy and Now.
Five Below’s expected earnings growth rate for the current year is 20.2%. The Zacks Consensus Estimate for current-year earnings has improved 15.4% over the past 60 days. FIVE presently carries a Zacks Rank #1.
JD.comJD.com operates as an online direct sales company in China. JD, through its website www.jd.com and mobile applications, offers a selection of authentic products.
JD.com’s expected earnings growth rate for the current year is 19.2%. The Zacks Consensus Estimate for current-year earnings has improved 5.3% over the past 60 days. JD currently has a Zacks Rank #2.
TapestryTapestry is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. TPR offers lifestyle products, which include handbags, women’s and men’s accessories, footwear, jewelry, seasonal apparel collections, sunwear, travel bags, fragrances and watches.
Tapestry’s expected earnings growth rate for the current year is 26.5%. The Zacks Consensus Estimate for current-year earnings has improved 3.9% over the past 60 days. TPR presently carries a Zacks Rank #2.
Levi Strauss & Co.Levi Strauss & Co. designs and markets jeans, casual wear and related accessories for men, women and children under the Levi's, Dockers, Signature by Levi Strauss & Co. and Denizen brands. LEVI’s products are sold through chain retailers, department stores, online sites and brand-dedicated retail stores, and shop-in-shops. Levi Strauss & Co. is based in San Francisco.
Levi Strauss & Co.’s expected earnings growth rate for the current year is 11.9%. The Zacks Consensus Estimate for current-year earnings has improved 2.7% over the past 60 days. LEVI carries a Zacks Rank #2.
Casey's General StoresCasey's General Stores, Inc. operates convenience stores under the Casey's and Casey's General Store names in 16 states, mainly Iowa, Missouri and Illinois. CASY offers a comprehensive range of products and services to meet the needs of its customers. In addition to fuel, the stores provide a wide variety of merchandise, including groceries, prepared food, snacks, beverages, tobacco products, health and beauty aids, school supplies, housewares, pet supplies and automotive supplies.
Casey’s has an expected earnings growth rate of 23.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.1% over the last 60 days. CASY currently has a Zacks Rank #2.
Key Takeaways Deckers Outdoor rides HOKA and UGG strength, with global demand and efficiency supporting growth.Abercrombie & Fitch posts 13 straight quarters of sales growth, driven by digital and brand momentum.Tapestry sees margin expansion and strong Coach demand, with raised fiscal 2026 revenue outlook. The Retail - Apparel and Shoes industry entered 2026 on a relatively stable note despite a volatile macroeconomic environment, with demand increasingly shaped by more selective, value-conscious consumers and faster-moving trends.
This space is benefiting from strong premiumization and digital momentum. Consumers are increasingly gravitating toward performance-driven, high-quality products that blend comfort, durability and style, supporting higher price points and stronger brand loyalty.
The Zacks-defined Retail – Apparel and Shoes industry is currently within the top 30% of the Zacks Industry Rank. Since it is ranked in the top half of the Zacks Ranked Industries, we expect it to outperform the market over the next three to six months.
Here, we recommend five apparel and shoes stocks with a favorable Zacks Rank for a stable portfolio. These are: Deckers Outdoor Corp. (DECK - Free Report) , Abercrombie & Fitch Co. (ANF - Free Report) , Levi Strauss & Co. (LEVI - Free Report) , Tapestry Inc. (TPR - Free Report) and Shoe Carnival Inc. (SCVL - Free Report) . Each of our picks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks in the past month.
Image Source: Zacks Investment Research
Deckers Outdoor Corp.Deckers Outdoor continues to demonstrate solid momentum, driven by strong execution across its HOKA and UGG brands. HOKA remains the key growth engine, supported by expanding global demand, balanced channel performance and continued market share gains, while UGG is delivering steady growth off a larger base through disciplined marketplace management and brand relevance.
DECK’s international markets are accelerating growth and diversification, strengthening long-term earnings visibility beyond the United States. At the same time, pricing discipline, cost controls and supply-chain efficiencies are supporting margin resilience despite external pressures.
With a strong balance sheet, ongoing share repurchases and continued investment in product innovation and brand building, DECK is well-positioned to sustain growth, and create long-term shareholder value.
Deckers Outdoor has an expected revenue and earnings growth rate of 7.5% and 6.3%, respectively, for the current fiscal year (ending March 2027). The Zacks Consensus Estimate for the current fiscal year’s earnings has improved 0.6% over the last 60 days.
Abercrombie & Fitch Co.Abercrombie & Fitch has been benefiting from momentum across its Hollister brand and regions, which has been bolstering sales. ANF marked its 13th straight quarter of sales growth, delivering record fourth-quarter and fiscal 2025 net sales, supported by broad-based momentum across regions, brands and channels.
ANF’s continued digital strength, localized merchandising strategies and contribution from new store openings and remodels have been yielding results. For the first quarter of fiscal 2026, ANF projected net sales to rise 1-3% from $1.1 billion recorded in the year-ago period. Our model expects sales to rise 3% for the first quarter and 4.5% for fiscal 2026.
Abercrombie & Fitch has an expected revenue and earnings growth rate of 4.3% and 8.6%, respectively, for the current fiscal year (ending January 2027). The Zacks Consensus Estimate for the current fiscal year’s earnings has improved 0.5% over the last 30 days.
Levi Strauss & Co.Levi Strauss designs and markets jeans, casual wear and related accessories for men, women and children under the Levi's, Dockers, Signature by Levi Strauss & Co. and Denizen brands. LEVI’s products are sold through chain retailers, department stores, online sites and brand-dedicated retail stores and shop-in-shops.
Levi Strauss has an expected revenue and earnings growth rate of 5.2% and 11.9%, respectively, for the current fiscal year (ending November 2026). The Zacks Consensus Estimate for the current fiscal year’s earnings has improved 2.7% over the last 30 days.
Tapestry Inc.Tapestry continues to strengthen its position as a leading global house of brands, driven by the strong performance of Coach. The core brand is effectively attracting Gen Z consumers, achieving growth in both unit volume and pricing power. This demand, along with a more focused portfolio after the strategic divestiture of lower-margin segments, is fueling TPR’s gross margin expansion and strong operating leverage.
TPR’s adjusted gross margin rose 110 basis points in the second quarter of fiscal 2026. International markets, especially Greater China and Europe, are providing further opportunities for sustained growth.
Supported by a strong balance sheet and higher capital returns, TPR is effectively resetting its earnings base. Management has raised its fiscal 2026 view, projecting revenues above $7.75 billion and EPS between $6.40 and $6.45.
Tapestry has an expected revenue and earnings growth rate of 11.2% and 26.5%, respectively, for the current year (ending June 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 3.9% over the last 60 days.
Shoe Carnival Inc.Shoe Carnival is one of the nation's largest family footwear retailers, offering a broad assortment of moderately priced dress, casual and athletic footwear for men, women and children with emphasis on national and regional name brands. SCVL sells its products through www.shoecarnival.com and www.shoestation.com, and through a related mobile app.
SCVL has an expected revenue and earnings growth rate of -0.1% and -21.1%, respectively, for the current year (ending January 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 4.9% over the last 30 days.
Promise vs. Reality: The Lakeland Industries Performance Gap
, /PRNewswire/ -- Lakeland Industries, Inc. (NASDAQ: LAKE) projected adjusted EBITDA of at least $18 million for FY 2025. The actual result: $17.4 million, followed by five consecutive quarters of missed consensus estimates, culminating in a 38.97% single-day stock collapse and the withdrawal of all forward guidance. Find out if you can recover your investment losses. You may also contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.
Lakeland's stock fell $5.85 per share to close at $9.16 on December 10, 2025, after the company disclosed Q3 FY2026 revenue of $47.6 million, missing estimates by $9.05 million, and terminated its CFO. The lead plaintiff deadline is April 24, 2026.
The Promise
Throughout the Class Period from December 1, 2023 to December 9, 2025, management issued a series of specific financial projections and operational commitments to investors:
Pacific Helmets would add $7 to $8 million in annual sales revenue and be "immediately accretive" Jolly would add $14 to $16 million in sales revenue and be "immediately accretive" FY 2025 adjusted EBITDA, excluding FX, would reach $18 million to $21.5 million FY 2026 revenue would reach $210 to $220 million with adjusted EBITDA of $24 to $29 million The SSQ acquisition strategy would position Lakeland "for growth in revenue and profitability" Fire services growth would "accelerate" and the company would become "less susceptible to revenue timing swings" As late as December 5, 2024, the CFO stated that "given the totality of our positive results, trends and expectations, we continue to expect Adjusted EBITDA excluding FX of at least $18 million."
The Reality
The lawsuit contends that behind these projections, Lakeland's acquired businesses were experiencing production issues, shipping delays, certification holdups, and a slower than expected rollout of new products. Quarter after quarter, the gap between company promises and actual performance widened:
Q2 FY2025 (September 4, 2024): Revenue missed consensus by $1.39 million. Stock fell 7.82%. Q4 FY2025 (April 9, 2025): GAAP EPS of negative $2.42, missing estimates by $2.80. Adjusted EBITDA came in at $17.4 million, below the "at least $18 million" floor. Stock fell 14.33%. Q1 FY2026 (June 9, 2025): Revenue missed by $2.1 million. Stock fell 22.16%. Q2 FY2026 (September 9, 2025): Revenue missed by $2.09 million. Stock fell 4.43%. Q3 FY2026 (December 9, 2025): Revenue missed by $9.05 million. FY 2026 guidance withdrawn entirely. CFO terminated. Stock fell 38.97%. What the Lawsuit Alleges About the Gap
The action asserts that management knew or should have known that their acquisitions were underperforming projections, yet continued to reassure investors about full-year targets and strategic momentum. Each corrective disclosure attributed the shortfall to the same recurring problems at Pacific Helmets and Jolly, problems that the complaint charges existed well before they were revealed to stockholders.
"Companies that make specific promises to investors about future performance have an obligation to disclose known risks to those projections. The contrast between what Lakeland told the market and what actually occurred raises important questions about the accuracy of those representations." -- Joseph E. Levi, Esq.
Speak with an attorney about recovering your Lakeland losses or call (212) 363-7500.
LEAD PLAINTIFF DEADLINE: April 24, 2026
Levi & Korsinsky, LLP is a nationally recognized shareholder rights firm. Over the past 20 years, the firm has secured hundreds of millions of dollars for aggrieved shareholders. Ranked in ISS Top 50 for seven consecutive years.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171
Key Dates and Disclosure Events Shareholders Need to Know
, /PRNewswire/ -- Levi & Korsinsky, LLP encourages investors who suffered losses in Navan, Inc. (Nasdaq: NAVN) to contact the firm. WHO IS AFFECTED: Those who purchased NAVN securities pursuant or traceable to the Company's October 31, 2025 IPO may be entitled to recover damages. Find out if you are eligible to recover losses. You may also contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.
Navan's IPO priced at $25 per share on October 31, 2025. By early 2026, shares traded as low as $9.20, a loss of nearly $15.80 per share (63%). The window to apply for lead plaintiff closes on April 24, 2026.
June 20, 2025: The Draft Registration Statement
Navan filed its initial draft registration statement on Form S-1 with the SEC. The document set the stage for a public offering by touting 33% year-over-year revenue growth, 32% GBV growth, and a stable 7% usage yield. These figures became the foundation on which investors would later evaluate the IPO.
October 30, 2025: The Prospectus Goes Final
One day before trading began, Navan filed its final Prospectus. The document repeated claims of "rapid growth" and "increased demand" while listing generic risk factors about customer acquisition costs. The lawsuit contends the Prospectus failed to disclose that sales and marketing expenses for the quarter then ending had already surged 39% above the prior quarter.
October 31, 2025: IPO Day
The SEC declared the Registration Statement effective. Navan sold 36.9 million shares at $25 each, generating anticipated gross proceeds exceeding $920 million. Underwriters collected $36.7 million in commissions. On this same day, the quarter that would later reveal ballooning costs officially closed.
December 15, 2025: The Truth Surfaces
Navan filed its 10-Q for the quarter ending October 31, 2025, disclosing sales and marketing expenses of nearly $95 million versus $68.5 million the prior quarter. On the same earnings call, the CEO announced the CFO's imminent departure effective January 9.
December 16, 2025: Shareholders Bear the Cost
Shares fell almost 12% in a single session, closing at $12.90 on heavy volume. The decline continued in subsequent weeks.
Chronology of Material Events
June 20, 2025: Draft S-1 filed; growth metrics prominently featured October 10, 2025: Amended S-1 filed, maintaining same growth narrative October 30, 2025: Final Prospectus filed; no disclosure of 39% expense spike occurring that quarter October 31, 2025: IPO prices at $25; quarter with elevated expenses closes the same day December 15, 2025: 10-Q reveals $95 million in sales and marketing spend; CFO departure announced December 16, 2025: Stock drops almost 12% to $12.90 Submit your claim before the deadline or call (212) 363-7500.
"Timely disclosure of material developments is fundamental to fair and efficient markets. The sequence of events here raises important questions about whether investors received the information they needed before committing capital at the IPO price." -- Joseph E. Levi, Esq.
ABOUT THE FIRM -- For over two decades, Levi & Korsinsky has represented shareholders in securities class actions. Ranked in ISS Top 50 for seven consecutive years. Those wishing to serve as lead plaintiff must act by April 24, 2026.
Levi Strauss & Co. (NYSE:LEVI – Get Free Report) and MINISO Group (NYSE:MNSO – Get Free Report) are both mid-cap retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, valuation, institutional ownership, profitability, earnings and dividends.
Institutional & Insider Ownership 69.1% of Levi Strauss & Co. shares are held by institutional investors. Comparatively, 17.2% of MINISO Group shares are held by institutional investors. 1.1% of Levi Strauss & Co. shares are held by company insiders. Comparatively, 73.5% of MINISO Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Dividends Levi Strauss & Co. pays an annual dividend of $0.56 per share and has a dividend yield of 2.5%. MINISO Group pays an annual dividend of $0.73 per share and has a dividend yield of 5.0%. Levi Strauss & Co. pays out 35.7% of its earnings in the form of a dividend. MINISO Group pays out 135.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Levi Strauss & Co. has increased its dividend for 4 consecutive years.
Risk & Volatility Levi Strauss & Co. has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500. Comparatively, MINISO Group has a beta of 0.25, indicating that its stock price is 75% less volatile than the S&P 500.
Earnings & Valuation This table compares Levi Strauss & Co. and MINISO Group”s gross revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Levi Strauss & Co. $6.28 billion 1.38 $578.10 million $1.57 14.32 MINISO Group $3.07 billion 1.47 $172.32 million $0.54 26.95 Levi Strauss & Co. has higher revenue and earnings than MINISO Group. Levi Strauss & Co. is trading at a lower price-to-earnings ratio than MINISO Group, indicating that it is currently the more affordable of the two stocks.
Profitability This table compares Levi Strauss & Co. and MINISO Group’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Levi Strauss & Co. 9.52% 25.35% 8.32% MINISO Group 5.56% 11.07% 4.33% Analyst Recommendations This is a breakdown of current ratings and recommmendations for Levi Strauss & Co. and MINISO Group, as provided by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Levi Strauss & Co. 0 4 11 0 2.73 MINISO Group 0 3 2 0 2.40 Levi Strauss & Co. currently has a consensus target price of $26.77, indicating a potential upside of 19.05%. MINISO Group has a consensus target price of $24.60, indicating a potential upside of 69.04%. Given MINISO Group’s higher probable upside, analysts plainly believe MINISO Group is more favorable than Levi Strauss & Co..
Summary Levi Strauss & Co. beats MINISO Group on 12 of the 17 factors compared between the two stocks.
About Levi Strauss & Co. (Get Free Report)
Levi Strauss & Co. engages in the design, marketing, and sale of apparel products. The company offers jeans, casual and dress pants, tops, shorts, skirts, jackets, footwear, and related accessories. It operates through the following geographical segments: Americas, Europe, and Asia. The company was founded by Levi Strauss in 1853 and is headquartered in San Francisco, CA.
About MINISO Group (Get Free Report)
MINISO Group Holding Limited, an investment holding company, engages in the retail and wholesale of lifestyle products and pop toy products in China, Asia, the United States, and Europe. The company offers products in various categories, including home decor products, small electronics, textiles, accessories, beauty tools, toys, cosmetics, personal care products, snacks, fragrances and perfumes, and stationeries and gifts under the MINISO and WonderLife brand names; and blind boxes, toy bricks, model figures, model kits, collectible dolls, Ichiban Kuji, sculptures, and other popular toys under the TOP TOY brand. The company was founded in 2013 and is based in Guangzhou, China.
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