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SummaryChevron has secured a 20-year deal to supply natural gas-fired power to Microsoft’s data center, marking a breakthrough in AI-driven energy demand.CVX’s Project Kilby will deliver up to 5GW capacity, with initial CapEx of $7B and potential EBITDA of $5.6–$10.5B, offering a replicable blueprint for future contracts.While the Microsoft agreement adds only 1.7%-3.2% to 2028 EBITDA, scaling similar deals could address CVX’s lack of organic growth.I upgrade CVX to Buy with a $243 price target, citing Hess synergies, cost reductions, commodity tailwinds, and incremental upside from data center power projects.Looking for a helping hand in the market? Members of The Aerospace Forum get exclusive ideas and guidance to navigate any climate. Learn More »Sitewide Sale 2026: Get 20% Off Nikada/E+ via Getty Images

Chevron (CVX) has signed a 20-year deal with Microsoft (MSFT) to provide a natural gas-fired power plant for the tech giant’s data center project. For Chevron, it marks a break through on delivery of

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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

Oil prices are elevated and are likely to remain higher for the foreseeable future. While EIA officials predict a supply glut in 2027, it won’t happen for 12 months or more, if at all.

Near term, the supply looks tight. The Iran war disrupted energy markets in a historic fashion, not only impairing production and supply but also disrupting the balance between supply and end products. The takeaway is that crack spreads, the difference in input cost and realized revenue for oil refiners, are at historically high levels and driving robust cash flow for refiners.

Up more than 100% at its peak, crack spreads are hovering in the +100% year-over-year range as of mid-year. This situation is not expected to end soon, as oil stockpiles, production, and refining remain impaired. The release of ships from the Persian Gulf is good news, but the oil trapped in the tankers is insufficient to offset the damage. As it stands, the world is burning more oil than it is producing, and in the United States at least, fuel output is increasing while oil storage levels continue to decline.

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Globally, demand has shifted from the Persian Gulf and the Middle East to the United States, positioning U.S. operators for strength. Some of that demand will revert to its normal sources following the resolution of the Iran War, but not all of it. In this scenario, U.S. refiners are well-positioned to generate cash flow, pay dividends, and aggressively buy back shares.

Valero Energy: A Refining Cash Flow Machine With Buyback PowerValero Energy Today

VLO

Valero Energy

$237.26 -6.42 (-2.64%)

As of 09:32 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$130.78▼

$265.61Dividend Yield2.02%

P/E Ratio17.24

Price Target$245.59

Valero Energy NYSE: VLO isn’t exactly a pure play, as it has operations in biodiesel and ethanol, but it is as good as one. Crude refining accounts for approximately 90% of the business and is the core cash driver. Its advantage lies in its footprint, which is centered on the U.S. Gulf Coast.

This enables quick delivery from key Southwest markets to international buyers. Other advantages include its complex system, which enables multiple feedstocks, such as sour crude and WTI, and variable output to match market demands.

Highlights from the company's Q1 2026 period included better-than-expected revenue growth, earnings growth, and earnings per share (EPS) more than 3000 basis points above MarketBeat’s reported consensus. Cash flow was also significant at $1.3 billion, more than sufficient to cover the capital return. Capital returns included a 6% increase in dividends, yielding 2% at shares near $235, and share buybacks, which reduced the count by 5%. Looking ahead, the company can sustain a robust pace of share reduction even with crack spreads narrowing. The biggest risk is that the pace of share reduction slows.

Sell-side trends reveal support from this vector. Analysts, who drive both institutional and retail sentiment, have increased coverage, strengthened the Moderate Buy rating, and lifted price targets this year. The consensus of 21 views the market as fairly valued near $235, but the trend is upward, leading to the $290 range and fresh highs within the subsequent 12 months. Institutions, the visible action implied by analysts' trend, are equally bullish, with them owning nearly 80% of the stock and buying at a pace greater than $2-to-$1 this year.

Marathon Petroleum: Scale and DiversificationMarathon Petroleum Today

MPC

Marathon Petroleum

$241.54 -6.98 (-2.81%)

As of 09:32 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$158.00▼

$272.46Dividend Yield1.66%

P/E Ratio15.77

Price Target$272.94

Marathon Petroleum NYSE: MPC is the U.S.'s largest independent refiner, with operations in the central and southwestern regions. Its diversified business includes pipelines that connect critical oilfields in the interior to the Gulf Coast. Among its highlights is a disciplined approach to capital allocation that enables balance-sheet strength, business reinvestment, and capital returns.

Details from the company's Q1 release included better-than-expected growth and windfall margin. Adjusted EPS more than doubled the consensus forecast, reversing losses posted in the prior year’s quarter.

Marathon Petroleum’s dividend is worth more than 1.5% as of mid-2026. The payment is reliable at approximately 25% of the earnings forecast, and is backed by share buybacks. Share buybacks are aggressive, reducing the count by 5.7% on average over the trailing 12 months. Sell-side support is also solid, with 19 analysts rating it a consensus Moderate Buy, a double-digit upside forecast at consensus, rising price targets, and institutions accumulating.

Phillips 66: Dividends, Distribution Growth, and Share BuybacksPhillips 66 Today

$166.87 -3.47 (-2.04%)

As of 09:32 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$118.00▼

$190.61Dividend Yield3.04%

P/E Ratio16.44

Price Target$192.33

Phillips 66 NYSE: PSX is another diversified downstream operator with business centered on refining. Adjacent segments include chemicals, pipelines, natural gas, and marketing. Critical details include its group-leading dividend yield, approximately 3%, capacity for distribution increases, and share buybacks.

PSX buybacks aren’t as aggressive as those of some others, but they do provide leverage, reducing the count by an average of 1.46% over the trailing 12 months as of Q1. Looking ahead, growth is expected to be underpinned by demand and expansion plans.

Analyst trends are bullish, including increasing coverage, firming sentiment, and a Moderate Buy consensus among 22 tracked by MarketBeat. They forecast a double-digit upside at the midpoint target, sufficient to reach a fresh all-time high. Risks for PSX and other refiners include the potential for narrowing crack spreads. However, with spreads at historical highs, the industry can withstand the impact and sustain its capital return long into the future.

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Phillips 66 (PSX) Presents at J.P. Morgan Energy, Power & Renewables Conference 2026 Transcript

We're now mostly past the spring earnings season. As with any such period in the investor calendar, this one left behind a clutch of dividend raises from companies ranging from the world-famous to the near-unknown. 

Focusing on the former category, here's a brief look at the latest increases from a trio of familiar names: ubiquitous retailer Target (TGT +3.39%), heavy industrial vehicle maker Caterpillar (CAT 3.72%), and logistics king FedEx (FDX 3.51%). 

Image source: Getty Images.

1. Target Of our three raisers, Target is the only Dividend King. This very limited selection of stocks consists of companies that have declared dividend raises once every year, at least, for a minimum of 50 years in a row. In mid-June, Target decided to extend its streak to 55 years, albeit not spectacularly. It raised its quarterly payout by just under 2% to $1.16 per share.

Target's equity has had quite the strong 2026 after dipping to multi-year lows at the end of 2025. That outperformance reflects the confidence of the relatively new CEO, Michael Fiddelke, who's pledged to return Target to the cool-retailer glory of its recent past. But that won't come cheaply or quickly, with $2 billion in anticipated spending this year, and only 2% projected net sales growth.

I think Target is a smartly managed company with a massive customer base that can spark growth in numerous ways. It might not fly much higher in the coming months, but I think it can be quite the rewarding stock for the more patient investors out there.

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There's still plenty of time for folks to take advantage of Target's dividend raise. The freshly enhanced payout will be distributed on Sept. 1 to investors of record as of Aug. 12. At the stock's current price, it would yield 3.5%. That compares very favorably with the barely over 1% average of all titles in the benchmark S&P 500 index.

2. Caterpillar It might surprise some investors that one of the numerous beneficiaries of the current frenzy to build artificial intelligence (AI)-suitable data centers has been Caterpillar. After all, the company specializes in the heavy, lumbering machinery that crowds construction sites. What could it possibly have to do with cutting-edge technology?

Plenty, it turns out. Caterpillar's power and energy unit provides quick-start power backup systems for situations when a primary source alone won't suffice. Not only that, but the company also earns revenue from this business with long-term customer agreements covering maintenance, diagnostics, and other services.

Lately, power and energy have been giving real zip to Caterpillar's fundamentals. Its total sales leaped 21% year over year in the company's first quarter, to $5.8 billion. That helped lift overall company sales by 22% to over $17.4 billion, and headline net income by 27% to $2.5 billion. These tailwinds provided enough of a financial breeze for an 8% dividend raise, to a quarterly rate of $1.63 per share.

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-3.72

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Current Price

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Caterpillar is growing a reputation as a fine pick-and-shovel play on the data center construction frenzy, so believers in the strength and viability of that trend -- like myself -- would do well to own the company's stock. On the downside, its recent, AI-fueled jump in popularity has pushed down its yield. Even with the dividend raise, the "Cat" would yield only 0.6%.

The company will pay that initial $1.63 per share dividend on Aug. 19 to stockholders of record as of July 20.

3. FedEx FedEx's latest dividend increase isn't as straightforward as those of its two large-cap peers. It's actually an after-effect of the company's spinoff of its now-independent FedEx Freight business, which took effect on June 1. Since the veteran logistics company has hived off a considerable chunk of its business, what's left is leaner and smaller.

That applies to its regular quarterly payout, too, so the last dividend paid by pre-spinoff FedEx of $1.45 per share is adjusted to roughly $1.16, according to management's math. Therefore, the "new" FedEx's June 8 declaration of a $1.22-per-share dividend represents a 5% dividend raise.

The spinoff decouples FedEx's traditional get-it-there-fast shipping business with its burgeoning less-than-truckload (LTL) operations. While both fall under the broad logistics umbrella, they are very different and require highly specialized operating models. Hiving off Freight was a sensible move for the company. That leaves the question of whether legacy FedEx, with its dividend raise, is a worthwhile investment.

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-11.54

Current Price

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317.24

FedEx is a wait-and-see for me, and not only because of the spinoff. The company is in front of its sprawling Network 2.0 initiative. If effectively implemented, this will increase efficiency, reduce costs, and attract new business. FedEx has yet to prove whether this can be realized, though. I'd imagine it'll be bumpy given the scope of the ambition and the complexity of FedEx's business.

Those who disagree can reap the rewards of that dividend raise. It takes effect with the next payout, slated for July 7 for investors of record as of June 22. At the most recent closing stock price, it would yield 1.4%.

On June 18, 2026, Caterpillar Inc CAT shares rose 3.1% to a current price of $985.82. This increase is part of a robust price performance, as CAT has experienced a 72.8% rise year-to-date and an impressive 177.0% increase over the past year. The stock has traded between $356.96 and $994.49 over the last 52 weeks.

GF Value™ verdict: CAT is currently trading at $985.82, which is 136.6% above its GF Value™ of $416.73, indicating it is significantly overvalued.GF Score™ of 84/100, reflecting a strong overall ranking, particularly in profitability and growth.Notable insider activity shows that insiders sold $87.6 million worth of stock while only purchasing $0.2 million in the last three months, suggesting a bearish outlook from insiders. Is CAT Overvalued or Undervalued? Caterpillar Inc's current stock price of $985.82 is substantially above its GF Value™ of $416.73, resulting in a 136.6% overvaluation. The GF Valuation label indicates that CAT is significantly overvalued, suggesting that current investors may face heightened risks if the stock price does not align with its intrinsic value in the near future. The substantial margin of safety implied by the GF Value™ indicates that there may be limited upside potential unless the company can significantly improve its performance metrics or market conditions change.

This overvaluation presents a risk for investors, as the stock may be susceptible to corrections should the market reassess its worth. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates, highlighting that the current price does not reflect the underlying business fundamentals.

How Does CAT's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 49.1x 17.4x Forward P/E 40.0x N/A CAT's current P/E ratio of 49.1x is 182% above its 5-year median P/E of 17.4x, indicating that the stock is trading well above its historical valuation. This P/E analysis aligns with the GF Value™ verdict, further supporting the conclusion that the stock is overvalued based on historical performance metrics.

What Does CAT's GF Score™ Tell Us? Metric Rating GF Score™ 84/100 Financial Strength 6/10 Profitability 9/10 Growth 10/10 Valuation 1/10 Momentum 9/10 The GF Score™ of 84/100 indicates a strong overall performance for Caterpillar Inc, particularly in the areas of profitability (9/10) and growth (10/10), signaling the company's ability to generate earnings and expand. However, the valuation rank of 1/10 highlights significant concern regarding its current market price relative to its intrinsic value. This disparity suggests that while the company excels in operational metrics, its stock price may not reflect its underlying strength accurately.

What Are Insiders Doing with CAT Stock? The insider activity surrounding Caterpillar Inc presents a noteworthy trend. Over the last three months, insiders have sold $87.6 million worth of shares while only purchasing $0.2 million. This pattern of heavy selling compared to minimal buying could suggest a lack of confidence in the stock's current valuation or future performance, indicating potential caution about the company's prospects from those closest to the business.

This trend may concern some investors, as insider selling often reflects a belief that the stock may have peaked or that future growth could be more challenging than previously anticipated.

What This Means for Investors Based on the current GF Value™ assessment, Caterpillar Inc CAT is considered overvalued. The significant difference between the stock price and its intrinsic value, along with the insider selling patterns, indicates potential risks for investors considering entering or holding this stock.

For the complete analysis, visit the Caterpillar Inc CAT 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 CAT's GF Score™?

The GF Score™ for Caterpillar Inc is 84/100, indicating a strong overall ranking due to high scores in profitability and growth.

Is CAT overvalued or undervalued?

Caterpillar Inc is considered overvalued, with its current price significantly exceeding the GF Value™ estimate.

What is CAT's P/E ratio?

The P/E ratio for Caterpillar Inc is 49.1x, which is considerably higher than its 5-year median P/E of 17.4x, confirming the stock is trading 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].

Caterpillar (CAT) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term.

Caterpillar (CAT - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Over the past month, shares of this construction equipment company have returned +12%, compared to the Zacks S&P 500 composite's +2% change. During this period, the Zacks Manufacturing - Construction and Mining industry, which Caterpillar falls in, has gained 14.7%. 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, Caterpillar is expected to post earnings of $6.21 per share, indicating a change of +31.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.3% over the last 30 days.

The consensus earnings estimate of $24.64 for the current fiscal year indicates a year-over-year change of +29.3%. This estimate has changed -0.1% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $30.63 indicates a change of +24.3% from what Caterpillar is expected to report a year ago. Over the past month, the estimate has changed +0.3%.

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, Caterpillar is rated Zacks Rank #1 (Strong Buy).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Caterpillar, the consensus sales estimate of $19.08 billion for the current quarter points to a year-over-year change of +15.2%. The $76.54 billion and $84.44 billion estimates for the current and next fiscal years indicate changes of +13.2% and +10.3%, respectively.

Last Reported Results and Surprise HistoryCaterpillar reported revenues of $17.42 billion in the last reported quarter, representing a year-over-year change of +22.2%. EPS of $5.54 for the same period compares with $4.25 a year ago.

Compared to the Zacks Consensus Estimate of $16.44 billion, the reported revenues represent a surprise of +5.95%. The EPS surprise was +21.76%.

Over the last four quarters, Caterpillar surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Caterpillar 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 Caterpillar. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.

HomeIndustriesMachinery/Industrial GoodsMarket ExtraMarket ExtraCaterpillar is the hottest stock in the Dow this year, and now one of just two in the index with a share price above $1,000Last Updated: June 22, 2026 at 5:50 p.m. ET
First Published: June 22, 2026 at 12:47 p.m. ET

Caterpillar’s stock stands above the rest of the Dow Jones Industrial Average this year, and its notable outperformance has now resulted in a major milestone.

For the first time, shares of Caterpillar CAT climbed past the $1,000 mark in Monday’s trading, gaining 3.7% to end the day at $1,022.28. Goldman Sachs Group’s stock GS is the only other constituent above $1,000 in the Dow DJIA, which weights companies by price rather than by market capitalization. That means highly priced stocks can have an outsize impact on the index’s direction.

On June 22, 2026, Caterpillar Inc CAT shares rose 3.7%, reaching a current price of $1022.28. The stock has shown impressive price performance over the last year, with a remarkable increase of 186.6% and a year-to-date gain of 79.2%. The shares have traded between $357.73 and $1023.29 over the past 52 weeks.

GF Value™ verdict: Current price $1022.28 vs GF Value™ $417.28, indicating a 145.0% overvaluation.GF Score™: 83/100 (Strong), suggesting a solid overall performance based on multiple factors.Most notable signal: Insider activity shows $0.2M in purchases and $87.6M in sales over the last 3 months. Is CAT Overvalued or Undervalued? Caterpillar Inc CAT currently trades at $1022.28, significantly above its GF Value™ of $417.28, indicating that the stock is 145.0% overvalued. This substantial overvaluation presents a risk for potential investors, as the price is far from the intrinsic value calculated by GF Value™, which is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. The GF Valuation label suggests that CAT is significantly overvalued, which may deter value-oriented investors looking for a margin of safety.

Being overvalued can imply that the stock price is inflated and may not provide the desired returns for investors if the market corrects itself. A high valuation could lead to increased volatility if the company’s performance does not meet the elevated expectations set by the current price. Therefore, while CAT has shown strong momentum and growth, the current valuation reflects significant risks that potential investors should consider carefully.

How Does CAT's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 50.9x 17.4x (5-Year Median) Forward P/E 41.5x N/A The current P/E (TTM) of 50.9x is 193% above its 5-year median P/E of 17.4x, indicating that CAT is trading significantly above its historical valuation levels. This analysis aligns with the GF Value™ verdict of overvaluation, reinforcing the notion that the current price may not be sustainable in the long term.

What Does CAT's GF Score™ Tell Us? Metric Rating GF Score™ 83/100 Financial Strength 6/10 Profitability 9/10 Growth 10/10 Valuation 1/10 Momentum 9/10 The GF Score™ of 83/100 indicates that Caterpillar Inc CAT is rated as a strong performer overall. The highest scores are in the Growth (10/10) and Profitability (9/10) categories, suggesting that the company is effectively expanding and maintaining strong profits. However, the Valuation rank of 1/10 highlights the significant concern regarding the stock's current price relative to its intrinsic value, indicating it may be overvalued. Financial Strength is rated at 6/10, suggesting a stable financial position, while the Momentum rank of 9/10 points to strong recent performance in the stock price.

What Are Insiders Doing with CAT Stock? Recent insider activity for Caterpillar Inc shows that insiders have purchased $0.2 million worth of shares while selling $87.6 million in the last three months. This pattern suggests a net selling trend among insiders, which could be interpreted as a lack of confidence in the stock's current price or future performance. Insider selling, particularly at high volumes, may raise concerns for investors, as it often indicates that those closest to the company may have reservations about its valuation or outlook.

What This Means for Investors Based on the analysis of GF Value™, Caterpillar Inc CAT is currently overvalued. With a significant gap between its market price and intrinsic value, potential investors should exercise caution. While the company's strong growth and profitability metrics are encouraging, the high valuation could pose risks if the market corrects or if the company fails to meet performance expectations.

For the complete analysis, visit the Caterpillar Inc CAT 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 CAT's GF Score™?

The GF Score™ for Caterpillar Inc is 83/100, indicating a strong overall performance based on key financial metrics.

Is CAT overvalued or undervalued?

Caterpillar Inc is currently overvalued with a GF Value™ of $417.28 compared to its market price of $1022.28.

What is CAT's P/E ratio?

The P/E ratio for Caterpillar Inc (TTM) is 50.9x, which is significantly above its 5-year median P/E of 17.4x, confirming the stock is trading at an inflated 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].

The artificial intelligence boom has created enormous wealth for chipmakers and cloud computing giants.

Yet some of the stock market's biggest winners this year have been companies selling products that look more at home in industrial equipment catalogues than in Silicon Valley.

Shares of Caterpillar, GE Vernova, and Bloom Energy have posted returns rivalling many technology leaders in 2026, as investors increasingly focus on one of the biggest constraints facing artificial intelligence development.

The rapid construction of AI data centers has created unprecedented demand for reliable, round-the-clock power at a time when electricity grids around the world are struggling to keep pace.

Investors increasingly see the AI infrastructure buildout as part of a broader industrial transformation.

"If we go back five years or so, the opportunity was we're building more roads, we're building more bridges, and infrastructure was stage one," Chris Semenuk, an investment partner at Tema ETFs, said on an episode of the "Other People's Money" podcast last week.

With that infrastructure now built, the focus is broadening out, he noted.

Semenuk pointed to "unprecedented" backlogs at companies like Caterpillar and GE Vernova as evidence of the "reindustrialization" theme.

Caterpillar, best known for its yellow construction equipment, crossed a major milestone on Monday as its shares traded above $1,000, making it one of only two stocks in the S&P 500 with a four-digit share price.

The stock has gained more than 70% this year.

The company reported first-quarter revenue of $17.4 billion, up 22% from a year earlier, while adjusted earnings per share of $5.54 comfortably topped Wall Street expectations of $4.64.

The surprise driver of that growth was not construction activity but demand for power equipment.

Caterpillar's Power & Energy division, now the company's largest and fastest-growing business, generated revenue of $7.03 billion during the quarter, rising 22% year-on-year.

Within that segment, power generation sales jumped 41% to $2.82 billion, largely driven by data center projects.

The company's total backlog reached a record $63 billion, up 79% from a year earlier, primarily due to AI-related infrastructure spending.

Caterpillar's power and energy segment "is becoming increasingly dominant as demand for its large reciprocating engines and turbines swells with data-center/AI capital spending," Gimme Credit analyst Carol Levenson wrote in a recent note to clients.

The division now contributes roughly 40% of Caterpillar's revenue, matching the contribution from its traditional construction business.

Semenuk believes the opportunity is still in its early stages and said Caterpillar could be generating at least $10 in quarterly earnings per share by 2029, nearly double its latest quarterly earnings.

Among industrial companies, GE Vernova is perhaps the purest play on AI-driven electricity demand.

Spun out of General Electric in April 2024, the company manufactures gas turbines, grid equipment, and wind turbines.

Its shares have risen 66% this year.

GE Vernova posted better-than-expected earnings in April and raised its full-year outlook, sending the stock sharply higher.

The company expects its backlog for power generation and electrification equipment and services to reach $200 billion by the end of 2027, roughly one year ahead of its previous target.

Demand is being fueled by the construction of AI data centers, which has triggered an electricity investment boom not seen since the post-World War II period.

In the first quarter alone, GE Vernova booked $2.4 billion in electrification equipment orders tied specifically to data centers, surpassing the total booked during all of 2025.

Wall Street expects the company to generate earnings per share of about $24 in 2027, compared with estimates near $18 only a year ago.

After the company's latest earnings, Jefferies analyst Julien Dumoulin-Smith raised his price target on the stock to $1,350 from $965 while maintaining a Buy rating, arguing that strong business conditions should persist through the end of the decade.

Baird analyst Ben Kallo was even more optimistic, increasing his target price to $1,400 from $1,008 and retaining an Outperform rating.

The most dramatic gains have come from Bloom Energy.

Shares of the fuel-cell maker have surged roughly 250% this year as hyperscale data center operators seek alternatives to constrained power grids.

Bloom manufactures solid oxide fuel cells capable of generating electricity directly at data center campuses without relying on utility infrastructure.

The company's appeal lies not only in the amount of electricity AI facilities need but also in how quickly they can be deployed.

Grid connections for large data centers can take years to secure, while Bloom's systems can be installed in months.

Bloom recently raised its 2026 adjusted earnings forecast to between $1.85 and $2.25 per share, up from a previous range of $1.33 to $1.48.

It also lifted its revenue guidance to between $3.4 billion and $3.8 billion, implying approximately 80% growth at the midpoint.

The company was named the sole power provider for Oracle's Project Jupiter AI campus in New Mexico, which is expected to draw as much as 2.45 gigawatts of electricity from Bloom's fuel cells.

Separately, Nebius Group signed a master agreement worth up to $2.6 billion.

Despite the rally, analysts remain cautious.

Bernstein analyst Sunaina Ocalan initiated coverage with a Market Perform rating and a $276 price target, implying a 25% downside from current levels.

Bernstein said Bloom's solid fuel technology is "increasingly relevant in a scenario where grid infrastructure can't keep up with expected load growth," but added that investors need more confidence in the company's path toward sustainable cash flow and expansion capacity.

For now, the AI boom is reshaping market leadership in unexpected ways, turning power equipment manufacturers into some of Wall Street's most sought-after stocks as electricity becomes one of artificial intelligence's most valuable resources.

Key Takeaways CAT ended Q1 2026 with a record $63B backlog, up 22% sequentially and 79% year over year.CAT raised its 2026 outlook to low double-digit sales growth, supported by strong demand trends.CAT sees demand from infrastructure, mining, and data center-related energy projects supporting growth. Caterpillar Inc.’s (CAT - Free Report) first-quarter 2026 results showcased strong revenue and earnings growth, but one metric stood out as a particularly important signal for investors: the order backlog. Unlike quarterly sales figures, backlog provides insight into future demand and revenue visibility, offering a clearer view of business momentum over the coming years.

Caterpillar ended the first quarter of 2026 with a record backlog of $63 billion. It was approximately $11.5 billion, or 22% higher sequentially, and $35 billion, or 79% higher than last year. Backlog increased across all three primary operating segments, reflecting broad-based demand strength throughout Caterpillar’s portfolio. About $24.8 billion of this backlog is not expected to be fulfilled within the next 12 months, highlighting the long-duration nature of many customer projects and the company’s growing revenue visibility. 

The robust backlog also supports management’s improved outlook for the year. Caterpillar now expects low double-digit sales and revenue growth for 2026, above its earlier view for growth near the upper end of its long-term target range of 5-7%.

In Construction Industries, demand in North America continues to benefit from elevated infrastructure spending supported by the Infrastructure Investment and Jobs Act (IIJA). Ongoing investments in critical infrastructure projects and data center construction are also contributing to healthy activity levels. Within Resource Industries, favorable commodity prices and replacement demand for aging mining fleet are expected to support equipment orders.

In the Power & Energy segment, growth will be driven by sales of both reciprocating engines and turbines and turbine-related services, driven by increasing energy demand to support data center build-out related to cloud computing and generative Artificial Intelligence (AI). CAT is seeing demand for prime power solutions trend higher as data center customers look for alternative power solutions to keep pace with their growth.
Although quarterly revenues may vary with delivery schedules, Caterpillar’s record backlog points to sustained customer demand and provides a strong foundation for future earnings and cash-flow generation.

Industry peers are also reporting improving demand trends. Terex Corporation (TEX - Free Report) ended the first quarter with a backlog of $7.1 billion and a book-to-bill at 109%. Backlog increased 0.4% year over year, as strong booking trends in Materials Processing, Aerials, and Terex Utilities were offset by a decline at Environmental Solution. Terex’s recently completed merger with REV Group added the Specialty Vehicles segment, which contributed $4.48 billion to total backlog. Supported by its healthy order book and favorable end-market conditions, Terex reaffirmed its 2026 net sales outlook of $7.5-$8.1 billion.

Astec Industries (ASTE - Free Report) ended the first quarter with a backlog of $549.2 million, reflecting a 36.4% increase year over year, pointing to improving demand visibility across the portfolio. Astec’s Materials Solutions backlog rose 87.5% to $236.6 million, while Infrastructure Solutions segment’s backlog increased 13.1% to $312.6 million.

Although considerably smaller than Caterpillar, both Terex and Astec reported expanding backlogs. This suggests customers in the industry continue to commit capital to construction and infrastructure projects despite economic uncertainty. 

CAT’s Price Performance, Valuation & EstimatesCAT shares have gained 75.6% over the past six months compared with the industry’s 56.2% growth. 

Image Source: Zacks Investment Research

Caterpillar is currently trading at a forward 12-month price/earnings (P/E) ratio of 37.20X compared with the industry average of 33.71X. 

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CAT’s 2026 earnings indicates year-over-year growth of 29.3%. The consensus mark for revenues implies an increase of 13.2% for the year. The earnings estimate for 2027 indicates 24.3% growth, with revenues rising 10.3%.

Image Source: Zacks Investment Research

Earnings estimates for Caterpillar for both 2026 and 2027 have moved up over the past 60 days, as shown in the chart below.

Image Source: Zacks Investment Research

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

Shares of Newmont Corporation (NEM - Free Report) have gained 3.2% over the past four weeks to close the last trading session at $108.44, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $141.12 indicates a potential upside of 30.1%.

The average comprises 21 short-term price targets ranging from a low of $97.00 to a high of $175.00, with a standard deviation of $19.88. While the lowest estimate indicates a decline of 10.6% from the current price level, the most optimistic estimate points to a 61.4% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.

But, for NEM, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Here's Why There Could be Plenty of Upside Left in NEMAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The Zacks Consensus Estimate for the current year has increased 4.6% over the past month, as one estimate has gone higher compared to no negative revision.

Moreover, NEM currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much NEM could gain, the direction of price movement it implies does appear to be a good guide.

Newmont Corporation (NEM - Free Report) closed the most recent trading day at $103.79, moving -1.78% from the previous trading session. This change lagged the S&P 500's 1.09% gain on the day. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq gained 1.91%.

Prior to today's trading, shares of the gold and copper miner had lost 1.6% lagged the Basic Materials sector's gain of 1.77% and the S&P 500's gain of 0.29%.

The investment community will be paying close attention to the earnings performance of Newmont Corporation in its upcoming release. The company is predicted to post an EPS of $2.25, indicating a 57.34% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $6.19 billion, up 16.38% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $9.91 per share and revenue of $27.25 billion, which would represent changes of +43.83% and +20.2%, respectively, from the prior year.

Any recent changes to analyst estimates for Newmont Corporation should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate has moved 4.62% higher within the past month. Newmont Corporation is currently a Zacks Rank #1 (Strong Buy).

In the context of valuation, Newmont Corporation is at present trading with a Forward P/E ratio of 10.67. For comparison, its industry has an average Forward P/E of 9.6, which means Newmont Corporation is trading at a premium to the group.

It is also worth noting that NEM currently has a PEG ratio of 1.75. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Mining - Gold industry was having an average PEG ratio of 0.96.

The Mining - Gold industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 164, this industry ranks in the bottom 33% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.

Vancouver, British Columbia--(Newsfile Corp. - June 22, 2026) - Enduro Metals Corporation (TSXV: ENDR) ("Enduro", "Enduro Metals" or the "Company") is pleased to announce its planned 2026 exploration program at the company's 100%-owned Newmont Lake Project, located in British Columbia's Golden Triangle.

The 2026 program will focus on the Company's Andrei copper-gold porphyry target, where Enduro plans to complete the first-ever drill program. Contractors are in place for an initial phase one 3,000 metre diamond drill program, with mobilization of the drill rig expected by July 2026.

In addition to drilling, the Company will undertake an expanded induced polarization ("IP") geophysical survey to extend coverage at Andrei northeast along the Andrei magnetic trend. Concurrently, ground crews will initiate first pass geological mapping and sampling at the FK and Southmore targets. A program of target definition mapping and sampling will also be completed at the Camp Zone, where 2025 exploration successfully identified high-grade gold mineralization.

"2026 is shaping up to be a transformative year for Enduro," said Rob Cameron, CEO. "Andrei has rapidly emerged as one of the most compelling undrilled copper-gold porphyry targets in the Golden Triangle. The combination of extensive surface copper-gold mineralization, a large-scale IP chargeability anomaly, coincident magnetic features, and low-elevation access across a broader 14-kilometre porphyry trend presents an extraordinarily attractive drill opportunity. With the drill contract signed and mobilization underway, we are excited to begin testing what we believe has the hallmarks of a significant copper gold porphyry system."

Highlights of the 2026 Exploration Program

Enduro's fully funded 2026 exploration program features a multi-pronged approach to unlocking value across the property:

Andrei drilling: an initial 3,000 metre diamond drill program designed to test high priority copper-gold porphyry targets. Targets were defined during the 2025 campaign by surface sampling, geological mapping, airborne magnetic data and ground IP geophysics.

Expanded IP geophysics: additional IP surveying to extend coverage at Andrei and to further refine drill targeting along strike to the northeast.

FK prospect & Southmore field work: ground crews will complete mapping, prospecting and sampling to advance the FK and Southmore targets, both direct extensions of the Andrei magnetic trend, as potential copper-gold porphyry targets.

Camp Zone prospecting: crews will undertake prospecting and follow-up geochemical sampling at the Camp Zone, where historic and recent work has returned high-grade gold and silver values.

Figure 1: Property Location Map

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/6406/302322_be277835c411ab0d_001full.jpg

Figure 2: Newmont Lake Geology

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/6406/302322_be277835c411ab0d_002full.jpg

The Andrei Target: A Premier Porphyry Opportunity

The Andrei target is a large, newly recognized porphyry copper-gold system located in the northern sector of the Newmont Lake Project. Benefiting from a low elevation setting the target sits beneath an easily accessible forested and till covered ridge located between two glacial valleys.

The porphyry system is centred on a dense network of potassic-altered monzonite dikes and plugs, interpreted to be correlated to the Red Chris intrusive suite, which intrudes basalt and andesite volcanic rocks of the Stikine Assemblage. This monzonite complex correlates well with magnetic highs that define a major highly prospective 14-kilometre-long porphyry corridor (Figure 3).

Widespread copper mineralization occurs in outcrops on the flanks of the main Andrei ridge, hosted within potassic altered monzonite intrusions and surrounding volcanic rocks. A 2025 IP survey on the southwest end of this trend delineated a robust four-kilometre chargeability anomaly coincident with a strong magnetic high beneath this central till-covered ridge (Figure 4).

Andrei is characterized as a low-sulphur mineralized system where magnetite and minor hematite are the dominant alteration minerals, occurring in replacement zones, breccia infill and vein networks. Broad zones of highly anomalous copper (0.1% Cu and above) observed on the flanks of the main ridge are locally associated with thin quartz-vein stockworks and sheeted vein zones accompanied with magnetite, chalcopyrite, and lesser pyrite, within potassic altered monzonite and intense magnetite-chlorite-and minor epidote altered basalt wallrock. Late stage cross-cutting iron-carbonate vein system contains visible copper minerals (chalcopyrite and bornite) which are locally gold bearing.

Figure 3: Andrei Target Overview: Magnetic Base

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Figure 4: Andrei Target Geophysics

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Planned Drill Program at Andrei

Drill testing of Andrei is expected to begin in July 2026 and will comprise up to seven drillholes, each up to 500 metres in length, for a minimum of 3,000 metres.

Drill targets have been selected to test coincident chargeability and magnetic geophysical anomalies beneath the Andrei Ridge. Geophysical inversions completed on both the chargeability and magnetic data and are illustrated as 3D solids in Figure 4.

Together, these coincident magnetic and chargeability features define an expansive target measuring greater than four kilometres long by 1.5 kilometres wide. Within this footprint, chargeability domains have yielded values up to 24 mv/v. Proposed drill holes are presented as a series of cross sections and a long section in Figure 5.

The modeled magnetic data highlights a discrete magnetic high bounded by faults open to depths exceeding 1.5 kilometres. Coincident chargeability anomalies remain completely open beneath the depth of the survey and to the northeast.

Preliminary drill sites have been optimized based on target priority, ground conditions and terrain. Proposed Hole A targets a well mineralized outcrop featuring extensive magnetite alteration in volcanic rocks and a prominent magnetic high . The IP survey only partially covers this occurrence on the flanks of the survey. Proposed Holes B and F are designed to test areas of elevated chargeability overlying a deep magnetic anomaly interpreted to represent a low magnetic phyllic alteration zone capping a magnetic potassic altered zone.

Figure 5: Planned Drill Holes and Geophysics Sections

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Regional Upside: FK & Southmore

The FK and Southmore targets (Figure 3) are prominent magnetic anomalies located directly along the main Andrei magnetic trend.

The FK target features a 2.5 kilometre magnetic high where (unverified) historical rock sampling results indicate potential for Andrei style mineralization.

The Southmore target is a larger anomaly farther to the northeast and largely obscured by steep, forest covered slopes. No substantial historical work is recorded. However, a single day of surface mapping was completed in 2025 where the Southmore Creek crosses the magnetic trend successfully sampled monzonite with magnetite veining and copper mineralization (malachite-stained fragments in breccia).

Both FK and Southmore will be systematically evaluated by prospecting and mapping and, where possible, by soil geochemistry.

Camp Zone

The Camp Zone, part of the larger McLymont Gold System, was the focus of early exploration at Newmont Lake prior to the discovery of the high-grade NW Zone. It is an area underlain by Mississippian to Devonian age quartz porphyry granite that is cut by an array of west to northwest trending gold bearing quartz-pyrite-chalcopyrite veins traceable for over 500 metres along strike. Originally discovered in 1986, the zone was evaluated with 24 shallow drill holes (averaging less than 70 metres per hole) from 1986 to 1988. The legacy drilling returned intercepts of up to 43.9 g/t Au over 2.7 metres and numerous other intercepts over 10 g/t Au. These holes were only selectively analyzed for Au and Ag and the historical results have not been verified by Enduro.

Importantly, Enduro's 2025 sampling replicated high gold values from grab samples within the target area. Furthermore, post 1980 mapping identified significant pyrite-silica-sericite alteration and pyrite vein stockworks in siltstone outcrops directly north of the area of gold veins spanning roughly 400 metres by 700 metres. This expanded alteration zone has seen virtually no modern exploration and represents exceptional exploration upside.

About the Newmont Lake Project

The Newmont Lake Project is one of the largest contiguous claim packages (688 square km) in the Golden Triangle. It is strategically located near major world class porphyry copper-gold (Cu-Au) development projects, including Galore Creek (Newmont - Teck Resources) and KSM (Seabridge Gold), as well as past-producing high grade gold mines at Snip and Eskay Creek (currently being put back into production by Skeena Gold & Silver).

The project encompasses five large target areas that include the partially drill-tested Burgundy Ridge alkalic-style porphyry copper-gold deposit (331 m @ 0.29% Cu and 0.29 g/t gold in hole 21-001, see news release dated October 18, 2021 for detailed QA/QC); the newly outlined and undrilled Andrei porphyry copper-gold target, a greater than 4 km long chargeability and magnetic anomaly wherein 25% of rock samples collected in 2025 exceeded 0.1% copper (see news release dated January 28, 2026 for detailed QA/QC); and the McLymont gold target, a 20 km2 area that includes the NW Zone, host to a historical gold resource and where Enduro sampling in 2025 returned high-grade gold values from narrow sub-metre quartz pyrite veins within shear zones of up to 113 g/t Au with 142 g/t Ag (see news release dated January 8, 2026 for detailed QA/QC).

Qualified Person

Robert Cameron, P. Geo, Enduro's Chief Executive Officer, is the company's qualified person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects, and has reviewed and approved the technical aspects of this release. For additional details on data verification, sample, analytical and testing results, refer to the technical reports titled "Technical Report on the Newmont Lake Property" authored by Maurizio Napoli, P.Geo, and Ali Wasiliew, P.Geo. dated March 1, 2025, as posted on Sedar+ and the Company's website and press releases dated October 6, 2025 and January 8, 2026. Samples collected in 2025 were primarily grab samples. Such samples are selective in nature and are not necessarily representative of the overall mineralized system but are effective in identifying areas of potential cohesive mineralization.

About Enduro Metals

Enduro Metals is an exploration company focused on its Newmont Lake Project; a 688 km2 property located within the heart of British Columbia's Golden Triangle. Building on prior results, Enduro Metals' geological team has outlined multiple deposit environments of interest across the Newmont Lake Project including high-grade epithermal/skarn gold along the McLymont Fault, and copper-gold alkalic porphyry systems at Burgundy and Andrei. The Company maintains a broader portfolio of mineral projects across Canada including the advanced Burn porphyry copper and gold project in northern British Columbia.

On Behalf of the Board of Directors of Enduro Metals Corporation

"Robert Cameron"
Chief Executive Officer

Forward-Looking Statements

This news release contains statements that constitute "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Enduro's actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur.

Although Enduro believes the forward-looking information contained in this news release is reasonable based on information available on the date hereof, forward-looking statements by their nature involve assumptions, known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF ENDURO AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE ENDURO MAY ELECT TO, NEITHER OF THEM UNDERTAKES TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/302322

Source: Enduro Metals Corporation

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Key Takeaways Newmont secured key B.C. approvals for the Red Chris Block Cave Project and targets a late 2026 FID. The underground expansion will access deeper ore and extend the mine's life into the mid-2040s. Red Chris could add 1,800 construction jobs and increase Canada's annual copper output by 15%. Newmont Corporation (NEM - Free Report) has received key regulatory approvals from the Province of British Columbia for its Red Chris Block Cave Project, marking a major milestone in the planned transformation of the Red Chris Mine from an open-pit operation to a large-scale underground block-cave mine. The approvals move the project closer to a final investment decision (FID), which Newmont expects to make later this year. 

The provincial approvals include an amended Environmental Assessment Certificate (EAC) and an amended Mines Act permit. The EAC amendment was secured through a consent-based process with the Tahltan Nation, highlighting the project's collaborative approach to Indigenous engagement and regulatory compliance. 

The newly approved block-cave development will enable access to deeper ore bodies that cannot be economically mined through surface operations. The transition is expected to extend the mine's life into the mid-2040s. 

The company is currently completing a Definitive Feasibility Study and a detailed capital cost estimate for the project. The development is expected to generate more than 1,800 construction jobs and support approximately 1,500 peak-season operating positions once in operation. The mine expansion could boost Canada's annual copper production by roughly 15%. 

Red Chris is operated by Newmont, which holds a 70% interest in the joint venture, while Imperial Metals Corporation owns the remaining 30%. The project became part of Newmont's portfolio following its acquisition of Newcrest Mining in 2023. 

Newmont said that the regulatory approvals represent an important step in the company's disciplined project-development process. It described the Red Chris Block Cave project as a compelling long-term growth opportunity and noted that the approvals position Newmont to advance toward a final investment decision later in 2026. NEM emphasized the strategic importance of the project for the company's future gold and copper production profile and highlighted the significance of the milestone achieved through collaboration with regulators and the Tahltan Nation.  

Shares of NEM have rallied 75.3% in the past year compared with the industry’s 49.5% rise. 

Image Source: Zacks Investment Research

NEM’s Zacks Rank & Other Key PicksNEM currently sports a Zacks Rank of #1 (Strong Buy). 

Other top-ranked stocks in the Basic Materials space include Nucor Corporation (NUE - Free Report) , L.B. Foster Company (FSTR - Free Report)  and Albemarle Corporation (ALB - Free Report) . NUE, FSTR and ALB carry a Zacks Rank of #1. You can see the complete list of today’s Zacks #1 Rank stocks here. 

The Zacks Consensus Estimate for NUE’s current-year earnings stands at $15.68 per share, implying a 103.4% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, with the average surprise being 8.1%. 

The Zacks Consensus Estimate for FSTR’s current-year earnings is pegged at $1.74 per share, implying a 152.2% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in one of the trailing four quarters and missed thrice, with the average surprise being 3.62%. 

The Zacks Consensus Estimate for ALB’s current-year earnings is pegged at $12.39 per share, indicating a 1,668.4% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 74.5%. 

The demolition of the iconic Macy’s billboard at Broadway and West 34th Street has been delayed as the department store and the owner of the billboard haggle over its future, The Post has learned.

As The Post exclusively reported, the four-story, red-and-white fixture was initially set to be destroyed the weekend of June 5.

“We are in discussions with Macy’s, no question about it,” said Ed Hart, chief executive of Kaufman Organization, which owns the building where the bag-shaped sign has been perched for more than 60 years.

The Macy’s shopping bag billboard has been on display for more than 60 years. Andriy Blokhin – stock.adobe.com Hart declined to go into detail on the talks, saying only, “There are a number of things in play.”

His firm erected scaffolding around the building – tucked into the cut-out corner of the Macy’s flagship – over the weekend of June 6. The scaffolding surrounds the Sunglass Hut store that has been in the retail space for decades.

Earlier this month, Macy’s acknowledged the imminent removal of the billboard. 

“As the neighborhood continues to evolve, the current sign – while beloved – is outdated and will be removed as part of broader updates by the billboard owner to modernize the space,” the department store told The Post. 

The company did not immediately comment about the delay. 

Scaffolding was erected around the base of the sign on June 5. Jimin Kim/SOPA Images/Shutterstock The city’s Buildings Department said it has issued a permit to remove the old billboard, along with permits for two new signs to go up. The cost of removing the sign and putting a new one up will cost Kaufman $1.7 million, according to the documents.

A real estate executive described the situation as a “game of chicken” between Macy’s and Kaufman, which may have been caught off guard by the retailer’s public statement on the matter on June 5.

The billboard is of great importance to Macy’s.

The retailer sued Kaufman in 2021 when it believed that the real estate company was planning to splash an Amazon ad on the building after Macy’s lease for billboard space expired.

“To the naked eye, the billboard is on Macy’s department store and in its own right iconic,” the department store said in a complaint. 

The Macy’s Herald Square flagship was built around a tiny building at the corner of Broadway and West 34th St. Getty Images The company argued that an agreement it signed with the building’s owner in 1963 prevents the landlord from leasing the billboard to a competitor – a prohibition that lasts “forever,” according to the lawsuit.

Kaufman argued that it was not bound by such a clause. But the companies appear to have settled the complaint, because the shopping bag remained on the building for the next five years.

Key Takeaways Macy's luxury banners drove growth, with Bloomingdale's up 10.2% and Bluemercury up 6.4%.Macy's digital sales reached 34% of net sales as stores and e-commerce worked together.Macy's is expanding AI tools and supply-chain automation to improve inventory and fulfillment. Macy's, Inc. (M - Free Report) is no longer just a department-store turnaround story. Its latest progress is tied to retail trends that could shape the business beyond one quarter.

Luxury demand, omnichannel selling, artificial intelligence tools and supply-chain upgrades are becoming more central to the company’s strategy. The question is whether these initiatives can improve execution enough to offset cost pressure and uneven discretionary demand.

Macy’s Luxury Mix Is Becoming More ImportantBloomingdale’s and Bluemercury are giving Macy’s a higher-quality mix as the core department-store channel remains less consistent. Bloomingdale’s posted 10.2% comparable sales growth in the first quarter of 2026 and recorded its highest first-quarter sales volume in 154 years.

Bluemercury added 6.4% comparable sales growth, led by makeup, dermatological skincare and fragrances. New and remodeled Bluemercury stores continued to outperform, giving Macy’s another premium banner that can support resilience when lower-income customers turn more selective.

Image Source: Zacks Investment Research

M Omnichannel Keeps Gaining ShareDigital sales represented 34% of net sales in the first quarter, up from 33% a year earlier. That matters because Macy’s go-forward model is built around stores and digital working together, rather than treating e-commerce as a separate channel.

Store initiatives are also reinforcing the online experience. Reimagine locations helped the Macy’s nameplate generate 1.6% comparable sales growth, while digital contributed to the positive comparable sales result. This makes omnichannel execution a structural part of the turnaround.

Macy’s AI Push Moves Into Daily RetailMacy’s AI efforts are focused on practical retail tasks. The company is using AI-related work in inventory forecasting and management, areas that can affect in-stock levels, replenishment and customer satisfaction.

Ask Macy’s, an AI-powered conversational shopping assistant, is another example. The tool is meant to support discovery across channels and reduce friction in the shopping journey, which is more useful than a broad technology claim without a clear customer purpose.

M Supply Chain Upgrades Could Add LeverageSupply-chain modernization is another part of the trend story. Macy’s China Grove distribution facility is ramping up, with automation delivering early benefits in service levels and cost efficiencies.

The company is also building additional capacity ahead of the holiday period. Better order flow and fulfillment can support the digital channel, improve customer experience and help control costs as the company continues investing in its go-forward store base.

Macy’s Trend Story Still Faces PressureThe trend case does not remove the financial constraints. Tariffs reduced first-quarter gross margin by about 30 basis points, and second-quarter guidance assumes tariffs and fuel costs will create a 20- to 40-basis-point gross margin headwind.

Consumer demand is another limit. Lower-income cohorts remain more choosy, while big-ticket home, especially furniture, was soft in the quarter. Amazon.com, Inc. (AMZN - Free Report) remains a key benchmark in digital convenience, while Walmart Inc. (WMT - Free Report) is a scale-driven omnichannel retailer that keeps pricing and fulfillment expectations high across retail.

What Macy’s Signals Say About the Trend TradeMacy’s has credible exposure to attractive retail themes, especially luxury, AI-enabled selling and omnichannel shopping. Still, these trends need to translate into durable sales growth and margin protection before the stock earns a stronger trend-driven case.

The stock currently carries a Zacks Rank #3 (Hold), which fits a balanced view rather than a high-conviction call. The Neutral stance reflects visible progress, but also recognizes pressure from tariffs, freight costs, consumer caution, competition and ongoing investment needs. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

No Style Scores are provided for Macy’s in the available setup. That limits the factor lens investors normally use to assess Value, Growth, Momentum and VGM Score, so the debate falls back to valuation, execution and earnings durability.

A Zacks Rank #3 can still be held when the business case remains intact, but the Style Scores framework generally favors stocks with stronger rank support and A or B scores. For Macy’s, the trend exposure is real, but investors still need evidence that these initiatives can compound through a tougher discretionary retail backdrop.

Key Takeaways Macy's posted 3% enterprise comparable sales growth, its strongest first quarter in four years.Reimagine stores reached 200 locations, driving engagement and 2.4% comparable sales growth.M faces tariff, fuel and inventory pressures even as luxury banners and digital sales grow. Macy's, Inc. (M - Free Report) is showing better execution as its Bold New Chapter strategy gains operating traction across stores, digital and luxury banners. The key issue for investors is whether these gains can hold against pressure from costs and uneven discretionary demand.

The latest results show progress, but not a clean break from risk. Macy’s still has to protect margins while reshaping its store base and funding growth initiatives.

Macy’s Strategy Starts Showing ResultsBold New Chapter is moving beyond planning and into measurable operating performance. In the first quarter of fiscal 2026, enterprise comparable sales increased 3%, marking Macy’s strongest first-quarter comparable sales performance in four years.

All three nameplates delivered positive growth, and management raised its 2026 outlook after net sales, comparable sales, adjusted EBITDA and adjusted earnings per share exceeded expectations. The bigger point is execution quality, not just stabilization. Better merchandising, service and store standards give the turnaround a firmer base.

M Reimagine Stores Lift Customer EngagementThe Reimagine initiative is becoming Macy’s most visible store-level playbook. Macy’s expanded the program by 75 locations in the first quarter, bringing the total to 200 stores.

These locations now represent nearly 60% of the go-forward Macy’s store fleet and accounted for about 75% of fiscal 2025 go-forward Macy’s store sales. Reimagine locations posted 2.4% comparable sales growth and have been positive in eight of the past nine quarters, while customer engagement benefited from record first-quarter Net Promoter Score results at the Macy’s nameplate.

Macy’s Luxury Banners Add StabilityBloomingdale’s and Bluemercury are improving Macy’s portfolio mix. Bloomingdale’s comparable sales rose 10.2% in the first quarter and reached the highest first-quarter sales volume in its 154-year history.

Bluemercury comparable sales increased 6.4%, supported by makeup, dermatological skincare and fragrances. The two banners help offset choppier trends at the core Macy’s banner and give the company exposure to customers and categories where differentiation matters.

M Digital and AI Expand Macy’s ReachDigital remains central to Macy’s omnichannel push. Digital sales represented 34% of net sales in the first quarter, up from 33% a year earlier.

The company is also using technology in practical ways. The China Grove distribution facility is showing early automation benefits in service levels and cost efficiency, while inventory forecasting tools and Ask Macy’s, an AI-powered shopping assistant, are designed to reduce friction and support conversion.

How Macy’s Risks Could Slow ProgressCost pressure remains the biggest constraint. Tariffs reduced gross margin by about 30 basis points in the first quarter, while second-quarter guidance assumes tariffs and fuel costs will cut gross margin by 20-40 basis points and adjusted earnings per share by 3-4 cents.

Store closures also weigh on reported sales. The 14 non-go-forward stores closed at the end of fiscal 2025 reduced first-quarter sales by about $40 million, and fiscal 2025 closures are expected to create a $145-million annual sales headwind. Inventory rose 3.6% to $4.8 billion, adding markdown risk if demand weakens. Competition from Kohl's Corporation (KSS - Free Report) and Target Corporation (TGT - Free Report) reinforces the need for Macy’s to sharpen value, service and omnichannel execution.

Image Source: Zacks Investment Research

What Macy’s Signals Mean for InvestorsMacy’s turnaround signals are improving, but the investment case still calls for balance. Comparable sales growth, luxury momentum and Reimagine traction support a more constructive view of the business.

M currently carries a Zacks Rank #3 (Hold), which fits a measured stance. The Rank points to a stock that may be appropriate to hold while investors monitor estimate trends, margin protection and execution consistency. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

No Value Score, Growth Score, Momentum Score or VGM Score is provided for Macy’s. That leaves investors leaning more heavily on the operating trade-offs: better store and luxury execution on one side, and tariffs, freight, inventory and discretionary-demand risks on the other.

On June 17, 2026, Gap Inc GAP shares fell 3.6% today, bringing the current price to $20.94. The stock has experienced a 52-week range between $18.69 and $29.36, indicating significant volatility over the past year.

GF Value™ verdict: The current price is $20.94, which is 7.0% below the GF Value™ of $22.52.GF Score™: 71/100, indicating above-average performance relative to peers.Most notable signal: Insiders sold $22.5 million worth of shares in the last three months without any buying activity. Is GAP Overvalued or Undervalued? Gap Inc GAP currently trades at $20.94, which is below its GF Value™ estimate of $22.52, suggesting that the stock is undervalued by approximately 7.0%. This margin of safety may present a potential opportunity for investors looking for stocks that could appreciate in value. The GF Valuation label indicates that the stock is fairly valued, which means that while there is a slight undervaluation, it is important to consider the broader context of the company's financial health and market conditions. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

However, investors should be cautious, as the company's financial strength scores 6/10, indicating that while the valuation appears attractive, there could be underlying risks that warrant further investigation. A thorough analysis of the company’s financial statements, competitive position, and market environment is essential before making any decisions based on valuation alone.

How Does GAP's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 8.2x 12.5x Forward P/E 8.8x N/A Gap Inc's current P/E ratio of 8.2x is significantly below its 5-year median P/E of 12.5x, indicating that the stock is trading at a discount compared to its historical valuation. This P/E analysis agrees with the GF Value™ verdict that suggests the stock is undervalued. The forward P/E of 8.8x also reaffirms that the market may not fully account for the company's earnings potential in the near future.

What Does GAP's GF Score™ Tell Us? Metric Rating GF Score™ 71 Financial Strength 6/10 Profitability 6/10 Growth 3/10 Valuation 9/10 Momentum 5/10 The GF Score™ of 71/100 indicates that Gap Inc is performing above average relative to its peers. The strongest area is the Valuation rank, scoring 9/10, which aligns with the undervaluation indicated by the GF Value™. However, the Growth rank of 3/10 suggests that the company may face challenges in expanding its earnings and revenue in the future. A balance of strong valuation metrics with weaknesses in growth underscores the need for cautious optimism regarding the stock's potential performance.

What Are Insiders Doing with GAP Stock? Recent insider activity has seen a significant sell-off, with insiders selling $22.5 million in shares over the past three months. This lack of buying activity from insiders may signal a lack of confidence in the company’s near-term prospects or a strategic move to realize profits. Such patterns can often indicate that insiders might not anticipate significant price increases in the short term, which can be a red flag for potential investors.

While insider selling does not inherently indicate a negative outlook, it is crucial for investors to be aware of these trends as they may influence market sentiment around the stock.

What This Means for Investors Based on the GF Value™ assessment, Gap Inc GAP is currently undervalued with its shares trading below intrinsic value. However, potential investors should consider the broader context, including financial strength and insider activity, before making any commitments. The valuation appears attractive, but caution is advised due to the uncertainties surrounding growth and insider sentiment.

For the complete analysis, visit the Gap Inc GAP 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 GAP's GF Score™?

GAP's GF Score™ is 71/100, indicating above-average performance relative to its peers in the market.

Is GAP overvalued or undervalued?

GAP is currently undervalued, with a GF Value™ of $22.52 compared to its trading price of $20.94.

What is GAP's P/E ratio?

GAP's P/E ratio is 8.2x, which is significantly below its historical median of 12.5x, suggesting that the stock is trading at a discount compared to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Key Takeaways Gap delivered its ninth straight quarter of positive comps, led by a 10% gain at the namesake brand.Denim, women's and men's apparel drove growth, while kids and baby returned to positive sales momentum.Campaigns and collaborations boosted cultural relevance as Gap targets high-single-digit comps in FY26. Gap Inc. (GAP - Free Report) continues to demonstrate that its multiyear turnaround strategy is gaining traction. The apparel retailer delivered its ninth consecutive quarter of positive comparable sales growth in the first quarter of fiscal 2026, highlighting the effectiveness of its brand reinvigoration efforts. By combining product innovation, culturally relevant marketing and disciplined execution, Gap has transformed itself from a struggling apparel chain into one of the stronger performers in the specialty retail space. The latest results suggest that the company is not only sustaining momentum but also broadening its appeal across categories and customer segments.

The namesake Gap brand was the standout performer in the quarter, with comparable sales rising 10% on top of a 5% increase in the year-ago period. Net sales climbed 10% year over year to $796 million, marking another quarter of robust growth. Management noted strength across women's apparel and men's categories, while the kids and baby business returned to growth. Denim remained a key growth engine, helping the brand gain additional market share. Gap also expanded its customer file and achieved its third consecutive quarter of reduced discounting, underscoring stronger demand and improved pricing discipline.

Beyond the numbers, Gap's turnaround is increasingly being fueled by brand relevance and cultural engagement. Collaborations with Victoria Beckham, Harlem's Fashion Row and Awake New York, along with high-profile activations at Coachella and the Met Gala, helped strengthen the brand's connection with younger consumers. The company's "Get Loose" campaign featuring Grammy-nominated artist Young Miko generated nearly 1.5 billion media impressions, while its Coachella activation created more than 300 million social and press impressions. These initiatives are reinforcing Gap's position at the intersection of fashion, music and culture, a strategy management believes can drive sustainable long-term growth.

Looking ahead, management remains optimistic about Gap's trajectory. The company expects the brand to deliver high-single-digit comparable sales growth for fiscal 2026, supported by continued strength in denim, expanded product categories, store remodels and the relaunch of its iconic fragrance business. While macroeconomic uncertainties and competitive pressures remain, Gap's consistent sales growth, expanding customer base and improving merchandise margins indicate that the turnaround story still has room to run. The key question for investors is whether the brand can maintain its cultural relevance and operational discipline as it scales this momentum through the remainder of the year.

GAP’s Price Performance, Valuation & EstimatesShares of this Zacks Rank #3 (Hold) company have lost 19.8% in the past six months compared with the industry’s decline of 5.3%.

Image Source: Zacks Investment Research

From a valuation standpoint, GAP trades at a forward price-to-earnings ratio of 8.68X compared with the industry’s average of 15.38X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for GAP’s current fiscal-year sales and earnings implies year-over-year growth of 1.6% and 9.4%, respectively. For the next fiscal year, the consensus estimate indicates a 1.9% rise in sales and 11.3% growth in earnings. The company’s EPS estimate for both fiscal years has remained stable in the past seven days.

Image Source: Zacks Investment Research

Key PicksRoss Stores (ROST - Free Report) , a leading U.S. off-price retailer operating Ross Dress for Less and dd's DISCOUNTS stores, sports a Zacks Rank #1 (Strong Buy) at present. ROST delivered a trailing four-quarter earnings surprise of 10.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Ross Stores’ current fiscal-year sales and earnings suggests growth of 9.1% and 17.1%, respectively, from the year-ago figures.

Five Below, Inc. (FIVE - Free Report) , which operates as a specialty value retailer, currently flaunts a Zacks Rank #1. FIVE delivered a trailing four-quarter earnings surprise of 70.1%, on average.

The Zacks Consensus Estimate for Five Below’s current fiscal-year sales and earnings suggests growth of 14.36% and 31.7%, respectively, from the year-ago figures.

Tapestry, Inc. (TPR - Free Report) provides accessories and lifestyle brand products in North America, Greater China, the rest of Asia and internationally. At present, TPR sports a Zacks Rank of 1.

The Zacks Consensus Estimate for current fiscal-year sales and earnings implies growth of 13.8% and 36.3%, respectively, from the year-ago reported figures. TPR has delivered a trailing four-quarter earnings surprise of 15.6%, on average.

American Eagle Outfitters Today

AEO

American Eagle Outfitters

$17.75 -0.04 (-0.22%)

As of 06/23/2026 03:58 PM Eastern

52-Week Range$9.49▼

$28.46Dividend Yield2.82%

P/E Ratio10.96

Price Target$20.36

American Eagle Outfitters Inc. NYSE: AEO has posted consecutive earnings beats. Yet even after delivering another better-than-expected quarter on May 28, shares sold off as concerns about weakness in the core American Eagle brand and pressure on second-quarter gross margin overshadowed stellar performance at Aerie.

Since then, the stock has recovered its losses. Where shares head next is likely to depend on Aerie's ability to maintain its momentum after posting 25% comparable sales growth, whether the American Eagle brand can regain its footing, and how much pressure tariffs and other costs ultimately place on margins.

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Aerie's Strength Helps Offset American Eagle's WeaknessAmerican Eagle reported first-quarter earnings of 14 cents per share, a sharp improvement from the 29-cent-per-share loss reported a year earlier. Earnings exceeded Wall Street estimates by 3 cents. Revenue rose nearly 10% from the prior-year period to $1.2 billion, topping expectations by more than $10 million. The results marked the company's fourth consecutive quarter of earnings and revenue beats.

Total comparable sales increased 8%. Gross margin expanded 860 basis points to 38.2%, while merchandise margin improved 710 basis points. The results benefited from an inventory write-down recorded in the prior-year quarter, which weighed on margins.

Aerie and its activewear-focused OFFLINE brand were the company's standout performers. Revenue for the brands increased 34% year over year to $481 million.

On the earnings call, CEO Jay Schottenstein said he was "extremely pleased" with the continued momentum at Aerie and OFFLINE, citing strong demand across categories and channels, compelling product offerings, high customer engagement, and growing brand awareness.

The flagship American Eagle brand faced challenges during the quarter. Revenue and comparable sales each declined about 2% from a year earlier to roughly $697 million. Results across categories were mixed, with the men's business delivering its third consecutive quarter of positive performance while certain areas of the women's business, including bottoms and seasonal categories, remained under pressure.

The company said it has already begun refining its product assortment ahead of the important back-to-school season.

Second-Quarter Gross Margin Faces PressureAmerican Eagle also provided guidance calling for second-quarter operating income of between $45 million and $50 million, and comparable sales growth in the mid- to high-single digits. Gross margin is projected to decline from the previous year as the company faces a 150- to 200-basis-point tariff headwind, as well as markdown pressure at the American Eagle brand.

Momentum at Aerie and OFFLINE is expected to continue in Q2, with comparable sales growth in the high teens to low twenties. On the flip side, the American Eagle brand is expected to remain under pressure, with comparable sales ranging from flat to down low single digits. Schottenstein did note, however, “While May started slowly for the AE brand, we're encouraged by the improvement in the business that we have seen over the last few weeks.”

For the full year, the retailer expects operating income of $390 million to $410 million, supported by mid-single-digit comparable sales growth. Gross margin is expected to increase year over year.

Multiple Analysts Lower Price Targets Following Q1 ReportDespite notching another earnings and revenue beat, investors appeared focused on the challenges facing the American Eagle brand and the expected decline in second-quarter gross margin.

At least six analysts lowered their price targets following the report. The stock currently carries a consensus Hold rating and a 12-month price target of $20.36. Price targets range from a low of $16 to a high of $31.

The average price target has declined steadily since early January, when it stood above $28. Even so, it remains well above the sub-$10 consensus target seen a year ago.

AEO's 2026 Pull Back Follows Major RallyThe Q1 report and the wave of analyst price-target cuts that followed sent the stock down roughly 12%, extending an already difficult stretch for shareholders. Year to date, shares are down by over 30%.

However, the recent weakness follows a powerful rally in the second half of 2025. Helped by a string of positive earnings reports, shares climbed from a 52-week low of less than $10 in July to a 52-week high above $28 in early January. Despite the pullback over the last several months, the stock remains up around 77% over the past year.

American Eagle Outfitters, Inc. (AEO) Price Chart for Wednesday, June, 24, 2026

The pullback has also made the stock's valuation more attractive. American Eagle Outfitters' price-to-earnings ratio sits around 11x, well below the retail industry average of 16.3x. However, the stock is not the cheapest among some of its peers. Abercrombie & Fitch Co. NYSE: ANF trades at roughly 8.3x earnings, while The Gap Inc. NYSE: GAP trades at about 8.5x.

While shares of American Eagle have recovered from their post-earnings decline, investors are still weighing the strength of Aerie against ongoing challenges at the American Eagle brand. In the upcoming quarters, attention is likely to remain focused on whether Aerie's momentum can continue, whether the American Eagle brand can regain its footing, and how much pressure tariffs, markdowns, and other costs ultimately place on margins.

Should You Invest $1,000 in American Eagle Outfitters Right Now?Before you consider American Eagle Outfitters, you'll want to hear this.

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Good Morning! For those of you that tuned in live this morning you might have wondered if we started earlier than usual.

June 23, 2026 1:30 AM 1 min read

Carnival, Primoris Services And 3 Stocks To Watch Heading Into TuesdayWith U.S. stock futures trading lower this morning on Tuesday, some of the stocks that may grab investor focus today are as follows:

Check out our premarket coverage here

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As talks for a resolution to the conflict in Iran continue, crude oil prices hit a three-month low, and prices at the pump are now averaging less than $4 per gallon. Optimism and hope are driving down fuel costs, and record-breaking demand for cruise vacations is all creating favorable conditions for the red-hot Carnival Corp. (CCL 4.69%). So is the cruise line still a strong buy for investors?

Today's Change

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There are few companies more fuel-dependent than Carnival. The decline in oil prices turns what's been a short-term headwind into a tailwind for the second half of the year. Management expects fuel prices to continue falling through the remainder of 2026.

The cost of oil is just a part of the story, though, as Carnival's fundamentals are already strong. Bookings and prices are both at record highs. Last quarter, Carnival raised its full-year outlook. Customer deposits in the first quarter reached a record of nearly $8 billion, a 10% increase from the prior year's high. The stock is up 24% in the past month.

Image source: Getty Images.

The bull case for investors is compelling. The cruise industry has made a remarkable comeback since the early days of the pandemic, and cruising has truly returned as a trendy form of travel. Demand is steep, and Carnival's management recently launched a $2.5 billion buyback to reward shareholders.

If oil continues to fall, momentum will remain on Carnival's side. Less expensive fuel will make good fundamentals look great. However, even if the Iran conflict is prolonged and talks remain fluid and uncertain, Carnival still has plenty of bullish momentum. The stock's forward and trailing P/E ratios are around 13, and the analyst consensus is $35 per share, so Carnival is still priced fairly even after the recent increase.

Catie Hogan has no position in any of the stocks mentioned. The Motley Fool recommends Carnival Corp. The Motley Fool has a disclosure policy.

The cruise line said that booking trends during the recent quarter were most disrupted across Europe, particularly in the Mediterranean region.