Enhances portfolio, high grades capital allocation, lowers costs and enhances liquidity June 17, 2026 02:00 ET | Source: Kosmos Energy, LLC
DALLAS, June 17, 2026 (GLOBE NEWSWIRE) -- Kosmos Energy (NYSE/LSE: KOS) (“Kosmos” or the “Company”) is pleased to announce the completion of the sale of its interests in the Ceiba Field and Okume Complex production assets in Block G offshore Equatorial Guinea to Panoro Energy (“Panoro”).
The final cash consideration on completion, post-closing adjustments, was approximately $127 million. The closing adjustments reflect the cash received from the assets in the first half of 2026 to completion on June 16, 2026. Future contingent payments of up to ~$40 million are subject to certain oil price and production thresholds.
The transaction proceeds will be used to repay borrowings under the Company’s reserves-based lending (RBL) credit facility.
Andrew G. Inglis, Kosmos Energy’s chairman and chief executive officer said: “We are pleased to have closed this transaction, a win-win for Kosmos and Panoro. For Kosmos, the transaction high grades our portfolio by divesting high unit operating cost production and increases balance sheet resilience, with retained exposure to future upside from the assets. Strategically, it also enables Kosmos to focus our capital and expertise on our world-class assets where we can add the most value for our stakeholders over the long-term. We’d like to thank CEMAC and the Government of Equatorial Guinea for their timely approvals.”
To reflect the impact of the sale completion, Kosmos will provide updated full year 2026 guidance with its second quarter results in August. Production year-to-date has been around 5,800 barrels of oil per day net to Kosmos. An asset retirement obligation liability of around $140 million will also be removed from the balance sheet.
About Kosmos Energy
Kosmos Energy is a leading deepwater exploration and production company focused on meeting the world’s growing demand for energy. We have diversified oil and gas production from assets offshore Ghana, Mauritania, Senegal and the Gulf of America. Additionally, in the proven basins where we operate, we are advancing high-quality development opportunities, which have come from our exploration success. Kosmos is listed on the NYSE and LSE and is traded under the ticker symbol KOS. As an ethical and transparent company, Kosmos is committed to doing things the right way. The Company’s Business Principles articulate our commitment to transparency, ethics, human rights, safety and the environment. Read more about this commitment in the Kosmos Sustainability Report. For additional information, visit www.kosmosenergy.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Kosmos expects, believes or anticipates will or may occur in the future are forward-looking statements. Kosmos’ estimates and forward-looking statements are mainly based on its current expectations and estimates of future events and trends, which affect or may affect its businesses and operations. Although Kosmos believes that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made in light of information currently available to Kosmos. When used in this press release, the words “anticipate,” “believe,” “intend,” “expect,” “plan,” “will” or other similar words are intended to identify forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Kosmos, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Further information on such assumptions, risks and uncertainties is available in Kosmos’ Securities and Exchange Commission (“SEC”) filings. Kosmos undertakes no obligation and does not intend to update or correct these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except as required by applicable law. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.
Key Takeaways Kosmos completed the sale of its Equatorial Guinea assets to Panoro Energy for a final $127M payment.Kosmos will use proceeds to repay reserves-based lending debt and focus on higher-return core assets.Panoro Energy's stake in Block G will rise to 54.625% following the acquisition. Kosmos Energy (KOS - Free Report) , a U.S.-based exploration and production company, has concluded the sale of its non-operating interests in certain offshore production assets in Equatorial Guinea to Panoro Energy. The deal was announced earlier this year, with Panoro Energy agreeing to acquire KOS’ subsidiary, which owns a 40.375% interestin the block containing the production assets. The deal includes the Ceiba field and the Okume Complex production assets, located in Block G, offshore Equatorial Guinea.
Financial Terms of the DealPer the terms of the deal, the acquiring firm agreed to an upfront cash payment of $180 million, subject to adjustments. Kosmos Energy has received a final cash payment of $127 million following the conclusion of the deal and after accounting for post-closing adjustments. Besides the cash received at closing, Kosmos could still earn additional payments under the terms of the agreement. This includes contingent payments of $12.5 million if the Ceiba field meets certain production targets and $9 million in each of 2027, 2028 and 2029 if oil prices and production levels reach specific target thresholds.
Divestment Supports Balance Sheet StrengtheningThe closing of this deal reduces the company’s 2026 production. Before the deal’s closing, these assets contributed nearly 5,800 barrels of oil per day net to Kosmos in 2026. However, it enables Kosmos Energy to streamline its asset portfolio and focus on its core assets that generate higher returns. Furthermore, the company has stated that it will use the divestment proceeds to pay down the borrowings under its reserves-based lending credit facility. The transaction will also remove an asset retirement obligation of $140 million from the company’s balance sheet. The transaction is expected to benefit the company by improving its financial flexibility, strengthening its balance sheet and freeing up capital for other strategic priorities.
Deal Creates Value for Both CompaniesKosmos Energy has highlighted that this deal is mutually beneficial for both companies. Panoro Energy previously owned a 14.25% interest in Block G, and the acquisition will raise its stake in the block to 54.625%. For Kosmos, the deal streamlines its portfolio and allows it to focus on its deepwater assets while selling assets with relatively high unit operating costs. Moreover, the deal is structured such that the company can still benefit from any future upside from the assets. Kosmos Energy’s focus lies on its key offshore assets across Ghana, Mauritania, Senegal and the Gulf of America, which have the potential for long-term growth.
KOS’s Zacks Rank and Key PicksKOS currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are W&T Offshore (WTI - Free Report) , Galp Energia SGPS SA (GLPEY - Free Report) and FuelCell Energy (FCEL - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability and significant untapped reserves. The company’s recent acquisition of six shallow-water fields in the Gulf of America boosts its future production prospects and is expected to enhance its revenues.
Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. This discovery allows Galp to expand its global presence with the potential to become a significant oil producer in the region. It is also involved in refining and marketing of oil products and natural gas marketing and sales.
FuelCell Energy is a clean energy company that offers scalable, reliable, low-carbon power solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company’s proprietary molten carbonate fuel cell systems generate electricity through an electrochemical process instead of burning fuel, reducing carbon emissions and minimizing the environmental impact of power generation. FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.
FuelCell Energy shares are experiencing downward pressure. What’s pulling FCEL shares down? What Is FuelCell Energy’s Data-Center Strategy?The latest debate centers on FuelCell Energy's push into data-center power, where data centers represent nearly 90% of its sales pipeline, even as investors remain sensitive to recent execution issues. The company has also pointed to a 4-gigawatt second-quarter pipeline that jumped 267% from the first quarter and a standardized 12.5-megawatt "Energy Block" product aimed at faster time-to-power for AI and data center projects.
FuelCell Energy's higher-beta behavior has been showing up in both directions this week, with Tuesday's premarket pressure tied to a more defensive tape as futures turned "slightly softer" in risk-off positioning. That backdrop helps explain why FCEL can trade more like a sentiment lever than a single-headline story, even when the fundamental narrative is unchanged.
FCEL Stock: Key Technical Levels To WatchFCEL's longer-term trend remains pointed up: the stock is trading well above its 50-day SMA ($15.59) and 200-day SMA ($9.70), and the bullish stack is reinforced by the 20-day SMA sitting above the 50-day SMA. The golden cross that formed in October 2025 (50-day SMA above the 200-day SMA) is still in place, which is typically the kind of structure trend-followers want to see during pullbacks.
Near term, price is working through consolidation: shares are trading 1.3% below the 20-day SMA ($20.67), a spot that often acts like a "line in the sand" for short-term momentum. RSI is the cleaner momentum lens right now at 54.39 (neutral); in plain terms, RSI helps show whether a move is getting stretched, and this reading suggests two-sided trade rather than an overbought chase.
Key Resistance: $20.67 — the 20-day SMA is overhead and is a common level sellers defend during consolidations Key Support: $15.59 — the 50-day SMA is the nearest major trend gauge below price and a typical dip-buy zone in uptrends FuelCell Energy is a clean energy technology company that develops, designs, produces, and services high-temperature fuel cells used for clean electric power generation. Its core offering includes proprietary molten carbonate fuel cell systems that generate electricity electrochemically with ultra-low emissions and high efficiency.
The company often operates as a full solutions provider—covering design, manufacturing, installation, and long-term maintenance—through long-term power purchase, service, and engineering procurement agreements. That model can create big upside when projects ramp, but it also means execution and timing matter a lot, which is why the market is scrutinizing how the data-center pipeline converts into delivered revenue.
FCEL Stock Price Movement on ThursdayFCEL Stock Price Activity: FuelCell Energy shares were up 3.09% at $20.66 at the time of publication on Thursday, according to Benzinga Pro data.
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FuelCell Energy stock is trading at elevated levels. Where are FCEL shares going? What Is FuelCell Energy’s Data-Center Strategy?The current debate is centered on FuelCell Energy’s push into data-center power, where data centers represent nearly 90% of its sales pipeline, but investors remain sensitive to recent execution issues. The company has also pointed to a 4-gigawatt second-quarter pipeline that jumped 267% from the first quarter and a standardized 12.5-megawatt "Energy Block" product aimed at faster time-to-power for AI and data center projects.
FuelCell Energy’s higher-beta behavior has been showing up in both directions, with the stock often trading more like a sentiment lever than a single-headline story when futures shift. That dynamic has kept the focus on whether the pipeline narrative converts into signed work and delivered megawatts, not just a bigger funnel.
Critical Price Levels To Watch For FCELThe bigger-picture trend is still pointed up: at $24.01, the stock is trading well above its 20-day SMA ($20.86), 50-day SMA ($15.94), 100-day SMA ($11.67), and 200-day SMA ($9.80). That "bullish stack" is reinforced by the 20-day SMA sitting above the 50-day SMA, and the golden cross that formed in October 2025 (50-day above the 200-day) remains in place.
For momentum, RSI is the cleaner lens here: the last noted turning point was RSI entering overbought territory in May, which helps explain why the stock has been prone to consolidation after sharp runs. In plain terms, RSI measures how stretched a move is, and that overbought signal in May lines up with the idea that FCEL may need time (or a fresh catalyst) to digest gains.
Key Resistance: $27.50 — near the 52-week high zone ($27.69), where breakouts often need follow-through to avoid stalling Key Support: $20.86 — the 20-day SMA area, which often acts as a "line in the sand" during consolidations in uptrends FuelCell Energy is a clean energy technology company that develops, designs, produces, and services high-temperature fuel cells for clean electric power generation. Its core offering includes proprietary molten carbonate fuel cell systems that generate electricity electrochemically with ultra-low emissions and high efficiency.
The company often operates as a full solutions provider—handling design, manufacturing, installation, and long-term maintenance under power purchase, service, and engineering procurement agreements. That matters for the data-center angle because "time-to-power" and reliability can be as important as the technology itself when customers are trying to bring large AI-related loads online.
FCEL Stock Price Movement in PremarketFCEL Stock Price Activity: FuelCell Energy shares were down 1.00% at $23.80 during premarket trading on Monday, according to Benzinga Pro data.
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Rithm Capital Corp. preferreds present differentiated risk/reward profiles across Series D, E, and F, each with distinct yield and convexity characteristics. RITM.PR.E offers a fixed-rate structure trading at par, with limited upside in declining rates and downside exposure if rates rise due to negative convexity. RITM.PR.D provides a speculative reset opportunity, potentially yielding above 10% if not redeemed, but carries the risk of early redemption given current market conditions.
Rithm Capital benefits from higher rates, with robust earnings and a $54 billion balance sheet anchored by mortgage servicing rights. RITM's preferred dividends are well-covered, with a nearly 300% coverage ratio and common dividends covered by a ~50% payout ratio. The Series F preferred shares (RITM.PR.F) offer a ~9% yield, trading below par, and feature a fixed-to-floating structure post-2031.
NEW YORK--(BUSINESS WIRE)--Rithm Capital Corp. (NYSE:RITM, “Rithm Capital” or the “Company”) announced today that its Board of Directors (the “Board”) has declared its second quarter 2026 common and preferred stock dividends.
Common Stock Dividend
The Board declared a dividend of $0.25 per share of common stock for the second quarter 2026. The second quarter common stock dividend is payable on July 31, 2026, to shareholders of record on July 2, 2026.
Preferred Stock Dividends
In accordance with the terms of Rithm Capital’s Series A Cumulative Redeemable Preferred Stock (“Series A”), the Board declared a Series A dividend for the second quarter 2026 of $0.6206601 per share, which reflects a rate of 9.715%. The Series A Preferred Stock accrues dividends at a floating rate equal to three-month CME SOFR (plus a spread adjustment of 0.262%) plus a spread of 5.802%.
In accordance with the terms of Rithm Capital’s Series B Cumulative Redeemable Preferred Stock (“Series B”), the Board declared a Series B dividend for the second quarter 2026 of $0.6103101 per share, which reflects a rate of 9.553%. The Series B Preferred Stock accrues dividends at a floating rate equal to three-month CME SOFR (plus a spread adjustment of 0.262%) plus a spread of 5.640%.
In accordance with the terms of Rithm Capital’s Series C Cumulative Redeemable Preferred Stock (“Series C”), the Board declared a Series C dividend for the second quarter 2026 of $0.5674407 per share, which reflects a rate of 8.882%. The Series C Preferred Stock accrues dividends at a floating rate equal to three-month CME SOFR (plus a spread adjustment of 0.262%) plus a spread of 4.969%.
In accordance with the terms of Rithm Capital’s 7.000% Series D Fixed-Rate Reset Cumulative Redeemable Preferred Stock (“Series D”), the Board declared a Series D dividend for the second quarter 2026 of $0.4375000 per share.
In accordance with the terms of Rithm Capital’s 8.750% Series E Fixed-Rate Cumulative Redeemable Preferred Stock (“Series E”), the Board declared a Series E dividend for the second quarter 2026 of $0.5468750 per share.
In accordance with the terms of Rithm Capital’s 8.750% Series F Fixed-Rate Reset Cumulative Redeemable Preferred Stock (“Series F”), the Board declared a Series F dividend for the second quarter 2026 of $0.5468750 per share.
Dividends for the Series A, Series B, Series C, Series D, Series E, and Series F are payable on August 17, 2026, to preferred shareholders of record on August 1, 2026 (with an effective record date of July 31, 2026).
ABOUT RITHM CAPITAL
Rithm Capital Corp. is a global alternative asset manager with significant experience managing credit and real estate assets. Rithm’s integrated platform spans asset-based finance, residential and commercial real estate lending, mortgage servicing rights, and structured credit. Through platforms including Elecor Properties, Newrez, Genesis Capital, Sculptor Capital Management, and Crestline Investors, Rithm employs a unique owner-operator model to drive value for shareholders and investors.
Tesla electric vehicles are pictured at one of the company's delivery centers in Valenton, near Paris, France, April 24, 2025. REUTERS/Benoit Tessier Purchase Licensing Rights, opens new tab
CompaniesJune 23 (Reuters) - Demand for electrified cars continued to underpin growth in Europe's auto market in May, offsetting a sharp decline in petrol and diesel sales and allowing Chinese brands to expand their footprint, data from the European Automobile Manufacturers’ Association (ACEA) showed on Tuesday.
Total car registrations, a proxy for sales, in the European Union, Britain and the European Free Trade Association rose 3.6% to 1,152,523 vehicles in May. For the first five months of the year, registrations were up 4.5% compared with the same period in 2025..
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Electrified vehicles dominated the market's momentum. Registrations of battery-electric (BEV), plug-in hybrid (PHEV) and hybrid cars climbed 39.1%, 13.2% and 8.2%, respectively, together accounting for more than two-thirds of all new vehicles registered in May.
"The market continued to benefit from robust consumer demand for a range of electrified technologies across key European markets, sustained by new and revised tax benefits and incentive schemes," the association said in a statement.
In contrast, demand for traditional internal combustion engines weakened sharply, with petrol and diesel sales falling by around 19% each.
LEGACY CARMAKERS CEDE GROUND TO CHINESE RIVALSLegacy European carmakers lost ground amid the transition. Registrations at Renault(RENA.PA), opens new tab , Stellantis (STLAM.MI), opens new tab and Volkswagen slipped between 1% and 3%, reflecting intensifying competition.
Chinese automakers, by comparison, posted striking gains. Leapmotor's (9863.HK), opens new tab sales surged 465.1% in May, while Chery (9973.HK), opens new tab and BYD (002594.SZ), opens new tab jumped 244.1% and 136.6%, respectively. Among other manufacturers, Geely (0175.HK), opens new tab and SAIC (600104.SS), opens new tab recorded increases of 12.6% and 13.9%.
Tesla extended its rebound for a fourth consecutive month, with registrations soaring 107.9% to 28,610 units, marking a strong recovery after more than a year of declines.
Reporting by Amir Orusov; Editing by Matt Scuffham
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Court Enters All Settlements Reached to Date in Short-Swing Profit Recovery Action
Company Well-Capitalized to Execute A.A. Milne and Stan Lee IP-Driven Growth Strategy
BEVERLY HILLS, Calif., June 17, 2026 (GLOBE NEWSWIRE) -- Kartoon Studios (NYSE American: TOON) (“Kartoon Studios” or the “Company”) today announced that the U.S. District Court for the Southern District of New York has entered all settlement agreements reached to date in the shareholder action Augenbaum v. Anson Investments Master Fund LP et al. (Case No. 1:22-CV-00249-AS). Pursuant to those settlements, the Company will receive aggregate settlement payments of approximately $78.5 million, before plaintiff’s counsel fees and expenses.
The action was brought on behalf of the Company under Section 16(b) of the Securities Exchange Act, commonly known as the “short-swing profit” recovery statute, seeking to recover profits realized from certain transactions in the Company’s securities. With the Court’s latest ruling, all settlement agreements reached to date with settling defendants have now been entered. The action remains ongoing against the two remaining defendants.
The settlements represent a significant milestone in Kartoon Studios’ financial evolution. The aggregate recovery materially strengthens the Company’s balance sheet, providing a substantial capital base to execute and accelerate its children and family intellectual property-driven growth strategy without reliance on external financing, or dilution.
“This is a watershed moment for Kartoon Studios and, most importantly, for our shareholders,” said Andy Heyward, Chairman and CEO of Kartoon Studios. “These recoveries are non-dilutive, and return substantial value directly to the Company and its shareholders.
“For years, we have invested in building a platform supported by a portfolio of world-class children and family based intellectual property. This enhanced financial position will enable us to accelerate the commercialization of our flagship franchises, including Hundred Acre Wood and the Stan Lee Universe, while also pursuing strategic opportunities that were previously beyond our reach,” concluded Heyward.
The Company intends to deploy its enhanced financial resources to accelerate the development, commercialization, and monetization of its owned intellectual property portfolio; expand and strengthen its distribution platforms, including Kartoon Channel! and Ameba; and pursue strategic growth opportunities across content production, licensing, consumer products, and related initiatives. The Company intends to deploy these proceeds with the same financial discipline that has significantly reduced operating expenses and improved its operating results, supporting its continued progress toward sustained positive cash flow.
About Kartoon Studios
Kartoon Studios (NYSE AMERICAN: TOON) is a global leader in children’s and family entertainment, delivering premium content and high-value animated intellectual property to millions of viewers worldwide. The Company’s portfolio features globally recognized brands, as well as holding a controlling interest in Stan Lee Universe, and operates Mainframe Studios, one of North America’s largest animation producers, with more than 22,000 minutes of award-winning programming delivered.
Through its Toon Media Networks division including Kartoon Channel!, Ameba, Kartoon Channel Worldwide and Frederator, Kartoon Studios reaches audiences across linear television, AVOD, SVOD, FAST channels, and top streaming platforms. Kartoon Channel! is consistently rated the #1 kids’ streaming app on the Apple App Store. With a global distribution footprint in over 60 territories, and a robust content pipeline, Kartoon Studios is being positioned for sustained growth and long-term shareholder value.
For more information, visit www.kartoonstudios.com
Forward-Looking Statements: Certain statements in this press release constitute “forward-looking statements” within the meaning of the federal securities laws. Words such as “may,” “might,” “will,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “predict,” “forecast,” “project,” “plan,” “intend” or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements and include statements regarding: the settlement providing a substantial capital base to execute and accelerate Kartoon Studios’ children and family intellectual property-driven growth strategy without reliance on external financing, or dilution; building a platform supported by a portfolio of world-class children and family based intellectual property; the enhanced financial position enabling the acceleration of the commercialization of Kartoon Studios’ flagship franchises, including Hundred Acre Wood and the Stan Lee Universe, while also pursuing strategic opportunities that were previously beyond the Company’s reach; deploying Kartoon Studios’ enhanced financial resources to accelerate the development, commercialization, and monetization of its owned intellectual property portfolio; expanding and strengthening the Company’s distribution platforms, including Kartoon Channel! and Ameba, and pursuing strategic growth opportunities across content production, licensing, consumer products, and related initiatives; deploying the proceeds from the settlements with the same financial discipline that has significantly reduced operating expenses and improved Kartoon Studios’ operating results, supporting its continued progress toward sustained positive cash flow; and being positioned for sustained growth and long-term shareholder value. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation the Company’s ability to execute its transition to an intellectual property-driven growth model; the Company’s ability to advance its flagship franchise initiatives; the Company’s ability to leverage prior investments in platform, content, and infrastructure, to support a more scalable operating foundation and the broader commercialization of the Company’s intellectual property portfolio; the Company’s ability to continue the momentum across its Company’s distribution business; the Company’s ability to advance its flagship franchises as multi-platform initiatives extending across content, licensing, and consumer products; the Company’s ability to bring properties to market and convert its franchises into scalable, higher-margin revenue opportunities to drive long-term value; the Company’s ability to launch and expand Hundred Acre Wood and the Stan Lee Universe in the US and globally as planned; the Company’s ability to capture value across the full lifecycle of its intellectual property by combining production capabilities, owned distribution platforms, marketing infrastructure, and licensing operations; the Company’s ability to move quicker and with purpose faster than its competitors; the Company’s ability to execute against its platform while continuing to expand higher-margin, IP-driven revenue streams; the Company’s ability to improve operating performance and margin profile over time as its initiatives scale; the Company’s ability to benefit from its investments in infrastructure and IP; the Company’s ability to obtain additional financing on acceptable terms, if at all; fluctuations in the results of the Company’s operations from period to period; general economic and financial conditions; the Company’s ability to anticipate changes in popular culture, media and movies, fashion and technology; competitive pressure from other distributors of content and within the retail market; the Company’s reliance on and relationships with third-party production and animation studios; the Company’s ability to market and advertise its products; the Company’s reliance on third parties to promote its products; the Company’s ability to keep pace with technological advances; the Company’s ability to protect its intellectual property and those other risk factors set forth in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and in the Company's subsequent filings with the Securities and Exchange Commission (the “SEC”). Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.
Southwest to transition to a cloud-based, AI-enabled architecture on AWS by 2028
, /PRNewswire/ -- Southwest Airlines Co. (NYSE: LUV) is partnering with Amazon Web Services (AWS) as its preferred cloud provider to modernize its technology foundation and evolve how the airline operates, builds, and is able to serve its Customers. As part of this partnership, Southwest will transition from a largely on-premises environment to a cloud-based, AI- and agent-enabled architecture on AWS by 2028—laying the foundation to operate with greater speed, flexibility, and reliability to support the business.
Technology powers nearly every part of the airline—from selling seats, to running daily operations, to supporting more than 70,000 Employees. As the airline continues to evolve its business model and Customer experience, it is also accelerating efforts to simplify its technology environment and improve how systems work together at scale.
"Southwest has always evolved our business with a focus on improving performance, efficiency, and reliability—and applying that same mindset to our technology with AWS is a core part of that strategy," said Lauren Woods, Executive Vice President & Chief Information Officer at Southwest Airlines, "From Customer experience, to operations, to how we build the systems behind it—all of it is coming together in a way that helps our Teams move faster, make better decisions, and deliver for our Customers."
Building a cloud-based airline by 2028
Southwest is continuing to modernize its footprint on AWS, targeting a fully cloud-based environment by 2028 while expanding how it uses AI and agent-based capabilities across the business by adopting new tools like Amazon Quick.
"Southwest Airlines is using AI to deliver on its commitment to being a customer-obsessed airline. By deploying AI agents across customer experience, operations, and software development, they're accelerating innovation for 134 million travelers—and proving that pioneering ambition paired with AWS's agentic AI capabilities delivers real, measurable results at scale," said Swami Sivasubramanian, Vice President, Agentic AI at AWS.
Accelerating modernization with Kiro
Southwest is using Kiro, AWS's agentic coding service, to modernize one of its largest and most critical Customer-facing platforms—Southwest.com.
Historically, the platform has operated a large footprint of on-premises systems with long modernization timelines. By leveraging Kiro to refactor legacy code, Southwest has accelerated that effort significantly. Kiro is now used by more than 2,700 developers to build features, help automate testing, and to generate the infrastructure in the cloud.
This work is creating a foundation that is easier to evolve, scale, and support—helping Southwest move faster and automate tasks in minutes that used to take hours.
Reimagining how software gets built with AI-Driven Development Life Cycle
Beyond individual tools, Southwest is also transforming how software is built across the organization.
Using an intelligent software development workflow built on AWS capabilities like AI-Driven Development Lifecycle (AIDLC)—Southwest is adopting a more agent-driven way of working. In this model, AI agents help move development forward, while engineering teams remain responsible for guiding, validating, and owning the outcomes.
About Southwest Airlines
Southwest Airlines Co. operates one of the world's most admired and awarded airlines, offering its one-of-a-kind value and Hospitality at 120 airports across 12 countries. Southwest took flight in 1971 to democratize the sky through friendly, reliable, and low-cost air travel and now carries more air travelers flying nonstop within the United States than any other airline1. By empowering its more than 73,0002 People to deliver unparalleled Hospitality, the maverick airline cherishes a passionate loyalty among more than 134 million Customers carried in 2025. Southwest leverages a unique legacy and mission to serve communities around the world including harnessing the power of its People and Purpose to put communities at the Heart of its success. Learn more by visiting Southwest.com/citizenship.
About Amazon Web Services (AWS)
Amazon Web Services (AWS) is guided by customer obsession, pace of innovation, commitment to operational excellence, and long-term thinking. By democratizing technology for nearly two decades and making cloud computing and generative AI accessible to organizations of every size and industry, AWS has built one of the fastest-growing enterprise technology businesses in history. Millions of customers trust AWS to accelerate innovation, transform their businesses, and shape the future. With the most comprehensive AI capabilities and global infrastructure footprint, AWS empowers builders to turn big ideas into reality. Learn more at aws.amazon.com and follow @AWSNewsroom.
1. Based on U.S. Dept. of Transportation quarterly Airline Origin & Destination Survey as of Q4 2025
2. Fulltime-equivalent active Employees as of March 31, 2026.
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VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Southwest Airlines (LUV - Free Report) Based in Dallas, TX, Southwest Airlines is a passenger airline that provides scheduled air transportation in the United States and 'ten near-international' markets. The company was incorporated in Texas in 1967 and commenced operations in 1971 with three Boeing 737 jets serving the cities of Dallas, Houston and San Antonio.
LUV is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Transportation stock. LUV has a Momentum Style Score of A, and shares are up 17.6% over the past four weeks.
For fiscal 2026, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.09 to $2.81 per share. LUV boasts an average earnings surprise of +247%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, LUV should be on investors' short list.
Airline adds new daily Mint service between Fort Lauderdale and San Diego, increases premium transcontinental flying to Los Angeles and San Francisco
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--JetBlue (NASDAQ: JBLU), Fort Lauderdale’s leading airline, today announced it is expanding its premium transcontinental flying from Fort Lauderdale-Hollywood International Airport (FLL), adding new daily Mint® service to San Diego International Airport (SAN), beginning November 19, and more Mint flights to Los Angeles International Airport (LAX) and San Francisco International Airport (SFO) beginning this winter. With this growth, it marks the largest Mint schedule from FLL in the airline’s history.
JetBlue’s award-winning Mint experience offers a fresh take on premium travel, with fully lie-flat seats, thoughtful hospitality and curated dining. The additional service gives South Florida customers more premium options to reach the West Coast, with up to eight daily flights between Fort Lauderdale and Los Angeles and up to three daily flights between Fort Lauderdale and San Francisco, while delivering the caring service, comfort and value that JetBlue is best known for.
“Customers in Fort Lauderdale continue to choose JetBlue for a better coast-to-coast experience, and these additions give them even more of what they value most: more flights, more premium options and the comfort of Mint on key West Coast routes,” said Daniel Shurz, senior vice president, revenue, network and enterprise planning, JetBlue. “With new Mint service to San Diego and additional flying to Los Angeles and San Francisco, we’re making it easier for South Florida travelers to get where they want to go with the service, style and value that sets JetBlue apart.”
JetBlue’s Fort Lauderdale Focus
JetBlue has continued to invest in Fort Lauderdale as a key focus city and major gateway across Florida, Latin America and the Caribbean. The airline has increased its daily departures from the city by more than 75% this year and expects to reach approximately 150 daily flights from Fort Lauderdale by this winter, its largest schedule ever from the airport. With new service to San Diego, JetBlue will offer the only business class option between Fort Lauderdale and San Diego, giving customers a more comfortable and premium way to travel.
Book Better with JetBlue
Flights between Fort Lauderdale and San Diego are now available for purchase at jetblue.com and on the JetBlue app. TrueBlue customers who book on the new route by June 21, 2026 may be eligible to receive 2,500 bonus TrueBlue points.1
Customers who book directly through jetblue.com can find JetBlue’s low fares, and can enjoy additional benefits including access to all of the airline’s fare options, as well as fare sales and promotions, some of which may not be available through other third parties; the ability to earn 2x TrueBlue points and participate in Points Pooling; seamless seat selections and upgrades to EvenMore® ; 24/7 direct access to JetBlue’s customer service channels; and more.
Schedule Between Fort Lauderdale (FLL) and San Diego (SAN)
Operating daily beginning November 19, 2026
About JetBlue
JetBlue is New York’s Hometown Airline® and a leading carrier in Boston, Fort Lauderdale-Hollywood, Los Angeles, Orlando, and San Juan. JetBlue carries customers to more than 100 destinations throughout the United States, Latin America, the Caribbean, Canada, and Europe. For more information and the best fares, visit jetblue.com.
Offer only valid for new bookings made between 6/17/26 and 6/21/26 and booked on nonstop flights between FLL and SAN, for travel any time. Members must be enrolled in TrueBlue at the time of booking and have their TrueBlue number added to their booking at the time of flight to qualify. Members will earn a one-time 2,500 bonus TrueBlue points regardless of one-way or roundtrip travel. Offer not valid on Blue Basic fares. Codeshare and interline bookings are not eligible. JetBlue Vacations bookings and award flights qualify for this offer. Bonus points will be awarded between 4-6 weeks after eligible travel is completed. TrueBlue Terms and Conditions apply. View Terms and Conditions and join TrueBlue: https://www.jetblue.com/trueblue More News From JetBlue
JetBlue Airways told CNBC on Wednesday that it will close its flight attendant base at Newark Liberty International Airport in New Jersey and tech operations bases there and at LaGuardia Airport in New York this fall as it seeks to reduce costs and beef up service in Fort Lauderdale, Florida, though it noted that no staff will lose their jobs.
JetBlue said it is ending seasonal service between Newark and Los Angeles and Las Vegas. It said staff could bid or transfer to other bases.
"We're operating in a fast-changing landscape where competitors are constantly adding, reducing and shifting flying in response to market conditions," JetBlue President Marty St. George and COO Warren Christie said in a staff note, which was seen by CNBC. "We have to be just as agile, entering markets where we see opportunity and exiting those that no longer support our long-term goals. Standing still while competitors make moves isn't an option."
The airline is already the top carrier at Fort Lauderdale, though it was previously second to Spirit Airlines, the South Florida-based discounter that collapsed on May 2. Competitors have also added service to the region.
JetBlue earlier Wednesday said it would expand daily, cross-country flights with its lie-flat business class, Mint, from Fort Lauderdale, Florida, to San Diego on Nov. 19 and will add more Mint-equipped flights this winter to San Francisco and Los Angeles.
That will include up to eight daily Fort Lauderdale to Los Angeles flights and three a day to San Francisco.
JetBlue has spent years trimming unprofitable routes and cutting costs to return to steady profitability. Its last profitable quarter was two years ago, and the Fort Lauderdale-Hollywood International Airport push is a big part of its strategy, St. George told CNBC earlier this month. The airline is scouting space for a high-end airport lounge there, too, he said.
Mint-equipped planes are lucrative and those seats carry a big premium. A one-way Mint seat from Fort Lauderdale to Los Angeles on Jan. 10 topped $3,000 and went as high as $4,522 while a basic coach ticket on that route was going for as little as $244.
The JetBlue executives told staff Wednesday that they know the Newark reductions raise questions about their plans at LaGuardia Airport, where JetBlue's one-time acquisition target, Spirit, operated out of the Marine Air Terminal until it shut down.
"Any future opportunities that could come from the LGA slot auction process remain uncertain and would take time to develop," they said. "We must make decisions based on the operation we know we will fly, not on potential outcomes that may or may not materialize in the future."
watch now
JetBlue executives have called out the high costs of operating at airports like LaGuardia.
"We are much, much smaller at LaGuardia than we were four years ago because it's a $40 [enplanement fee] airport for us. And the fountain is really pretty, but ... I think people would rather have low fares than a really nice fountain," St. George said at a JPMorgan industry conference in March, referring to the 25-foot-tall water feature in the airport's Terminal B.
The Port Authority of New York and New Jersey, which operates LaGuardia and Newark airports, did not immediately comment.
JetBlue is shutting down key operations at Newark and LaGuardia airports as the struggling carrier shifts resources to booming South Florida in its latest bid to restore profitability.
The Queens-based airline said it will still fly to those hubs, but plans to close its flight attendant base at Newark and its technical operations bases there and at LaGuardia this fall as part of a broader effort to cut costs and expand service in Florida.
JetBlue said no employees will lose their jobs as a result of the switch and that affected workers will be able to bid for positions or transfer to other bases.
JetBlue is closing its flight attendant base at Newark Liberty International Airport as part of a broader effort to cut costs and shift resources to Florida. Getty Images “JetBlue is making targeted schedule adjustments, ending seasonal service between Newark (EWR) and Los Angeles (LAX) and Las Vegas (LAS), to support growth in Fort Lauderdale-Hollywood International Airport,” the airline said in a statement to The Post.
The move marks another retrenchment in the New York-New Jersey market for JetBlue, which has spent years trimming underperforming routes while searching for a path back to consistent profitability.
The latest reductions point to JetBlue’s growing frustration with the cost of operating in the New York region — particularly at LaGuardia, where executives have complained that fees have soared following the airport’s multibillion-dollar redevelopment.
“We are much, much smaller at LaGuardia than we were four years ago because it’s a $40 airport for us,” JetBlue President Marty St. George said in March, referring to “enplanement” fees charged per customer.
“And the fountain is really pretty, but … I think people would rather have low fares than a really nice fountain,” he added, referring to the airport’s 25-foot water feature inside Terminal B.
Fort Lauderdale-Hollywood International Airport is emerging as JetBlue’s fastest-growing hub following the collapse of rival Spirit Airlines. Matthew Tighe – stock.adobe.com Public fee schedules show LaGuardia’s landing fees have climbed steadily in recent years following the airport’s roughly $8 billion overhaul, making it one of the most expensive airports in the region for airlines to operate from.
JetBlue has steadily reduced its footprint there as costs have mounted.
Despite the cuts, JetBlue remains deeply tied to the region.
The airline is headquartered in Long Island City and continues to market itself as “New York’s Hometown Airline.”
In its most recent annual report, JetBlue said the New York metropolitan region remained its largest focus area, accounting for 118 nonstop routes and a 13% seat share across John F. Kennedy International Airport, Newark, LaGuardia, Westchester County Airport and Long Island MacArthur Airport.
JetBlue is shifting aircraft and resources to Fort Lauderdale as it cuts costs and trims operations in the New York region. Skórzewiak – stock.adobe.com Still, Newark and LaGuardia have become increasingly peripheral to JetBlue’s operations compared with JFK.
In 2025, JetBlue carried roughly 14.5 million passengers through Kennedy, representing more than 23% of the airport’s total traffic.
By contrast, the airline carried about 1.9 million passengers through Newark and 1.1 million through LaGuardia, accounting for just 4% and 3.4% of those airports’ passenger volumes, respectively.
The airline’s growing emphasis on Florida has accelerated following the collapse of rival Spirit Airlines earlier this year.
The carrier has cited rising airport fees at LaGuardia following the airport’s multibillion-dollar redevelopment. Bloomberg via Getty Images JetBlue is already the largest carrier at Fort Lauderdale and has aggressively expanded there since Spirit ceased operations May 2.
Earlier Wednesday, JetBlue announced that it would add more premium Mint service from Fort Lauderdale, including expanded flights to San Diego, Los Angeles and San Francisco.
The carrier has also unveiled plans to launch 11 new destinations from Fort Lauderdale and expects to operate nearly 130 daily departures there this summer — its most expansive schedule ever at the airport.
The Post has sought comment from the Port Authority of New York and New Jersey, which oversees all area airports.
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Happy Thursday. It's a busy day in two of America's largest cities: The Knicks will celebrate their NBA championship with a ticker-tape parade in New York City, while the Obama Presidential Center is set for a star-studded opening in Chicago.
Stock futures are higher this morning as traders look to rebound from yesterday's losses.
Here are five key things investors need to know to start the trading day:
1. Kevin's heartAs expected, the Federal Reserve held interest rates steady yesterday, keeping its benchmark rate in a range of 3.5%-3.75%. But the real excitement was what Kevin Warsh did at hist first meeting as the central bank's chairman.
Here's what to know:
The first Federal Open Market Committee statement under Warsh was significantly shorter than that of recent meetings, lacking forward guidance as well as details on how members voted.At his post-announcement press conference, Warsh announced plans for task forces focused on overhauling the central bank's operations.The chairman sat out of participating in the Fed's "dot plot" but said he encouraged his colleagues to continue doing so. Of the 18 members who did share their projections, nine indicated that they expected a rate hike this year.DoubleLine Capital's Jeffrey Gundlach told CNBC that Warsh's first meeting made it clear that the chairman would not be the "easy money" leader that many expected.The S&P 500 tumbled more than 1% in yesterday's session, marking the index's worst performance on the first "Fed day" under a new chair since at least 1994.Yesterday's drop dragged the S&P 500 into the red for the week. Follow live markets updates here.2. Sign on the dotted linePresident Donald Trump and Iranian President Masoud Pezeshkian signed a memorandum of understanding yesterday, three days after Vice President JD Vance and Iranian Parliamentary Speaker Mohammad Bagher Ghalibaf signed the same document.
The 14-point MOU, aimed at developing a permanent peace deal, calls for the reopening of the Strait of Hormuz without tolls for at least 60 days. It also includes an agreement for the two nations to resolve the question of how to dispose of Iran's highly-enriched uranium.
Meanwhile at the G7 summit, CNBC learned that Anthropic CEO Dario Amodei and Google DeepMind CEO Demis Hassabis pushed for a U.S.-led artificial intelligence coalition. Speaking during a private lunch attended by several tech executives and government leaders, the pair said the coalition would work to protect against the risks associated with the technology.
3. Florida!!! (feat. JetBlue)Earlier this week, we told you about JetBlue's plans to expand in Fort Lauderdale, Florida. Now, the airline is planning to reduce its footprint in the New York City area to free up resources.
The carrier told CNBC yesterday that it will cut its tech operations bases at Newark Liberty International Airport and LaGuardia Airport. It will also close its flight attendant hub at the New Jersey airport and cease its seasonal service from Newark to Los Angeles and Las Vegas.
Speaking of Florida: Demand for commercial real estate on the state's so-called "space coast" is booming, as private companies in the sector like SpaceX and Blue Origin grow. One developer told CNBC's Diana Olick that building luxury hotels makes sense as executives and scientists travel to the region to watch launches.
4. Apple Intel-ligenceShares of Intel are up 9% in premarket trading after Trump said overnight that the company inked a new partnership with Apple to design and build chips in the U.S. The announcement comes after the U.S. government last August took a 10% stake in the embattled chipmaker, which has seen huge gains in the last few months following a multi-year slump.
Elsewhere in tech, SpaceX saw its first day of losses following its record IPO last week. The stock closed Wednesday's session down nearly 5% and is down another 3% before the bell.
5. Carolina blue?As Democrats hope to take control of the Senate this fall, they're eying former Democratic Gov. Roy Cooper's North Carolina Senate bid as one of their best shots at flipping a Republican-held seat.
But Democrats haven't been victorious in a presidential or Senate race in the Tar Heel State since 2008, despite coming out on top in gubernatorial elections in each of the last three presidential cycles. As CNBC's Luke Fountain reports, the state's long tradition of judging Raleigh and Washington by different rules could dampen the effect of Cooper's statewide strength.
"The question Republicans will frame this as is not whether voters liked Roy Cooper as governor," Eric Heberlig, a political scientist at the University of North Carolina at Charlotte, said. "It is whether they want another Democrat helping Chuck Schumer control the Senate."
Key Takeaways JBLU will add daily Mint flights from Fort Lauderdale to San Diego, its newest premium route. JBLU becomes the only airline offering business-class service on Fort Lauderdale-San Diego. JBLU plans roughly 150 daily Fort Lauderdale departures this winter, boosting premium capacity. JetBlue Airways’ (JBLU - Free Report) expansion of its premium Mint service from Fort Lauderdale highlights the airline’s continued focus on strengthening its presence in one of its most important growth markets. By introducing daily Mint flights to San Diego and increasing premium capacity on routes to Los Angeles and San Francisco, the company is targeting strong demand for transcontinental travel. It is also differentiating itself through a higher-end customer experience. The move further reinforces Fort Lauderdale’s role as a strategic hub for JBLU.
The addition of San Diego is particularly notable, as JetBlue will become the only airline offering a business-class product on the Fort Lauderdale–San Diego route. This unique positioning could help the carrier attract higher-yield business and leisure travelers seeking premium comfort, supporting revenue growth and improving route profitability. The expansion also demonstrates confidence in sustained travel demand between South Florida and the West Coast.
From a competitive standpoint, increasing Mint frequencies on key routes to Los Angeles and San Francisco allows JBLU to better compete with larger network carriers that dominate premium transcontinental markets. Mint has been a key differentiator for the airline, offering lie-flat seats and premium amenities while maintaining a value-oriented pricing strategy. Expanding this product on high-demand routes should strengthen customer loyalty and enhance JetBlue’s premium brand appeal.
Overall, the announcement reflects JBLU’s strategy of driving growth through targeted network expansion and premium product offerings rather than simply adding capacity. The expected increase to roughly 150 daily departures from Fort Lauderdale this winter underscores management’s commitment to the market and positions the airline to capture both leisure and business travel demand while supporting long-term revenue and margin improvement.
JBLU’s Share Price PerformanceJBLU’s shares have gained 12.8% in the year-to-date-period compared with the Transportation - Airline industry’s 2.9% growth.
Image Source: Zacks Investment Research
JBLU’s Zacks RankJBLU currently has a Zacks Rank #4 (Sell).
Stocks to ConsiderInvestors interested in the Zacks Transportation sector may consider Expeditors International of Washington, Inc. (EXPD - Free Report) and Teekay Tankers Ltd (TNK - Free Report) .
EXPD currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Expeditors has an expected earnings growth rate of 11.9% for 2026. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 13.96%.
Teekay Tankers Ltd currently sports a Zacks Rank #1.
TNK has an expected earnings growth rate of 98% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 10.2%.
U.S. Global Investors (NASDAQ:GROW) said falling oil prices are providing a boost to airline stocks, pointing to gains in Delta Air Lines and United Airlines as carriers benefit from steady travel demand and lower fuel costs.
The investment advisory firm, which specializes in gold mining stocks and the airline industry, said oil prices trading below their 50-day moving average has historically signaled easing inflationary pressure and improving cost structures, particularly in commercial aviation. That technical breach has coincided with renewed optimism around airline profitability.
"We have long believed in the resilience of global air travel and the opportunities created by commodity cycles," said Frank Holmes, CEO and Chief Investment Officer of U.S. Global Investors (NASDAQ:GROW). "When oil prices drop below the 50-day moving average, it serves as a clear positive signal for tactical investors and traders. We see genuine fundamental improvement ahead, not just short-term sentiment."
The company tracks these dynamics through its specialized funds and Smart Beta 2.0 quantitative investment strategy. Its U.S. Global Jets ETF (NYSE: JETS) provides investors exposure to the global airline industry, including airline operators, manufacturers, and online travel agencies.
Separately, U.S. Global Investors (NASDAQ:GROW)' Board of Directors approved continued payment of monthly dividends of $0.0075 per share for July, August and September 2026. Based on the company's closing share price of $2.91 on June 16, 2026, the dividend represents an annualized yield of approximately 3.1%.
Truck with a tank of kerosene of aviation fuel connected to the fuel tanks of a large aircraft airliner, refueling service of a night flight
getty
Last Monday, President Donald Trump announced that the U.S. and Iran have reached a peace deal to reopen the Strait of Hormuz, the 21-mile chokepoint through which roughly 20% of the world’s oil supply normally flows.
By mid-morning, Brent crude had dropped nearly 5% to $83 per barrel, and by Tuesday, it traded below $80 for the first time since early March. Shares of major airlines jumped on the news, led by United Airlines, which closed at a new record high. Delta Air Lines also hit a fresh all-time high.
Major airline stocks jump on news of U.S.-Iran peace deal
Bloomberg
For investors who have spent the last three-and-a-half months watching the airline sector sail through the turbulence, last week felt like confirmation of something. But confirmation of what, exactly? That’s the more interesting question.
Not All Oil Drops Are Created EqualI’ve spent over a decade analyzing the relationship between energy prices and airline stocks, and the single most important thing I’ve learned is that falling oil and rising airline stocks are not the same thing.
MORE FOR YOU
Sometimes the two are correlated. Sometimes they’re not. And the difference almost always comes down to why oil is falling.
When oil drops because the economy is contracting—the way it did after the September 11 attacks in 2001, or when the global financial system seized up in 2008—airlines don’t benefit much from cheaper jet fuel.
Why? Well, if people aren’t flying, empty seats and low fuel costs still don’t add up to a good business.
But when oil falls because the supply side normalizes—an oversupply problem, a geopolitical disruption that resolves—something different happens. Travel demand stays intact, and airlines begin pocketing the spread between what passengers are paying and what carriers are now paying for fuel.
That’s what’s happening today. Airline stocks, as measured by the NYSE Arca Airlines Index, have now erased their losses from the Iran conflict as oil prices decline and demand remains strong.
Airline stocks have erased Iran War losses on falling oil prices
Bloomberg
What a Quarter Century of Data Tells UsWorking through daily Brent crude oil prices and the NYSE Arca Airlines Index going back to January 2000, I looked at what happened to airline stocks following four major oil price crashes.
The two demand-driven crashes told a cautionary tale. After the September 11 attacks in 2001, investors who bought airlines at the oil price trough saw a modest 20% gain over three months… then gave it all back (and then some), losing 45% over the following 12 months as the travel recession ground on.
The 2008 financial crisis told a similar story. Oil fell 74%, but airlines were still down almost 40% three months after the oil trough, as collapsing consumer confidence kept seats empty. Patient investors who held on eventually saw rebounds of 47% and 62% at the 12- and 18-month marks.
What happens to airline stocks after oil bottoms?
Bloomberg
The supply-driven episodes, on the other hand, painted a completely different picture. When Saudi Arabia blocked OPEC production cuts in 2014 to defend market share, Brent crude fell 75% from peak to trough over 18 months. Airlines near the January 2016 oil price trough returned 28% over three months, 52% over 12 months, and 59% over 18 months.
Then came 2020. The pandemic crashed oil to $19 a barrel and temporarily shut down global aviation. But once the demand catalyst became visible—vaccine approval on the horizon—the recovery was historic. Buying airlines at the April 2020 oil trough returned 21% in three months and a massive 132% over the following 12 months. That was the best 12-month return for airline stocks in the 30 years of data I looked at.
Why 2026 Belongs in the Supply Shock ColumnThe war in Iran created one of the most dramatic oil supply shocks in recent memory. Iran’s retaliation sent Brent to $146 a barrel, its highest level since 2008. Airline stocks fell as fuel costs compressed margins.
Unlike past episodes, though, travel demand hasn’t collapsed. Airlines have raised airfares to offset surging fuel costs… and passengers are paying them. As someone who travels often, I’ve seen packed planes all throughout this disruption.
The 2026 episode belongs firmly in the supply shock column. It was an external disruption to fuel costs that’s now coming to an end, with passenger demand fully intact.
Why the Window Matters NowAcross numerous oil price drawdowns since 2000, the historical data shows that the strongest entry point for airline stocks was not at the start of the oil decline or during the peak of the fear. It was near the oil price trough, after the big move had already happened and the situation was stabilizing. The average 12-month return from that entry point, across all 34 episodes I counted, was 19%.
With Brent back near $80 today—still above its pre-war level of roughly $64 to $67, but well off the $146 peak—and the Strait of Hormuz reopening, we appear to be in the early phase of what history suggests could be a sustained period of margin recovery for airline stocks.
Based on what 26 years of data show about how airline stocks behave after supply shocks end with demand intact, this may well be the starting gun.
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--StandardAero, Inc. (NYSE: SARO) (“StandardAero” or the “Company”), a leading independent pure-play provider of aerospace engine aftermarket services including engine maintenance, repair and overhaul (MRO) and engine component repair, announced today that S&P Global Ratings (“S&P”) recently upgraded the Company’s credit ratings based on its investments in strategic expansion, stable margin profile, consistent top line growth as well as positive cash flow expansion.
S&P raised its issuer credit rating on StandardAero to ‘BB’ from ‘BB-,’ while simultaneously raising its issue-level ratings on the Company’s senior secured debt to ‘BB’ from ‘BB-.’
“S&P Global Ratings’ recent upgrade reflects the strength of our competitive positioning and the sustained demand we are seeing across our global MRO ecosystem,” said Dan Satterfield, Chief Financial Officer for StandardAero. “Amid ongoing capacity constraints within the industry and sustained customer demand, our differentiated platform portfolio positions us to drive long-term growth, expand profitability, and deliver robust cash generation.”
The S&P credit rating upgrade follows Moody’s announcement in May 2026 that it was upgrading StandardAero’s corporate family rating, senior secured first lien term loan B1 and B2, and senior secured revolving credit facility.
StandardAero is a leading independent pure-play provider of aerospace engine aftermarket services for fixed- and rotary-wing aircraft, serving the commercial, military and business aviation end markets. StandardAero provides a comprehensive suite of critical, value-added aftermarket solutions, including engine maintenance, repair and overhaul, engine component repair, on-wing and field service support, asset management and engineering solutions. StandardAero is an NYSE listed company under the ticker symbol SARO. For more information about StandardAero, go to www.standardaero.com.
Forward-Looking Statements
This press release contains forward-looking statements that involve substantial risks and uncertainties. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. In some cases, you can identify forward-looking statements by the words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will” or “would” and/or the negative of these terms, or other comparable terminology intended to identify statements about the future. These statements include statements regarding our intentions, beliefs or current expectations concerning, among other things, the expected impact of S&P Global Ratings’ upgraded issuer credit rating and issue-level ratings for the Company, and our results of operations, financial condition, liquidity, prospects, growth and strategies. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Factors that could cause actual results to differ materially from those forward-looking statements include, among others, risks described in our Annual Report on Form 10-K for the year ended December 31, 2025 and our other filings with the Securities and Exchange Commission. As a result of these factors, we cannot assure you that the forward-looking statements in this press release will prove to be accurate. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives or plans in any specified time frame or at all. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements. Forward-looking statements speak only as of the date of this press release. We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Key Takeaways TXN and Lam Research both benefit from AI demand, but Texas Instruments offers the better risk-reward.TXN's data center revenues surged 90% in Q1 as demand rose for power management chips.Texas Instruments trades at a lower forward P/E than Lam Research, supporting its stronger value case. Texas Instruments Incorporated (TXN - Free Report) and Lam Research Corporation (LRCX - Free Report) are both important players in the semiconductor industry, but they operate in different parts of the supply chain. Texas Instruments focuses on analog and embedded chips used across industrial, automotive and data center applications, while Lam Research provides wafer fabrication equipment that enables chipmakers to manufacture advanced semiconductors.
Both companies are benefiting from the ongoing artificial intelligence (AI)-driven technology cycle and the broader recovery in semiconductor demand. However, investors must weigh growth prospects, profitability, risks and valuation to determine which stock offers the better opportunity today.
TXN: AI Boom and Manufacturing Strength Aid Stable GrowthTexas Instruments delivered a strong start to 2026, highlighting the benefits of its broad product portfolio and manufacturing strategy. First-quarter revenues increased 19% year over year to $4.83 billion, while earnings per share (EPS) rose 31% to $1.68.
Texas Instruments is seeing rising momentum in the data center market, which has become an important growth driver for the company. It does not compete directly in high-end AI graphics processors. Instead, it supplies analog and embedded chips that are essential for data center infrastructure. These chips help manage power delivery, battery backup systems, cooling equipment, motor controls, signal conversion and server connectivity. As modern data centers become larger and more power-intensive, the need for efficient power management solutions increases.
In 2025, Texas Instruments’ data center business reached an annual run rate of about $1.2 billion, growing more than 50% year over year. In the first quarter of 2026, revenues from the data center end market surged 90% year over year and 25% sequentially. As cloud and AI workloads continue to rise, Texas Instruments’ strong portfolio and manufacturing scale position it well to benefit from sustained demand for efficient, high-performance power solutions in data center infrastructure.
One of TXN’s biggest strengths is its manufacturing advantage. The company continues expanding its 300-millimeter wafer capacity, which supports lower production costs and stronger margins over time. In the first quarter, non-GAAP gross margin expanded 120 basis points (bps) year over year to 58%, while non-GAAP operating margin improved 490 bps to 37.5%.
Texas Instruments’ guidance for the second quarter suggests that the growth trajectory remains intact. TXN calls for second-quarter 2026 revenues in the range of $5.00-$5.40 billion. The Zacks Consensus Estimate for revenues is pegged at $5.22 billion, indicating year-over year growth of 17.4%. The company expects earnings per share between $1.77 and $2.05. The Zacks Consensus Estimate for earnings is pegged at $1.90, calling for year-over year growth of 34.8%. Estimates for second-quarter 2026 earnings have been revised upward by 22.6% in the past 60 days.
Lam Research Capitalizes on AI Spending WaveLam Research continues to benefit from rising AI-driven demand across NAND, DRAM and foundry markets. During the last earnings call, the company raised its 2026 wafer fabrication equipment (WFE) spending outlook to $140 billion from $135 billion, reflecting stronger customer spending across semiconductor segments.
In the company’s last reported financial results for the third quarter of fiscal 2026, total revenues rose 23.8% year over year to $5.84 billion and beat the Zacks Consensus Estimate by 1.3%, primarily driven by continued demand across the Systems and Customer Support Business Group segments. Lam Research’s non-GAAP EPS rose 41.3% year over year to $1.47 and surpassed the consensus estimate by 8.1%.
LRCX’s biggest strength lies in etch and deposition intensity tied to advanced AI chips and high-bandwidth memory. During the last earnings call, management highlighted that AI workloads are accelerating demand for higher-layer NAND and advanced DRAM nodes, areas where Lam Research has strong technological leadership. The company expects advanced packaging revenues to grow more than 50% in calendar year 2026. Its customer support business also crossed the $2 billion quarterly revenue mark for the first time, providing recurring revenue strength.
Margins are also improving steadily. Non-GAAP gross margin increased 20 basis points (bps) sequentially to 49.9% in the third quarter, while fourth-quarter guidance points to further expansion and reach 50.5%. Non-GAAP operating margin grew 70 bps quarter over quarter to 35% and is expected to reach 36.5% in the fourth quarter, supported by manufacturing efficiencies and strong product demand.
Lam Research’s fourth-quarter guidance indicates growth momentum will continue in the near term. For the fourth quarter of fiscal 2026, LRCX expects revenues to be $6.60 billion (+/- $400 million). The Zacks Consensus Estimate for revenues is pegged at $6.65 billion, indicating year-over-year growth of 28.7%. The company expects EPS of $1.65 (+/- $0.15) for the fourth quarter. The Zacks Consensus Estimate for earnings is pegged at $1.65, suggesting year-over-year growth of 24.1%. Estimates for third-quarter fiscal 2026 earnings have been revised upward by 14.6% in the past 60 days.
Valuation Comparison: TXN Holds the EdgeWhile both companies are benefiting from the AI boom, valuation is where Texas Instruments gains a meaningful advantage. TXN currently trades at a forward P/E multiple of 36.94, lower than LRCX’s 48.82. While Lam Research’s higher multiple reflects its stronger near-term growth outlook, investors are already paying a significant premium for that growth.
Image Source: Zacks Investment Research
LRCX has clearly outperformed in 2026, with shares gaining 121.3% year to date compared with TXN’s 74.4% increase. However, the stronger rally also raises the possibility that much of the AI-driven optimism is already reflected in Lam Research’s stock price. Texas Instruments offers exposure to industrial automation, automotive electronics and data center growth while trading at a more reasonable valuation.
Image Source: Zacks Investment Research
Conclusion: TXN Seems a Better Bet Right NowBoth Texas Instruments and Lam Research remain attractive semiconductor investments with strong long-term prospects. Lam Research offers faster near-term growth and stands to benefit directly from rising semiconductor equipment spending driven by AI. However, that opportunity comes with greater exposure to industry spending cycles and a much richer valuation.
Texas Instruments offers a more balanced investment case. The company is benefiting from AI-related data center growth, strengthening industrial demand and a long-term manufacturing strategy that should continue to improve margins. Combined with its lower valuation and more diversified end markets, TXN provides a better mix of growth, stability and value. For investors seeking the stronger risk-reward opportunity today, Texas Instruments appears to be the better investment.
Texas Instruments sports a Zacks Rank #1 (Strong Buy) at present, while Lam Research carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Lam Research (LRCX - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Lam Research currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if LRCX is a promising momentum pick, let's examine some Momentum Style elements to see if this semiconductor equipment maker holds up.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For LRCX, shares are up 20.95% over the past week while the Zacks Electronics - Semiconductors industry is up 6.05% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 28.1% compares favorably with the industry's 5.39% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Over the past quarter, shares of Lam Research have risen 60.28%, and are up 305.66% in the last year. On the other hand, the S&P 500 has only moved 11.07% and 25.39%, respectively.
Investors should also take note of LRCX's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now LRCX is averaging 10,123,531 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with LRCX.
Over the past two months, 13 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost LRCX's consensus estimate, increasing from $5.30 to $5.70 in the past 60 days. Looking at the next fiscal year, 11 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that LRCX is a #2 (Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Lam Research on your short list.
On June 18, 2026, Lam Research Corp LRCX shares rose 4.0% to $389.04, continuing a strong performance with a year-to-date increase of 127.7%. The stock has fluctuated between a 52-week low of $87.75 and a high of $401.00 in the past year, showcasing significant volatility.
GF Value™ verdict: Current price of $389.04 is 199.9% overvalued compared to the GF Value™ of $129.74.GF Score™ of 85/100 indicates a strong overall performance, suggesting robust financial health and growth potential.Insider activity shows that insiders sold $47.7M worth of shares in the last 3 months, indicating a lack of buying interest from those closer to the company. Is LRCX Overvalued or Undervalued? According to GuruFocus, Lam Research Corp LRCX is currently assessed as significantly overvalued, with a GF Value™ of $129.74. This valuation suggests a daunting 199.9% margin of overvaluation based on the current share price of $389.04. The disparity signifies that the market price may not be supported by the company's intrinsic value, posing a risk for potential investors. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
The significant gap between the current price and GF Value™ indicates that LRCX is trading at levels that may not be sustainable, especially in light of the stock's recent price rally. Investors should be cautious, as this overvaluation may lead to a correction if the market realigns with the company's intrinsic value. With a prevailing GF Valuation label of "Significantly Overvalued," the current price raises concerns about the sustainability of future growth and profitability.
How Does LRCX's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 73.4x 23.2x Forward P/E 49.1x N/A The current P/E (TTM) of 73.4x is significantly above its 5-year median P/E of 23.2x, reflecting a 217% increase. This analysis aligns with the GF Value™ verdict that suggests overvaluation, as the stock is trading well above its historical valuation metrics. Such a high P/E ratio indicates that the market has high expectations for future growth, which may not be justified given the company’s current financial standing.
What Does LRCX's GF Score™ Tell Us? Metric Rating GF Score™ 85/100 Financial Strength 8/10 Profitability 10/10 Growth 10/10 Valuation 1/10 Momentum 6/10 The GF Score™ of 85/100 reflects strong performance across several key dimensions. Notably, Lam Research Corp boasts perfect scores in Profitability and Growth, indicating robust financial performance and bright growth prospects. However, its Valuation score of 1/10 is a significant red flag, highlighting that the current stock price is not justified based on historical valuation metrics. This discrepancy suggests that while the company has strong fundamentals, the market price does not reflect its true value.
What Are Insiders Doing with LRCX Stock? In the past three months, insiders have sold $47.7 million worth of LRCX shares, with no reported buying activity. This trend of selling by insiders can be interpreted as a lack of confidence in maintaining the current stock price levels, potentially indicating that they believe the stock is overvalued. Insider selling often raises concerns among investors, as it may suggest that those with the most knowledge of the company are not optimistic about its near-term prospects.
What This Means for Investors Based on the analysis, Lam Research Corp LRCX is currently deemed overvalued according to the GF Value™ metric. The disparity between its market price and intrinsic value underscores the risks associated with current investment levels. Investors may wish to exercise caution due to the substantial overvaluation and the recent insider selling trends.
For the complete analysis, visit the Lam Research Corp LRCX 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 LRCX's GF Score™?
LRCX has a GF Score™ of 85/100, indicating a strong overall performance based on key financial metrics.
Is LRCX overvalued or undervalued?
LRCX is currently overvalued, with a GF Value™ of $129.74 compared to its current price of $389.04.
What is LRCX's P/E ratio?
LRCX has a P/E (TTM) ratio of 73.4x, which is significantly above its 5-year median P/E of 23.2x, suggesting a substantial overvaluation based on historical metrics.
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].
Lam Research (LRCX) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions could translate into further price increase in the near term.
Lam Research Corporation (LRCX) is up over 321% in a year as institutions buy big.
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LRCX designs, manufactures, and sells semiconductor processing equipment used to fabricate integrated circuits needed for AI and other applications. In its third-quarter fiscal 2026 earnings report, the company showed quarterly revenue of $5.84 billion (a 24% year-over-year gain), diluted per-share earnings of $1.47 (above the high end of guidance), and offered midpoint quarterly revenue and earnings guidance of $6.6 billion and $1.65, respectively.
No wonder LRCX shares are up 119% so far this year – and they could rise more. MoneyFlows data shows how Big Money investors are again betting heavily on the stock.
Institutions Love Lam Research Institutional volumes reveal plenty. In the last year, LRCX has enjoyed strong investor demand, which we believe to be institutional support.
Each green bar signals unusually large volumes in LRCX shares. They reflect our proprietary inflow signal, pushing the stock higher:
Source: www.moneyflows.com Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Lam Research.
Lam Research Fundamental Analysis Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, LRCX has had strong sales and earnings growth:
Also, EPS is estimated to ramp higher this year by +41.4%.
Now it makes sense why the stock has been generating Big Money interest. LRCX has a track record of strong financial performance.
Marrying great fundamentals with MoneyFlows software has found some big winning stocks over the long term.
Lam Research has been a top-rated stock at MoneyFlows for years. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
It’s made 199 appearances on the rare Outlier 20 report since August 1993 and is up 44,696% in that time. Big Money is still buying though – the blue bars below show when LRCX was a top pick in the last three years…institutional support drives gains:
Source: www.moneyflows.com Tracking unusual volumes reveals the power of money flows.
This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.
Lam Research Price Prediction The LRCX action isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author owns LRCX in personal and managed accounts at the time of publication.
If you are a Registered Investment Advisor (RIA) or a serious investor, learn how institutional trading flows can take your investing to the next level.
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Lucas is a well-versed equity investor and educator. He currently is co-founder of research and analytics firm, MAPsignals.com, which focuses on finding outlier stocks by following the Big Money.
I'm rating Lam Research (LRCX) a Strong Buy rating with a $497 price target, implying 28% upside from $389. My growth drivers are AI-driven WFE and SAM expansion, NAND conversion spending, DRAM and HBM-related deposition intensity, advanced packaging growth, and CSBG services. Together, I estimate these growth drivers can add about $1.11 of incremental EPS and drive the Forward non-GAAP EPS to $7.26.
Investors interested in Transportation stocks should always be looking to find the best-performing companies in the group. CSX (CSX - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Transportation sector should help us answer this question.
CSX is one of 99 individual stocks in the Transportation sector. Collectively, these companies sit at #3 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. CSX is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for CSX's full-year earnings has moved 2.9% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, CSX has moved about 29.4% on a year-to-date basis. At the same time, Transportation stocks have gained an average of 15.2%. This means that CSX is outperforming the sector as a whole this year.
Another stock in the Transportation sector, EuroDry (EDRY - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 97.9%.
For EuroDry, the consensus EPS estimate for the current year has increased 29.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, CSX belongs to the Transportation - Rail industry, a group that includes 9 individual stocks and currently sits at #187 in the Zacks Industry Rank. This group has gained an average of 18.2% so far this year, so CSX is performing better in this area.
EuroDry, however, belongs to the Transportation - Shipping industry. Currently, this 22-stock industry is ranked #62. The industry has moved +40.7% so far this year.
Going forward, investors interested in Transportation stocks should continue to pay close attention to CSX and EuroDry as they could maintain their solid performance.
Key Takeaways CSX shares gained 45.5% in a year, outperforming the rail industry's 18.2% growth. CSX could benefit from the upgraded SMX service through stronger cross-border freight connectivity. CSX expanded rail-served facilities, raised its dividend 8% and saw higher 2026 and 2027 estimates. CSX (CSX - Free Report) shares have performed impressively on the bourse of late. Shares of this Jacksonville, FL-based company have surged 45.5% over the past year, outperforming the Zacks Transportation - Rail industry’s 22.5% growth.
Image Source: Zacks Investment Research
Given the impressive price performance, let's take a deeper look at the factors driving growth at this leading rail-based freight transportation service provider, which currently carries a Zacks Rank #2 (Buy), and assess its potential for continued gains. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CSX and Canadian Pacific Kansas City (CP - Free Report) are expected to benefit from the upgraded Southeast Mexico Express (“SMX”) service, as faster transit times, expanded market access and improved network efficiency are introduced. Backed by infrastructure investments, cross-border connectivity between the U.S. Southeast, Texas and Mexico is expected to be strengthened, potentially driving additional freight volumes and supporting long-term growth.
Similarly, Schneider National (SNDR - Free Report) , a premier provider of transportation, intermodal and logistics services, has already benefited from the SMX corridor. The enhanced service offers more reliable, truck-like transit times between Texas, Mexico and the U.S. Southeast, strengthening rail's competitiveness against trucking while providing greater capacity and efficiency for shippers.
CSX continued to broaden its growth opportunities by adding 85 new or expanded rail-served facilities and maintaining a robust pipeline of customer development projects across its network. At the end of 2025, the company also broadened its market reach through new intermodal and interchange agreements while returning $2.4 billion to shareholders through dividends and share repurchases. An 8% dividend increase, combined with ongoing investments in artificial intelligence and predictive analytics, highlights management's confidence in the company's long-term growth, productivity and cash-generation potential.
The company also delivered notable improvements in safety and service performance at the end of 2025. Its FRA personal injury frequency index improved to 0.94, while its train accident rate improved to 3.08, reflecting a strong focus on employee safety and operational discipline. Network performance metrics, including train velocity, terminal dwell and trip-plan performance, also improved throughout the second half of 2025, providing a stronger foundation for service reliability, customer satisfaction and future commercial growth.
Estimate Revisions to Head NorthDriven by the positives discussed above, the Zacks Consensus Estimate for the full-year 2026 and 2027 has been revised upward by 3.26% and 3.37%, respectively, over the past 60 days.
JACKSONVILLE, Fla., June 22, 2026 (GLOBE NEWSWIRE) -- CSX Corp. (NASDAQ: CSX) will release first quarter financial and operating results after the market close on Wednesday, July 22, 2026. This will be followed by a conference call and live webcast hosted by the company’s management team at 4:30 p.m. ET.
Those interested in participating via teleconference may dial 1-888-510-2008. Callers outside the U.S. may dial 1-646-960-0306. Participants should dial in 10 minutes prior to the call and use 3368220 as the passcode.
Presentation materials and access to the webcast will be available on the company’s website at investors.csx.com. Following the earnings call, a webcast replay will be archived on the company’s website.
About CSX
CSX, based in Jacksonville, Florida, is a premier transportation company. It provides rail, intermodal and rail-to-truck transload services and solutions to customers across a broad array of markets, including energy, industrial, construction, agricultural and consumer products. For nearly 200 years, CSX has played a critical role in the nation’s economic expansion and industrial development. Its network connects every major metropolitan area in the eastern United States, where nearly two-thirds of the nation’s population resides. It also links approximately 250 short-line railroads and more than 70 ocean, river and lake ports with major population centers and farming towns alike. More information about CSX Corporation and its subsidiaries is available at www.csx.com. Like us on Facebook and follow us on X, formerly known as Twitter.
Contact:
Matthew Korn, CFA, Investor Relations
904-366-4515
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +24% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Workday (WDAY - Free Report) Founded in 2005 and headquartered in Pleasanton, CA, Workday Inc. (WDAY - Free Report) is a provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system that makes it easier for organizations to provide analytical insights and decision support.
WDAY is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 11.76; value investors should take notice.
Eight analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.21 to $10.78 per share. WDAY boasts an average earnings surprise of +7.2%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, WDAY should be on investors' short list.
Certification validates seamless, real-time payment integration with Workday, reducing reconciliation burden and improving revenue visibility for governments and utilities
ATLANTA & TORONTO--(BUSINESS WIRE)--Euna Solutions, the leading provider of purpose-built cloud solutions for the public sector, today announced that its Euna Payments has earned the Workday Certified Integration Badge and is now listed on the Workday Marketplace. The certification confirms that Euna Payments can post payments directly into Workday in real time, helping agencies drive more on-time payments by meeting constituents where they are, whether it’s online, in person, or with cash. At the same time, it automates posting and simplifies reconciliation across every channel, department, and system.
“With Workday as the system of record and Euna Payments handling public sector payment collection, organizations can see revenue as it happens—across every department and channel,” said Adam Roth, VP of Partnerships and Government.
Share “With Workday as the system of record and Euna Payments handling public sector payment collection, organizations can see revenue as it happens—across every department and channel—without adding complexity,” said Adam Roth, VP of Partnerships and Government Relations at Euna Solutions. “For governments and utilities, where constituent payments fund essential services, real-time accuracy is mission-critical. This integration gives finance teams instant visibility, stronger controls, and confidence in their numbers, while eliminating manual reconciliation and after-the-fact cleanup.”
Public sector payment collection often occurs across fragmented tools and vendors. This disconnect can introduce reporting risks, increase audit complexity, strain staff, and delay revenue visibility. The certified integration between Euna Payments and Workday directly addresses these structural challenges by ensuring payment collection is no longer disconnected from financial reporting.
With this certification, payments collected through Euna Payments are updated in real time via APIs across GL, accounts receivable, source systems, and bank accounts. As a result, finance teams gain immediate, accurate visibility into revenue without relying on spreadsheets or delayed reporting cycles.
For Workday customers, the certified integration delivers measurable operational and financial benefits:
Real-Time Revenue Visibility: Payments automatically map to the correct GL codes and post directly into Workday, giving finance teams instant visibility across departments and payment channels. Significant Reduction in Manual Reconciliation: Spreadsheet-based reporting and weekly or monthly GL reclassification are eliminated, significantly reducing staff time spent correcting entries. Purpose-Built for Public Sector Complexity: A single platform supports multi-department, multi-channel environments, including centralized cashiering, kiosks, and online payments, designed specifically for municipalities, counties, and utilities. Reduced Risk and Offloaded PCI Compliance: As a PCI Level-1 compliant provider with SOC certifications, Euna Payments reduces the payment security burden from internal IT teams. Increased Adoption and On-Time Payments: 24/7 kiosks, centralized cashiering, and city-branded online payment experiences expand access, improve adoption, and support on-time payments across resident preferences. Euna Payments serves more than 38 million constituents and maintains zero data breaches, reinforcing its focus on reliability, security, and scale for government and utility organizations. For more information, visit eunasolutions.com/solutions/payments.
About Euna Solutions
Euna Solutions® is the leading provider of purpose-built, cloud-based software designed to streamline procurement, budgeting, payments, and grants management for public sector and government organizations. Euna's AI-powered features and intelligent automation help organizations make better-informed decisions, ensure compliance, empower collaboration, and reduce administrative burden. Euna's full-cycle financial suite supports more than 3,600 organizations across North America in building trust, enabling transparency, and driving positive community impact. Recognized on Government Technology’s GovTech 100 list, Euna Solutions is committed to advancing public sector innovation. To learn more, visit www.eunasolutions.com.
Item 1 of 2 The logo of Workday is seen at the entrance of the company's temporary stand ahead of the World Economic Forum (WEF) in Davos, Switzerland January 18, 2025. REUTERS/Yves Herman
[1/2]The logo of Workday is seen at the entrance of the company's temporary stand ahead of the World Economic Forum (WEF) in Davos, Switzerland January 18, 2025. REUTERS/Yves Herman Purchase Licensing Rights, opens new tab
CompaniesJune 22 (Reuters) - Workday (WDAY.O), opens new tab must face claims that its popular AI-powered human resources software weeded out job applicants at other companies in ways that violated California law and a federal ban on discrimination against workers with disabilities, a federal judge ruled on Monday.
U.S. District Judge Rita Lin in San Francisco rejected California-based Workday's claim that the state's anti-discrimination laws do not apply when it screens people based outside California who are applying for jobs in other states and countries.
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The proposed class action filed in 2023 is the first of its kind to broadly target the algorithmic decision-making underpinning AI screening software that has become very common among large employers, and could help shape how such litigation is conducted.
Lin first rejected Workday's attempts to dismiss the case in 2024, and on Monday mostly denied the company's bid to toss out recent amendments to the lawsuit. She said that because Workday allegedly participated in unlawful conduct from its California headquarters, it could be held liable for discrimination under state law.
The judge also refused to dismiss a claim that Workday's software can weed out job applicants based on "proxy indicators" of disabilities and illness, such as gaps in someone's employment history, in violation of the federal Americans with Disabilities Act.
Lin dismissed a claim that Workday's software discriminated against Asian American job applicants, saying the plaintiffs did not follow the proper procedure to add it to the lawsuit. The plaintiffs separately allege that Workday discriminated against Black job seekers, women and people older than 40.
Workday and lawyers for the plaintiffs did not immediately respond to requests for comment.
Numerous surveys have found that more than 80% of U.S. employers, and virtually all Fortune 500 companies, are utilizing AI tools such as those made by Workday in the hiring process. Government agencies and worker advocates have expressed concerns that AI tools can discriminate against job applicants when they are built using data that reflects existing biases.
But there has been little litigation so far over employers' use of the tools, which experts have said could be due to many job applicants not knowing when employers use AI software and the complexities of suing over cutting-edge technology.
Reporting by Daniel Wiessner in Albany, New York; Editing by Alexia Garamfalvi and Aurora Ellis
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Dan Wiessner (@danwiessner) reports on labor and employment and immigration law, including litigation and policy making. He can be reached at [email protected].
Key Takeaways Zacks Thematic Investing screens help you sort through the noise and find the specific exposure you seek. There are more than 30 screens available that cover a broad array of themes, including AI. The AI screen returned several top-ranked stocks, including DELL and CSCO. For investors with confidence in a specific market niche, Zacks Thematic Investment Screens has you covered with 37 dynamic investment themes. Whether you're interested in cutting-edge technology, renewable energy, or healthcare innovations, our themes are built to help you sort through the noise quickly and find the stocks that offer exposure to the trends you seek.
Let’s take a closer look at the Artificial Intelligence theme and analyze a few top-ranked stocks that the screen returned, namely Dell Technologies (DELL - Free Report) and Cisco Systems (CSCO - Free Report) .
Artificial Intelligence Screen
The Zacks Artificial Intelligence thematic screen features a diverse set of companies involved in the AI frenzy, ranging from creators of software and hardware that power AI to those applying and utilizing the technology through automation, diagnostics, cognitive tasks, and more.
DELL Raises AI OutlookDell Technologies posted robust results in its latest release, delivering a double beat relative to Zacks Consensus estimates and reporting rock-solid growth. Sales were up by an impressive 88% YoY, whereas adjusted EPS was up more than 200% from the same period last year.
Red-hot demand stemming from the AI frenzy led to record-breaking results, with DELL booking $24.4 billion in AI orders and recognizing $16.1 billion of AI server revenue. It also increased its AI server revenue expectations for FY27 to $60 billion, further underscoring how strong the demand picture has become for the company.
The stock sports the highly coveted Zacks Rank #1 (Strong Buy) thanks to positive EPS revisions fueled by the demand outlook, with EPS revisions showing notably bullish action.
Image Source: Zacks Investment Research
Cisco Breaks RecordsCisco Systems similarly posted record-breaking results in its latest release, with sales of $15.8 billion reflecting a record for the company while also exceeding the high end of its prior guidance.
Cisco noted broad-based, record-high demand for its technology in the earnings release, with overall product orders growing by 35% YoY. Importantly, data center switching orders grew 40% from the year-ago period, helping reflect its important and growing role amid the buildout.
Bullish EPS revisions across the board have landed the stock as a Zacks Rank #2 (Buy), keeping the stock’s near-term outlook bright.
Image Source: Zacks Investment Research
Bottom Line
While stocks in each theme aren't direct recommendations, they offer a solid starting point. Leverage the Zacks Rank and other metrics to identify the best stocks for your strategy. Each featured stock comes with a Zacks report, giving you the tools to analyze performance and potential.
For those interested in viewing the full list of Thematic Investing Screens, please click here >>> Thematic Investing Screens – Zacks Investment Research.
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Dell Technologies (DELL - Free Report) , which currently has a Momentum Style Score of A. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Dell Technologies currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if DELL is a promising momentum pick, let's examine some Momentum Style elements to see if this computer and technology services provider holds up.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For DELL, shares are up 0.3% over the past week while the Zacks Computer - Micro Computers industry is down 1.42% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 71.76% compares favorably with the industry's 17.07% performance as well.
While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of Dell Technologies have increased 128.41% over the past quarter, and have gained 248.55% in the last year. On the other hand, the S&P 500 has only moved 12.48% and 26.22%, respectively.
Investors should also pay attention to DELL's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. DELL is currently averaging 12,085,663 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with DELL.
Over the past two months, 9 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost DELL's consensus estimate, increasing from $12.83 to $18.66 in the past 60 days. Looking at the next fiscal year, 8 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that DELL is a #1 (Strong Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Dell Technologies on your short list.
Dell Technologies DELL declared a quarterly dividend of $0.63 per share, keeping its payout unchanged from the previous quarter as the company continues returning cash to shareholders.
The dividend will be paid on July 31 to shareholders of record as of July 21, with the stock trading ex-dividend on July 21. At current levels, the payout represents a forward dividend yield of about 0.62%.
While the announcement does not change Dell's capital return strategy, it signals management's confidence in maintaining shareholder distributions as the company navigates strong demand tied to AI infrastructure, servers and enterprise technology spending. The latest declaration marks the second consecutive quarter that Dell has paid a $0.63 dividend.
dividend announcements are rarely major catalysts on their own, especially for lower-yielding technology companies. Still, a stable payout can reinforce confidence in cash flow generation and capital allocation discipline.
ToplineDell Technologies chief Michael Dell overtook Oracle co-founder Larry Ellison as the world’s fifth-wealthiest person Wednesday, benefiting from Dell’s positive day of trading as Oracle shares tumbled.
Dell's estimated net worth reached $234 billion.
Photo by SAUL LOEB / AFP via Getty Images
Key FactsDell’s estimated net worth increased 3.3% on Wednesday to $234 billion, according to Forbes’ real-time billionaires list, as Dell Technologies shares closed up 3.7% on the day.
Dell is now positioned behind Amazon co-founder Jeff Bezos ($248 billion) on the billionaires list.
Ellison’s estimated net worth dropped 2.5% on Wednesday to $230.8 billion as Oracle’s stock closed down 2.6% at $183.48.
Oracle shares have plummeted since they reached their highest point of the year ($248.15) on June 1.
Dell’s shares have traded positively since it crushed expectations in its late May earnings report.
WHO’S STILL WEALTHIER THAN DELL?In addition to Bezos, Google co-founders Sergey Brin and Larry Page, as well as Tesla chief Elon Musk remain ahead of Dell. Brin’s estimated net worth fell to $274.1 billion as Page’s dropped to $297.2 billion. Musk’s wealth has skyrocketed to unprecedented highs following a historic IPO for his aerospace firm, SpaceX, which has since sent his net worth to an estimated $1.3 trillion.
Key BackgroundDell’s roughly 40% stake in his company has propelled his surge in net worth. Dell Technologies’ stock has climbed well over 200% since the start of the year, when shares traded around the $127 mark. Dell has benefited from explosive AI server demand during the AI boom. The company reported 88% year-over-year revenue growth in its latest quarter, logging a 757% increase in AI server revenue from the year prior. Dell expects AI revenue to reach $60 billion this year, up from its previous estimate in February of $50 billion.
Further ReadingMichael Dell’s Net Worth Surges Up $35 Billion From Dell’s Best Day Ever—Passing Zuckerberg As 6th Richest (Forbes)
The Magnificent Seven stocks dominate AI headlines, but the most interesting institutional positioning is happening one rung down the supply chain. The companies actually building, wiring, and connecting the AI factories trade at a fraction of the attention, despite reporting revenue growth that puts the mega caps to shame.
Three names stand out in June: a contract manufacturer, an enterprise server giant and a connectivity silicon designer. All three have raised guidance, beaten estimates and quietly compounded while retail flow chased flashier tickers.
Here is the case for each.
Celestica (CLS) Celestica (NYSE:CLS | CLS Price Prediction) is a Toronto-headquartered, US-listed electronics manufacturing services firm that has quietly become a pure-play AI data center infrastructure name. The market cap sits near $44.58 billion, and the stock is up 222% over the past year and 36% year to date.
The Q1 FY26 report on April 27, 2026 delivered revenue of $4.05 billion, up 53% year over year, with adjusted EPS of $2.16 versus the $2.08 estimate, the fourth consecutive EPS beat. The Connectivity & Cloud Solutions segment grew 76% year over year to $3.24 billion. Management raised the 2026 outlook to $19.0 billion in revenue and $10.15 in adjusted EPS, with CEO Rob Mionis stating, “Our outlook for 2027 also continues to strengthen.”
The bull case is simple. Celestica won a co-packaged optics Ethernet switch program with a hyperscaler customer on 1.6T silicon, ramping in 2027. Sentiment scoring across news and social channels reads bullish at 65.29 with medium confidence.
The caveat: customer concentration is extreme. The top three customers represented 36%, 15%, and 12% of Q4 revenue. A single hyperscaler order cut would hit hard.
Dell Technologies (DELL) Dell Technologies (NYSE:DELL) is the under-the-radar AI play hiding in plain sight. Market cap sits near $132.85 billion, the stock trades around $408.84, and it carries a P/E of roughly 22 with a dividend yield near 1%. The shares are up 279% over the past year and 227% year to date.
The Q1 FY27 report on May 28, 2026 was a blowout. Revenue of $43.84 billion grew 88% year over year, beating the $35.77 billion estimate. Non-GAAP EPS of $4.86 crushed the $2.96 consensus. AI-optimized server revenue hit $16.13 billion, up 757% year over year, with $24.4 billion in AI orders booked in the quarter. Dell raised its FY27 outlook to $165 billion to $169 billion in revenue, AI server revenue near $60 billion, and non-GAAP EPS of $17.90 at the midpoint.
The thesis: Dell is the largest enterprise AI server vendor by scale, sitting on a $43 billion AI server backlog entering FY27 after booking $64 billion in FY26 AI orders. Management returned $2.1 billion to shareholders in Q1 on the back of a 20% dividend increase and a $10 billion buyback authorization. At a forward earnings multiple in the low 20s on triple-digit AI growth, the valuation looks restrained.
The risk: gross margin compressed to 18% from 21% as the mix shifted toward lower-margin AI servers. Dell is converting revenue at thinner profitability than legacy ISG.
Astera Labs (ALAB) Astera Labs (NASDAQ:ALAB) is the connectivity silicon designer most retail investors still cannot place. Market cap sits near $63.61 billion, with analyst coverage skewing constructive: seven Strong Buy ratings, 11 Buy ratings, eight Hold ratings and zero Sell ratings. The stock is up 334% over the past year.
The Q1 FY26 report on May 5, 2026 showed revenue of $308.36 million, up 93% year over year and 14% sequentially, with non-GAAP EPS of $0.61 versus the $0.54 estimate. That marks four consecutive EPS beats. GAAP gross margin expanded to 76%. Q2 guidance calls for $355 million to $365 million in revenue and $0.68 to $0.70 in EPS.
CEO Jitendra Mohan framed the runway: “We believe the opportunity ahead is significant, and we are investing to be a leader for rack-scale AI technologies in close partnership with our customers.” The newly launched Scorpio X-Series 320-lane Smart Fabric Switch targets a merchant scale-up market projected at $20 billion by 2030, with production ramping in the second half of 2026.
The caveat: Q2 gross margin guides to roughly 73% as new switch products ramp, and the stock trades at a forward earnings multiple of 132. Beta of 3.963 means any AI capex wobble gets amplified violently in the share price.
What to watch next The common thread across all three is hyperscaler CapEx. PineBridge estimates datacenter equipment growth is essentially locked in for the next four to five years at around 25% annually, constrained more by electrical infrastructure than demand. If that holds, Celestica, Dell, and Astera Labs are positioned where the capital actually lands. The next catalysts: Dell’s Q2 FY27 report, Celestica’s CPO program ramp commentary, and Astera Labs’ Scorpio X-Series production milestones in the second half of 2026.
The Zacks Computer – Micro Computers industry players like Apple (AAPL - Free Report) and Dell Technologies (DELL - Free Report) are benefiting from steady demand for enterprise devices, including laptops, tablets and smartphones. The improving availability of 5G-enabled smartphones has been a key catalyst for industry participants. The launch of foldable and artificial intelligence (AI) and machine learning-infused smartphones, tablets, wearables, hearables and PCs is a major growth driver for industry participants. However, waning demand for consumer PCs is a headwind. Heightened geopolitical challenges post-U.S. President Donald Trump’s decision to levy tariffs on trade partners are expected to hurt industry participants. Weak demand in China has been a headwind.
Industry Description The Zacks Computer – Micro Computers industry comprises companies that offer smartphones, desktops, laptops, printers, wearables and 3-D printers. Such devices are based on either iOS, MacOS, iPadOS, WatchOS, Microsoft Windows, or Google Chrome and Android operating systems. The companies predominantly use processors from Apple, Intel, AMD, Qualcomm, NVIDIA and Samsung. Expanding screen size, better display and enhanced storage capabilities have been the key catalysts driving the rapid proliferation of smartphones. This has been well-supported by faster mobile processors. Laptops, both consumer and commercial, benefit from faster processors, sleek designs and expanded storage facilities. The addition of healthcare features has been driving the demand for wearables.
3 Micro Computer Industry Trends to Watch Enterprise Adoption Remains Healthy: Strong enterprise demand has been benefiting the industry participants. The growing adoption of a hybrid working environment bodes well for the players, as demand for laptops and tablets is expected to increase. Demand for smart devices that offer facial recognition, retina scans or finger impressions to verify the user for biometrics is gaining traction as enterprises enhance security.
Impressive Form Factor Drives Demand: Expanding screen size, better display and enhanced storage capabilities have been the key catalysts driving the rapid proliferation of smartphones and tablets. This has been well-supported by faster mobile processors from Qualcomm, NVIDIA, Apple and Samsung. Improved Internet penetration and speed, along with the evolution of mobile apps, have made smartphones indispensable for consumers. Improved graphics quality is making smartphones suitable for playing sophisticated games. This is driving the demand for high-end smartphones and opening up significant opportunities for device makers.
AI-enabled PCs to Boost Demand: Personal computers (desktops and laptops), be they Windows or Apple’s MacOS-based ones, are expected to benefit from AI infusion. The addition of neural processing units (NPUs), which are dedicated units to manage AI-related tasks, in PCs is a driving demand for AI-enabled devices. AMD, Qualcomm and Intel offer NPU chips with OEMs such as ASUS, Acer, Lenovo, Microsoft, HP and others building these AI-enabled devices. Canalys expects AI-capable PC shipments to make up 50% of PC shipments in 2026. This offers significant growth opportunities for industry participants.
Zacks Industry Rank Indicates Bright Prospect The Zacks Computer – Micro Computers industry is housed within the broader Zacks Computer and Technology sector. It carries a Zacks Industry Rank #24, which places it in the top 10% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bullish near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s position in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group’s earnings growth potential. Since Dec. 31, 2025, the Zacks Consensus Estimate for this industry’s 2026 earnings has moved north by 9.3%.
Given the bright outlook, there are a number of stocks worth watching in the industry. But before we present those stocks, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Outperforms Sector and S&P 500 The Zacks Computer – Micro Computers industry has outperformed the broader Zacks Computer and Technology sector, as well as the S&P 500, over the past year.
The industry has appreciated 55.6% over this period compared with the S&P 500’s return of 27.7% and the broader sector’s appreciation of 44.4%.
One-Year Price Performance
Industry's Current Valuation On the basis of forward 12-month P/E, which is a commonly used multiple for valuing computer stocks, we see that the industry is currently trading at 30.51X compared with the S&P 500’s 21.34X and the sector’s 24.68X.
Over the last five years, the industry has traded as high as 33.12X and as low as 25.78X, with the median being 29.2X, as the chart below shows.
Forward 12-Month Price-to-Earnings (P/E) Ratio
2 Computer Stocks to Watch Right Now Dell Technologies: This Zacks Rank #1 (Strong Buy) company is benefiting from strong demand for AI servers, driven by ongoing digital transformation and heightened interest in generative AI applications. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the first quarter of fiscal 2027, Dell Technologies booked $24.4 billion of AI orders, delivered $16.1 billion of AI server revenues, and ended with a $51.3 billion AI backlog. Management raised fiscal 2027 revenue guidance to $165-$169 billion and lifted expected AI server revenue to about $60 billion.
The Zacks Consensus Estimate for fiscal 2027 earnings has increased 45.2% to $18.66 per share over the past 30 days. The stock has appreciated 233.1% year to date.
Price and Consensus: DELL
Apple: This Zacks Rank #3 (Hold) company expects June quarter (third-quarter fiscal 2026) revenue growth in the mid-teens, with Services rising at a similar pace after adjusting for foreign exchange. New products such as iPhone 17e and MacBook Neo, plus Apple Business, can expand ecosystem engagement over time.
Apple continues to return cash through dividends and buybacks, which can support the stock when operating results hold up. At the same time, supply constraints, higher component costs and an uncertain tariff backdrop can weigh on availability and margins.
The Zacks Consensus Estimate for fiscal 2026 earnings has increased by a penny to $8.75 per share over the past 30 days. The stock has appreciated 8.8% year to date.
An updated edition of the April 29, 2026, article.
Artificial Intelligence (AI) is driving digital transformation by enabling machines to analyze vast datasets, identify patterns, and make intelligent decisions. Rapid advancements in generative AI, Agentic AI, multimodal learning, and high-performance computing technologies enabled by innovations in GPUs and Tensor Processing Units (TPUs) are accelerating digital transformation across industries. AI is transforming healthcare, finance, robotics, cybersecurity, and e-commerce through capabilities powered by machine learning, deep learning and natural language processing. From chatbots and medical diagnostics to fraud detection and autonomous systems, AI enhances operational efficiency, improves decision-making, increases agility, and creates new opportunities for growth and innovation.
Per Gartner, global AI spending is expected to hit $2.596 trillion in 2026, indicating 47% growth over 2025. U.S. tech giants, including Microsoft, Alphabet (GOOGL - Free Report) and Meta Platforms, have been at the forefront of bringing remarkable advances to AI technology, well supported by powerful AI chips and custom accelerators from NVIDIA, AMD, Broadcom and Micron Technology (MU - Free Report) . Growing demand for AI infrastructure, including servers and storage, is benefiting companies like Dell Technologies (DELL - Free Report) and Hewlett Packard Enterprise (HPE - Free Report) .
Enterprise-focused AI agents continue to gain traction across productivity, software development, customer service and business automation applications. Generative AI adoption is expanding across enterprises and government organizations. Latest AI model releases are focusing on improved reasoning, coding assistance, multimodal understanding and safety. Alphabet unveiled Gemini 3.5 Flash and Gemini Omni at its I/O 2026 conference, introducing enhanced multimodal capabilities, AI agents, and deeper AI integration across Search, Workspace and Android ecosystems.
We believe that the rapid deployment of AI technology and huge spending on its development efforts offer significant growth opportunities for investors. Our Artificial Intelligence Screen is an invaluable source for identifying AI stocks with massive growth prospects.
Explore 37 cutting-edge investment themes with Zacks Thematic Investing Screens and uncover your next big opportunity.
3 AI Stocks to Buy Right NowMicron Technology is benefiting from surging demand for high-bandwidth memory (HBM) and robust DRAM pricing recovery. This Zacks Rank #1 (Strong Buy) company is capitalizing on the AI boom with its HBM3E solutions, which are increasingly being adopted by major hyperscalers and enterprise customers. You can see the complete list of today’s Zacks #1 Rank stocks here.
Micron’s strong order book is a key catalyst. The company has already sold out its HBM supply for the calendar year 2026, while a significant portion of 2027 production is already committed through long-term customer agreements. This favorable supply-demand environment is supporting higher pricing and stronger margins. As hyperscalers expand AI data centers and enterprises deploy advanced AI workloads, Micron remains one of the most direct beneficiaries of the growing AI memory market.
The ongoing momentum in the DRAM market is a major tailwind for Micron. DRAM revenues accounted for more than 79% of Micron's total sales in the second quarter of fiscal 2026 and increased 74% sequentially, driven by growth in DRAM shipments and continued improvement in pricing. The pricing rebound, coupled with cost efficiencies, will boost the gross margin.
Dell’s prospects benefit from rising AI revenues. In the first quarter of fiscal 2027, the company booked $24.4 billion in AI orders, highlighting customers’ urgency to secure supply for large-scale deployments. DELL’s management now expects fiscal 2027 revenues between $165 billion and $169 billion (up 47% year over year at the mid-point) and guided to non-GAAP earnings of $17.90 per share (plus or minus 25 cents). The company also increased its fiscal 2027 AI-optimized server revenue expectation to roughly $60 billion, signaling confidence in continued AI infrastructure momentum through the year.
This Zacks Rank #1 company’s prospects ride on strong AI infrastructure demand, broad-based growth beyond AI servers, enterprise refresh cycles and data-center modernization. DELL’s AI infrastructure solutions are gaining traction among enterprises, sovereign entities and next-generation cloud providers, with the company serving more than 5,000 AI customers globally. Dell has become a key supplier of AI-optimized servers and data center solutions, benefiting from surging enterprise demand for AI training and inference workloads.
Dell’s partnerships with leading chipmakers, including NVIDIA, allow it to deliver high-performance AI systems that enterprises increasingly need to modernize operations and deploy generative AI applications. The company’s integrated rack-scale systems and data center solutions allow customers to deploy AI clusters efficiently while managing the total cost of ownership. These capabilities are helping Dell capture opportunities as organizations scale AI workloads across industries.
Another Zacks Rank #1 company, Hewlett Packard Enterprise, is executing well on its mix shift toward higher-value networking, cloud and AI, supported by the completed Juniper acquisition and cost synergies. Robust customer spend on AI inferencing, private cloud and network modernization is driving record orders and backlog, with improved profitability and higher free cash flow for Hewlett Packard. GreenLake, Alletra and Private Cloud AI add more software and services exposure over time.
The Juniper Networks acquisition is reshaping HPE’s mix by expanding its portfolio across campus and branch, data center switching, routing and security. In the second quarter of fiscal 2026, management highlighted that Juniper integration milestones and committed synergies are running ahead of schedule, and the combined go-to-market is already improving share of wallet with enterprise and service provider customers. In the fiscal 2026 second quarter, Networking revenues were $2.7 billion, up 148% year over year, with a 21.6% operating profit margin. HPE also launched new autonomous, agentic AI operations capabilities and raised its cumulative Networks for AI order target to at least $2 billion by the end of fiscal 2026, reflecting confidence in AI-driven demand for high-performance networking.
Published in artificial-intelligence cloud-computing cybersecurity electronics healthcare robotics saas semiconductor tech-stocks
President Donald Trump purchased between $1 million and $5 million in Dell shares on February 10, 2026, nine days before telling a crowd in Rome, Georgia, to “go out and buy a Dell computer” on February 19, 2026. Dell Technologies (NYSE:DELL | DELL Price Prediction) was trading around $120.55 on February 9 when the trade was disclosed, and the stock now changes hands near $409.50.
Weeks after the public endorsement, the Pentagon awarded Dell a multi-billion-dollar contract, drawing warnings from ethics watchdogs.
The sequence (buy, endorse, contract) deserves separate analysis from the stock’s merits.
The sequence that has ethics lawyers calling Trump’s reported purchase price sits around $120 to $122 based on the trading window. By the time he made the Georgia remarks, the stock had barely moved, closing at $121.91 on February 20. The federal contract that followed, alongside Dell’s blowout May earnings, changed the trajectory. Alpha Vantage news flow references a $1.4 billion U.S. Air Force contract in Dell’s recent disclosures, an award that, combined with a sitting president’s verbal endorsement, raises obvious questions about the propriety of personal positions in federally-procured vendors.
Polymarket traders have noticed. A market titled “Will Trump say “Buy Dell Computer / Buy a Dell Computer” in June?” is currently pricing the odds at 15.5% Yes.
What the data actually shows about Dell The trade looks brilliant in hindsight because Dell’s fundamentals are running hot independent of any presidential intervention. Q1 FY27, reported May 28, posted revenue of $43.84 billion, up 87.5% year over year, with non-GAAP EPS of $4.86 against a $2.96 consensus. AI-optimized server revenue alone hit $16.13 billion, up 757%, with $24.40 billion in AI orders booked in a single quarter. Management raised full-year guidance to $165 billion to $169 billion in revenue and roughly $60 billion in AI server revenue.
Year-to-date the stock is up 227.93%. Over one year it is up 256.89%. Michael Dell’s personal net worth climbed roughly $72 billion this year on the same move. The PE sits around 33, though analyst consensus targets $483.83 with 18 Buy ratings against 1 Sell.
Insiders are taking some chips off the table Silver Lake, Dell’s longstanding private-equity partner, has been a heavy seller. Director and Silver Lake co-CEO Egon Durban sold $27.26 million worth of Class C stock on June 10, 2026. Silver Lake-affiliated entities disposed of shares at prices ranging from $371.39 to $398.73 across June 8 through June 10. General Counsel Richard Rothberg sold 20,000 shares at $410.00 on June 15. Director David Dorman’s trust liquidated 41,292 shares around $405 to $408.
Silver Lake still holds 27 million-plus convertible Class B shares, so the recent sales read as profit-taking against an extraordinary run rather than a thesis change.
Moreover, you shouldn’t let any light “insider selling” influence your opinions on these stocks. Management routinely sell the stocks that they own, mostly because a big chunk of compensation is in stock and they use it to fund their lifestyle. Only when you see exceptional selling pressure should the selling raise eyebrows.
Should retail follow Trump? Following Trump into Dell at $120 would have worked spectacularly; following him at $410 is following a position that has tripled, into a stock where insiders are distributing. The actual business is real, the AI server backlog is real, and FY27 guidance looks credible. Gross margin compression to 17.8% from 21.1% is the cost of the AI mix, and negative shareholders’ equity of -$1.40 billion reflects aggressive buybacks rather than distress.
For a retirement-focused investor, the question is whether you are buying Dell’s AI franchise at 33 times earnings, or buying a politically-charged news cycle. Only the first framing supports a long-term thesis. If you’re a growth-focused investor, you can still go for it.
Dell Technologies (NYSE:DELL | DELL Price Prediction) has staged one of the most dramatic comebacks of the AI cycle, with shares up 235.68% year to date through June 17. The question now is whether the rally has further to run, or whether the easy money is already in the rearview.
Our 24/7 Wall St. price target for Dell points to $489.60 over the next 12 months, which falls just shy of the psychologically important $500 mark but still implies meaningful upside.
24/7 Wall St. Price Target Summary Metric Value Current Price $419.32 24/7 Wall St. Price Target $489.60 Upside 16.76% Recommendation BUY Confidence Level 90% Our base case sits below $500, but the bull case in our model reaches $510.57, meaning a $500 print this year is very much in play if execution holds.
From $114 to $419 in One Year Dell has gained 267.31% over the trailing 12 months and another 76.16% in the past month alone.
The catalyst was Q1 FY27 earnings on May 28, 2026, when revenue hit $43.84 billion, up 87.5% year over year, and non-GAAP EPS came in at $4.86, beating consensus by 63.99%. AI-optimized server revenue alone reached $16.13 billion, a 757% surge, and Dell booked $24.4 billion in AI orders in the quarter.
Reddit sentiment shifted sharply bullish after the report, with one widely shared post noting “Dell +40% after-hours after revenue surged 88% YoY to $43.8B”. A subsequent $1.4 billion Microsoft (NASDAQ:MSFT) deal disclosed June 16 reignited the bid.
The Case for $500+ Dell raised FY27 revenue guidance to $165 billion to $169 billion, with non-GAAP EPS guided to $17.90 at the midpoint, up 74%. AI server revenue is expected to hit $60 billion, up 144%.
Jim Cramer flagged the shift on June 1, noting Dell was selling for only eight times forward earnings before its run. Of 26 covering analysts, 18 rate Dell Buy or Strong Buy, with a consensus target of $483.83. If Dell holds a 27x multiple on FY27 EPS, the bull-case path to $510.57 looks credible.
What Could Go Wrong Gross margin compressed to 17.8% from 21.1% as the AI mix surged, and stockholders’ equity remains negative at -$2.47 billion. Silver Lake entities were net sellers between $371 and $406 in early June, which is worth watching.
Bulls would counter that ISG operating margin actually expanded to 10.5% from 9.7%, and CFO Yvonne McGill stated “ISG margins will expand throughout the year.” Our bear case lands at $372.39 if AI demand proves lumpy and hyperscaler concentration bites.
Dell Price Prediction 2026-2030 The 24/7 Wall St. price target of $489.60 supports a buy recommendation with 90% confidence. The tipping factor is the $43 billion AI backlog entering FY27 plus another $24.4 billion booked in Q1.
The bullish path strengthens if AI server margins continue expanding into the back half. The thesis weakens if Q2 FY27 shows backlog deterioration or further gross margin slippage below 17%. A $500 print this calendar year is within reach but not our base case.
Year 24/7 Wall St. Price Target 2026 $489 2027 $545 2028 $590 2029 $635 2030 $686 These projections assume Dell continues executing on AI infrastructure, with our five-year base case landing at $686.52 by June 2031. Significant upside or downside could result from AI capex cyclicality or a step-change in sovereign AI deployment.
New Dell PowerEdge server brings next-generation density and efficiency to the Dell AI Factory with NVIDIA as customer momentum builds across industries
Purpose-built HPC and AI: The new Dell PowerEdge XE8812 server featuring NVIDIA Vera Rubin NVL4 architecture scales up to 144 GPUs per rack for the most demanding HPC and AI workloads in the Dell PowerRack 9100, an OCP standards-based rack architecture. Global customer momentum: Dell AI Factory with NVIDIA deployments advance global AI ambitions, accelerating AI-powered research, engineering and design, and sovereign AI initiatives to decoding the building blocks of life. HAMBURG, Germany--(BUSINESS WIRE)--ISC--Dell Technologies (NYSE: DELL) introduces the Dell PowerEdge XE8812 server, a new addition to the Dell AI Factory with NVIDIA, purpose-built for the world's most demanding HPC and AI workloads, featuring NVIDIA Vera Rubin NVL4 architecture and delivering up to 144 GPUs per rack. The announcement comes as Dell AI Factory deployments accelerate worldwide, advancing sovereign AI initiatives, engineering and design workflows, and genomic science.
Why it matters
As AI and HPC simulation workloads converge, the scale and pace of these workloads are outgrowing what incremental infrastructure upgrades can keep up with. At the same time, organizations are pushing the boundaries of science and industry, resulting in a need for platforms that deliver a generational leap.
The global push for AI innovation is accelerating demand for high-performance infrastructure that keeps data, compute and control where organizations need it. As the AI growth opportunity speeds up, AI investment is projected to grow 44 percent year-over-year in 20261 and 87% of organizations say innovation and AI (75%)2 are key to their business strategy.
Dell is meeting this imperative head-on, providing organizations with the infrastructure they need to turn AI and simulation ambition into realized outcomes at scale.
Next-Generation Infrastructure for HPC and AI at Scale
The new fanless, direct liquid cooled Dell PowerEdge XE8812 server is purpose-built for the world’s most sophisticated institutions running demanding HPC and AI workloads like molecular and multi-physics simulations. Featuring NVIDIA Vera Rubin NVL4 architecture, the XE8812 delivers a generational leap in compute density and memory capacity. With the shift from NVIDIA GB200 NVL4 to NVIDIA Vera Rubin NVL4, the platform gains expanded host memory, more cores (expanding from 144 to 176), more GPU memory, and more compute. Paired with NVIDIA CUDA-X libraries this gives HPC organizations the ability to run their largest models and simulations entirely in-memory, with unparalleled processing power.
Maximum density, minimal footprint: Dell will deliver one of the industry’s densest platforms in an ORv3-style rack with up to 144 GPUs, 300kW+ power support and 100% direct liquid cooled CPUs and GPUs for maximum energy efficiency. More memory for bigger breakthroughs: 50% more memory per socket and GPU memory compared to the prior generation enables organizations to run larger models and simulations entirely in-memory without the need for staging (streaming data from host memory or storage) or swapping (evicting and reloading data), both of which introduce microsecond–millisecond latency and dramatically lower effective bandwidth particularly impactful for modern AI and HPC workloads. Open architecture that’s easily managed: Based on the open ORv3 standard, this server and rack design offer better efficiency and modular deployment. Once deployed, systems management tools reduce risk and simplify operations. The Integrated Dell Remote Access Controller (iDRAC) allows IT teams to deploy, update and monitor PowerEdge servers anywhere, anytime. IT teams also gain rack-level visibility through the Dell Integrated Rack Controller and OpenManage Enterprise, which use real-time telemetry and automated leak detection to identify issues early, reducing risk and delivering unified support across the broader system. Faster time to value with turnkey deployment: Dell PowerRack gives organizations deploying large-scale HPC and AI systems a faster, lower-risk path to production with turnkey, factory-integrated, pre-validated rack-scale systems that reduce deployment complexity and help customers realize operational value and ROI faster. With Dell PowerRack integration and Dell ProDeploy white-glove services, PowerRack replaces manual integration with production-ready racks that can be deployed and running live workloads in just over six hours.3 Dell AI Factory Momentum Builds Globally
With more than 5,000 customers4 already deploying the Dell AI Factory globally, momentum around the world reflects the breadth of workloads Dell supports, from sovereign AI infrastructure to AI-driven engineering to genomic science.
In the US: Dell, NVIDIA and NERSC are building Doudna, the next flagship U.S. Department of Energy supercomputer. Located at Lawrence Berkeley National Laboratory, this system will be based on Dell PowerEdge XE8812 servers with NVIDIA Vera Rubin NVL4 and connected with NVIDIA Quantum-X800 InfiniBand networking, driving larger-scale HPC workloads, AI training and inference, and data intensive workflows. This will accelerate breakthroughs from the molecular level to astronomy, reshaping science and everyday life. In France: Dell and NVIDIA are supporting InstaDeep, an AI company, to scale its Kyber supercomputing cluster using the Dell AI Factory with NVIDIA. Delivering approximately 0.5 exaFLOPs of FP16 performance, Kyber enables large-scale AI model training and complex industrial design workloads, including automated design of printed circuit boards, the core components that power everything from consumer electronics to industrial systems.5 In the UK: The Wellcome Sanger Institute is using Dell PowerEdge XE-Series servers with NVIDIA GPUs to decode DNA at unprecedented scale. The institute now produces one fully assembled genome every seven hours and manages over 100 petabytes of curated genetic data on-premises. This work underpins the Tree of Life Programme at the Institute and has contributed more than 70% of genomes to the global Earth BioGenome Project. In Australia: Monash University has developed and deployed MAVERIC, in collaboration with Dell, NVIDIA and CDC Data Centres. Featuring liquid-cooled Dell PowerRack systems with Dell PowerEdge XE9712 servers and NVIDIA GB200 NVL72 architecture, this supercomputer will power large-scale AI and data-intensive workloads, supporting research across areas like cancer detection, climate action and genomics. Perspectives:
Arun Narayanan, senior vice president, Compute and Networking, Dell Technologies:
"The institutions doing the world's most important research like decoding the human genome, modeling the energy systems of the future and building the sovereign AI infrastructure that nations depend on deserve infrastructure that matches the ambition of their work. The Dell PowerEdge XE8812 reflects Dell's commitment to pushing the boundaries of what's possible, giving these organizations the density, memory and open architecture they need to tackle workloads that once seemed impossible."
Chris Marriott, vice president, Enterprise Platforms, NVIDIA:
"The convergence of AI and HPC is redefining what organizations should expect from their infrastructure. Dell and NVIDIA are raising that bar together, combining NVIDIA Vera Rubin NVL4 architecture and CUDA-X libraries with Dell's engineering and at-scale deployment expertise to provide the performance, efficiency and openness required for the world’s most demanding AI and scientific computing workloads."
Availability
The Dell PowerEdge XE8812 will be globally available early next year. Additional resources
Connect with Dell on X and LinkedIn About Dell Technologies
Dell Technologies (NYSE: DELL) helps organizations and individuals build their digital future and transform how they work, live and play. The company provides customers with the industry’s broadest and most innovative technology and services portfolio for the AI era.
___________________________ 1
Gartner, “Forecast: AI Spending, Worldwide 2024-2029,” January 2026
2
Dell Technologies survey across 750 business and IT decision makers across US, UK, DE, FR and JP, all segments, Feb 2025.
3
Based on a Principled Technologies report commissioned by Dell, Accelerate AI time to value with Dell Services, April 2026 *Actual results may vary.
4
Based on April 2026 Dell analysis of customer order data.
5
InstaDeep unveils near-exascale supercomputer ‘Kyber,’ boosting AI capabilities
Super Micro Computer (NASDAQ:SMCI | SMCI Price Prediction) stock is up 11% in early Monday trading, leading an AI server rally sparked by fresh hardware reveals at ISC High Performance 2026 in Hamburg. Dell Technologies (NYSE:DELL) stock is moving in sympathy, up 5%.
The catalyst is NVIDIA (NASDAQ:NVDA) unveiling its Vera Rubin platform for scientific supercomputing, with Super Micro Computer and Dell named among the global system builders launching custom Vera Rubin NVL4 racks. Both stocks opened sharply higher as traders piled back into the AI infrastructure trade.
The action also extends Dell stock’s torrid run. Dell shares were up 228% year to date heading into today, while Super Micro Computer stock has been choppy and remains down 25% over the past year.
Vera Rubin NVL4 Reveal Fuels the Move At ISC 2026, NVIDIA introduced Vera Rubin as a platform for “world-class supercomputers for science,” touting more than 7 exaflops of AI for science, 5 petaflops of native FP64 performance, and up to 144 GPUs per rack. NVIDIA CEO Jensen Huang called Vera Rubin “a new instrument for science.”
Super Micro Computer introduced a Data Center Building Block Solutions Blueprint for HPC based on NVIDIA Vera Rubin NVL4, a liquid-cooled design scaling to 1,152 NVIDIA Rubin GPUs and 576 NVIDIA Vera CPUs per scalable unit. That positions Super Micro Computer squarely in the next-gen GPU buildout following Blackwell Ultra.
Dell unveiled the PowerEdge XE8812 server featuring NVIDIA Vera Rubin NVL4, which will power Doudna, the next flagship U.S. Department of Energy supercomputer at Lawrence Berkeley National Laboratory. Dell cited more than 5,000 AI Factory customers globally.
The Trade Has Already Run Hot Dell stock is riding a powerful wave. The company reported Q1 FY27 revenue of $43.84 billion with AI-optimized server revenue jumping 757% year over year to $16.13 billion, and management guided FY27 revenue to $165 billion to $169 billion.
Super Micro Computer’s picture is more complicated. The company’s fiscal Q3 FY26 revenue came in at $10.24 billion, up 122.68% year over year, with non-GAAP EPS of $0.84 beating the $0.6245 consensus. However, Super Micro’s revenue missed the Street’s estimate, and the company recently secured a $7 billion financing package to fund a $39 billion AI server backlog.
CEO Charles Liang stated, “Supermicro’s transformation into a total datacenter infrastructure provider is accelerating… exceptionally well-positioned to meet the massive demand for various AI and enterprise verticals.” Yet, the Reddit tape tells a more skeptical story, with r/WallStreetBets sentiment on SMCI scoring in the bearish-to-very-bearish range over the past 24 hours, suggesting today’s bid is institutional rather than retail.
What to Watch Investors can keep in mind that these announcements represent design wins ahead of booked revenue. Per the releases, Dell’s PowerEdge XE8812 is expected to be globally available early next year, and NVIDIA Vera Rubin NVL4-based systems are expected from manufacturers in Q4 2026.
Both Dell stock and Super Micro Computer stock are momentum names with high beta, and the AI server cohort has whipsawed in both directions this year. Investors can watch for whether today’s gains hold into the close, and monitor events closely as the Vera Rubin news cycle plays out through the ISC conference week.
Dell Technologies stock is gaining positive traction. Why is DELL stock advancing? Dell announced the PowerEdge XE8812 at ISC, presenting it as a system designed for high performance computing and AI workloads. The server is built around NVIDIA’s Vera Rubin NVL4 architecture and can support as many as 144 GPUs per rack when installed in the Dell PowerRack 9100, which follows OCP standards. The system uses full direct liquid cooling and supports more than 300kW of power to maximize efficiency.
The XE8812 represents a major step forward from the earlier NVIDIA GB200 NVL4 generation. It offers expanded host memory, larger GPU memory and an increase in core count from 144 to 176. Dell said the platform provides 50% more memory per socket and per GPU than the previous generation, allowing organizations to run larger AI models and simulations entirely in memory without the delays that come from staging or swapping data.
The company added that its turnkey PowerRack approach can bring systems online and running real workloads in a little more than six hours.
Dell Stock: Key Technical Levels To WatchDell continues to hold a strong uptrend across all major moving averages. The stock trades 7.8% above the 20-day simple moving average at $389.21 and an extended 46.2% above the 50 day simple moving average at $287.11. That kind of distance from the shorter averages usually reflects firm demand, although it can also increase the risk of sharper pullbacks if momentum eases.
The trend structure remains supportive. The 20-day average sits above the 50-day average, and the golden cross that appeared in March, when the 50-day average moved above the 200-day average, continues to confirm a longer-term bullish environment. On a wider view, the stock has gained 256.21% over the past year and remains far above the 200-day average at $175.09, which many long-term trend followers treat as a key dividing line.
Momentum is best evaluated through RSI because Dell has been trending aggressively and recently became stretched. RSI moved into overbought territory in May, a condition that often leads to pauses or sideways movement even when the primary trend remains intact. The key question now is whether buyers can continue defending higher lows after the June swing high and the March swing low created the current upward staircase.
Key Resistance: $469.50 — This level aligns with the 52 week high at $469.47 and represents an area where earlier rallies have stalled. Key Support: $357.00 — This zone sits below the 20-day average and matches a prior demand area that could serve as an important trend test if the stock experiences a deeper pullback. DELL Shares Are RisingDELL Price Action: Dell shares were up 2.21% at $418.56 at the time of publication on Monday, according to Benzinga Pro.
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What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
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Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Dell Technologies (DELL - Free Report) Dell Technologies is a leading provider of servers, storage and PCs. It offers secure, integrated solutions that extend from the edge to the core to the cloud. Dell’s IT solutions support customers both in traditional infrastructure and multi-cloud environments.
DELL is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Computer and Technology stock. DELL has a Momentum Style Score of B, and shares are up 41.8% over the past four weeks.
Nine analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $5.83 to $18.66 per share. DELL boasts an average earnings surprise of +18.7%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, DELL should be on investors' short list.
Super Micro Computer (NASDAQ:SMCI | SMCI Price Prediction) is back in the headlines after announcing a $7 billion equity and debt raise meant to fund a flood of AI server orders, and the retail crowd is treating it like a comeback story. But here’s what you should actually be watching.
The SMCI Trade Is a Dilution Trap Strip away the AI-server narrative and Supermicro is a low-margin assembler with a governance cloud. Q3 FY26 revenue came in at $10.24 billion against a $12.45 billion estimate, a 17.75% miss despite a tailwind that should make missing impossible. GAAP gross margin recovered to a still-thin 9.9%, the company burned $6.6 billion in cash from operations, and total bank debt plus convertibles ballooned to $8.8 billion.
The kicker: results were filed preliminary and unaudited while the board runs an independent review related to export-control matters. Reddit caught on. Sentiment cratered to a very bearish score of 12 on June 10 as the $7 billion financing plans were announced. The stock is down 31.05% over the past year and sits at $30.66. This is what the late stage of a hype cycle looks like.
Dell Is the Trade Hiding in Plain Sight Dell Technologies (NYSE:DELL) just printed the kind of quarter Supermicro keeps promising. Three reasons retirement-focused investors should redirect attention here.
1. The scale gap is now absurd. Dell posted Q1 FY27 revenue of $43.84 billion, up 87.54% year over year and beating consensus by $8.075 billion. AI-optimized server revenue alone hit $16.13 billion, up 757%, with $24.40 billion in AI orders booked in a single quarter. Management guided full-year AI server revenue to roughly $60 billion. That single product line is larger than Supermicro’s entire $38.9 billion to $40.4 billion FY26 guide.
2. Real margins, real cash, real returns. ROE sits at 44.3%, ISG operating margin expanded to 10.5%, and CSG operating margin jumped to 8.0% from 5.2%. Free cash flow reached $3.12 billion, and Dell returned $2.1 billion to shareholders through buybacks and dividends in the quarter. Supermicro is raising capital; Dell is returning it.
3. The valuation still works. Forward P/E sits at 23 against full-year non-GAAP EPS guidance of $17.90 and revenue growth of roughly 47% at the midpoint. The dividend yields about 1.1%, the buyback authorization was expanded by $10 billion, and the Wall Street analyst target sits at $483.83 against a current price of $409.50. Shares slipped 2.34% on the most recent session, opening a modest entry window after a blowout earnings report.
The Action Retirement portfolios need scaled cash generation, expanding margins, and a buyback that actually shrinks the share count — the opposite of preliminary financials, export-control investigations, and dilutive capital raises. Dell warrants a spot on the research short list while the post-earnings pullback is still here.
Despite global geopolitical uncertainties and the ongoing conflict in the Middle East, the U.S. economy is showing signs of accelerating growth in the second quarter after a relatively soft start to the year. As often happens, stock market volatility is creating a lot of unease that masks the positive fundamentals. Legitimate concerns about stock market valuations are being stoked by unnerving headlines that ignore solid, and even improving, economic fundamentals. This can be a harsh reality in a mid-term election year, especially given the 24-hour news cycle, though we think that volatility creates opportunity for investors.
For example, forecasts for second quarter GDP growth reflect a resilient economy while headlines generate wide swings in stock markets. Federal Reserve Banks provide real-time tracking (nowcasts) for current quarter GDP growth, while the Bureau of Economic Analysis publishes official GDP statistics and revisions weeks and months after the quarter has ended. Two of the most prominent nowcast models, the New York Fed Staff Nowcast and the Atlanta Fed GDPNow, project second quarter growth at 2.7% and 3.3%, respectively, compared to 1.6% annualized growth in the first quarter.
The official GDP estimate for the second quarter will not be released until late July, so there is still time for data to drive further revisions before then. However, the information we can track now, especially related to the labor market, suggests solid growth in the current quarter.
The strong employment report for June further supports our positive economic growth narrative. Following the February jobs losses, the months since have bounced back significantly (exhibit 2). Though the six-month moving average is still below the previous business cycle average, the recent uptick is moving in the right direction.
In addition, it is clear that the U.S. infrastructure buildout is having a significant impact on economic growth. Private fixed investment, which is the combination of structures, equipment, and research and development investments, has been growing for years.
Though projects in support of artificial intelligence (AI) have taken the lead, the increased investments in plant and equipment and related infrastructure began years before the AI research and development buildout went mainstream. Crucially, the investment in AI is no longer just a software narrative. This immense capital spending is filtering directly into the physical economy and driving significant revenue into industrial manufacturing, electrical equipment makers, and the energy grid infrastructure. These substantial capital investments should push long-term worker efficiency. Over time, these productivity gains can help support economic growth while naturally moderating broader inflationary pressures.
We expect these investments to have payoffs that will last for years into the future and are a primary reason we think that the next decade of U.S. economic growth will likely be stronger than anything we have seen since the 1990s.
INVESTMENT IMPLICATIONS As a result, our Strategies remain tilted in favor of U.S. equities. At the sector level, we continue to emphasize financials (e.g., regional banks), industrials, and information technology. Within fixed income, we increased our exposure to mortgage-backed securities to capture attractive yields and a favorable risk/reward profile, while continuing to prefer the belly of the yield curve and high-quality asset-backed securities. With respect to our alternative investment allocations, we continue to favor equity option overlay strategies for current income and a multi-asset real return strategy for inflation mitigation and lower-correlation total returns. Our positioning is designed to be resilient across a range of geopolitical and energy-market outcomes. In our base case scenario, we consider volatility as an opportunity when selectively considering the current valuations.
THE CASH INDICATOR Our Cash Indicator (CI) has held steadily at levels below the long-term median all year, despite bouts of equity market volatility. The fixed income market has continued to reflect confidence in the economy and financial markets while keeping the CI relatively steady. Overall, the recent equity market volatility looks like a healthy reset back to “normal” levels of caution rather than a signal of trouble as we remain well below the point where the CI would call for moving to cash.
For more news, information, and analysis, visit the ETF Strategist Content Hub.
DISCLOSURES Shelton Capital Management is an investment adviser in Denver, CO. Shelton Capital Management is registered with the Securities and Exchange Commission (SEC). Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. Shelton Capital Management only transacts business in states in which it is properly registered or is excluded or exempted from registration. Some of the firm’s strategies allocate client’s investment management assets among exchange-traded funds (“ETFs”). A GIPS Report along with a complete list and description of all composites is available by calling (800) 955-9988. A copy of Shelton Capital Management’s current written disclosure brochure filed with the SEC which discusses among other things, Shelton Capital Management’s business practices, services and fees, is available through the SEC’s website at: www.adviserinfo.sec.gov. INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE. The views contained herein are not be taken as an advice or a recommendation to buy or sell any investment and the material should not be relied upon as containing sufficient information to support an investment decision. It should be noted that the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested.
Past performance and yield may not be a reliable guide to future performance. Current performance may be higher or lower than the performance quoted. The securities identified and described may not represent all of the securities purchased, sold or recommended for client accounts. The reader should not assume that an investment in the securities identified was or will be profitable.
Data is provided by various sources and prepared by Shelton Capital Management and has not been verified or audited by an independent accountant.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +24% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Cigna (CI - Free Report) Headquartered in Bloomfield, CT and formed in 1982, Cigna Corporation has rebranded itself as The Cigna Group. The company was formed as a result of a merger between Connecticut General Life Insurance Company and Insurance Company of North America. Cigna completed its combination with Express Scripts Holding Company by 2018-end. Shares of the new combined company trade on the NYSE under the stock ticker symbol “CI.”
CI is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 9.38; value investors should take notice.
Eight analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.06 to $30.39 per share. CI boasts an average earnings surprise of +1.9%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, CI should be on investors' short list.
