Key Takeaways GE's Defense & Propulsion orders surged 67%, while revenues rose 19% to $3.2B in Q1 2026.GE secured contracts, including a $1.4B T408 engine deal and a $5B F110 engine program.GE expects mid-to-high single-digit segment revenue growth and operating profit of $1.55B-$1.65B in 2026. GE Aerospace (GE - Free Report) is witnessing strong momentum in its Defense & Propulsion Technologies segment, supported by a solid pipeline of orders. Growing popularity for the company’s propulsion & additive technologies, critical aircraft systems and aftermarket services in the defense sector is driving the segment’s performance.
The company recently secured a deal from Boeing Defence UK for the extension of support services for T700-GE-T701D engines. The contract will involve GE to provide logistics management, repair, maintenance and technical support services for these turboshaft engines that run the Apache AH-64E fleet of the British Army. It entered into a multi-year partnership with Palantir Technologies Inc. (PLTR) in March 2026 to work on improving the fleet management and operational readiness of the U.S. Air Force’s military aircraft.
In first-quarter 2026, GE clinched a $1.4 billion deal for T408 engines to support the U.S. Marine Corps’ CH-53K helicopter fleet. This apart, its $5 billion contract from the U.S. Air Force to supply F110 engines, parts and support services as part of a Foreign Military Sales (FMS) program is noteworthy.
GE’s strong pipeline of projects supported its first-quarter results as the Defense & Propulsion Technologies segment’s orders surged 67% and revenues increased 19% to $3.2 billion. The segment’s operating profit grew 17% to $379 million.
Robust budgetary provisions for the defense sector set the stage for GE Aerospace, which remains focused on winning more defense contracts, which is likely to boost its top line. For 2026, GE expects revenues from the Defense & Propulsion Technologies segment to increase in the mid-to-high single-digit range, whereas operating profit is anticipated to be in the band of $1.55-$1.65 billion.
GE's Peers in the Defense MarketAmong its major peers, Textron Inc. (TXT - Free Report) enjoys solid demand for its defense products as well. In the first quarter of 2026, revenues from Textron’s Bell segment increased year over year, driven by continued growth on the MV-75 Cheyenne program. Textron Systems revenues increased 13% largely due to higher volume on the Ship-to-Shore Connector program and military training services at ATAC.
Its another peer, RTX Corporation (RTX - Free Report) , is witnessing solid bookings and backlog levels. RTX’s strong backlog supports a positive outlook for revenue growth in its defense business, which is expected to strengthen profits over the long term. RTX won several notable defense contracts during the first quarter of 2026, which resulted in solid bookings of $14 billion and a record backlog of $271 billion.
GE's Price Performance, Valuation and EstimatesShares of GE Aerospace have gained 1.6% in the past three months against the industry’s 12.4% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 41.29X, above the industry’s average of 31.83X. GE Aerospace carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GE’s 2026 and 2027 earnings has increased over the past 60 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Verizon posted its first positive first-quarter postpaid phone net additions since 2013.Verizon added 341,000 broadband subscribers and expects 32M fiber passings by year-end.VZ faces intense competition, rising debt and integration risks tied to the Frontier acquisition. Verizon Communications Inc. (VZ - Free Report) has gained 8.6% in six months against the Wireless National industry’s decline of 3.8%. The stock has underperformed the Zacks Computer & Technology sector during this period.
Image Source: Zacks Investment Research
The company has outperformed its peers like AT&T Inc. (T - Free Report) and Charter Communications, Inc. (CHTR - Free Report) . Shares of AT&T have declined 8.4%, while Charter has declined 37% during this period.
Key Growth Drivers for VZVerizon is benefiting from strong wireless subscriber additions. The company reported its first positive first-quarter postpaid phone net additions since 2013. This was possible due to lower churn and improved customer satisfaction. The company’s disciplined customer acquisition strategy is focused on enhancing customer values, improving service quality and reliability. Moreover, its convergence strategy is also paying off well. By combining mobility, fiber, and fixed wireless services under one unified offering, Verizon is improving customer retention. When customers get dependent on multiple services from a single vendor, it becomes difficult for them to change service providers. From a user’s point of view, opting for fiber and wireless services from a single vendor reduces complexity for them as well.
The company has launched a company-wide transformation program focused on becoming an AI-first organization. The program is focused on automation, AI-enabled customer interactions, digital sales channels, micro-segmentation, and process simplification. The company expects these efforts to reduce operating costs and enhance user experience. Verizon targets achieving $5 billion in operating expense savings and improving profitability. AI integration across operations supports that initiative.
Verizon continues to invest in network excellence, fiber infrastructure, and advanced cybersecurity capabilities. This is evident by its participation in Anthropic's Project Glasswing. The company is aiming to strengthen its cybersecurity capabilities using advanced artificial intelligence.
Broadband remains a major growth engine. Verizon added 341,000 broadband subscribers in the first quarter. This includes both Fixed Wireless Access and Fiber customers. The company continues to expand its fiber footprint and expects to exceed 32 million fiber passings by year-end.
Major ChallengesU.S. wireless industry remains highly competitive. It faces competition from AT&T, Charter, T-Mobile in each of its served market. This is forcing telecom companies to spend heavily on customer acquisition and retention. Verizon still needs to take necessary steps to defend its customer base. Although the company has reduced its spend on promotional activities, heavily discounted offers from rivals can still impact its subscriber growth.
Verizon is aggressively expanding its fiber footprint and fixed wireless business. Although these initiatives support long-term growth, they require significant capital investment. This will likely put pressure on free cash flow in the near term.
The Frontier acquisition expands the fiber footprint but increases leverage and adds integration complexity that can constrain flexibility if operating conditions deteriorate. At the end of first-quarter 2026, Verizon’s total unsecured debt was $142.5 billion compared with $131.1 billion at the end of the fourth quarter of 2025, and net unsecured debt was $130.1 billion compared with $110.1 billion. Its high debt burden makes it vulnerable to growing macro uncertainty. Weak consumer spending or business investment could affect wireless upgrades, broadband demand and hinder VZ’s revenue growth.
Estimate Revision Trend of VZVZ’s earnings estimates for 2026 have increased over the past 60 days, while for 2027, they have declined.
Image Source: Zacks Investment Research
Key Valuation Metric of VZFrom a valuation standpoint, VZ appears to be trading relatively cheaper compared to the industry and its mean. Going by the price/earnings ratio, the company’s shares currently trade at 8.82, lower than 11.33 for the industry.
Image Source: Zacks Investment Research
End NoteVerizon’s long-term strategy remains anchored in scaling 5G and broadband together, which supports customer stickiness when mobility and home connectivity are bundled under one provider. Focus on AI-driven transformation and cost efficiency are positive factors. Collaboration with Anthropic in the project Glasswing to improve cybersecurity capabilities is a tailwind. However, intense competition and macroeconomic challenges remain major concerns. With a Zacks Rank #3 (Hold), VZ appears to be treading in the middle of the road, and new investors could be better off if they trade with caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Income investors have piled into Verizon Communications (NYSE:VZ | VZ Price Prediction) this year, sending the stock up 21.4% year to date as the crowd chases a 5.78% dividend yield and the company’s old “premium network” reputation.
But here’s what you should actually be watching.
Verizon is the textbook telecom value trap. The stock now carries a $199.3 billion market cap, yet its own 2025 guidance called for free cash flow of $17.5 billion to $18.5 billion, a step down from the $19.82 billion it generated in 2024. Management is guiding adjusted EPS growth of just 0% to 3%, wireline revenue fell 8.0% year over year in the most recent comparable quarter, and the pending Frontier deal piles fresh integration risk onto a balance sheet that already carries roughly $144 billion in debt. The premium that long-term holders paid for the “best network” story is now being recycled by fresh buyers chasing yield on a shrinking cash flow base. That is exactly how value traps work.
Meanwhile, AT&T (NYSE:T) is up just 1.41% year to date, sits at a smaller $170.58 billion market cap, and is quietly executing the better business. Three reasons retirement-focused investors should redirect here.
1. Free cash flow is accelerating. AT&T reiterated full-year 2026 free cash flow guidance of $18 billion+, with a multi-year ramp to $19 billion+ in 2027 and $21 billion+ in 2028. Q1 2026 alone produced $2.506 billion in free cash flow on $31.506 billion of revenue, up 2.9% year over year, with adjusted EPS of $0.57, a 11.8% jump. Verizon’s own outlook is going the other direction.
2. The convergence playbook is working in real time. AT&T booked 584,000 internet net additions in Q1, split evenly between fiber and fixed wireless, alongside 294,000 postpaid phone net adds at a churn rate of 0.89%. Nearly 45% of home internet customers also carry AT&T wireless service. Consumer wireline broadband revenue climbed 27.3% year over year. The fiber footprint sits at over 37 million locations after the Lumen Mass Markets fiber acquisition closed on February 2, 2026, with a target of more than 60 million by 2030. CEO John Stankey called Q1 “our best first quarter ever for Advanced Connectivity internet customer net additions.”
3. The capital return commitment is enormous. AT&T plans to return $45 billion+ to shareholders during 2026 through 2028, including roughly $8 billion of buybacks this year alone ($2.3 billion already executed in Q1) on top of the $1.11 annualized dividend. Shares trade at just 8x trailing earnings and 11x forward earnings, with analysts carrying an average price target of $30.37 against a $24.64 close. That is a company buying back its own discount.
Verizon delivers a fatter current yield, but it is funding that yield from a cash flow base management itself says is contracting, while carrying more debt and a heavier acquisition to digest. AT&T is in the opposite position: organic postpaid subscriber growth, a high-margin fiber footprint expanding into 2030, accelerating free cash flow, and a shrinking share count.
For investors focused on the underlying free cash flow story, AT&T’s setup looks more compelling than Verizon’s right now.
In a recent note to investors, Oppenheimer analysts suggest that SpaceX has the assets to disrupt the $1.6 trillion U.S. communications industry by way of the company's Starlink satellite broadband service.
Let's unpack how Starlink has the potential to pressure legacy telecommunications players such as Verizon Communications (VZ +2.48%) and AT&T (T +2.52%), ultimately forcing investors to rethink some assumptions about the kind of infrastructure that will dominate the next era of data transmission.
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How could Starlink revolutionize the communications industry? According to SpaceX's S-1 filing, Starlink boasted 10.3 million subscribers at the end of the first quarter. Oppenheimer's 2030 forecast for Starlink's U.S. broadband customer base is currently 15 million, implying rapid acceleration over the next several years.
Starlink's competitive edge comes from delivering low-latency, high-speed internet from space. This approach is different from traditional cable or fiber networks that rely on ground infrastructure and may struggle in lower-density areas.
Interestingly, Oppenheimer thinks Starlink will evolve beyond a consumer broadband provider. Should Starlink become more heavily used in critical environments such as emergency response or military operations, as well as more enterprise markets, churn rates could fall and provide the company an opportunity to command higher pricing power.
Moreover, Oppenheimer goes on to suggest that SpaceX and its broader umbrella could eventually move into the handset market -- an opportunity analysts believe is worth half a trillion dollars.
Image source: Getty Images.
Why AT&T and Verizon could become risky investments Deploying and maintaining buried fiber, coaxial cables, poles, and wiring costs Verizon and AT&T billions of dollars annually and often scales poorly. Indeed, Starlink's satellite constellation also comes with massive upfront capital outlays. However, the company sidesteps some of the location-specific expenses of terrestrial last-mile infrastructure as its orbital assets can theoretically be refreshed via Starship's reusable rockets -- helping lower incremental per-user costs once a constellation is in place.
If Starlink's growth accelerates throughout the remainder of the decade, AT&T and Verizon could be hit particularly hard as their heavy exposure to broadband, video, and services becomes increasingly vulnerable to satellite substitution. As a result, these companies could endure greater subscriber erosion, compressed profit margins, and a shrinking total addressable market for legacy telecoms infrastructure.
Investors who have relied on passive income in the form of steady dividends and predictable cash flow from Verizon and AT&T may come to find that the telecom industry's historical growth engines are migrating to orbit.
Are traditional telecoms stocks still worth buying? The communications industry is far from disappearing. Rather, it is being transformed by space. Oppenheimer simply raised its space-economy revenue projection for 2035 to $800 billion -- up from $500 billion -- signaling robust secular tailwinds in orbital infrastructure that far outweigh the incremental gains typically seen in traditional telecom businesses.
In all likelihood, the upcoming SpaceX IPO will serve as a marketwide catalyst for satellite and space infrastructure stocks. Smart investors might view this as a moment to pivot their portfolio allocations by gradually reducing overexposure to legacy wireline and wireless incumbents and seeking some exposure to the companies leading the next decade's orbital wave.
The world constantly changes and disrupts industries and careers. Some things remain foundational, and their demand remains sticky despite transformational changes. We tap into the essentials and harness their inelasticity for our passive income needs.
Verizon Communications (VZ - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this largest U.S. cellphone carrier have returned -3.8% over the past month versus the Zacks S&P 500 composite's +0.2% change. The Zacks Wireless National industry, to which Verizon belongs, has lost 7.1% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Verizon is expected to post earnings of $1.27 per share for the current quarter, representing a year-over-year change of +4.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.7%.
The consensus earnings estimate of $4.96 for the current fiscal year indicates a year-over-year change of +5.3%. This estimate has changed +0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $5.25 indicates a change of +5.7% from what Verizon is expected to report a year ago. Over the past month, the estimate has changed -0.1%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Verizon.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Verizon, the consensus sales estimate of $35.41 billion for the current quarter points to a year-over-year change of +2.6%. The $142.71 billion and $145.01 billion estimates for the current and next fiscal years indicate changes of +3.3% and +1.6%, respectively.
Last Reported Results and Surprise HistoryVerizon reported revenues of $34.44 billion in the last reported quarter, representing a year-over-year change of +2.9%. EPS of $1.28 for the same period compares with $1.19 a year ago.
Compared to the Zacks Consensus Estimate of $35.03 billion, the reported revenues represent a surprise of -1.7%. The EPS surprise was +4.92%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates two times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Verizon is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Verizon. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Key Takeaways VZ's Frontier Communications deal boosts fiber reach to 30M U.S. homes and businesses.Verizon fiber services back AI data centers, cloud computing, 5G networks and private networks.VZ is investing in low-latency fiber linking data centers to support edge computing and automation. Verizon Communications Inc. (VZ - Free Report) is expanding its fiber network to meet growing demand for high-speed Internet, cloud services and artificial Intelligence (AI)-driven data traffic. The acquisition of Frontier Communications has significantly increased Verizon's fiber coverage, allowing it to reach more than 30 million homes and businesses across the United States.
Verizon offers a range of fiber-based services, including Fios broadband, fiber-to-the-home Internet, private networks and business connectivity solutions. These services support cloud computing, AI data centers, 5G networks and other AI native applications that require fast and reliable connections. It plans to expand its reach and eventually serve 40-50 million homes and businesses.
The company is investing in high-capacity, low-latency fiber networks that connect data centers and support advanced computing workloads. Its fiber assets play a key role in supporting 5G expansion, improving network performance and enabling technologies such as edge computing and industrial automation.
In addition, Verizon continues to collaborate with major cloud and technology companies to strengthen networking solutions for enterprise customers. As demand for AI, broadband and data-intensive applications continues to rise, the company's growing fiber infrastructure is expected to strengthen its competitive position and support long-term growth.
How Are Competitors Focusing on Fiber?Verizon faces stiff competition from AT&T, Inc. (T - Free Report) and T-Mobile, US, Inc. (TMUS - Free Report) . AT&T is expanding its fiber network to meet growing demand for high-speed Internet and digital services. The company continues to add new fiber locations and increase its fiber customer base across the United States. AT&T's fiber investments are helping support cloud computing, AI-driven applications and the growing need for fast and reliable connectivity.
T-Mobile is strengthening its presence in the fiber broadband market to complement its wireless business. The company announced fiber initiatives and acquisitions aimed at reaching more homes with high-speed Internet services. T-Mobile's growing fiber network is expected to help meet rising demand for reliable broadband connectivity.
VZ’s Price Performance, Valuation & EstimatesVerizon has gained 2.9% over the past year against the industry’s decline of 18.2%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company’s shares currently trade at 8.93, lower than the 10.99 for the industry.
Image Source: Zacks Investment Research
VZ’s earnings estimates for 2026 have increased 1% to $4.96 per share, while the same for 2027 have declined 0.2% to $5.25 over the past 60 days.
Image Source: Zacks Investment Research
Verizon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Verizon remains a compelling income investment, offering a 6.2% yield, robust free cash flow, and accelerating operational leverage under new leadership. VZ delivered its strongest margin and EPS growth in years, with Q1 FCF up 4% YoY despite restructuring costs and management reaffirming $21.5B+ FCF guidance for 2026. Operational transformation is evident: churn is falling, cost efficiencies via AI are materializing, and broadband cross-sell and AI infrastructure present significant growth runways.
Verizon Communications (VZ - Free Report) closed at $46.90 in the latest trading session, marking a +2.45% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 1.62%. On the other hand, the Dow registered a loss of 1.87%, and the technology-centric Nasdaq decreased by 1.98%.
The largest U.S. cellphone carrier's stock has dropped by 4.49% in the past month, falling short of the Computer and Technology sector's loss of 0.74% and the S&P 500's loss of 0.03%.
Investors will be eagerly watching for the performance of Verizon Communications in its upcoming earnings disclosure. In that report, analysts expect Verizon Communications to post earnings of $1.27 per share. This would mark year-over-year growth of 4.1%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $35.41 billion, up 2.62% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.96 per share and a revenue of $142.71 billion, signifying shifts of +5.31% and +3.27%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Verizon Communications. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.14% higher. As of now, Verizon Communications holds a Zacks Rank of #3 (Hold).
Looking at valuation, Verizon Communications is presently trading at a Forward P/E ratio of 9.22. This expresses a discount compared to the average Forward P/E of 13.08 of its industry.
We can additionally observe that VZ currently boasts a PEG ratio of 1.12. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Wireless National industry stood at 1.08 at the close of the market yesterday.
The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 175, putting it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow VZ in the coming trading sessions, be sure to utilize Zacks.com.
Verizon's stock is showing some signs of resiliency in recent months as other telecom carriers experience downward pressure. In spite of the stock's poor performance during the last bear market in equities, VZ remains a solid defensive play. However, there are some caveats when it comes to future profitability improvements, and investors should be mindful of that.
Verizon (VZ) offers a compelling value with a 6% dividend yield and double-digit FCF yield amid market volatility. VZ raised 2026 guidance, targeting mid single-digit EPS growth and robust postpaid net adds, highlighting operational momentum. Recent Frontier acquisition expands VZ's fiber footprint, strengthening its competitive positioning versus satellite and other wireless peers.
SpaceX is positioning Starlink Mobile as complementary to terrestrial networks, not a direct threat, with VZ also mitigating the risk through JV with AT&T/T-Mobile on satellite-based D2D technologies. VZ's recent selloff is likely sentiment-driven, given their strong FQ1'26 results and the raised FY2026 guidance, aided by the accretive Frontier acquisition and the growing cross-selling trends. The recent meltdown has triggered the cheaper P/E of 9.14x and the richer dividend yield of 6.23%, while offering an expanded upside potential to my bull-case LTPT of $70.60.
Verizon has surged 15% since my last coverage, outperforming the S&P 500 and reinforcing its diversification value. I maintain a buy rating, citing VZ's defensive profile, steady top-line growth, and significant telecom market share. Despite recent outperformance, VZ remains undervalued and is priced as if in decline, which I believe is unwarranted.
On June 01, 2026, we conducted a DCF analysis for The Home Depot Inc HD amidst a backdrop of fluctuating price performance. The stock has experienced a year-to-date decline of 7.2% and a one-year drop of 11.7%, indicating some volatility in its market position.
DCF Earnings-based intrinsic value vs price: $259.46 (margin of safety: -22.2%) DCF FCF-based intrinsic value vs price: $225.74 (second opinion) GF Score™ of 83/100, indicating a reliable assessment of the DCF inputs What Is HD Worth? DCF Earnings-Based Model The DCF earnings-based model for The Home Depot Inc HD employs a two-stage approach to estimate the intrinsic value of the stock. In the first stage, we project the earnings growth for the next ten years, followed by a terminal growth phase. The assumptions used in this model are critical for determining the intrinsic value.
Parameter Value Current EPS (TTM, excl. non-recurring) $14.57 10-Year Growth Rate 11.6% 10-Year Treasury Rate 4.47% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the growth phase (Years 1-10), we expect the EPS to grow at 11.6% per year, discounted at a rate of 11%. This results in a growth stage value of $150.10 per share. Following this, in the terminal phase (Years 11-20), the growth rate slows to 4%, also discounted at 11%, yielding a terminal stage value of $109.36 per share.
Stage Description Value Growth Stage (Years 1-10) EPS growing at 11.6%, discounted at 11% $150.10 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $109.36 Intrinsic Value Growth + Terminal $259.46 Comparing the current price of $317.14 with the intrinsic value of $259.46, we find that the stock is fairly valued, with a margin of safety of -22.2%. It is important to note that GuruFocus uses EPS excluding non-recurring items because research indicates that stock prices correlate more closely with earnings than with free cash flow. For a detailed calculation, visit the HD DCF Calculator.
What Does the Free Cash Flow DCF Say? The free cash flow (FCF) based intrinsic value for The Home Depot Inc HD is calculated at $225.74. When comparing this to the earnings-based intrinsic value of $259.46, we observe a divergence in the two models. The FCF model suggests that the stock is modestly overvalued, with a margin of safety of -40.5%.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for The Home Depot Inc HD is calculated at $380.36, providing a third perspective on valuation. GF Value™ is GuruFocus' proprietary measure derived from historical trading multiples, past business growth, and future performance estimates. When comparing all three models, we see that the DCF earnings model suggests fair valuation, the FCF model indicates modest overvaluation, and GF Value™ suggests the stock is undervalued. For more insights, visit the GF Value™ page.
What Does HD's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have historically generated higher long-term returns (backtested from 2006 to 2021).
Metric Rating GF Score™ 83/100 Financial Strength 5/10 Profitability 8/10 Growth 7/10 Valuation 10/10 Momentum 5/10 With a predictability rank of 1/5 stars, the DCF model's reliability for this stock is lower, indicating that investors should be cautious when relying solely on this analysis. For more information, visit the HD stock page.
Key Assumptions and Limitations It is important to recognize that DCF models are highly sensitive to assumptions regarding growth rates and discount rates. Stocks with low predictability ratings, such as The Home Depot Inc HD , tend to produce less reliable DCF estimates. Additionally, the terminal growth rate of 4% is a simplifying assumption that may not fully capture future market conditions.
What This Means for Investors In synthesizing the findings from the DCF earnings model, the DCF FCF model, and the GF Value™, we conclude that The Home Depot Inc HD is currently fairly valued according to the earnings-based DCF model, modestly overvalued according to the FCF model, and undervalued according to the GF Value™. This mixed assessment suggests a cautious approach for potential investors. For the full DCF analysis, visit the HD DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is HD's intrinsic value based on DCF?
Answer: earnings-based $259.46, FCF-based $225.74
Is HD overvalued or undervalued?
Answer: The consensus indicates mixed results, with the DCF FCF model suggesting overvaluation and GF Value™ indicating undervaluation.
How reliable is the DCF model for HD?
Answer: The predictability rank of 1/5 suggests that the DCF model may be less reliable for this stock.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Key Takeaways Home Depot delivered 4.8% sales growth and a 0.6% comparable-sales increase in Q1'26.Home Depot's digital sales rose more than 10% y/y, the fourth straight quarter of double-digit growth.HD upgrades fulfillment with Ship from Best Location and routing to cut cancellations, raise satisfaction. The Home Depot Inc.’s (HD - Free Report) interconnected retail strategy appears to be delivering tangible results, even as the home improvement market remains challenged by elevated mortgage rates, housing affordability concerns and cautious consumer spending. The strategy centers on seamlessly connecting stores, digital platforms and supply-chain capabilities to create a frictionless shopping experience for DIY and professional customers.
At the heart of this approach is Home Depot’s effort to let customers shop whenever and however they choose. The company has invested heavily in fulfillment capabilities, delivery reliability, technology and digital tools that integrate online and in-store experiences. Initiatives such as "Ship from Best Location" leverage the company’s network of stores and distribution assets to improve delivery speed and inventory availability. The retailer is also refining order-routing logic to fulfill orders from the optimal location based on distance, inventory and delivery speed, helping reduce cancellations and improve customer satisfaction.
The benefits are increasingly visible in the company’s operating performance. In first-quarter fiscal 2026, Home Depot generated sales growth of 4.8% year-over-year, while comparable sales increased 0.6% despite a relatively unchanged demand environment. Online sales remained a bright spot, with digital sales rising more than 10% year over year, marking the fourth consecutive quarter of double-digit growth. Management attributed this momentum to ongoing investments in its interconnected platforms, enhanced search functionality, personalized recommendations and faster fulfillment options.
As Home Depot continues to remove friction across channels, and improve delivery and fulfillment capabilities, its interconnected retail strategy is helping drive customer engagement, market-share gains and long-term competitive differentiation.
How Are Peers Like LOW & WSM Catching Up?While Home Depot remains the industry leader in home improvement retail, competitors such as Lowe's Companies Inc. (LOW - Free Report) and Williams-Sonoma (WSM - Free Report) are making strategic investments in digital capabilities, omnichannel fulfillment and professional customer offerings to narrow the competitive gap and capture a greater share of consumer spending.
Lowe's investments in store modernization, digital capabilities and AI-powered tools appear to be paying off. In first-quarter fiscal 2026, online sales jumped 15.5% year over year, supported by enhancements in user experience, same-day delivery and its AI shopping assistant, Mylow, whose users convert at three times the rate of other customers. Store upgrades, improved fulfillment options and productivity tools also helped drive a 0.6% comparable-sales increase and market-share gains despite a challenging housing environment.
Williams-Sonoma's investments in stores, digital capabilities and AI-driven customer experiences are yielding strong results. In first-quarter fiscal 2026, e-commerce and retail comparable sales rose 4.8% and 4.7%, respectively, reflecting strength across channels. The company enhanced personalization, optimized shopping and checkout experiences, expanded AI tools, and improved product discovery, while store experiences and design services continued to attract customers. These initiatives helped drive a 4.8% companywide comps gain and continued market-share growth.
HD’s Price Performance, Valuation & EstimatesShares of Home Depot have lost 15.3% in the past six months versus the industry’s decline of 13.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, HD trades at a forward price-to-earnings ratio of 20.15X compared with the industry’s average of 19.02X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HD’s fiscal 2026 and fiscal 2027 earnings per share (EPS) implies year-over-year growth of 2.3% and 8.1%, respectively. The company’s EPS estimate for fiscal 2026 has moved down 0.3% in the past 30 days. Meanwhile, the consensus estimate for fiscal 2027 EPS has moved down by a penny in the past seven days.
Image Source: Zacks Investment Research
Home Depot stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Roughly 90% of the U.S. population lives within 10 miles of a Home Depot (HD +0.73%) location. A physical footprint like this with such a broad reach showcases the company's market leadership.
But investors haven't reaped the rewards. Home Depot shares have produced a disappointing total return of 12% in the past five years (as of June 1). On the other hand, the S&P 500 (^GSPC +0.50%) generated a much better total return of 94%.
With the retail stock trading 28% off its peak right now, investors might be interested in this opportunity. Take the time to learn these three things about Home Depot first, as this will inform your decision-making process.
Image source: The Motley Fool.
1. Demand has proven to be cyclical Unlike businesses that sell small-dollar items or that generate recurring subscription revenue, Home Depot has shown that its demand can be cyclical. During the pandemic, when households were flush with excess cash, revenue jumped 19.9% and 14.4% in fiscal 2020 and fiscal 2021, respectively. This is not a normal occurrence.
As the macro environment has evolved, now characterized by higher interest rates and stubborn inflationary pressures, Home Depot's growth has slowed notably. Revenue increased at an annualized pace of just 2.2% between fiscal 2021 and fiscal 2025. And in the first quarter of fiscal 2026 (ended May 1), same-store sales were up 0.6%.
The economic backdrop doesn't exactly give consumers the confidence they need to spend on expensive renovation projects and upgrades. During the Q1 2026 earnings call, CEO Ted Decker specifically called out low housing turnover and new construction starts trending down, which negatively impact the company.
On a positive note, however, Home Depot estimates its total addressable market to be $1.2 trillion. Based on its trailing-12-month revenue of $167 billion, there is plenty of room to steadily capture more market share over time.
2. Professionals are a key customer group Home Depot sells to DIY customers. It also targets professionals. This group includes contractors, plumbers, electricians, and roofers, for example, who tackle a high number of complex jobs. Sales to professionals grew at a faster pace than those to DIY customers during the latest fiscal quarter.
The company generates about half of its revenue from professionals. This translates to a significantly higher dollar figure than what smaller rival Lowe's gets from its 35% share of pro sales. Consequently, Home Depot has a massive lead in this segment.
Despite accounting for half of sales, professionals only make up 10% of Home Depot's customer base. These are extremely high-value shoppers that the business wants to continue catering to.
Home Depot offers them valuable products and services, such as complex order scheduling. "Pros can provide us with job site preferences and business hours, enabling us to complete their delivery on time, inside the exact window the pro is looking for," senior EVP Ann-Marie Campbell said on the Q1 2026 earnings call.
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3. Management is focused on capital returns Even though this is a cyclical operation, Home Depot continues to post consistent profits. In fiscal 2025, it brought in $14.2 billion in net income and $16.3 billion in operating cash flow. And remember, this is during an unfavorable macroeconomic environment.
Steady earnings support management's capital allocation policy, which prioritizes returning cash to shareholders. Home Depot engages in opportunistic share buybacks. In the past five years, the business reduced its diluted outstanding share count by 7.3%.
Dividends should command more attention, though. After the next payout on June 18, Home Depot will have paid a dividend in 157 straight quarters, an encouraging streak highlighting its financial strength. And in the past decade, the payout climbed 238%.
The S&P 500 pays a dividend yield of 1.03%. Home Depot's 3% dividend yield is almost 200% higher than that. This might encourage income investors to take a closer look at the retail stock.
Home Depot (HD - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this home-improvement retailer have returned -2.1% over the past month versus the Zacks S&P 500 composite's +1.9% change. The Zacks Retail - Home Furnishings industry, to which Home Depot belongs, has lost 2.3% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Home Depot is expected to post earnings of $4.71 per share for the current quarter, representing a year-over-year change of +0.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.4%.
The consensus earnings estimate of $15.02 for the current fiscal year indicates a year-over-year change of +2.3%. This estimate has changed -0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $16.21 indicates a change of +8% from what Home Depot is expected to report a year ago. Over the past month, the estimate has changed -0.8%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Home Depot.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Home Depot, the consensus sales estimate of $47.5 billion for the current quarter points to a year-over-year change of +4.9%. The $171.66 billion and $178.62 billion estimates for the current and next fiscal years indicate changes of +4.2% and +4.1%, respectively.
Last Reported Results and Surprise HistoryHome Depot reported revenues of $41.77 billion in the last reported quarter, representing a year-over-year change of +4.8%. EPS of $3.43 for the same period compares with $3.56 a year ago.
Compared to the Zacks Consensus Estimate of $41.49 billion, the reported revenues represent a surprise of +0.67%. The EPS surprise was +0.88%.
Over the last four quarters, Home Depot surpassed consensus EPS estimates two times. The company topped consensus revenue estimates three times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Home Depot is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Home Depot. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
The stock market in 2026 has rebounded nicely from a challenging time following the launch of the Iran war in late February. Using the popular S&P 500 index, equities have gained 9% through June 7.
There's been a lot of attention paid to companies that make semiconductor chips because of their use in artificial intelligence (AI). And those stocks have soared, helping push the S&P 500 higher. In fact, the S&P 500 Information Technology sector appreciated by 18.4% this year.
While investors have flocked to those stocks, others have seen their prices dip this year. Home Depot's (HD +0.73%) share price has dropped 9%. But long-term investors should take notice and use this opportunity to buy shares.
Image source: Getty Images.
Short-term challenges Home Depot has long been a successful home-improvement retailer. The company's annual sales of nearly $165 billion in fiscal 2025 (ended Feb. 1) dwarfed those of its major competitor Lowe's, which produced roughly $86 billion.
As you'd expect, Home Depot's sales depend on certain economic factors, such as consumer confidence, the job market, and inflation. Persistently high inflation has forced consumers to spend more on everyday basics, meaning they have less to spend on major renovations.
Meanwhile, elevated interest rates have also affected large home improvement project undertakings. That's because people often borrow to undertake major renovations. Higher interest rates have also dampened buyer demand for houses, a key source of renovation demand since people typically renovate their new homes.
You can see the effect these factors have had on Home Depot's recent sales, which have been sluggish. Fiscal first-quarter same-store sales (comps) were flat after removing foreign-currency translations. Management cited homeowners delaying major renovations as the chief reason for the sales weakness.
However, interest rates will drop at some point, homes will become more affordable, and homeowners will undertake major projects, even if it's out of necessity. Of course, no one knows when that will happen. But when it does, Home Depot, with its attractive price points, wide range of offerings, and ubiquitous presence, remains in a prime position to benefit.
Buying Home Depot stock at a bargain These short-term concerns have hurt Home Depot's share price. They have underperformed the S&P 500 by about 19 percentage points so far in 2026.
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However, given that Home Depot remains in a strong competitive position, long-term investors should take notice of the better valuation. The stock's price-to-earnings (P/E) ratio has dropped from 24 to 22 this year. That also compares favorably to the stock's historical valuation. The shares have a 10-year median P/E ratio of 23.
Buying shares in a company merely because of a price drop is a risky gambit. However, in this case, it's an exciting opportunity to buy shares in a market-leading company whose stock price has dropped due to short-term economic factors.
That provides long-term investors with an excellent opportunity to buy shares during this time.
Monday's semiconductor rebound lasted exactly one trading session. The iShares Semiconductor ETF (SOXX +1.68%) was down by 8.6% at 12:44 p.m. ET, reflecting broad price drops in the chip sector. The same tech giants also weighed on the usual marketwide indexes. The Nasdaq Composite (^IXIC +0.31%) index was down 2.8% at the same point, ahead of a 1.6% drop for the S&P 500 (^GSPC +0.50%) and a 0.6% Dow Jones Industrial Average (^DJI +0.70%) retreat.
^IXIC data by YCharts
The session started promisingly enough. All three indexes (and the semiconductor ETF) opened higher and climbed until around 9:50 a.m. ET before the bottom fell out.
Apple's AI reveal and the chip stock reversal Apple (AAPL 1.52%) is a leading drag on all three indexes. The stock fell 3.8% after Apple unveiled an AI-oriented update of the Siri personal assistant app. Analysts liked the long-awaited AI announcement just fine, but many investors still sold the news. Notably, the company isn't leaning on well-known AI models such as Anthropic's Claude or OpenAI's ChatGPT. Instead, the company has developed a new high-performance AI model in partnership with Alphabet (GOOG +0.45%) (GOOGL +0.53%). It might be good, but nobody knows yet. As a result, Apple is on track for its worst day since February.
The chip sector has given back most of Monday's gains. Sector heavyweights like Nvidia (NVDA +0.15%), Broadcom (AVGO 0.85%), and Micron Technology (MU 1.02%) didn't do anything wrong today, but they're all down sharply anyway. It looks like yesterday's chip-stock surge lacked conviction.
Part of the jitters may stem from what's coming later this week. SpaceX is set to go public Friday in what's expected to be the largest IPO ever, with a $1.75 trillion valuation at the official starting price of $135 per share. And that's just the start of a giga-cap IPO spree. OpenAI filed confidentially for its own IPO late Monday, and Anthropic has reportedly done the same.
Image source: Getty Images.
Oil prices, meanwhile, are taking a breather from their recent surge. WTI crude dropped 3.9% to $87.74 per barrel after Energy Secretary Chris Wright said Strait of Hormuz traffic is "rising very meaningfully." President Trump is once again promising an Iran deal within days, though similar statements in recent weeks have not produced results. The United States Oil Fund (USO 2.64%) is down 3.3%.
And it's another relatively quiet day on the Dow. Apple's significant price drop only removed 70 points from the index, matched by a similar-sized point increase from Home Depot (HD +0.73%). A 3.7% Home Depot jump would never move the needle for the S&P 500, and the home improvement retailer isn't trading on the Nasdaq. But on the Dow, its $310 share price makes it roughly equal to trillion-dollar titans Apple and Amazon (AMZN 1.24%).
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Looking past the noise If you're feeling whiplash, you're not alone. The S&P 500 has now fallen in three of the past four sessions after its nine-week winning streak ended Friday. Monday's relief rally turned out to be a head fake.
Trading volumes are fairly low today, making it look like Wall Street wants a break from the recent volatility. But the SpaceX IPO is coming soon anyway, so you may want to buckle your seat belt for a while.
For long-term investors, the lesson is familiar: this week's drama makes for good headlines, but it won't determine where stocks are in five years. Check back tomorrow, or next month, depending on how you feel about market volatility headlines.
Anders Bylund has positions in Alphabet, Amazon, Micron Technology, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Broadcom, Home Depot, Micron Technology, Nvidia, and iShares Trust-iShares Semiconductor ETF. The Motley Fool recommends Nasdaq. The Motley Fool has a disclosure policy.
Donation to Boys & Girls Clubs of America will support soccer programming, workforce development and other initiatives serving youth across Southern California
, /PRNewswire/ -- As the U.S. Men's National Team begins its FIFA World Cup 26™ journey in Los Angeles, The Home Depot is marking the moment with a $250,000 donation to support Boys & Girls Clubs of America across the greater Los Angeles region.
The investment will support a range of initiatives serving local youth, including soccer programming, workforce development opportunities and other community-based Club programs across Southern California.
As a strategic partner of U.S. Soccer and supporter of the sport's continued growth in the United States, The Home Depot is helping create greater access and opportunity for the next generation of players, fans and communities connected to the game.
"With the world watching as the U.S. Men's National Team kicks off its World Cup journey in Los Angeles, we're proud to invest in the communities that make the game so meaningful," said Allison Kolber, Vice President of Integrated Marketing at The Home Depot. "This donation is about helping young people across greater Los Angeles access opportunities, build connections and be part of the excitement surrounding this historic moment for soccer in North America."
The initiative reflects The Home Depot's broader commitment to supporting communities connected to the tournament and celebrating the impact soccer can have both on and off the field.
"We are proud to work with great partners like The Home Depot, who share our belief that everyone, everywhere should feel like they belong in soccer. By growing the game, expanding access and harnessing soccer as a force for good, we can ensure the legacy of this historic moment reaches communities across greater Los Angeles and inspires the next generation for years to come," said Lex Chalat, Executive Director of Soccer Forward Foundation, U.S. Soccer's social impact arm.
"As excitement builds around the game, this investment will help more young people benefit from sports in their communities," said Chad Hartman, National Vice President of Corporate Partnerships & Engagement at Boys & Girls Clubs of America. "We're proud to work with The Home Depot to expand access to soccer, while supporting workforce readiness and youth development efforts that help young people build confidence, develop life skills and reach their full potential."
Content tied to the donation and community initiative will roll out across owned and social channels throughout the tournament, with additional programming planned this summer.
ABOUT THE HOME DEPOT
The Home Depot is the world's largest home improvement specialty retailer. At the end of the first quarter of fiscal 2026, the company operated a total of 2,361 retail stores and over 1,280 SRS locations across all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. The Company employs over 470,000 associates. The Home Depot's stock is traded on the New York Stock Exchange (NYSE: HD) and is included in the Dow Jones industrial average and Standard & Poor's 500 index.
ABOUT BOYS & GIRLS CLUBS OF AMERICA
For more than 160 years, Boys & Girls Clubs of America (BGCA.org) has provided a safe place for kids and teens to learn and grow. Clubs offer caring adult mentors, fun and friendship, and high-impact youth development programs on a daily basis during critical non-school hours. Boys & Girls Clubs programming promotes academic success, good character and leadership, and healthy lifestyles. Over 5,500 Clubs serve more than 4 million young people through Club membership and community outreach. Clubs are located in cities, towns, public housing and on Native lands throughout the country, and serve military families in BGCA-affiliated Youth Centers on U.S. military installations worldwide. The national headquarters is located in Atlanta. Learn more about Boys & Girls Clubs of America on Facebook and LinkedIn.
ABOUT U.S. SOCCER
Founded in 1913, U.S. Soccer, a 501(c)(3) nonprofit, is the official governing body of the sport in the United States. Our vision is clear; we exist in service to soccer. Our ambition is to ignite a national passion for the game and elevate its power to unite, inspire, and uplift. We believe soccer is more than a sport; it is a force for good. We are focused on three areas: U.S. Soccer Everywhere, making soccer the #1 played sport in every community in America; U.S. Soccer is Yours, ensuring everyone feels ownership of soccer's future in the U.S., and U.S. Soccer Success, winning major tournaments, including World Cups. Together, the future of the game is ours to build. For more information, visit ussoccer.com/ourvision.
ABOUT SOCCER FORWARD
The Soccer Forward Foundation is a key driver in U.S. Soccer's overall vision that soccer is a force for good. Operating with the belief that soccer contributes to healthier and more connected, equitable communities, Soccer Forward supports U.S. Soccer's efforts to expand access to the sport, helping the game reach more people and create lasting change. Soccer Forward focuses on enabling and equipping people, places and programs to grow the game in communities across America and on delivering cutting-edge research, training, and guidelines to prove soccer's contribution to health outcomes in communities. In addition, it will develop standards and provide business and technical support to build the ecosystem for the women's game across the U.S. and globally. For more information, visit ussoccer.com/soccer-forward.
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Goldman Sachs is prepping for the SpaceX IPO. Bloomberg/Getty Images It's like Christmas for two of Wall Street's biggest banks.
The headquarters of Goldman Sachs and Morgan Stanley decked their halls with SpaceX gear on Wednesday ahead of the rocket maker's blockbuster IPO — a show of banker enthusiasm for what could be the largest market debut in history.
Morgan Stanley draped its lobby entrance gates with SpaceX logos and its lobby wall with a giant mural of Mars, a nod to SpaceX's lofty ambitions. Goldman Sachs plastered its lobby walls with renderings of Starship, SpaceX's reusable rocket. It also touted its role as "lead left" bookrunner for the IPO.
Morgan Stanley draped its lobby in SpaceX imagery ahead of the rocket maker's IPO. Bloomberg/Getty Images SpaceX is seeking to raise $75 billion in the offering, according to its SEC filing, a haul that would dwarf Aramco's 2019 record-setting IPO. The deal would value Elon Musk's space company at over $1.75 trillion, instantly making it one of the most valuable public companies in the world.
The lobby of the Goldman Sachs headquarters in New York is decked out in SpaceX imagery ahead of the company's blockbuster IPO. Bloomberg/Bloomberg via Getty Images Scoring SpaceX's business for its IPO is a mark of prestige for Goldman and Morgan Stanley, as well as a likely windfall. The banks are the lead underwriters on the offering, with Goldman scoring the lead-left spot in the S-1 IPO filing. Both banks have a front-row seat to one of the most coveted mandates on Wall Street — and the opportunity to collect major fees and deepen ties with Musk's business empire.
The lobby displays show just how big a moment this is for the banks. The SpaceX IPO is a major market event, a Musk spectacle, and a test of investor appetite for one of Silicon Valley's most ambitious private companies.
Plus, for the banks leading the IPO charge, it's a good time to bask in the glow of bragging rights.
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Lakshmi Varanasi You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Goldman Sachs Morgan Stanley IPO More Stocks Stock Market Elon Musk Space
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Goldman Sachs' CEO, David Solomon, said the bank is "still going to hire a lot of people out of school." ECNY Goldman Sachs CEO David Solomon says the bank may bring in fewer fresh-faced employees over the next few years as AI reshapes their work.
But don't call it a hiring apocalypse.
During an interview with Bloomberg's "Odd Lots" podcast, released on Thursday, Solomon said Goldman's out-of-school hiring could "contract a little" over the next three years. Still, he predicts the firm will continue to hire thousands of interns and recent graduates.
"You're going to see nuanced changes that probably to some degree reduce the number of people that we start with over the next few years, but probably not what you and I would call dramatically," he said. "We're still going to hire a lot of people out of school."
This year, Goldman is bringing on an estimated 2,400 to 2,500 interns, Solomon said. He added that the firm has a similar number of permanent new hires starting in July — roughly in line with pre-COVID levels, but below the more than 3,000 it was bringing in during 2021.
Asked how Goldman's new-hire mix has changed since the pre-ChatGPT era, Solomon said the firm had seen "subtle, subtle changes." He said the firm had shifted more heavily toward engineering talent over the past decade, and that the mix would likely shift again "given the power of these tools and our ability to code."
The comments come as concerns about AI's impact on jobs spark mixed responses across industries.
In Silicon Valley, top AI bosses, like Anthropic CEO Dario Amodei, have warned of potential wipe-outs for entry-level workers. Meanwhile, leaders in other industries think there's more nuance to the existential warnings — Apollo's chief economist Torsten Sløk wrote that there's "zero evidence" that AI is driving layoffs, and Uber's COO, Andrew Macdonald, said it's getting harder to justify the amount of spending it takes to automate tasks with AI.
Solomon, who argued in a late-May New York Times op-ed that the AI jobs apocalypse is overblown, falls firmly in the latter camp.
The bigger challenge, Solomon said during the podcast, is figuring out how to train young workers when AI can instantly produce answers that once required hours of grunt work.
He recalled starting his banking career in an age without minute-by-minute digital trackers for stock prices. To compare stock performance, he said, he dug through microfiche, pulled prices from The Wall Street Journal, plotted them on graph paper, and did the math by hand.
It was slow, but it taught him useful critical thinking skills, he said.
"Now, if you ask for it, you get it instantaneously," he said. "Has your brain really absorbed what's actually happening?"
Operating in a world with answers at his entry-level intern's fingertips means Goldman has to rethink skill training, Solomon said.
Still, his advice to young bankers in the AI age was decidedly old-school: pick up the phone and talk to people.
"A telephone call to someone is 10 times more valuable than a text or an email," Solomon said. "My daughter says that's an unverified statistic. I know that's true."
Goldman didn't immediately respond to a request for comment from Business Insider.
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Ben Shimkus You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Ben Shimkus is a reporter for the Business News desk. He writes about cars, transportation, retail, and jobs. Ben's reporting has appeared in Rolling Stone, The Verge, Automotive News, USA Today, AutoBody News, LGBTQ Nation, TopSpeed, and Out Magazine. He's also held staff writing positions at The U.S. Sun and the Daily Mail. He graduated from NYU with a Master's in journalism in 2024. Email Ben at [email protected] or message him privately on Signal at bshimkus.41.
Goldman Sachs is keeping its soon-to-be-former top lawyer on the payroll despite the Jeffrey Epstein scandal that forced her resignation earlier this year.
Kathryn Ruemmler, the bank’s outgoing chief legal officer and general counsel, will remain at Goldman as an adviser after CEO David Solomon personally asked her to stay on, according to Bloomberg News
The move marks a surprising reversal after Goldman announced in February that Ruemmler would retire from her roles effective June 30 following the release of thousands of emails detailing her relationship with the late convicted sex offender.
Outgoing Goldman Sachs chief legal officer Kathryn Ruemmler is staying at the bank as an adviser. AP Solomon later said he had “reluctantly accepted” Ruemmler’s resignation after the Justice Department released troves of Epstein-related documents showing years of close contact between the pair.
Michael Bosworth will take over as interim general counsel in July while Goldman continues its search for a permanent replacement, according to people familiar with the matter cited by the FT.
Ruemmler’s continued association with Goldman is likely to reignite a controversy that rattled the Wall Street giant for months and exposed divisions within the firm over Solomon’s steadfast support for one of his closest advisers.
The former Obama White House counsel stepped down after a steady stream of disclosures revealed a relationship with Epstein that went far beyond a casual professional acquaintance.
Jeffrey Epstein, the disgraced financier and convicted sex offender, maintained a years-long relationship with Kathryn Ruemmler before his 2019 arrest. DOJ The emails showed Epstein arranging gifts for Ruemmler, including a Hermès handbag, Apple products, spa appointments and haircuts. At the time of her resignation, Ruemmler told the FT that the issue had become a “distraction.”
In one 2015 message, she wished him a happy birthday, writing: “I hope you enjoy the day with your one true love :-)”
After Epstein responded with a crude joke, Ruemmler shot back that it was “Hard to believe that there is still an open question about whether men are [the] inferior gender.”
The correspondence also showed Ruemmler expressing appreciation for their relationship.
In one email, she told Epstein that “friendships goes two ways – getti=g you some peace with respect to all of this legal shit is important to me.”
Goldman Sachs CEO David Solomon asked Kathryn Ruemmler to remain at the bank as an adviser after her resignation, according to the Financial Times. AFP via Getty Images In another message sent during a first-class trip to Europe that Epstein had arranged, she wrote that she was “grateful” for their relationship and signed off with “Xo.”
The two also exchanged warm personal messages over the years.
In September 2016, Epstein thanked Ruemmler for her “friendhsip and help,” to which she replied, “Back at you, and always.”
In a separate 2019 email after receiving gifts from him, Ruemmler wrote: “Am totally tricked out by Uncle Jeffrey today! Jeffrey boots, handbag, and [watch]!” and added: “Thank you to Uncle Jeffrey!!!”
Ruemmler has consistently argued that her relationship with Epstein arose from her work as a prominent white-collar defense lawyer and that she interacted with him the same way she did many professional contacts.
Ruemmler resigned as Goldman Sachs’ top lawyer earlier this year after a trove of Epstein emails became public. Through statements issued by her lawyers and spokespeople, she has said Epstein was a business referral source who shared a client with her, that she never formally represented him and was never paid by him, and that she had “no knowledge of any new or ongoing unlawful activity on his part.”
Ruemmler has also maintained that she only saw the version of Epstein that he presented to influential people and that, had she known what later emerged about his conduct, “she never would have dealt with him at all.”
Solomon’s support for Ruemmler had rankled some Goldman executives and members of the bank’s influential alumni network, who feared the controversy could tarnish the firm’s reputation.
Ruemmler’s resignation was one of several high-profile corporate casualties stemming from the Justice Department’s release of Epstein files, which also ensnared billionaire Bill Gates, former Treasury Secretary Lawrence Summers and former UK Labour politician Peter Mandelson.
Goldman Sachs (GS - Free Report) ended the recent trading session at $1,032.01, demonstrating a -1.24% change from the preceding day's closing price. This change lagged the S&P 500's 0.26% loss on the day. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq lost 0.97%.
The investment bank's stock has climbed by 10.6% in the past month, exceeding the Finance sector's gain of 0.29% and the S&P 500's gain of 0.23%.
The investment community will be paying close attention to the earnings performance of Goldman Sachs in its upcoming release. The company is slated to reveal its earnings on July 14, 2026. In that report, analysts expect Goldman Sachs to post earnings of $13.71 per share. This would mark year-over-year growth of 25.66%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.75 billion, up 8.03% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $59.53 per share and revenue of $63.69 billion, indicating changes of +16% and +9.28%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Goldman Sachs. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Goldman Sachs currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Goldman Sachs is currently trading at a Forward P/E ratio of 17.55. This expresses a premium compared to the average Forward P/E of 13.89 of its industry.
We can also see that GS currently has a PEG ratio of 1.35. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Financial - Investment Bank industry held an average PEG ratio of 1.05.
The Financial - Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 98, this industry ranks in the top 41% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
US banks are watching rates very closely in early trading on Wednesday.
The market for Goldman Sachs was pretty weak during the previous session, but we did bounce a bit from the $1,000 level. At this point, it looks like we may be testing that again during the day, as premarket trading is a little bit negative.
The dropping interest rates, of course, will come into the picture, but I do believe that $1,000 is an area where you’re probably going to see buyers jump back in, so this could end up being a nice play-the-bounce type of opportunity for a short-term trade. Longer term, it is still bullish, so if you’re looking to invest, that’s fine, just do so wisely. Don’t “jump all in” right away would be how I would play it.
JP Morgan Chase Technical Analysis The market for JP Morgan is also a little soft early. These days, it looks like JP Morgan is settling into some type of range between $320 and $295 or so. We are at the top of that range; a little bit of a pullback makes sense.
That being said, we are very sideways. If you’re a range-bound trader, this might be a decent market for you. Keep an eye on secondary indicators such as the stochastic oscillator or something like that to help you out. This is a market that I do think eventually goes higher, but right down we are still stuck in that range.
Citibank Technical Analysis And one that’s particularly interesting to me is Citibank. Citi looks like it’s trying to break above the $136 level. If it does, it could be off to the races. When you look at the longer-term chart, it has been grinding higher for a while. Breaking 136, I think at that point in time opens up another $4 pretty quickly. The premarket trading is a little bit negative, but it’s much more positive than the others in this video, so this could lead the way.
If you’d like to know more about technical analysis and how traders use it, please visit our educational area.
A top Goldman Sachs banker privately opposed CEO David Solomon’s decision to stand by Kathy Ruemmler as revelations about her ties to Jeffrey Epstein engulfed the Wall Street giant — and now he’s on his way out the door, according to a report.
Russell Horwitz, Goldman’s chief of staff, raised concerns for months about Solomon’s support for Ruemmler as successive releases of Epstein-related documents exposed the extent of her relationship with the late convicted sex offender, The Financial Times reported.
The FT report cites people close to Horwitz.
A source close to the situation told The Post that while the FT reporting is accurate, Goldman employees were “shocked and appalled that an executive would talk about disagreements with the CEO,” implying Horwitz or people close to him let word of the clash reach the press.
Goldman Sachs CEO David Solomon’s decision to retain the firm’s top lawyer has reportedly caused consternation within the ranks. AFP via Getty Images Horwitz, who is leaving his chief of staff role at the end of June, denied that his departure was related to Goldman’s handling of the Ruemmler controversy.
“No, that is not the reason I’m leaving Goldman Sachs,” Horwitz said in a statement cited by the FT.
He was one of the few senior figures inside Goldman willing to challenge Solomon on the issue, according to people familiar with the matter cited by the newspaper. Goldman Sachs and reps for Ruemmler both declined to comment when reached by The Post.
Ruemmler resigned in February after a trove of Epstein-related emails were released by the Justice Department.
Russell Horwitz, outgoing chief of staff at Goldman, is said to have raised objections about Solomon’s support for Kathy Ruemmler. Goldman Sachs But Solomon asked her to stay on as an adviser to the firm beyond her scheduled departure date later this month, the FT reported.
“Russell was one of the few people who wanted to address it and everyone else didn’t. That was hugely frustrating for him,” one person familiar with the situation told the FT.
Another person said Solomon’s backing of Ruemmler had become a taboo subject inside Goldman, with few executives willing to question the CEO’s continued support for one of his closest advisers.
The internal dissent contrasts sharply with Solomon’s long-standing support for Ruemmler.
Kathy Ruemmler will reportedly stay on at the firm despite resigning as general counsel. AP When she resigned in February, Solomon said he had “reluctantly accepted” her decision while praising her as a “tremendous” person.
The Post reported in April that Solomon privately urged Ruemmler to reconsider, telling her: “You don’t have to do this.”
Sources close to Ruemmler told The Post that she was unusually transparent with Goldman about her Epstein ties before joining the bank and even turned down an offer worth $30 million to join Epstein’s defense team after his 2019 arrest.
Ruemmler has maintained that she regretted ever knowing Epstein and had no knowledge of his criminal activities.
But the FT reported Monday that Horwitz remained unconvinced and was among the few senior Goldman executives willing to challenge Solomon’s continued support for Ruemmler.
A trove of emails released by the Justice Department revealed chummy exchanges between Ruemmler and Jeffrey Epstein. DOJ One Goldman executive described a state of “shock” inside the firm when last week’s news of Ruemmler’s continued role became known, according to the FT.
Two senior Democratic lawmakers apparently share the concern.
Sen. Elizabeth Warren (D-Mass.) and Rep. Raja Krishnamoorthi (D-Ill.) wrote a letter to Solomon stating that his decision to retain Ruemmler “call into question” the CEO’s “professional judgement and fitness to continue leading one of the largest banks in the United States,” according to Bloomberg News.
Item 1 of 3 David Solomon, Chairman and CEO of The Goldman Sachs Group, Inc., addresses the Economic Club of New York in New York City, U.S., June 2, 2026. REUTERS/David 'Dee' Delgado
[1/3]David Solomon, Chairman and CEO of The Goldman Sachs Group, Inc., addresses the Economic Club of New York in New York City, U.S., June 2, 2026. REUTERS/David 'Dee' Delgado Purchase Licensing Rights, opens new tab
CompaniesNEW YORK, June 10 (Reuters) - U.S. Democratic lawmakers Elizabeth Warren and Raja Krishnamoorthi have flagged concerns to Goldman Sachs (GS.N), opens new tab CEO David Solomon over his reported plans to keep top lawyer Kathy Ruemmler as an adviser despite her links to the late sex offender Jeffrey Epstein.
Goldman's legal officer Ruemmler resigned this year after documents published by the U.S. Justice Department showed she accepted gifts from Epstein and advised him on how to address media inquiries regarding his crimes. Her resignation will be effective June 30, a source told Reuters.
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Solomon has asked her to stay at the firm as an adviser, Bloomberg reported on Wednesday, citing people with knowledge of the matter.
Goldman Sachs declined to comment on the report.
In the letter, U.S. Senator Warren and U.S. Representative Krishnamoorthi raised concerns that the material released by the DOJ and other reporting suggest Ruemmler maintained extensive contact with Epstein years after his conviction.
“The information uncovered in recent months not only raises serious questions as to whether Goldman Sachs either failed to conduct proper due diligence or viewed Ruemmler’s relationship with Epstein as appropriate when appointing her as the firm’s top lawyer, but now calls into question your professional judgment and fitness to continue leading one of the largest banks in the United States,” the letter said.
The lawmakers asked Solomon to explain if "Ruemmler is no longer departing the bank, please provide the reasoning, her new title, duties associated with her new role, and details regarding her compensation package."
"Did you 'press' Ruemmler to stay at the firm? If so, why?" it said.
Ruemmler did not immediately respond to a Reuters request for comment. Her external spokesperson declined to comment.
The departure of Ruemmler, who was among the top executive officers of the Wall Street firm, is the most high-profile banking exit after the release of the latest Epstein documents by the DOJ earlier this year.
Krishnamoorthi and Warren requested responses from Solomon by June 26 regarding Goldman's prior knowledge of Ruemmler’s relationship with Epstein, the firm’s due diligence and defense of its top lawyer following the DOJ document release, the letter said.
Goldman CEO Solomon said in February he had reluctantly accepted her resignation, telling CNBC he respected her decision to leave.
Scrutiny has intensified on the ties between major financial institutions and Epstein, who died in prison in 2019 while awaiting trial on federal sex trafficking charges. His death at the Metropolitan Correctional Center in New York City was ruled a suicide.
Reporting by Saeed Azhar, editing by Pete Schroeder and David Gregorio
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Goldman Sachs is rated a buy, positioned to benefit from robust IPO activity and record investment banking fees. GS posted 14.37% YoY revenue growth in Q1 2026, driven by its global banking and markets segment, notably investment banking fees up 48%. GS is the lead advisor on the anticipated SpaceX, Anthropic, and OpenAI IPOs, expected to be major catalysts for revenue and shareholder value.
Goldman Sachs (GS - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this investment bank have returned +4.8% over the past month versus the Zacks S&P 500 composite's -1.6% change. The Zacks Financial - Investment Bank industry, to which Goldman belongs, has gained 4.6% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Goldman is expected to post earnings of $13.44 per share, indicating a change of +23.2% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $59.08 points to a change of +15.1% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $65.79 indicates a change of +11.3% from what Goldman is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Goldman.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Goldman, the consensus sales estimate for the current quarter of $15.75 billion indicates a year-over-year change of +8%. For the current and next fiscal years, $63.69 billion and $66.81 billion estimates indicate +9.3% and +4.9% changes, respectively.
Last Reported Results and Surprise HistoryGoldman reported revenues of $17.23 billion in the last reported quarter, representing a year-over-year change of +14.4%. EPS of $17.55 for the same period compares with $14.12 a year ago.
Compared to the Zacks Consensus Estimate of $16.98 billion, the reported revenues represent a surprise of +1.48%. The EPS surprise was +7.41%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Goldman is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Goldman. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.
The Zacks Premium service makes this easier. It features daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter. All of these can help you quickly identify what stocks to buy, what to sell, and what are today's hottest industries.
The service also includes the Focus List, which is a long-term portfolio of top stocks that boast a winning, market-beating combination of growth and momentum qualities.
Breaking Down the Zacks Focus ListIf you could, wouldn't you jump at the chance for access to a curated list of stocks to kickstart your investing journey?
That's what the Zacks Focus List offers. It's a portfolio of 50 stocks that serve as a starting point for long-term investors to build their individual portfolios. The stocks included in the list are set to outperform the market over the next 12 months.
Additionally, each selection is accompanied by a full Zacks Analyst Report, something that makes the Focus List even more valuable. The report explains in detail why each stock was picked and why we believe it's good for the long-term.
The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.
Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Earnings estimates are expectations of growth and profitability, and are determined by brokerage analysts. Together with company management, these analysts examine every aspect that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
Investors also need to look at what a company will earn down the road. This is why earnings estimate revisions are so important.
The stocks that receive positive changes to earnings estimates are more likely to receive even more upward changes in the future. Take this example: if an analyst raised their estimates last month, they'll probably do so again this month, and other analysts will follow.
Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank, which is a unique, proprietary stock-rating model, employs earnings estimate revisions to make it easier to build a winning portfolio.
The Zacks Rank consists of four main pillars: Agreement, Magnitude, Upside, and Surprise. Each one is given a raw score, which is recalculated every night and compiled into the Rank. Then, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell," using this data.
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
It can be very profitable to buy stocks with rising earnings estimates, as stock prices respond to revisions. By adding Focus List stocks, there's a great chance you'll be getting into companies whose future earnings estimates will be raised, which can lead to price momentum.
Focus List Spotlight: Goldman Sachs (GS - Free Report) Founded in 1869, The Goldman Sachs Group, Inc. is a leading global financial holding company providing IB, securities, investment management, and consumer banking services to a diversified client base. The company is headquartered in New York, with offices in major financial centers globally.
GS, a #3 (Hold) stock, was added to the Focus List on July 11, 2018 at $226.85 per share. Since then, shares have increased 356.53% to $1.
For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $1.2 to $59.08. GS boasts an average earnings surprise of 13.1%.
Moreover, analysts are expecting GS's earnings to grow 15.1% for the current fiscal year.
Reveal Winning StocksUnlock all of our powerful research, tools and analysis, including the Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. You'll quickly identify which stocks to buy, hold and sell, and target today's hottest industries, to help improve the performance of your portfolio. Gain full access now >>
NEW YORK--(BUSINESS WIRE)--Certain BlackRock closed-end funds (the “Funds”) announced distributions today as detailed below. The declarations have moved from monthly to quarterly to provide additional visibility on upcoming distributions. The funds will continue to pay monthly distributions.
Municipal Funds:
Distribution Month
Ex- & Record Date
Payable Date
July
July 15, 2026
August 3, 2026
August
August 14, 2026
September 1, 2026
September
September 15, 2026
October 1, 2026
National Funds
Ticker
Monthly
Distribution
Change From
Prior Distribution
BlackRock Municipal 2030 Target Term Trust
BTT
$0.046400
-
BlackRock 2037 Municipal Target Term Trust
BMN
$0.093750
-
BlackRock MuniHoldings Fund, Inc.*
MHD
$0.059500
-
BlackRock MuniYield Quality Fund III, Inc.*
MYI
$0.055500
-
BlackRock MuniAssets Fund, Inc.*
MUA
$0.055500
-
BlackRock MuniYield Quality Fund, Inc.*
MQY
$0.058000
-
State-Specific Funds
Ticker
Monthly
Distribution
Change From
Prior Distribution
BlackRock MuniYield Michigan Quality Fund, Inc.*
MIY
$0.054500
-
BlackRock MuniHoldings New Jersey Quality Fund, Inc.*
MUJ
$0.054000
-
BlackRock MuniYield Pennsylvania Quality Fund*
MPA
$0.047700
-
BlackRock Virginia Municipal Bond Trust*
BHV
$0.045500
-
BlackRock MuniHoldings California Quality Fund, Inc.*
MUC
$0.053500
-
BlackRock MuniYield New York Quality Fund, Inc.*
MYN
$0.051200
-
Taxable Funds:
Distribution Month
Ex- & Record Date
Payable Date
July
July 15, 2026
July 31, 2026
August
August 14, 2026
August 31, 2026
September
September 15, 2026
September 30, 2026
Taxable Municipal Funds
Ticker
Monthly
Distribution
Change From
Prior Distribution
BlackRock Taxable Municipal Bond Trust*
BBN
$0.098600
-
Taxable Fixed Income Funds
Ticker
Monthly
Distribution
Change From
Prior Distribution
BlackRock Floating Rate Income Trust*
BGT
$0.120280
-
BlackRock Core Bond Trust*
BHK
$0.074600
-
BlackRock Multi-Sector Income Trust*
BIT
$0.123700
-
BlackRock Income Trust, Inc.*
BKT
$0.088200
-
BlackRock Limited Duration Income Trust*
BLW
$0.113200
-
BlackRock Credit Allocation Income Trust*
BTZ
$0.083900
-
BlackRock Debt Strategies Fund, Inc.*
DSU
$0.098730
-
BlackRock Floating Rate Income Strategies Fund, Inc.*
FRA
$0.123840
-
BlackRock Corporate High Yield Fund, Inc.*
HYT
$0.077900
-
Equity and Multi-Asset Funds:
Distribution Month
Ex- & Record Date
Payable Date
July
July 15, 2026
July 31, 2026
August
August 14, 2026
August 31, 2026
September
September 15, 2026
September 30, 2026
Equity Funds
Ticker
Monthly
Distribution
Change From
Prior Distribution
BlackRock Resources & Commodities Strategy Trust*
BCX
$0.069700
-
BlackRock Enhanced Equity Dividend Trust*
BDJ
$0.061900
-
BlackRock Energy and Resources Trust*
BGR
$0.097300
-
BlackRock Enhanced International Dividend Trust*
BGY
$0.042600
-
BlackRock Health Sciences Trust*
BME
$0.262100
-
BlackRock Health Sciences Term Trust*
BMEZ
$0.110000
-
BlackRock Enhanced Global Dividend Trust*
BOE
$0.082700
-
BlackRock Utilities, Infrastructure & Power Opportunities Trust*
BUI
$0.154000
$0.018000
BlackRock Science and Technology Trust*
BST
$0.250000
-
BlackRock Science and Technology Term Trust*
BSTZ
$0.162500
-
BlackRock Technology and Private Equity Term Trust*
BTX
$0.052500
-
BlackRock Enhanced Large Cap Core Fund, Inc.*
CII
$0.141000
-
Multi-Asset Funds
Ticker
Monthly
Distribution
Change From
Prior Distribution
BlackRock Capital Allocation Term Trust*
BCAT
$0.254230
(0.003670)
BlackRock ESG Capital Allocation Term Trust*
ECAT
$0.268770
(0.004540)
* In order to comply with the requirements of Section 19 of the Investment Company Act of 1940, as amended (the “1940 Act”), each of the Funds noted above posted to the DTC bulletin board and sent to its shareholders of record as of the applicable record date a Section 19 notice with the previous distribution payment. The Section 19 notice was provided for informational purposes only and not for tax reporting purposes. This information can be found in the “Closed-End Funds” section of www.blackrock.com. As applicable, the final determination of the source and tax characteristics of all distributions in 2025 will be made after the end of the year.
BlackRock Capital Allocation Term Trust (NYSE: BCAT) and BlackRock ESG Capital Allocation Term Trust (NYSE: ECAT) have adopted a managed distribution plan (a “Plan”) to support a level monthly distribution of income, capital gains and/or return of capital. BCAT and ECAT currently distribute a monthly annualized rate of 20% of each Fund’s 12-month rolling average daily net asset value calculated 5 business days prior to declaration date of each distribution. The July, August and September 2026 distributions for each of BCAT and ECAT were calculated based on the average net asset value from 5/29/2025 through 5/28/2026. Below are the 12-month rolling average daily net asset values used to calculate BCAT and ECAT’s July, August and September distributions:
BCAT: $15.253202
ECAT: $16.125968
The fixed amounts distributed per share or distribution rate, as applicable, are subject to change at the discretion of each Fund’s Board of Directors/Trustees. Under its Plan, each Fund will distribute all available investment income to its shareholders, consistent with its investment objectives and as required by the Internal Revenue Code of 1986, as amended (the “Code”). If sufficient income (inclusive of net investment income and short-term capital gains) is not available monthly, a Fund will distribute long-term capital gains and/or return capital to its shareholders in order to maintain a level distribution.
Each Fund’s estimated sources of the distributions paid May 29, 2026 and for its current fiscal year are as follows:
Estimated Allocations as of May 29, 2026
Fund
Distribution
Net Income
Net Realized Short-
Term Gains
Net Realized Long-
Term Gains
Return of Capital
BCX1
$0.069700
$0.014080 (20%)
$0 (0%)
$0 (0%)
$0.055620 (80%)
BDJ
$0.061900
$0.006851 (11%)
$0 (0%)
$0.055049 (89%)
$0 (0%)
BGR1
$0.097300
$0.020137 (21%)
$0 (0%)
$0 (0%)
$0.077163 (79%)
BGY1
$0.042600
$0.023381 (55%)
$0 (0%)
$0.019219 (45%)
$0 (0%)
BME
$0.262100
$0.006053 (2%)
$0.140541 (54%)
$0.115506 (44%)
$0 (0%)
BMEZ1
$0.110000
$0 (0%)
$0 (0%)
$0.070219 (64%)
$0.039781 (36%)
BOE
$0.082700
$0.022472 (27%)
$0 (0%)
$0.060228 (73%)
$0 (0%)
BUI
$0.136000
$0.062032 (46%)
$0.073968 (54%)
$0 (0%)
$0 (0%)
CII
$0.141000
$0 (0%)
$0 (0%)
$0.141000 (100%)
$0 (0%)
BST
$0.250000
$0 (0%)
$0.076197 (30%)
$0.173803 (70%)
$0 (0%)
BSTZ
$0.162500
$0 (0%)
$0.162500 (100%)
$0 (0%)
$0 (0%)
BTX1
$0.052500
$0 (0%)
$0 (0%)
$0 (0%)
$0.052500 (100%)
BCAT1
$0.257900
$0.029606 (11%)
$0 (0%)
$0 (0%)
$0.228294 (89%)
ECAT1
$0.273310
$0.025631 (9%)
$0 (0%)
$0.011214 (4%)
$0.236465 (87%)
Estimated Allocations for the Fiscal Year through May 29, 2026
Fund
Distribution
Net Income
Net Realized Short-
Term Gains
Net Realized Long-
Term Gains
Return of Capital
BCX1
$0.348500
$0.080827 (23%)
$0 (0%)
$0 (0%)
$0.267673 (77%)
BDJ
$0.309500
$0.179660 (58%)
$0 (0%)
$0.129840 (42%)
$0 (0%)
BGR1
$0.486500
$0.116554 (24%)
$0 (0%)
$0 (0%)
$0.369946 (76%)
BGY1
$0.213000
$0.034466 (16%)
$0 (0%)
$0.178534 (84%)
$0 (0%)
BME
$1.310500
$0.052508 (4%)
$0.140541 (11%)
$1.117451 (85%)
$0 (0%)
BMEZ1
$0.550000
$0 (0%)
$0 (0%)
$0.070219 (13%)
$0.479781 (87%)
BOE
$0.413500
$0.073853 (18%)
$0 (0%)
$0.339647 (82%)
$0 (0%)
BUI
$0.680000
$0.250382 (37%)
$0.429618 (63%)
$0 (0%)
$0 (0%)
CII
$0.705000
$0.006892 (1%)
$0 (0%)
$0.698108 (99%)
$0 (0%)
BST
$1.250000
$0 (0%)
$0.076197 (6%)
$1.173803 (94%)
$0 (0%)
BSTZ
$0.812500
$0 (0%)
$0.775548 (95%)
$0.036952 (5%)
$0 (0%)
BTX1
$0.262500
$0 (0%)
$0 (0%)
$0 (0%)
$0.262500 (100%)
BCAT1
$1.297990
$0.116314 (9%)
$0 (0%)
$0 (0%)
$1.181676 (91%)
ECAT1
$1.377650
$0.079262 (6%)
$0 (0%)
$0.213428 (15%)
$1.084960 (79%)
1The Fund estimates that it has distributed more than its income and net-realized capital gains in the current fiscal year; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment is paid back to the shareholder. A return of capital distribution does not necessarily reflect the Fund's investment performance and should not be confused with ‘yield’ or ‘income’. When distributions exceed total return performance, the difference will reduce the Fund’s net asset value per share.
The amounts and sources of distributions reported are only estimates and are being provided to you pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon each Fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.
Fund Performance and Distribution Rate Information:
Fund
Average annual
total return (in
relation to NAV) for
the 5-year period
ending on
04/30/2026
Annualized current
distribution rate
expressed as a
percentage of NAV
as of 04/30/2026
Cumulative total
return (in relation to
NAV) for the fiscal
year through
04/30/2026
Cumulative fiscal
year distributions as
a percentage of
NAV as of
04/30/2026
BCX
14.26%
6.25%
18.73%
2.08%
BDJ
8.87%
7.47%
4.78%
2.49%
BGR
21.99%
6.29%
34.08%
2.10%
BGY
6.63%
8.08%
3.43%
2.69%
BME
3.85%
7.72%
(4.99%)
2.57%
BMEZ
(2.51%)
8.34%
(4.69%)
2.78%
BOE
7.70%
7.63%
3.80%
2.54%
BUI
10.28%
5.74%
18.07%
1.91%
CII
12.52%
7.08%
8.27%
2.36%
BST
6.17%
6.50%
11.46%
2.17%
BSTZ
4.33%
6.68%
20.61%
2.23%
BTX
(5.35%)
6.82%
22.05%
2.27%
BCAT
5.82%
21.07%
3.44%
7.08%
ECAT*
8.58%
21.21%
2.90%
7.14%
* Portfolio launched within the past 5 years; the performance and distribution rate information presented for this Fund reflects data from inception to 4/30/2026.
Shareholders should not draw any conclusions about a Fund’s investment performance from the amount of the Fund’s current distributions or from the terms of the Fund’s Plan.
BlackRock Income Trust, Inc. (NYSE: BKT), BlackRock Debt Strategies Fund, Inc. (NYSE: DSU), BlackRock Floating Rate Income Strategies Fund, Inc. (NYSE: FRA), BlackRock Taxable Municipal Bond Trust (NYSE: BBN), BlackRock Floating Rate Income Trust (NYSE: BGT), BlackRock Corporate High Yield Fund, Inc. (NYSE: HYT), BlackRock Credit Allocation Income Trust (NYSE: BTZ), BlackRock Limited Duration Income Trust (NYSE: BLW), BlackRock Core Bond Trust (NYSE: BHK), and BlackRock Multi-Sector Income Trust (NYSE: BIT), and have adopted a Plan to support a level monthly distribution of income, capital gains and/or return of capital. The fixed amounts distributed per share are subject to change at the discretion of each Fund’s Board of Directors/Trustees. Under its Plan, each Fund will distribute all available net income to its shareholders, consistent with its investment objectives and as required by the Code. If sufficient income (inclusive of net investment income and short-term capital gains) is not available on a monthly basis, a Fund will distribute long-term capital gains and/or return capital to its stockholders in order to maintain a level distribution. Each of the above-listed Funds is currently not relying on any exemptive relief from Section 19(b) of the Investment Company Act of 1940, as amended (the “1940 Act”). Each Fund expects that distributions under the Plan will exceed current income and capital gains and therefore will likely include a return of capital. Each Fund may make additional distributions from time to time, including additional capital gain distributions at the end of the taxable year, if required to meet requirements imposed by the Code and/or the 1940 Act.
Each Fund’s estimated sources of the distributions paid May 29, 2026 and for its current fiscal year are as follows:
Estimated Allocations as of May 29, 2026
Fund
Distribution
Net Income
Net Realized Short-
Term Gains
Net Realized Long-
Term Gains
Return of Capital
BKT2
$0.088200
$0.042984 (49%)
$0 (0%)
$0 (0%)
$0.045216 (51%)
DSU2
$0.098730
$0.054884 (56%)
$0 (0%)
$0 (0%)
$0.043846 (44%)
FRA2
$0.123840
$0.067072 (54%)
$0 (0%)
$0 (0%)
$0.056768 (46%)
BBN2
$0.098600
$0.090817 (92%)
$0 (0%)
$0 (0%)
$0.007783 (8%)
BGT2
$0.120280
$0.065145 (54%)
$0 (0%)
$0 (0%)
$0.055135 (46%)
HYT2
$0.077900
$0.057108 (73%)
$0 (0%)
$0 (0%)
$0.020792 (27%)
BTZ2
$0.083900
$0.057531 (69%)
$0 (0%)
$0 (0%)
$0.026369 (31%)
BLW2
$0.113200
$0.088326 (78%)
$0 (0%)
$0 (0%)
$0.024874 (22%)
BHK2
$0.074600
$0.048566 (65%)
$0 (0%)
$0 (0%)
$0.026034 (35%)
BIT2
$0.123700
$0.077010 (62%)
$0 (0%)
$0 (0%)
$0.046690 (38%)
Estimated Allocations for the Fiscal Year through May 29, 2026
Fund
Distribution
Net Income
Net Realized Short-
Term Gains
Net Realized Long-
Term Gains
Return of Capital
BKT2
$0.441000
$0.197840 (45%)
$0 (0%)
$0 (0%)
$0.243160 (55%)
DSU2
$0.493650
$0.251544 (51%)
$0 (0%)
$0 (0%)
$0.242106 (49%)
FRA2
$0.619200
$0.307141 (50%)
$0 (0%)
$0 (0%)
$0.312059 (50%)
BBN2
$0.493000
$0.423736 (86%)
$0 (0%)
$0 (0%)
$0.069264 (14%)
BGT2
$0.601400
$0.295526 (49%)
$0 (0%)
$0 (0%)
$0.305874 (51%)
HYT2
$0.389500
$0.260360 (67%)
$0 (0%)
$0 (0%)
$0.129140 (33%)
BTZ2
$0.419500
$0.284303 (68%)
$0 (0%)
$0 (0%)
$0.135197 (32%)
BLW2
$0.566000
$0.401908 (71%)
$0 (0%)
$0 (0%)
$0.164092 (29%)
BHK2
$0.373000
$0.225760 (61%)
$0 (0%)
$0 (0%)
$0.147240 (39%)
BIT2
$0.618500
$0.359700 (58%)
$0 (0%)
$0 (0%)
$0.258800 (42%)
2The Fund estimates that it has distributed more than its income and net-realized capital gains in the current fiscal year; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment is paid back to the shareholder. A return of capital distribution does not necessarily reflect the Fund's investment performance and should not be confused with ‘yield’ or ‘income’. When distributions exceed total return performance, the difference will reduce the Fund’s net asset value per share.
The amounts and sources of distributions reported are only estimates and are being provided to you pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon each Fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. Each Fund will send its stockholders a Form 1099-DIV for the calendar year that will illustrate how to report these distributions for federal income tax purposes.
Fund Performance and Distribution Rate Information:
Fund
Average annual total
return (in relation to
NAV) for the 5-year
period ending on
04/30/2026
Annualized current
distribution rate
expressed as a
percentage of NAV
as of 04/30/2026
Cumulative total
return (in relation to
NAV) for the fiscal
year through
04/30/2026
Cumulative fiscal
year distributions as
a percentage of NAV
as of 04/30/2026
BKT
(1.34%)
9.47%
0.31%
3.16%
DSU
6.40%
12.11%
0.39%
4.04%
FRA
6.36%
12.80%
0.31%
4.27%
BBN
(0.59%)
6.98%
0.54%
2.33%
BGT
6.56%
12.68%
0.36%
4.23%
HYT
4.37%
10.06%
(0.25%)
3.35%
BTZ
2.41%
9.10%
0.61%
3.03%
BLW
4.31%
10.08%
0.27%
3.36%
BHK
(1.70%)
9.27%
0.01%
3.09%
BIT
3.68%
11.00%
0.82%
3.67%
No conclusions should be drawn about a Fund’s investment performance from the amount of the Fund’s distributions or from the terms of the Fund’s Plan.
The amount distributed per share under a Plan is subject to change at the discretion of the applicable Fund’s Board. Each Plan will be subject to ongoing review by the Board to determine whether the Plan should be continued, modified or terminated. The Board may amend the terms of a Plan or suspend or terminate a Plan at any time without prior notice to the Fund’s shareholders if it deems such actions to be in the best interest of the Fund or its shareholders. The amendment or termination of a Plan could have an adverse effect on the market price of the Fund's shares.
About BlackRock
BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate.
Availability of Fund Updates
BlackRock will update performance and certain other data for the Funds on a monthly basis on its website in the “Closed-end Funds” section of www.blackrock.com as well as certain other material information as necessary from time to time. Investors and others are advised to check the website for updated performance information and the release of other material information about the Funds. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRock’s website in this release.
Forward-Looking Statements
This press release, and other statements that BlackRock or a Fund may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to a Fund’s or BlackRock’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” or similar expressions.
BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.
With respect to the Funds, the following factors, among others, could cause actual events to differ materially from forward-looking statements or historical performance: (1) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for the Funds or in a Fund’s net asset value; (2) the relative and absolute investment performance of a Fund and its investments; (3) the impact of increased competition; (4) the unfavorable resolution of any legal proceedings; (5) the extent and timing of any distributions or share repurchases; (6) the impact, extent and timing of technological changes; (7) the impact of legislative and regulatory actions and reforms, and regulatory, supervisory or enforcement actions of government agencies relating to a Fund or BlackRock, as applicable; (8) terrorist activities, international hostilities, health epidemics and/or pandemics and natural disasters, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (9) BlackRock’s ability to attract and retain highly talented professionals; (10) the impact of BlackRock electing to provide support to its products from time to time; and (11) the impact of problems at other financial institutions or the failure or negative performance of products at other financial institutions.
Annual and Semi-Annual Reports and other regulatory filings of the Funds with the Securities and Exchange Commission (“SEC”) are accessible on the SEC's website at www.sec.gov and on BlackRock’s website at www.blackrock.com, and may discuss these or other factors that affect the Funds. The information contained on BlackRock’s website is not a part of this press release.
In this episode of Motley Fool Hidden Gems Investing, Motley Fool contributor Rachel Warren talks with Jay Jacobs, U.S. Head of Equity ETFs at BlackRock, about the firm's 2026 thematic outlook, including:
Why the AI infrastructure boom is still in its infancy.How thematic ETFs can give retail investors more precise exposure than traditional sector funds.What the rise of agentic AI, physical robotics, and tokenization means for your portfolio.To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. When you're ready to invest, check out this top 10 list of stocks to buy.
A full transcript is below.
This podcast was recorded on May 31, 2026.
Jay Jacobs: Token consumption last year grew 17 times. Not 17%, which I think most people would view as a pretty good growth company, 17 times growth of token consumption. Essentially, as much money as the major large language bottle providers are plowing into capital expenditures, they can't keep up with AI demand. Even just in the last several months, I think the narrative has shifted in the market from that of we worried companies are over-investing in capex to what if companies are actually under-investing in capex?
Rachel Warren: That was BlackRock's U.S. head of equity ETFs, Jay Jacobs, breaking down what the data actually says about AI's growth trajectory. I'm Motley Fool analyst Rachel Warren. I sat down with Jay to dig into BlackRock's newly released 2026 thematic outlook, covering everything from the AI infrastructure build-out to tokenization to what retail investors should be doing with their portfolios right now. Enjoy. Hello, everyone, and welcome back to Motley Fool Conversations. I'm Motley Fool analyst Rachel Warren. Today, I'm excited to welcome Jay Jacobs, the U.S. Head of Equity ETFs at BlackRock, to the show. Jay oversees the overall product strategy, thought leadership, and client engagement for the firm's index and active equity ETF business. Prior to his current role, Jay founded and led Global x ETFs research and strategy team and previously served as a business analyst at the New York Stock Exchange, where he helped launch hundreds of ETFs on the NYSE ARCA trading platform. Today, we're going to be diving deep into the massive structural shifts shaping the global economy with BlackRock's newly released 2026 Thematic Outlook, which details how the next leg of AI Compute is colliding with physical power grid bottlenecks, surging sovereign defense spending, and a massive wave of real-world asset tokenization. Jay, welcome to the show.
Jay Jacobs: Thanks for having me on.
Rachel Warren: As U.S. head of equity ETFs, from your standpoint, I would love to hear your thoughts on how the view of a traditional portfolio has changed now that thematic funds have grown over 11X just in the past decade.
Jay Jacobs: I think it's important to recognize portfolio management techniques have always been evolving as the world has evolved as data and software has evolved to make portfolios be able to be managed in different ways and assess risks and opportunities in different ways. You go back to some of the factor research in the 1970s, the introduction of the style box in the early ‘90s, the GICS sector classifications that divvied up the world into different sectors in the late 90s. There's been a constant evolution of portfolio management. What we're seeing is one of the latest evolutions is really increasingly investors are looking at the world through a thematic lens. They see the rise of artificial intelligence, the changing demographics, the changing energy needs, the future of finance, as well as geopolitical fragmentation, all being major forces that are reshaping how they can think about risks and opportunities in their portfolio. As they assess those risks, they increasingly see how valuable thematic ETFs can be for fine-tuning their exposure to these themes in their portfolios.
Rachel Warren: Well, one of the things I wanted to talk about your internal model portfolios hit a 7.5% allocation, but the average moderate U.S. advisor model sits at just 3.6% thematic exposure. Your data actually shows that about 12% of analyzed U.S. advisor portfolios currently hold any thematic ETFs at all. I wonder if you could talk through maybe what's causing this gap, and does this mean that, sometimes we're seeing an underallocation to structural growth?
Jay Jacobs: Say there is an underallocation, or the way that people are getting exposure to these growth opportunities is through not always the most precise tools. I do think a lot of people out there think they're getting exposure to AI by allocating to the technology sector. In some ways, you are. Yes, the technology sector has exposure to names that are building large language models or building some of the important hardware that goes into data centers. But as we've also seen this year, the tech sector also has exposure to software names that have been disproportionately hurt by the rise of artificial intelligence and the risk that that presents to SaaS business models. I think what many people are learning in real time is just there's a difference between sector investing and thematic investing, and for some of these really disruptive themes, it takes a dedicated thematic ETF to be able to target them appropriately. We are seeing a gradual shift of more adoption of thematic ETFs amongst advisors. Yes, the average allocation is 3.6% as of our last reading, but you go back a few years ago, it was less than 3%. We're seeing a tick upwards. It's just somewhat lagging what we've seen in our own models which have more rapidly deployed thematic exposures given this market environment. I would expect this growth in advisors use of thematic to continue, though in the coming years.
Rachel Warren: Well, switching gears completely, we have to spend some time talking about AI, which obviously was something that was a really significant focus in the report, which I found incredibly interesting. What do I want to start with, market skeptics scream that tech companies are overspending on AI. We keep seeing those capex figures multiply. But what was interesting was your report shows that in the U.S., GEN AI infrastructure spending is just about 0.8% of GDP, compared to say, 4.5% for U.K. railroads in the 1860s, about 2% for US electricity, if you go back to the 1920s. Should one take away from this that the physical AI build-out is actually in its infancy? What are these numbers telling us?
Jay Jacobs: That's exactly right. On the scale of other major transformational events within the United States, AI capex has still not reached the upper echelons of that type of investment. Part of it is we're early. This AI boom has really only started since the end of 2022. We're a few years into it. We're seeing some of these capital expenditure numbers really accelerate upwards at a tremendous rate. I think we're going to see that percentage of GDP invested in AI continue to rise over the next several years. But the fact that it's still below what we saw as investment in railroads, investments in automobiles from a historical context just shows we're early. This country has been through transformations before. It's taken a tremendous amount of investment in each of these transformations. But the impact of those transformations can span many decades, as we've of course seen with the automobile, as we've of course seen with telephones. It's a reminder that we're early and it's still going to play out over the next several years.
Rachel Warren: Well, it's interesting to think about, as well, because you go back to, say, the telecom boom, in the 90s, that spent about 1.5% of GDP before crashing. Obviously, GEN AI spending is sitting about half of that right now. It's not a one-to-one comparison, either, but I'm curious what structural protections say prevent AI infrastructure from suffering dangers of overcapacity crash as we have seen with past buildouts.
Jay Jacobs: Frankly, I think a lot of this build-out is just a lot less speculative because so much of this compute that is being built out is almost instantaneously being monetized because of AI demand. What we show in the report is that token consumption last year grew 17 times. No 17%, which I think most people would view as a pretty good growth company, 17 times growth of token consumption. Essentially as much money as the major large language bottle providers are plowing into capital expenditures, they can't keep up with AI demand. Even just in the last several months, I think the narrative has shifted in the market from that of we worried companies are over-investing in capex to what if companies are actually under-investing in capex? Could we start to see bottlenecks and artificial intelligence, where some of the most powerful models frankly, have to be throttled because there's so much demand to use them versus the compute that's actually available across the economy. Yes, the capex is accelerating. The numbers are quite staggering of what we see being invested each year. However, the demand is backing it up, and the revenue from demand is immediately backing it up. This is not the same as speculatively building telecom infrastructure, and then, if we build it, they will come scenario. This is meeting real demand in real time.
Rachel Warren: Yeah, I think the other thing as well that I would like to dig into a bit more is this growth coming from agentic workloads, which, is essentially AI that can complete multistep tasks on its own. The report notes, this can increase relative to intensity by, a thousand times. We're seeing everyone from corporate America, the big tech companies, and beyond deploying AI agents. What parts of the tech stack can capture this exponential surge in data processing? Where are the beneficiaries? What can retail investors take away from that?
Jay Jacobs: It looks across the entire artificial intelligence tech stack. I mean, it starts with some of the lowest levels, which is really in the infrastructure to think about the power that's applying data centers, the data centers themselves, the real estate, the hardware going into those data centers. Think about all the semiconductors, whether it's memory, whether it's GPUs, whether it's CPUs that are powering those data centers. On top of that, there's the data layer. Think about the proprietary data that's training a lot of large language models. There's the large language models themselves that are being more and more powerful. We're seeing that software improve significantly year over year. Then of course, you have the applications and products that are using those large language models to utilize agents, whether that's, imagine having a financial analyst that can help you pour through news or earnings reports, sell-side reports, etc, consolidate all that information, put it into an Excel file or a PowerPoint presentation, you name it. There's a lot of things that AI agent can now be programmed to do and really take on a significant amount of tasks or people in a wide variety of different industries. That's why we're so focused across the entire AI value chain because as you see more adoption of agents, it's really going to flow across that entire value chain where you see companies profiting off of that.
Rachel Warren: There was data in the report from McKinzie that projected cumulative global infrastructure investment is set to top about $100 trillion by 2040, and that's driven by a range of factors, including, AI compute, national security, supply chain resilience initiatives. How can a long-term investor evaluate these sectors across this really, truly massive capital rollout we're seeing?
Jay Jacobs: Well, interestingly, despite the amount of capital we're seeing allocated to infrastructure, it remains a relatively small part of people's portfolios. In fact, average infrastructure allocation in the SP 500 is about only 3%, so less than some of the MAG_7 names alone. Yet we just see tremendous amounts of drivers for more infrastructure spending. We have changing demographics around the world, which is, growing economies, growing populations that need more infrastructure. We have aging infrastructure, particularly in the developed market, where a lot of it was built in the 1960s and needs to be refreshed. Have changing infrastructure demands, where it's not only about physical infrastructure, there's also needs for digital infrastructure going forward. There's really a lot of tremendous tailwinds behind infrastructure, and yet it remains a relatively small part of people's portfolios. I think we're going to see a significant amount of investment over the next several decades. I think a lot of that is going to increasingly come from the private sector, given that a lot of governments just simply can't afford to keep building more infrastructure, and that should likely drive more and more investors to allocate the infrastructure as an asset class in their portfolios.
Rachel Warren: I want to switch a bit to talk about the relationship between what we've been speaking of and tokenization digital assets. The report noted that the iShares Bitcoin Trust ETF became the fastest-growing ETP in history. It surpassed $70 billion in AUM in just 341 trading days across 2024 and 2025. What does that level of speed and adoption tell us about the current capital demand for digital assets?
Jay Jacobs: Well, IBIT was a product is a product that really bridges between traditional finance and decentralized finance. The idea that we could take a decentralized finance asset like Bitcoin, wrap it in exchange traded product and make it available to basically anyone with a brokerage account brought DeFi into the TridFi world, and we expect that trend to likely to continue. There's a lot of demand for assets that can behave differently than stocks and bonds. We've seen a tremendous amount of interest. From the traditional finance base in an asset like Bitcoin, where it's more driven by things like geopolitical uncertainty, rising distrust in institutions, the risk of debasement of currencies or rampant inflation, all of those things tend to be writing tailwinds for an asset like Bitcoin. We live in an environment where I think those are very real risks. Increasingly, very traditional portfolio managers are looking at Bitcoin as a way to hedge out some of those risks in their portfolio.
Rachel Warren: A significant share of tokenized, real-world assets currently reside on [inaudible] blockchain, and we're also seeing expectations that tokenization will continue to expand across asset classes. How do you see tokenization reshaping access, liquidity, and transparency for a broader range of investors?
Jay Jacobs: Well, it's likely to evolve. Right now, we largely see a tokenized cash or stable coins, and that's where the massive amount of volume is occurring today. Needs to be a market that develops around this. When you have tokenized assets, you need to have the infrastructure behind it. You have to have the market-making capabilities; there needs to be sensible regulation around it. There's a whole ecosystem that has to develop around it, but there's certainly the promise of tokenization that could allow for the 24/7 trading of assets, trading around the world, instantaneous settlement, perhaps easier access to decentralized finance tools like lending through SMART contracts. There's a lot of promise through tokenization, but it's also about really having an ecosystem develop around it to support it appropriately.
Rachel Warren: Couple more questions for you as we draw to the close of our discussion today. One, the 2026 outlook really did a brilliant job of connecting the dots between compute power grids and geopolitics and how all of these themes interplay. But looking beyond that, looking ahead to the next three to five years, what are maybe one or two emerging or under-the-radar themes or maybe tech breakthroughs that you think maybe investors should be paying close attention to?
Jay Jacobs: First of all, I would say, I think there's a lot of durability to the themes we talked about today. Yes, we call it the 2026 outlook, but in reality, these are things that we see multiyear, if not decades-long horizons behind. We are not trying to immediately pivot away from our interest in things like artificial intelligence or geopolitics or tokenization and beyond. What I will say is, I think the intersection of those themes and how they evolve in the next few years will be really interesting. One of the areas we did not talk about is the intersection of artificial intelligence and healthcare. This is one of the sectors that you could see both revenue acceleration through artificial intelligence. Think about developing revolutionary new drugs that hopefully treat various different diseases or ailments. But also, you could see cost-cutting benefits through artificial intelligence. Could it be faster with less trial and error developing those drugs that reduce the amount of cost to bring them to market? There's both a revenue and a cost opportunity in the healthcare space. Then we talked a little bit about it in the AI section as well. I think from just digital AI to physical AI with robotics with autonomous vehicles, that's something that we think is going to become increasingly important part of the conversation with AI going forward.
Rachel Warren: Well, and finally, what do you think are one or two important frameworks we should use to really filter out some of the short-term market noise and write out these generational mega forces over the long run?
Jay Jacobs: I think the important thing to look at is, what is the state of the technology? What's the use case? What's the size of the opportunity behind that use case, and then ultimately, what's the probability that it gets fulfilled? The earlier you are in a theme, potentially, the more opportunity you have, but also the more risk you have that it doesn't play out. Where we are with artificial intelligence today is really in a sweet spot where it's still very early. It still hasn’t seen economy-wide adoption and disruption yet. But we have enough evidence to believe that this is here to stay, that this is a real technology with many different use cases that continues to improve at light speed. When you combine those factors together, that's the conditions for a really important theme and potentially an important allocation in people's portfolios.
Rachel Warren: Fantastic. Well, I think you've given our listeners and viewers a lot to think about as we move ahead into the next decade of investment. Jay, thanks so much for joining me today.
Jay Jacobs: Thanks for having me.
Rachel Warren: As always, people on the program may have interests in the stocks they talk about, and The Motley Fool may have formal recommendations for or against. Don't buy or sell stocks based solely on what you hear. All personal finance content follows Motley Fool editorial standards and is not approved by advertisers. Advertisements are sponsored content and provided for informational purposes only. To see our full advertising disclosure, please check out our show notes. For the Motley Fool Hidden Gems Investing team, I'm Rachel Warren. Thanks for listening. We'll see you next time.
BlackRock, the global leader in asset management, is launching a new space ETF for European investors, promising to include newly public companies in the sector within weeks of their market debut.
The fund, called iShares Space Technologies UCITS ETF (STAR), includes a fast-entry mechanism allowing newly listed aerospace companies to join the index within 10 to 30 days, according to a report published by Bloomberg on Tuesday, June 9.
More specifically, new additions to the BlackRock space ETF will go through special review periods instead of waiting for the next scheduled rebalance.
“The Index captures companies with meaningful exposure to the global space, satellite and drone ecosystem… Companies must also demonstrate qualifying commercial or supply‑chain relationships with space agencies, key private aerospace contractors, space and missile equipment manufacturers and/or the broader Artemis‑era space ecosystem,” BlackRock wrote.
Will the BlackRock space ETF include SpaceX? The new ETFs launch comes just days after S&P Global, the creator of the S&P 500 index, announced that it would keep its existing index eligibility requirements unchanged, raising concerns that flagship debuts, such as SpaceX, would be barred from joining it.
As the new report suggests, however, BlackRock is reassuring investors that the timing of the ETF launch is unrelated to S&P Global’s announcement, being primarily motivated by growing investor enthusiasm for the space sector as a whole.
Indeed, space ETFs have attracted roughly $8 billion in net inflows since the start of 2026, surpassing defense-focused funds. Given that some of them, such as the Space Innovators ETF (NASA), already hold Elon Musk’s company, the June 12 SpaceX IPO generated a lot of interest for the financial products.
Against that backdrop, BlackRock’s rapid-inclusion approach offers investors yet another alternative way to gain early exposure to SpaceX and other newly public space companies.
Featured image via Shutterstock
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In the latest close session, BlackRock (BLK - Free Report) was up +1.73% at $1,011.96. The stock's change was more than the S&P 500's daily loss of 0.26%. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq lost 0.97%.
The investment firm's shares have seen a decrease of 8% over the last month, not keeping up with the Finance sector's gain of 0.29% and the S&P 500's gain of 0.23%.
The upcoming earnings release of BlackRock will be of great interest to investors. In that report, analysts expect BlackRock to post earnings of $12.53 per share. This would mark year-over-year growth of 3.98%. At the same time, our most recent consensus estimate is projecting a revenue of $6.67 billion, reflecting a 23.03% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $52.8 per share and revenue of $27.65 billion, which would represent changes of +9.79% and +14.19%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for BlackRock. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.06% higher. BlackRock is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, BlackRock is holding a Forward P/E ratio of 18.84. This represents a premium compared to its industry average Forward P/E of 11.24.
It is also worth noting that BLK currently has a PEG ratio of 1.29. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Financial - Investment Management was holding an average PEG ratio of 1.06 at yesterday's closing price.
The Financial - Investment Management industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 201, placing it within the bottom 18% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
, /PRNewswire/ -- Kuehn Law, PLLC, a shareholder litigation law firm, is investigating whether certain officers and directors of BlackRock TCP Capital Corp (NASDAQ: TCPC) breached their fiduciary duties to shareholders.
According to a federal securities lawsuit, Insiders at BlackRock TCP Capital caused the company to misrepresent or fail to disclose that (1) the Company's investments were not being timely and/or appropriately valued; (2) the Company's efforts at portfolio restructuring were not effectively resolving challenged credits or improving the quality of the portfolio; (3) as a result, the Company's unrealized losses and NAV were overstated.
If you currently own TCPC and purchased prior to November 6, 2024 please contact Justin Kuehn, Esq. by email at [email protected] or call (833) 672-0814. Kuehn Law pays all case costs and does not charge its investor clients. Shareholders should contact the firm immediately as there may be limited time to enforce your rights.
Why Your Participation Matters:
As a shareholder your voice matters, and by getting involved, you contribute to the integrity and fairness of the financial markets. Your investment. Your voice. Your future.™
Susan Chan, Head of Asia Pacific, BlackRock says the traditional 40/60 portfolio is not going to generate the outcomes needed for the future, she was speaking to Bloomberg's Rebecca Sin at Bloomberg Invest 2026 in Hong Kong. -------- More on Bloomberg Television and Markets Like this video?
ORION CORPORATION
STOCK EXCHANGE RELEASE / MAJOR SHAREHOLDER ANNOUNCEMENTS
10 June 2026 at 18.10 EEST
Orion Corporation: Disclosure Under Chapter 9 Section 10 of the Securities Market Act (BlackRock, Inc.)
Orion Corporation has received a disclosure under Chapter 9, Section 5 of the Securities Market Act, according to which the total number of Orion shares owned directly and indirectly by BlackRock, Inc. and its funds, and the total number of Orion shares owned directly, indirectly and through financial instruments by BlackRock, Inc. and its funds decreased on 9 June 2026 below five (5) per cent of Orion Corporation’s total shares.
Total positions of BlackRock, Inc. and its funds subject to notification:
% of shares and voting rights
(total of point A)% of shares and voting rights through financial instruments
(total of point B)Total of both in % (points A + B)Total number of shares and voting rights of issuerResulting situation on the date on which threshold was crossed or reachedBelow 5% shares Below 5% voting rights
Below 5% shares Below 5% voting rights
Below 5% shares Below 5% voting rights
141,134,278 shares 738,091,288 voting rights
Position of previous notification (if applicable)5.00% shares Below 5% voting rights
0.05% shares Below 5% voting rights
5.06% shares Below 5% voting rights
Notified details of the resulting situation on the date on which the threshold was crossed:
Point A: Shares and voting rights:
Class/type of shares
ISIN codeNumber of shares and voting rights% of shares and voting rights Direct (SMA 9:5)Indirect (SMA 9:6 and 9:7)Direct (SMA 9:5)Indirect (SMA 9:6 and 9:7)FI0009014377 Below 5% shares Below 5% voting rights
Below 5% shares Below 5% voting rights
POINT A SUBTOTALBelow 5% shares Below 5% voting rights
Below 5% shares Below 5% voting rights
Point B: Financial instruments according to SMA 9:6a:
Type of financial instrumentExpiration dateExercise / Conversion PeriodPhysical or cash settlementNumber of shares and voting rights% of shares and voting rightsAmerican Depositary Receipt (US68628Y1047)N/AN/APhysicalBelow 5% shares Below 5% voting rights
Below 5% shares Below 5% voting rights
CFDN/AN/ACashBelow 5% shares Below 5% voting rights
Below 5% shares Below 5% voting rights
POINT B SUBTOTALBelow 5% shares Below 5% voting rights
Publisher:
Orion Corporation
Communications
Orionintie 1A, FI-02200 Espoo, Finland
www.orionpharma.com
Orion Pharma is a globally operating Nordic pharmaceutical company – a builder of well-being for over a hundred years. We develop, manufacture and market human and veterinary pharmaceuticals as well as active pharmaceutical ingredients, combining our trusted expertise with continuous innovation. We have an extensive portfolio of proprietary and generic medicines and consumer health products. The core therapy areas of our pharmaceutical R&D are oncology and pain. Proprietary products developed by us are used to treat cancer, respiratory diseases and neurological diseases, among others. In 2025 our net sales amounted to EUR 1,890 million, and we employ about 4,000 professionals worldwide, dedicated to building well-being.
- Foreign ownership rises to 51% based on strong overseas performance and enhanced shareholder returns
- CEO Bang Kyung-man and senior management actively communicate with global investors through Overseas Non-Deal Roadshows (NDRs)
, /PRNewswire/ -- KT&G (KRX: 033780) announced on the 10th that BlackRock Fund Advisors, the world's largest asset manager, has acquired a 6.15% stake in the company for investment purposes.
According to the DART system, BlackRock Fund Advisors disclosed that it held a 5.01% stake in KT&G at the end of January. Subsequently, the company acquired an additional 467,350 shares over the following four months. Accordingly, BlackRock Fund Advisors' stakeholding ratio increased by 1.14 percentage points to 6.15%.
Previously on June 9th, Capital Research and Management Company, one of the largest U.S. asset managers, disclosed that it had increased its stake in KT&G to 7.21%. As global asset managers continue to expand their holdings in KT&G, the company's foreign ownership ratio has reached 51.24% as of the 10th.
The increase in ownership by foreign investors is attributed to KT&G's strong overseas performance and enhanced shareholder returns. In addition, CEO Bang Kyung-man and senior management have continuously conducted Overseas Non-Deal Roadshows (NDRs) and actively communicated with the capital market, which has received positive evaluations from global investors.
On one hand, KT&G saw good results in Q1, with a revenue of KRW 1.7036 trillion and operating profit of KRW 364.5 billion on a consolidated basis, a 14.3% and 27.6% YoY growth respectively, observing structural growth.
Furthermore, KT&G plans to announce a new shareholder return policy in H2 focusing on dividend reinforcement. Supported by strong earnings momentum from the global cigarette business, the company continues to receive favorable evaluations from both domestic and international capital markets.
A KT&G spokesperson stated that "the increase in ownership by global asset managers serves as a testament to the capital market's confidence in the company's mid- to long-term vision and future growth potential. In the future, the company will continue to enhance corporate value through structural profit growth in its core businesses, including the global cigarette business, and industry-leading shareholder returns."
BlackRock Inc. (NYSE: BLK) has seen its crypto portfolio fall by more than $12 billion during the first 11 days of June 2026.
BlackRock’s cryptocurrency holdings have declined by $12.45 billion, down from $64.53 billion on June 1 to $52.08 billion on June 11, according to data from Arkham Intelligence analyzed by Finbold. As a result, the fund manager’s crypto portfolio has declined by 19.29% during this period.
BlackRock crypto portfolio change in early June. Source: Arkham Intelligence The notable decline in BlackRock’s cryptocurrency portfolio was attributed to its iShares Bitcoin Trust (IBIT). Notably, IBIT has seen its Bitcoin (BTC) holdings drop from 792,000 units on June 1 to 767,180 coins on June 11.
As such, BlackRock’s Bitcoin holdings have declined by 24,820 BTC, representing a 3.13% fall. With BTC price having dropped by over 14% during this period, BlackRock’s BTC portfolio has fallen by approximately $11.08 billion, from $58.44 billion on June 1 to about $47.38 billion at press time.
Meanwhile, the firm’s iShares Ethereum Trust ETF (ETHA) has offloaded 146,380 Ethereum (ETH) during this period, down from 3.06 million units on June 1 to approximately 2.87 million on June 11. With Ethereum price down over 18% in June, its ETH holdings have fallen by $1.38 billion.
What’s next for the BlackRock crypto portfolio? The BlackRock crypto portfolio shrank in early June as more investors rushed to capitalize on the SpaceX initial public offering (IPO), as Finbold reported. On Thursday, the firm deposited 2,493 BTC, valued at $157.25 million, and 12,679 ETH, valued at $21 million, into Binance, as per data from Onchain Lens.
However, with the crypto market anticipated to rebound as the precious metal market falls, as Finbold explained, BlackRock’s crypto portfolio is likely to start increasing again in the near future.
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The silhouette of Elon Musk and SpaceX logo are seen in this illustration taken June 11, 2026. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
CompaniesJune 11 (Reuters) - Asset manager BlackRock (BLK.N), opens new tab sought to buy at least $5 billion worth of shares in the initial public offering of Elon Musk's SpaceX (SPCX.O), opens new tab , the Wall Street Journal reported on Thursday, citing people familiar with the matter.
SpaceX is expected to raise about $75 billion in what would be the world's largest IPO on record at about a $1.8 trillion valuation.
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The order book closed on Wednesday and bankers are determining share allocations ahead of a planned Nasdaq listing on Friday, the WSJ said.
Reuters had previously reported that SpaceX was considering allocating as much as 30% of the offering to individual investors.
Musk has rewritten the IPO playbook for SpaceX in many other ways, from planning to give retail investors a larger role in allocations to pushing for early index inclusion and structuring governance to preserve strong founder control.
SpaceX did not immediately respond to a request for comment, while BlackRock declined to comment. Reuters could not immediately verify the report.
Reporting by Prakhar Srivastava in Bengaluru; Editing by Shreya Biswas
Our Standards: The Thomson Reuters Trust Principles., opens new tab
“The massive size of the SpaceX IPO alone, under normal circumstances, would justify careful SEC review and attention to investor needs. But these are not normal circumstances: a number of additional factors exacerbate concerns and require action by the SEC to meet its investor protection and market integrity mandates by delaying the IPO.
BlackRock Inc. (NYSE: BLK) purchased $38.89 million in Bitcoin (BTC) and Ethereum (ETH) on June 11, 2026.
BlackRock’s iShares Bitcoin Trust (IBIT) closed Thursday with a net cash inflow of $30.26 million, according to data from SoSoValue, analyzed by Finbold on June 12. As of press time, IBIT had about $48.59 billion in total assets.
IBIT daily cash flow. Source: SoSoValue The firm’s iShares Ethereum Trust (ETHA) recorded a net cash inflow of $8.63 million on June 11, thus ending its 2 consecutive days of cash outflows totaling approximately $29.11 million. As such, BlackRock’s ETHA had about $4.79 billion in net assets as of publication time.
ETHA daily cash flow. Source: SoSoValue The concurrent inflows into BlackRock’s IBIT and ETHA could signal renewed demand for crypto assets. Furthermore, the firm’s crypto portfolio recorded a net cash outflow of roughly $12.45 billion in early June, as Finbold reported.
Institutional investors may be shifting to crypto assets amid analysts’ warnings of a potential post-IPO (Initial Public Offering) bust, as Finbold reported. Moreover, Bitcoin and Ethereum have been trapped in a multi-month bear market, fueled by whales’ sell-off.
Bitcoin and Ethereum prices rebound amid BlackRock’s renewed demand As BlackRock’s investors signal renewed demand for Bitcoin and Ethereum, the two crypto assets have attempted to reverse. Over the past seven days, BTC price climbed 2.47%, trading at $63,440 at press time.
BTC/USD 7-day chart. Source: Finbold Ethereum price has gained 0.64% over the past seven days, trading at around $1,666 on Friday.
ETH/USD 7-day chart. Source: Finbold As such, if BlackRock’s investors continue to accumulate more BTC and ETH over the coming days, a potential crypto reversal could occur. However, if the firm’s investors continue to liquidate, a fresh crypto sell-off could be inevitable.
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Jeff Bezos is back in the headlines with a private-market raise for his industrial AI startup, Prometheus. The company just closed a $12 billion Series B at a $41 billion valuation, only about six months after emerging from stealth with $6.2 billion in funding. The new round was led by JPMorgan Chase (NYSE:JPM | JPM Price Prediction), Goldman Sachs (NYSE:GS), and BlackRock (NYSE:BLK).
On a June 11 segment of TBPN, host John Coogan walked through the financial structure and the thesis behind Jeff Bezos’s startup. The size of the round forced Bezos to bypass traditional venture capital and go straight to the largest balance sheets on Wall Street, a path very few founders can credibly walk. As his co-host, Jordi Hays, put it, “Being able to raise that much capital to buy businesses with that little dilution is a pretty remarkable feat that pretty much only Jeff Bezos could pull off.”
What Prometheus Is Actually Building Prometheus’s stated mission is to build what the company calls an “artificial general engineer” capable of designing and manufacturing complex physical products, like jet engines. Think something along the lines of an autonomous CAD-plus-factory floor brain that can iterate on hardware through large-scale designing and simulations, in a similar way to how large language models iterate with text.
The startup currently operates with about 150 employees across San Francisco, London, and Zurich. That is an extraordinarily small team for a $41 billion valuation, and it signals that Bezos intends to buy industrial businesses outright rather than build every capability from scratch.
The Contrarian Labor Thesis Bezos pushed back against the dominant AI narrative. He argued AI will create a labor shortage even as it displaces specific tasks, citing Amazon‘s (NASDAQ:AMZN) own history as evidence that productivity-boosting technology expands overall opportunity rather than shrinking it. As Coogan paraphrased, Bezos said the goal is to “empower engineers and make innovation easier and faster so smaller teams can do much bigger things on much shorter time cycles.”
Bezos also floated a softer social implication: rising productivity could support more single-income households, where one earner voluntarily exits the labor force. That is a long way from the dystopian framing that has dominated AI labor commentary.
Where the Skepticism Lives The TBPN hosts flagged the obvious counterweight to the labor-shortage thesis. NEET levels (not in employment, education, or training) have already been rising since 2021, well before the current AI wave hit the workforce. Whether that trend reflects voluntary opt-outs (Bezos’s framing) or structural displacement (the bear case) is the central macro question retirees and long-horizon investors should keep tabs on.
There is also the question of dilution-free financing at this scale. Coogan noted the round mirrors IPO-level numbers, which is why Bezos went directly to JPMorgan, Goldman, and BlackRock. Wall Street is effectively underwriting a private company at public-market size, with public-market consequences if the “artificial general engineer” thesis falls short of the hardware breakthroughs being priced in.
What to Watch Prometheus is private, so retail investors cannot buy or track the stock directly. The company’s website, which appears to be prometheus.ai, is quite new and doesn’t offer much insight either. If Bezos is correct that AI compresses the design-to-manufacture cycle for jet engines, turbines, and other capital goods, the industrials sector could become the next AI beneficiary after semiconductors and hyperscalers. If he is wrong, $12 billion of bank-syndicated capital just got parked in a 150-person startup at a $41 billion mark.
Either way, the labor-shortage thesis is now backed by some of the biggest balance sheets on Wall Street. That alone makes it worth taking seriously.
NEW YORK--(BUSINESS WIRE)--BlackRock has one of the most comprehensive investment platforms in the industry, providing investors with choice to meet their individual needs. Investors continue to turn to BlackRock to unlock the full potential of their portfolios, as evidenced by nearly $2 trillion of net inflows in the past five years globally.1 As we evolve our global investment platform, we also continually assess how our funds are meeting investors' investment objectives and the needs of our.
CompaniesNEW YORK, June 12 (Reuters) - Shareholders of AES Corp have filed two complaints against the U.S. utility group's planned $33.4 billion sale to a consortium led by BlackRock's Global Infrastructure Partners and Swedish private-equity firm EQT, the power company said in a filing on Friday.
Stockholders of the company are seeking to block the AES acquisition, while they seek more details about the deal that was announced in March as one of the largest of a recent surge of U.S. power mergers driven by rising electricity demand.
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AES denied in the filing with the U.S. Securities and Exchange Commission that it did not submit all details required.
Reporting by Laila Kearney in New York; Editing by Mark Porter
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Americans have spent nearly $450 extra per household on rising energy costs during the Iran war, according to an analysis shared exclusively with CNBC's Steve Liesman.
The average household has shelled out $447.19 for additional fuel-related expenses since the conflict began on Feb. 28, data from Moody's Analytics found. That's cumulatively cost American consumers nearly $60 billion as gas prices and airline fares have surged.
Moody's data puts a dollar amount on a portion of the economic pain Americans are feeling as the war reaches its three-month mark. Higher energy costs can force consumers to raid their savings and lean more on debt to cover expenses.
"Unless the war ends soon, financially pressed consumers will have no option but to turn more cautious in their spending, threatening the already soft economy," said Mark Zandi, Moody's chief economist.
If prices stay at current levels, the average household could take a hit of almost $2,000 at the one-year mark of the war, Zandi said.
Roughly half of the increased energy spending so far comes from higher gasoline prices. The average unleaded gallon in the U.S. cost about $4.39 on Friday, up more than 47% since the start of March, according to AAA.
Pricier diesel, which is used in vehicles like delivery trucks and boats, has resulted in more than $20 billion in additional expenses for consumers. The price of diesel has similarly jumped roughly 47% since the beginning of March to around $5.52 a gallon, per AAA.
Consumers have given up nearly $10 billion as a result of rising costs for jet fuel. Airline fares climbed more than 20% in April compared with 12 months ago, federal government inflation data shows.
That nearly $450 impact more than erased the boost of $384 per household from bigger tax returns this year under President Donald Trump's "big, beautiful bill," according to Moody's. Most of the benefits from larger tax cuts have already been exhausted, Zandi said.
Goldman Sachs said it expects higher energy prices to "erode" consumers' spending power through the rest of 2026. It should specifically hamper lower-income households that spend a larger percentage of budgets on food and energy, the bank said.
Costco saw "record-breaking" gas volumes at the end of its fiscal quarter as drivers sought out its lower-priced fuel, the wholesaler said Thursday. McDonald's CEO Chris Kempczinski warned this month that consumer spending — specifically among lower-income cohorts — "may be getting a little bit worse" as energy prices pinch pocketbooks.
Turning to savings, debtConsumer spending rose 0.5% from March to April, according to government figures released Thursday. But other data points show that isn't necessarily coming from discretionary funds.
Income growth came in flat for April, missing the consensus forecast among economists for a 0.4% increase.
The personal savings rate fell to 2.6% in April, one of the lowest readings since the global financial crisis. It's far off highs above 31% seen in 2020, signaling that consumers have continued to spend through pandemic stimulus and rainy-day stashes amid inflationary pressures.
American credit card debt came in at $1.25 trillion in the first quarter, up close to 6% from a year ago, the New York Federal Reserve said this month. That's near the all-time record set at the end of 2025.
"Consumers are increasingly facing an income squeeze, which is forcing them to use savings, credit and wealth to sustain their spending patterns," said Gregory Daco, chief economist at EY-Parthenon. "What we're seeing is, essentially, the use of savings to offset weak income growth."
— CNBC's Steve Liesman and Betsy Spring contributed to this report.
