Track market-moving stories before they get noisy

Key Takeaways Globe Life posted 12% operating EPS growth, supported by premium growth and disciplined underwriting. Sales momentum accelerated with health sales up 58% and life sales rising across all distribution channels. GL returned $225 million to shareholders and expects excess cash flow of $650-$700 million in 2026. Shares of Globe Life Inc. (GL - Free Report) have gained 48.7% over the past year, outperforming the industry, sector and the Zacks S&P 500 composite over the same period. The stock closed at $177.07 on Wednesday, just 2.7% below its 52-week high of $182.32, reflecting investor confidence.

Strong earnings growth, premium expansion, higher investment income and aggressive share repurchases have driven the rally. Improving investor sentiment following the easing of short-seller allegations has further supported the stock.

Image Source: Zacks Investment Research

GL has outperformed its peers, Aflac Incorporated (AFL - Free Report) and Unum Group (UNM - Free Report) , whose shares have risen 19.2% and 10.7%, respectively, in the past year, while AMERISAFE, Inc. (AMSF - Free Report) has lost 18.7%.

GL’s ValuationDespite the rally, Globe Life shares are trading at a discount compared to the industry. Its forward price-to-earnings multiple of 10.96X is lower than the industry average of 13.66X, the Finance sector’s 16.51X and the Zacks S&P 500 Composite’s 21.14X. Also, it has a Value Score of A.

Image Source: Zacks Investment Research

Shares of other insurers, such as Unum Group, are also trading at a discount, while Aflac and Amerisafe are trading at a higher multiple than the industry average.

GL’s Growth Projection EncouragesThe Zacks Consensus Estimate for Globe Life’s 2026 earnings per share (EPS) indicates a year-over-year increase of 7.7%. The consensus estimate for revenues is pegged at $6.40 billion, implying a year-over-year improvement of 6.3%.

The consensus estimate for 2027 EPS and revenues indicates an increase of 6.4% and 6.7%, respectively, from the corresponding 2026 estimates.

The company’s earnings have improved 16.1% in the past five years, better than the industry average of 0.6%.

Optimistic Analyst Sentiment on GLThe company has witnessed four upward earnings estimate revisions for 2026 over the past 60 days, against no movement in the opposite direction. For 2027, it has witnessed three upward revisions and no downward movement. Thus, the Zacks Consensus Estimate for 2026 and 2027 earnings moved 1.4% and 0.1% north, respectively, over the last 60 days.

GL’s Return on Invested CapitalThe return on invested capital in the trailing 12 months was 12.5%, better than the industry average of 6.6%. This reflects the company’s efficiency in utilizing funds to generate income.

Key Points to Note for Globe LifeGlobe Life continues to deliver strong earnings growth, supported by disciplined underwriting, healthy premium growth and prudent capital management. In the first quarter of 2026, operating EPS increased 12% year over year, marking the seventh quarter of double-digit operating EPS growth in the past eight quarters. The company also benefited from higher premiums across its Life Insurance and Health Insurance segments, providing a solid foundation for sustained earnings expansion. In the first quarter, total premiums grew 6% year over year to $1.3 billion.

Moreover, net investment income continues to be another important driver of the company’s top-line growth and has been improving over the last few years, benefiting from higher portfolio yields and disciplined investment management. The company expects investment income to continue growing in 2026, supported by elevated reinvestment yields and its conservative, high-quality investment portfolio.

Improved agent productivity, expanding distribution and growth at the American Income, Liberty National, United American and Family Heritage divisions are expected to support continued sales growth in 2026. These efforts have fueled strong sales momentum, with health sales surging 58% in the first quarter of 2026 and life sales increasing 6% across all distribution channels.

Artificial intelligence (AI) is emerging as an important long-term growth driver for Globe Life. The company expects AI to improve underwriting, claims processing, customer service, agent productivity, lower administrative expenses and drive long-term margin expansion, strengthening Globe Life's competitive position.

The company has maintained a strong liquidity position with sufficient cash-generation capabilities. For 2026, GL anticipates excess cash flow to increase to approximately $650-$700 million. Globe Life has targeted a consolidated Company Action Level RBC ratio of 300-320% for 2026.

A strong capital position enables Globe Life to enhance its shareholder value via share buybacks and dividend payouts. The company returned approximately $225 million to shareholders during the first quarter of 2026. The insurer has continuously increased its dividend over the past five years, witnessing a CAGR of 8.9%.

ConclusionGlobe Life’s higher life and health sales, improved investment income, premium growth, AI initiatives, strong liquidity position and effective capital deployment position the company well for long-term growth.

Coupled with the impressive dividend history, cheaper valuation, solid growth projections, and higher returns, as well as the optimistic analyst sentiment, the time appears right for potential investors to bet on this Zacks Rank #2 (Buy) insurer. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Micron Technology (MU +6.90%) is one of the hottest stocks in the market right now. Massive demand for its memory chips has driven prices higher over the last year, leading to record-breaking earnings for the company. Still, the stock trades for just 13.6 times analysts' earnings expectations for the next 12 months. For comparison, the S&P 500 trades for close to 22 times forecast earnings.

Many investors have pointed out how cheap Micron appears to be at its current price. In fact, Micron's the largest position in the Vanguard Value ETF, suggesting the stock is undervalued right now. But the truth is Micron's not as cheap as it looks. Here's why.

Image source: The Motley Fool.

Looking beyond the current price-to-earnings ratio It's true that Micron trades for low price relative to its earnings expectations over the next 12 months. And analysts expect Micron's earnings to grow even more over the next two years, projecting Micron will generate over $160 in earnings per share by fiscal 2028, making its price around $1,000 per share look like an incredible bargain.

But the semiconductor industry is cyclical, and few segments are more so than memory chipmakers. That's because memory chips are commodity-like; device makers and chip packagers can, for the most part, swap out a Micron chip with any of its competitors'. That means if one of Micron's competitors increases the capacity of its chip production facilities, it will negatively impact Micron's ability to charge a premium price.

That's exactly what's playing out. Not only is Micron building out new chip manufacturing capacity, but its competitors are as well. As the pendulum of supply and demand swings the other way, Micron will see unit volume increase while pricing declines. At some point, unit volume growth won't be enough to offset price declines, and, combined with the added costs of running new facilities, profits will decline. That's the nature of cyclical stocks.

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So, as Micron approaches the peak of an earnings cycle, its P/E ratio will decline. Investors shouldn't be willing to pay as much for Micron's earnings at the peak of the cycle if the expectation is for earnings to decline for the next few years. And because of the commodity-like nature of Micron's products, the decline can be severe, especially if Micron doesn't build as much capacity as its competitors. That puts it in a prisoner's dilemma where it must spend the money to build new facilities.

Micron has historically traded at a P/E ratio in the mid single digits at its earnings peaks. At nearly 14 times earnings, the market suggests there are still a few more years of earnings growth for Micron in the current cycle; analysts are currently underestimating the peak of its earnings, or that the next down cycle won't be as bad as previous ones. All indications from Micron and its competitors suggest that the supply shortage will start to abate by 2028, which should have a noticeable negative impact on earnings in 2029 and 2030. Expectations for Micron are already sky-high, and the market is increasingly valuing it as if its earnings will never come down again. Don't confuse a highly cyclical stock with a value.

Jim Cramer used his July 9, 2026 CNBC Stop Trading segment to plant a flag on managed care, framing CVS Health (NYSE:CVS | CVS Price Prediction) as the consolidation winner in a sector where insurers are finally getting paid for the risks they underwrite. RBC raised its price target on CVS Health, and Cramer connected that call to a broader thesis: with rivals shrinking and premiums climbing, the operators still standing have real pricing power.

“The real bull market here has been for the last month the UNH managed care insurance business,” Cramer said. He added, “We had Walgreens basically disappearing. We had Rite Aid disappearing. We have CVS, CVS redoing the front of the store and CVS doing a terrific job with Aetna.” Cramer expected meaningful pricing power to return: “The price increases in DRAM and price increases in health insurance are going to be double-digit.”

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Cramer Says CVS Is the Biggest Winner From Industry Consolidation The retail pharmacy shakeout has been a big tailwind for CVS. With Walgreens and Rite Aid stepping back, CVS captures more front-of-store foot traffic and prescriptions, flowing straight into an insurance and pharmacy benefit engine that just had its best quarter in years.

In Q1 2026, CVS posted adjusted EPS of $2.57 versus a $2.21 consensus on revenue of $100.43 billion. The Aetna-anchored Health Care Benefits segment saw adjusted operating income climb 52.6% year over year to $3.04 billion, while the medical benefit ratio improved to 84.6% from 87.3%. Management raised full-year adjusted EPS guidance to $7.30-$7.50 and lifted the operating cash flow target to at least $9.5 billion.

CVS shares are up 7.61% over the past month and 61.69% over the past year, trading around $104.72. The average analyst price target sits around $107.73, with 24 buy or strong buy ratings against just four holds. The stock’s forward P/E is about 14x, which still represents a discount to the group despite the run.

UnitedHealth Shows Why Pricing Power Is Returning UnitedHealth Group (NYSE:UNH) is the clearest evidence that Cramer’s double-digit thesis holds. Management explicitly cited “repricing across all lines of business in response to elevated but in-line cost trends” as the driver of Q1 2026 margin expansion. The medical cost ratio improved 90 basis points to 83.9%, and adjusted EPS came in at $7.23 versus a $6.61 consensus. Full-year adjusted EPS guidance was raised to greater than $18.25.

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UNH is willingly shedding members. Guidance calls for UnitedHealthcare enrollment of 46.9 to 47.5 million, down from 49.8 million in 2025, as the company exits unprofitable contracts. Shares are up 5.27% in the past month and 42.03% over the past year. Polymarket traders currently price in a 71% probability that UNH will beat its next quarterly earnings report, due July 16.

Humana Is Benefiting From Better Medicare Economics Humana (NYSE:HUM) rounds out the trio. Q1 2026 revenue jumped 23.5% year over year to $39.65 billion, with individual Medicare Advantage membership up roughly 1.14 million, or 22% year to date. The insurance segment benefit ratio landed at 89.4%, favorable to guidance. Humana shares have led the group over the past month, rising 11.58%, and are up 55.89% year to date.

FY2026 adjusted EPS guidance of at least $9.00 steps down from the prior year’s $17.14, reflecting the bonus-payment reset. Cramer’s argument is that improved CMS benchmark funding and IRA-driven Part D subsidies could pull the sector back toward equilibrium faster than bears expect.

What to Watch Next Cramer’s thesis ultimately comes down to pricing power. As weaker competitors shrink or disappear and insurers reprice policies to reflect higher healthcare costs, the industry’s earnings outlook appears far healthier than it did a year ago.

The next major test arrives with UnitedHealth’s earnings on July 16, followed by updates from CVS and Humana later in the quarter. Investors will be watching whether improving medical cost ratios and higher premiums continue translating into stronger margins across the sector.

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Allstate (NYSE:ALL | ALL Price Prediction) and Progressive (NYSE:PGR) just delivered Q1 2026 reports that inverted the recent pattern. Allstate’s underwriting engine rebounded sharply after last year’s California wildfire hit, while Progressive kept growing policies but couldn’t nudge its combined ratio lower. The valuation gap between the two now looks stretched, and the businesses behind the tickers are pulling in genuinely different directions.

Homeowners Rescues Allstate. Direct Auto Still Powers Progressive. Allstate posted $10.65 EPS against a $7.24 estimate, a 47.10% beat driven by the homeowners book swinging to a $685 million underwriting profit from a prior-year loss. The property-liability combined ratio landed at 82.0, and catastrophe losses fell 43.7% to $1.24 billion. CEO Tom Wilson credited “more affordable prices, new products, expanded benefits, bundled offerings, lower expenses, sophisticated analytics and increased marketing” for share gains. Auto new business applications rose 9.4%, so top-line growth is reaccelerating.

Progressive told a different story. Revenue climbed 8.8% to $22.19 billion, policies in force jumped 9% to roughly 39.6 million, and Direct Auto premiums earned surged 14%. But EPS of $4.96 barely edged the $4.88 estimate, and the combined ratio ticked up to 86.4 from 86.0. Property shrank 1% and Commercial Lines dropped 4%, exposing the auto-heavy concentration.

One Diversified Compounder, One Auto Specialist Lens Allstate Progressive Trailing P/E 5x 11x Forward P/E 9x 14x Return on Equity 45.2% 37.9% Dividend Yield 1.76% 0.18% Core Bet Bundled auto + home + protection services Direct-to-consumer telematics auto Allstate’s $4.0 billion new buyback stacked on the existing $1.5 billion program, plus a $1.08 quarterly dividend, signals real confidence. Progressive is repurchasing modestly, with 768,273 shares bought at an average of $204.48 in March. The Florida $950 million policyholder credit overhang and a CFO transition in July 2026 add friction Allstate simply does not carry.

The Next Test Is Whether Underwriting Discipline Holds I will be watching whether Allstate’s 82.0 combined ratio can survive a normal catastrophe season. Homeowners just flipped, but May 2026 housing starts fell to 1.18 million, down 15.4% from April, which softens the demand runway. For Progressive, Polymarket traders assign a 42.5% probability that Q2 combined ratio lands between 89% and 92%, worse than Q1. That would confirm the pricing pressure analysts have flagged.

Why I Lean Toward Allstate on This Setup For me, the valuation and returns numbers carry the argument. Allstate is up 15.49% year to date while Progressive has managed only 2.13%, and Progressive is still down 12.78% over the past year. Paying 5x earnings for a business generating 45.2% ROE feels like the cleaner risk-reward. If you prioritize policy-count growth and the direct model, Progressive still fits. If you want capital returns, valuation cushion, and a broader product base, Allstate is the one I keep watching.

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Applied Materials Inc. shares AMAT climbed nearly 7% on Thursday as semiconductor stocks rallied after reports that Meta Platforms plans to begin manufacturing its in-house artificial intelligence chip in September, boosting optimism around demand for wafer fabrication equipment and AI infrastructure.

The broader semiconductor rally also lifted Lam Research and KLA Corp., while optical networking company Lumentum led gains in the S&P 500.

Applied Materials gained nearly 7%, while Lam Research and KLA rose more than 6% as investors reacted to reports that Meta expects to begin work on its AI data-center chip, codenamed "Iris," using custom-built silicon. Reuters first reported the development.

The move was viewed as a positive development for companies supplying wafer fabrication equipment used to convert raw silicon wafers into microchips.

The rally comes as expectations continue to build around rising capital expenditure by hyperscale technology companies.

According to Citi, the wafer fabrication equipment market is expected to grow from about $145 billion this year to $200 billion in 2027 and $250 billion in 2028.

The brokerage also forecasts hyperscaler spending to increase 84% this year, 56% in 2027 and 38% in 2028.

Amazon, Microsoft, Alphabet, Meta Platforms and Oracle are expected to spend more than $1.1 trillion in 2027, up from $650 billion this year.

Brokerages also turned more optimistic on semiconductor equipment makers.

Mizuho Securities raised its price target on Applied Materials to $650 from $540 while maintaining its Outperform rating. It also increased its target on Lam Research to $400 from $380.

TD Cowen lifted its price target on Applied Materials to $700 from $525 while maintaining its rating on the stock.

The brokerage models wafer fabrication equipment spending reaching $250 billion in 2028 and potentially $400 billion by 2030, supported by stronger industry profitability and demand backed by take-or-pay agreements.

Under its $250 billion scenario, TD Cowen estimates Applied Materials could generate earnings of about $25 per share, compared with its calendar 2026 estimate of $13.35.

Lam Research could earn between $11 and $12 per share, while KLA could generate $9 to $10 per share.

The firm said Applied Materials would be the biggest beneficiary under that scenario, followed by KLA because of their exposure to leading-edge semiconductor manufacturing and DRAM investment.

Investor sentiment also received support from comments by Applied Materials CEO Gary Dickerson.

In an interview with Nikkei Asia, Dickerson said Applied Materials has “tremendous visibility” into customer demand over the next 24 months.

He added that chipmakers are providing equipment demand forecasts at least two years in advance, giving the company confidence that the AI-driven semiconductor investment cycle still has years to run.

AMAT Technicals Applied Materials continues to trade above its 20-day, 50-day and 200-day simple moving averages.

Its relative strength index stands at 53.70, a neutral reading, while traders are watching the 20-day moving average near $503 as the first support level and the 52-week high near $739.67 as the next major resistance.

Key Takeaways Carvana expects Q2 retail GPU to improve sequentially but remain below the prior-year level.CVNA cites lost tariff benefits, lower shipping fees and higher non-vehicle costs as key headwinds.Carvana also expects narrower wholesale-to-retail spreads to reduce retail GPU by about $100-$200 per unit. Carvana Co.’s (CVNA - Free Report) retail gross profit per unit (GPU) was relatively stable in the first quarter of 2026 but declined slightly from the prior-year period. A key factor behind the decline was the company's continued success in optimizing its logistics network, enabling faster vehicle deliveries over shorter distances. This improvement helped reduce logistics expense per retail unit sold to an all-time low.

As outbound shipping distances declined, Carvana also lowered the shipping fees charged to customers, passing the cost savings directly to them. While this enhanced customer value, it negatively affected retail GPU in both the fourth quarter of the previous year and the first quarter of the current year. Consequently, non-GAAP retail GPU declined by $58 year over year, primarily due to higher non-vehicle costs and lower shipping fee revenues.

Looking ahead, the company expects retail GPU to improve sequentially in the second quarter but remain below the prior-year level. The anticipated year-over-year decline reflects the absence of approximately $100 per unit in tariff-related benefits that supported results last year, continued pressure from lower shipping fees and higher non-vehicle costs, as well as an estimated $100-$200 per unit impact from narrower wholesale-to-retail spreads across the industry.

Meanwhile, non-GAAP wholesale GPU decreased by $83 year over year. Although wholesale vehicle volumes increased and gross profit per unit improved, these gains were more than offset by lower marketplace gross profit and retail unit growth that outpaced wholesale gross profit. Non-GAAP other GPU also declined by $88, primarily because the company chose to pass value back to customers through lower interest rates, partially offset by higher finance product and vehicle service contract attachment rates. CVNA currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

GPU Outlook of Other Auto RetailersGroup 1 Automotive, Inc.’s (GPI - Free Report) profitability across both new and used vehicle segments remains under pressure. In the last reported quarter, Group 1’s new-vehicle gross profit per unit slipped 2.5% to $3,296, and used-vehicle GPU fell 1.9% to $1,540. As inventory levels normalize and incentives increase, maintaining pricing discipline is likely to become more challenging for Group 1, which could continue to weigh on margins and overall earnings.

AutoNation, Inc. (AN - Free Report) new-vehicle profitability remains vulnerable to shifts in OEM incentives, vehicle mix and volatility in Premium Luxury volume. In the first quarter of 2026, AutoNation’s new vehicle gross profit per unit was $2,514, down from $2,803 a year ago, reflecting a weaker year-over-year pricing environment. BEV unit sales declined more than 50% year over year, with a disproportionate impact in Premium Luxury, where units fell 16% year over year. Amid affordability and inflation concerns, AutoNation expects vehicle demand to remain under pressure and has warned of margin compression this year.

Carvana’s Price Performance, Valuation and EstimatesCarvana has underperformed the Zacks Internet – Commerce industry in the last six months. CVNA shares have plunged 28.6% compared with the industry’s decline of 7.3%.

Image Source: Zacks Investment Research

 
From a valuation perspective, Carvana appears overvalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 2.28, higher than its industry’s 1.91.

Image Source: Zacks Investment Research

 
The Zacks Consensus Estimate for Carvana’s 2026 and 2027 EPS has moved up 5 cents and 4 cents, respectively, in the past 60 days. 

Image Source: Zacks Investment Research

Key Takeaways UiPath shares have fallen 34% in six months, while trading below the industry's forward earnings multiple.PATH reported its first-quarter GAAP profit and raised its full-year outlook on stronger demand.UiPath is positioning its platform to combine RPA, AI agents and workflows for enterprise automation. UiPath’s (PATH - Free Report) recent share price pullback has made its valuation more compelling, particularly for long-term investors. Despite improving financial performance and stronger demand for its automation platform, the stock trades at a more reasonable forward earnings multiple than it did during its earlier rally. This disconnect suggests that much of the market’s caution surrounding AI-related competition and enterprise spending has already been reflected in the share price.

The stock has declined 34% over the past six months compared with the industry’s 6.5% decline.

<                                                          Image Source: Zacks Investment Research

PATH trades at a forward price-to-earnings ratio of 13.53X, which is well below the industry’s average of 27.31X.

                                                                  Image Source: Zacks Investment Research

The company continues to strengthen its fundamentals. Annualized recurring revenue (ARR) has maintained steady growth, operating margins have expanded, and UiPath recently reported its first-ever first-quarter GAAP profit. Management also raised its full-year outlook, reflecting confidence in customer demand and the company's ability to monetize its AI-powered automation offerings.

As enterprises increasingly adopt agentic AI, UiPath is positioning itself as an orchestration layer that combines robotic process automation (RPA), AI agents, and workflow management. This strategy could help customers automate complex business processes while optimizing AI token usage, creating a differentiated value proposition.

Although risks remain, including competitive pressure and slower enterprise IT spending, the current valuation appears to offer a favorable risk-reward balance. If UiPath continues to execute on its AI roadmap and sustain profitable growth, today's discounted valuation could provide meaningful upside potential for patient, long-term investors.

Peer Comparison

Microsoft (MSFT - Free Report) and ServiceNow (NOW - Free Report) remain formidable rivals, but their financial strategies differ from UiPath’s. Microsoft, while a giant with unparalleled scale, must spread capital across diverse segments such as cloud, gaming and productivity software, somewhat diluting its focus on automation. ServiceNow continues to gain traction in enterprise workflow automation but remains heavily invested in sustaining growth momentum, balancing expansion with cost pressures.

Compared to these players, UiPath’s debt-free balance sheet allows it to dedicate resources squarely to automation. Microsoft has the advantage of size, and ServiceNow has enterprise reach, but UiPath’s singular financial flexibility gives it agility neither can fully replicate.

PATH stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Constellation Brands Today

STZ

Constellation Brands

$131.04 +0.70 (+0.54%)

As of 02:00 PM Eastern

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

52-Week Range$126.45▼

$178.13Dividend Yield3.14%

P/E Ratio12.54

Price Target$167.89

Constellation Brands NYSE: STZ delivered its fiscal year 2027 Q1 report on June 30 with mixed results. Revenue of $2.43 billion beat expectations for $2.39 billion. However, Constellation missed the bottom line, reporting adjusted earnings per share (EPS) of $3.43, below expectations of $3.70.

However, the earnings figure was higher year over year (YOY). Plus, management raised its full-year reported EPS outlook to $11.50 to $12.20 and reaffirmed comparable guidance of $11.20 to $11.90. At the midpoint, the reported EPS would be 23% higher YOY.

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That hasn’t done much to satisfy investors. As of the market close on July 8, STZ continues to trade near multi-year lows around $130, keeping shares below their 200-day moving average of roughly $146, and the stock's MACD remains in negative territory.

When it comes to earnings reports, investors often pay too much attention to what the company did and not enough to its future outlook. In the case of Constellation Brands, that’s a disconnect that’s worth examining. Particularly, as STZ is trading approximately 29% below the analysts’ consensus price target of $167.89.

Constellation's Beer Business Continues to Drive GrowthConstellation's beer segment, anchored by Modelo Especial and Corona Extra, grew net sales 2% on a 1.8% increase in shipment volumes. Operating margin held roughly flat at 39%. Depletions, a measure of what's actually moving off store shelves, dipped by a modest 0.3%. The company remained the top dollar-share gainer in the U.S. beer category during the quarter, with five of the 15 top share-gaining brands nationally.

Wine and Spirits told a more complicated story. Reported net sales fell 47%, but that decline is almost entirely a function of last year's divestiture of a large chunk of the mainstream wine portfolio. Strip that out, and organic net sales actually grew 8%, with depletions up 6.6%. The Kim Crawford brand’s depletions grew by roughly 4%, while Mi CAMPO Tequila surged 62%. The segment's operating loss narrowed sharply, improving 140 basis points to a margin of negative 0.7%.

Constellation Challenges the GLP-1 Bear CaseOverall MarketRank™98th Percentile

Analyst RatingHold

Upside/Downside29.2% Upside

Short Interest LevelHealthy

Dividend StrengthStrong

News Sentiment0.18 Insider TradingSelling Shares

Proj. Earnings Growth3.47%

See Full Analysis

A popular bear thesis for beer and wine stocks holds that GLP-1 weight-loss drugs are suppressing overall drinking. Constellation's numbers argue against that story, at least for now. If GLP-1 adoption were driving a broad pullback in alcohol consumption, beer volumes should be falling alongside wine and spirits. Instead, beer shipments grew, and organic sales and depletions for wine and spirits both increased.

This suggests that Constellation Brands is adjusting to the changing tastes of consumers. That's different from a company stuck in a doom loop of declining consumer demand.

What shows up in the numbers is lower pressure on the income ladder. Management described a "discerning and value-conscious consumer mindset," particularly among lower-income households, as gas prices rose more than 50% nationally during the quarter.

That's the K-shaped economy playing out in real time: a bifurcated consumer base, with higher-end brands with strong equity, like Modelo and Kim Crawford, continuing to find buyers even as lower-income households pull back elsewhere.

Constellation Rewards Shareholders With Buybacks and DividendsConstellation returned over $400 million to shareholders during the quarter. That was split between $324 million in year-to-date share repurchases and a quarterly dividend of $1.03 per share. Management is targeting a comparable net leverage ratio of approximately 3x while continuing to fund the construction of a third brewery in Veracruz, Mexico. Operating cash flow rose 4% to $662 million, and free cash flow increased 9% to $485 million.

New CEO Nicholas Fink Outlines Constellation's Growth StrategyThis was the first earnings report with Nicholas Fink as President and Chief Executive Officer (CEO). Fink used the earnings commentary to lay out an occasion-based growth strategy. The plan centers on understanding when, where, and why consumers choose specific brands, rather than treating growth purely as a distribution or pricing exercise.

Fink singled out Modelo Especial's continued distribution runway and relatively low brand awareness as a specific opportunity, alongside continued investment in fast-growing Pacifico and Mi CAMPO.

Constellation Stock Offers Value for Patient InvestorsAt roughly 11x, Constellation trades at a discount that looks reasonable for a defensive consumer name with a dominant beer franchise and an improving wine-and-spirits business. The stock's continued technical weakness suggests the market hasn't fully priced in the operating improvement yet.

To be fair, risks remain. Wine and Spirits still operates near breakeven, tariff exposure on agricultural inputs is an ongoing concern the company flags directly in its filings, and the broader beverage alcohol category faces real questions about long-term consumption trends.

But this quarter's results suggest the pressure so far is more about consumer selectivity than a structural retreat from alcohol altogether. For patient investors, Constellation's combination of earnings growth, aggressive capital returns, and a still-skeptical stock chart is worth watching closely.

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Key Takeaways RLI has raised its regular dividend for 51 straight years and hiked quarterly payout by 12.5% in May 2026. RLI declared a $2.00-per-share special dividend and approved a new $250 million share repurchase program. Strong underwriting, operating cash flow and disciplined capital management aid shareholder returns. RLI Corp. (RLI - Free Report) has a disciplined and shareholder-friendly capital deployment strategy that balances investments in business growth with consistent capital returns. The company generates strong underwriting profits and operating cash flow, enabling it to return excess capital while maintaining a conservatively capitalized balance sheet.

RLI has increased its regular dividend for 51 consecutive years, demonstrating a long-standing commitment to returning cash to shareholders. In May 2026, the board increased the quarterly dividend by 12.5% to 18 cents per share. When capital exceeds business needs, RLI distributes excess cash through special dividends. The company declared a $2.00-per-share special dividend in May 2026, totaling approximately $184 million, continuing its history of periodic special dividend payments.

RLI's board of directors authorized a new share repurchase program to return more value to investors. With the latest authorization, the board approved the issuance of up to $250 million of the company’s outstanding common stock in May 2026.

Management emphasizes maintaining financial flexibility and capital adequacy before distributing excess capital, ensuring the company can support underwriting growth and withstand catastrophe losses. Strong underwriting profitability, recurring operating cash flow, investment income, a conservatively capitalized balance sheet and disciplined risk management provide RLI with the financial strength and flexibility to deploy capital efficiently while creating long-term shareholder value.

RLI's capital allocation strategy is a key investment strength. The combination of regular dividend increases, periodic special dividends, opportunistic share repurchases and continued investment in the business reflects disciplined capital management that has consistently enhanced long-term shareholder value.

What About Its Peers?First American Financial Corporation (FAF - Free Report) follows a balanced capital-return strategy that combines a steadily growing dividend with opportunistic share repurchases. FAF generally uses a combination of regular dividend increases and selective share repurchases to distribute excess capital. FAF has increased its dividend for more than 15 consecutive years, reflecting management's commitment to returning capital through various housing market environments.

American Financial Group, Inc. (AFG - Free Report) has one of the most shareholder-friendly capital allocation policies in the U.S. insurance sector. AFG regularly generates capital that is needed to support underwriting operations. Returning excess capital to shareholders in the form of regular and special cash dividends and through opportunistic share repurchases is an important and effective component of American Financial’s capital management strategy. The combination of growing regular dividends, frequent special dividends, opportunistic buybacks and strong underwriting profitability has enabled the company to deliver substantial cash returns to investors over time.

RLI’s Price PerformanceShares of RLI have lost 14.2% in the past year against the industry.

Image Source: Zacks Investment Research

RLI’s Expensive ValuationThe stock is overvalued compared with its industry. It is currently trading at a price-to-book ratio of 3.11, above the industry average of 1.49.

Image Source: Zacks Investment Research

Estimate Movement for RLIThe Zacks Consensus Estimate for RLI’s third-quarter 2026 has moved down 1.8% in the past 60 days. The same for the full-year 2026 and 2027 EPS has moved up 1.8% and 2.6%, respectively, in the past 60 days.

Image Source: Zacks Investment Research

Key Takeaways Coherent stock has soared 247% in a year but pulled back 11% over the past month.AI demand drove Datacenter & Communications to 75% of third-quarter fiscal 2026 revenues.COHR's backlog extends into 2028, while long-term supply agreements stretch through 2030. Coherent Corp. (COHR - Free Report) has been one of the standout performers in the technology hardware space over the past year. The stock has surged an impressive 247%, significantly outperforming the industry's 8% growth and the Zacks S&P 500 Composite's 24% advance. More recently, however, COHR has pulled back 11% over the past month, suggesting the stock may be entering a healthy correction after its remarkable run.

                                                              Image Source: Zacks Investment Research

The recent weakness raises an important question for investors: Is this a buying opportunity, a signal to hold existing positions, or a reason to stay on the sidelines? While the valuation remains elevated, Coherent's strengthening fundamentals indicate that the company's long-term growth story remains intact.

AI Infrastructure Demand Is Reshaping COHR’s BusinessCoherent's transformation has been fueled by booming demand for AI infrastructure. The company's Datacenter & Communications segment has become its primary growth engine, accounting for 75% of third-quarter fiscal 2026 revenues while delivering 41% year-over-year growth.

This shift is significant because it changes the company's revenue profile. Historically, hardware manufacturers have been exposed to short product cycles and volatile demand. Today, Coherent is increasingly tied to long-duration AI infrastructure spending, providing investors with greater confidence in future earnings.

Unlike traditional semiconductor hardware cycles, AI-related investments are supported by large-scale cloud deployments and multi-year capital spending plans, making demand considerably more predictable.

Long-Term Orders Improve COHR’s Revenue VisibilityOne of the biggest positives for Coherent is the dramatic improvement in order visibility.

Rather than experiencing the typical cyclical increase in hardware demand, the company is witnessing a step-change in customer commitments. Record backlog levels now extend into calendar 2028, while long-term supply agreements stretch through 2030.

This level of visibility substantially lowers the risk that new manufacturing investments become underutilized during an economic slowdown.

To support this unprecedented demand, Coherent invested approximately $290 million in capital expenditures during the third quarter of fiscal 2026, more than doubling spending from the prior-year period.

Importantly, this aggressive capacity expansion is backed by contractual customer commitments rather than speculative demand forecasts.

Operating Leverage is Beginning to Pay OffThe surge in AI-related demand is translating directly into stronger profitability.

Higher factory utilization and improved supply chain efficiencies contributed to a 163-basis-point expansion in the adjusted operating margin during the third quarter. Meanwhile, adjusted net income climbed nearly 56% year over year, highlighting the operating leverage created by rising production volumes.

As manufacturing assets become increasingly utilized, incremental revenues are flowing through to earnings at a faster pace, improving the overall quality of Coherent's financial performance.

This combination of expanding margins and stronger earnings suggests the company is benefiting not only from higher sales but also from greater operational efficiency.

Strategic Partnerships Strengthen Financial FlexibilityCoherent has also significantly strengthened its balance sheet.

A major catalyst came from NVIDIA's (NVDA - Free Report) $2 billion equity investment, which increased Coherent's cash balance to roughly $3 billion during the third quarter of fiscal 2026 from approximately $1.5 billion in the previous quarter.

Beyond the financial benefits, NVIDIA's investment serves as an important strategic validation of Coherent's technology and its role within the rapidly expanding AI infrastructure ecosystem.

Management has simultaneously accelerated debt reduction. During the quarter, Coherent repaid $162 million of debt, reducing its leverage ratio to 0.5X from 1.7X in the previous quarter.

Lower leverage, higher liquidity and declining interest costs collectively provide the company with considerably greater financial flexibility as it continues investing in future growth.

Premium Valuation Appears Supported by Improving FundamentalsCoherent currently trades at approximately 37.56 times forward earnings, nearly double the industry's 21.49 times forward earnings multiple.

                                                                    Image Source: Zacks Investment Research

At first glance, that premium valuation may appear demanding. However, investors are paying for a business that is becoming fundamentally different from the cyclical hardware manufacturer it once was. Multi-year customer commitments, record backlog, expanding margins, stronger cash generation and a healthier balance sheet are all contributing to a more predictable earnings profile.

While short-term volatility is always possible following such a strong rally, Coherent's growing exposure to AI infrastructure spending and long-term customer agreements provides a solid foundation for sustained growth over the coming years.

Coherent's Top and Bottom Line Expectations Remain RobustCoherent's growth prospects remain compelling, supported by strong demand across AI-driven datacenter infrastructure and improving operating leverage. The Zacks Consensus Estimate projects fiscal 2026 revenues of $7.1 billion, indicating 21.5% year-over-year growth. Momentum is expected to accelerate further in fiscal 2027, with revenues forecast to increase 37.7% from the prior year.

The earnings outlook is equally impressive. The consensus estimate indicates fiscal 2026 EPS of $5.47, suggesting 55% year-over-year growth. Looking ahead, analysts expect EPS to climb another 52.5% in fiscal 2027, indicating confidence that Coherent's expanding AI-related business, improving margins and higher manufacturing utilization will continue to drive profitability.

Such robust top- and bottom-line projections reinforce the investment case that Coherent's transition toward AI infrastructure is creating a stronger, more predictable earnings profile despite the stock's premium valuation.

Peers to Watch: Lumentum and IPG PhotonicsAmong U.S.-listed peers, Lumentum Holdings (LITE - Free Report) and IPG Photonics (IPGP - Free Report) offer useful comparisons for investors evaluating Coherent. Like Coherent, both LITE and IPGP operate in optical components and photonics markets that benefit from increasing demand for high-speed data communications and advanced laser technologies. However, Coherent currently stands apart because of its unusually strong AI infrastructure exposure, record backlog extending into 2028, long-term supply agreements through 2030, and a significantly strengthened balance sheet following NVIDIA's strategic investment. These factors have helped improve earnings visibility and differentiate Coherent's growth profile within the photonics industry.

COHR Remains a Buy for Long-Term AI InvestorsCoherent’s remarkable rally reflects meaningful improvements in its business rather than market enthusiasm alone. The company has strengthened its revenue visibility through long-term customer commitments, expanded profitability as AI-driven demand boosts operating leverage, and reinforced its balance sheet with greater financial flexibility. Although the stock trades at a premium and could experience periodic volatility after its strong advance, its transformation into a critical supplier for AI infrastructure supports a more durable growth outlook. With robust revenue and earnings expectations, improving execution and favorable industry trends, Coherent remains an attractive buy for investors seeking long-term exposure to the expanding AI ecosystem.

COHR currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Envista posted positive first-quarter 2026 growth across major businesses and expanded margins.NVST strengthened its dental portfolio with the Versah acquisition and continued product launches.Envista faces tariff costs, China uncertainty and foreign exchange risks despite developed market strength. Envista (NVST - Free Report)  is well-poised for growth in the coming quarters, supported by the continued execution of its three strategic priorities. Targeted acquisitions further enhance the company’s product portfolio and market position. It also benefits from strong momentum in the international markets while deepening channel penetration. Meanwhile, adverse macroeconomic impacts and currency fluctuations raise concerns for Envista’s operations.

Over the past year, this Zacks Rank #3 (Hold) stock has risen 24.2% against the 28% decline of the industry and 23.2% rise of the S&P 500 composite.

The leading optical retailer has a market capitalization of $4.41 billion. The company’s earnings yield of 5.2% is well ahead of the industry’s 3.2% yield. In the trailing four quarters, Envista delivered an average earnings surprise of 15.43%. 

Factors Supporting NVST's GrowthProgress With Strategic Priorities: Envista continues to execute on its strategy built around three areas: growth, operations and people. In the first quarter of 2026, all major businesses delivered positive growth, with 8.4% core growth in the Specialty Products & Technologies segment and 11.5% core growth in the Equipment and Consumables segment. The company has been reinvesting to support durable share gains, with sales and marketing and R&D both up double digits and new products central to results. Recent launches included Nobel S Series in implants, the Spark clear aligner launch in Japan and DEXIS software enhancements that add AI-driven workflow and diagnostics tools.

Image Source: Zacks Investment Research

The Envista Business System (“EBS”) helped drive gross margin expansion of 100 basis points and adjusted EBITDA margin growth of 120 basis points. Tariff costs increased $11 million from the prior year but were offset by supply-chain, G&A and pricing initiatives. Simultaneously, Envista is advancing its continuous improvement culture, supported by steady gains in employee engagement and talent development. The company also served 3,700 patients through the Envista Smile Project.

Value-Adding Acquisitions in Core Dental Categories: Envista continues to use M&A to broaden its clinical offering and strengthen go-to-market positions in attractive dental segments.

In first-quarter 2026, NVST acquired Versah for about $54.7 million, adding the Densah Burs system used for osseodensification, a technique intended to improve osteointegration in certain implant indications. Management expects the deal to be accretive across growth, margins and EPS, and it described synergy through Envista’s existing clinical education and commercial channels. This builds on prior acquisitions that expanded implants and imaging, including Osteogenics and the Carestream intraoral scanner business that now operates within the DEXIS portfolio and supports a more competitive implants platform over time.

International Reach and Channel Expansion: Developed markets were the key growth engine in first-quarter 2026, with North America and Europe both delivering double-digit gains. Developing markets are growing in the high single digits, excluding softness in China tied to policy uncertainty. The Spark launch in Japan adds a new growth vector in a sizable aligner market where the company already has strong orthodontic relationships, creating a cross-sell opportunity into clear aligners. Management also highlighted continued progress with DSOs and clinician education as levers to deepen penetration.

Factors Weighing on EnvistaMacro and Policy Headwinds: Management continues to flag global economic uncertainty alongside geopolitical volatility, which can weigh on dental utilization and purchasing cycles. China remains a source of uncertainty for the implants business as channel partners continue to adjust inventory levels ahead of the anticipated volume-based procurement (VBP) process, which management expects to begin between the second and third quarters. Tariffs also remain a cost headwind. First-quarter 2026 adjusted EBITDA reflected a $11 million year-over-year increase in tariff costs, with similar quarterly levels anticipated through 2026.

Foreign Exchange and Global Exposure: In the first quarter of 2026, 52.7% of Envista’s revenues came from customers outside the United States, exposing sales, margins and cash flow to currency fluctuations and regional demand variability. While balance sheet hedging has reduced quarter-to-quarter volatility compared with the prior year, foreign exchange movements continue to affect performance and can influence reported results. Regional disruptions, including conflicts in the Middle East and evolving conditions in China, add complexity to planning and may at times offset strength in developed markets.

NVST Stock Estimate TrendThe Zacks Consensus Estimate for Envista’s 2026 earnings per share (EPS) has remained constant at $1.42 in the past 60 days.

The Zacks Consensus Estimate for the company’s 2026 revenues is pegged at $2.86 billion. This suggests a 5.2% increase from the year-ago reported number.

Key PicksSome better-ranked stocks in the broader medical space are IDEXX Laboratories (IDXX - Free Report) , Align Technology (ALGN - Free Report) and Integra LifeSciences (IART - Free Report) .

IDEXX Laboratories has an earnings yield of 2.6% compared to the industry’s negative 3% yield. Its earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 26.3%. IDXX shares have rallied 2.7% against the industry’s 8.2% decline over the past year.

IDXX carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Align Technology, carrying a Zacks Rank #2, has an estimated long-term earnings growth rate of 10.3% compared with the industry’s 5.5% growth. Shares of the company have dipped 14.5% against the industry’s 10.5% growth. ALGN’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 7.8%.

Integra LifeSciences, carrying a Zacks Rank #2, has an earnings yield of 13.7% against the industry’s negative 3% yield. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 16.7%. IART shares have rallied 31.4% against the industry’s 8.2% decline over the past year.

It has been about a month since the last earnings report for Uranium Energy (UEC - Free Report) . Shares have added about 5.4% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Uranium Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Uranium Energy Earnings Miss Estimates in Q3 on Higher SpendingUranium Energy reported an adjusted loss of seven cents per share in the third quarter of fiscal 2026, excluding the impacts of non-recurring items, compared with the year-ago quarter’s loss of six cents. The figure was wider than the Zacks Consensus Estimate of a loss of five cents. 

Including non-recurring items such as fair value loss on equity securities, the company posted a loss of 11 cents in the quarter. 

Uranium Energy's earnings miss largely mirrored a heavier cost structure as the company advanced multiple initiatives at once, from mine development to the buildout of its broader U.S. fuel-cycle ambitions.

Uranium Energy reported no sales in the third quarter of fiscal 2026 as the company did not record any purchased-uranium inventory sales in the period.

During the quarter, the company produced 32,195 pounds of uranium concentrate produced at a total cost of $54.61 per pound, including a cash cost per pound of $46.69.

Uranium Energy stayed focused on building optionality around its uranium inventory and ISR ramp. As of April 30, 2026, the company held 1,456,000 pounds of purchased uranium concentrate inventory.

Operating Spend Pressures ResultsTotal operating costs rose 73.8% year over year to $40.8 million, driven primarily by mineral property expenditure of $29.5 million (up 88.4% from $15.7 million). General and administrative expenses were $9.43 million compared with $6.38 million, while depreciation, amortization and accretion totaled $1.82 million compared with $1.41 million.

As a result, Uranium Energy posted an operating loss of $40.8 million, wider than the $23.5-million operating loss incurred in the year-ago quarter.

Scales ISR Output With Burke Hollow OnlineOperationally, Uranium Energy reached a milestone by commencing production at its Burke Hollow IRS project, a greenfield ISR asset that is moving from development into early production activities.

At Burke Hollow, the company said that the uranium recovery process was initiated with oxygen and carbon dioxide injection, and it commissioned a satellite ion-exchange plant with 2,500 gallons per minute of capacity. It also completed and tested an additional 46 wells in phase 1A as it built out field infrastructure.

The company is also projecting higher production rates in the fiscal fourth quarter, with new header houses and Burke Hollow expected to operate for a full quarter.

Cash Position at Q3 EndUranium Energy exited the quarter with $794 million in liquid assets and no debt, underscoring a balance sheet positioned to fund development across multiple hubs.

Cash and cash equivalents totaled $488 million at April 30, 2026, compared with $149 million at the end of July 31, 2025.

In the first nine months of fiscal 2026, net cash used in operating activities was $90 million compared with an outflow of $41 million in the year-ago quarter. 

Management Commentary and OutlookManagement expects production to increase in the fourth quarter of fiscal 2026 as Christensen Ranch header houses and Burke Hollow contribute for the full quarter. Unit costs are expected to decline as volumes.

How Have Estimates Been Moving Since Then?Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

VGM ScoresCurrently, Uranium Energy has a poor Growth Score of F, a score with the same score on the momentum front. Following the exact same course, the stock has a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook Uranium Energy has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

A month has gone by since the last earnings report for Smucker (SJM - Free Report) . Shares have lost about 4% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Smucker due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.

Smucker Q4 Earnings Beat Estimates, Sales Miss on Volume DipThe J. M. Smucker reported fourth-quarter fiscal 2026 results. Adjusted earnings were $2.77 per share, beating the Zacks Consensus Estimate of $2.65. Earnings increased 20% from the prior-year quarter, driven by higher pricing, increased adjusted gross profit, favorable SD&A expenses and lower interest expense.

Net sales were $2,268.1 million, up 6% year over year. However, the top line missed the Zacks Consensus Estimate of $2,271 million. Comparable net sales, excluding prior-year divestiture-related sales and favorable foreign currency exchange, increased 6%. Comparable net sales growth reflected a 10-percentage-point benefit from net price realization, mainly driven by higher pricing for coffee and sweet baked goods. This was partly offset by a 4-percentage-point decline in volume/mix, primarily due to decreases in coffee and sweet baked goods, partially mitigated by growth in Uncrustables sandwiches.

Adjusted gross profit increased 4% year over year to $835.3 million. The upside reflected higher net price realization, partially offset by increased costs, including commodity costs and tariffs, along with unfavorable volume/mix. The company incurred approximately $23 million in tariff expenses in the quarter, mainly impacting the U.S. Retail Coffee segment.

Adjusted operating income rose 14% to $482.1 million, reflecting increased adjusted gross profit and favorable SD&A expenses. Lower marketing spend and distribution costs more than offset higher general and administrative expenses.

Decoding SJM’s Q4 Segmental PerformanceU.S. Retail Coffee: Net sales increased 12% to $830.6 million, driven by higher pricing across the portfolio. Net price realization contributed 21 percentage points, while volume/mix declined 8 percentage points due to decreases in Dunkin’ and Folgers, partly offset by growth in Café Bustelo. Segment profit increased 1% to $214 million, as pricing gains and lower marketing spend mostly offset higher costs, including commodity costs and tariffs, and unfavorable volume/mix.

U.S. Retail Frozen Handheld and Spreads: Net sales rose 1% to $454.1 million. Net price realization added 2 percentage points, led by higher pricing for Uncrustables sandwiches and lower trade spend for Jif peanut butter. Volume/mix declined 2 percentage points, reflecting lower sales of Jif peanut butter and Smucker’s fruit spreads, partly offset by growth in Uncrustables. Segment profit surged 37% to $124.7 million, aided by lower marketing spend, higher pricing, lower costs, lapping equipment write-off charges and lower pre-production expenses tied to the new Uncrustables manufacturing facility.

U.S. Retail Pet Foods: Net sales increased 2% to $401.7 million. Pricing contributed 3 percentage points, driven by cat food and dog snacks, while volume/mix declined 2 percentage points due to weakness in dog snacks and the lapping of contract manufacturing sales related to divested pet food brands. Segment profit advanced 18% to $125.7 million, supported by higher pricing and lower marketing spend.

Sweet Baked Snacks: Net sales decreased 5% to $237.2 million. Excluding noncomparable sales related to the divestiture of certain Sweet Baked Snacks value brands, net sales declined 4%. Volume/mix reduced sales by 12 percentage points, mainly due to softness in snack cakes and breakfast products, partly offset by growth in donuts. Higher pricing contributed 8 percentage points. Segment profit rose 45% to $29 million, reflecting higher pricing and lower marketing expenses, partly offset by unfavorable volume/mix and higher costs. Management noted that the segment’s fourth-quarter sales exceeded expectations, aided by a faster-than-anticipated return to production following the February fire at its Emporia, KS, facility. Hostess Donettes grew net sales 13% in the quarter.

Away From Home: Net sales increased 15% to $228.3 million. Excluding favorable currency movements, sales rose 14%. Net price realization added 8 percentage points, mainly due to higher coffee pricing, while volume/mix contributed 6 percentage points, driven by increases in Uncrustables sandwiches, fruit spreads and coffee. Segment profit climbed 21% to $55.3 million, benefiting from higher pricing and favorable volume/mix, partly offset by higher costs. The company also began presenting Away From Home as a reportable segment, reflecting the business’s increased scale and strength.

SJM’s Financial Health Snapshot & GuidanceThe company ended fiscal 2026 with cash and cash equivalents of $58.6 million and long-term debt, excluding the current portion, of roughly $6.4 billion. Total shareholders’ equity was $5.5 billion. Cash provided by operating activities totaled $579.2 million in the quarter. Free cash flow was $483.9 million. For fiscal 2026, free cash flow totaled about $1.16 billion. The company returned $464.7 million to shareholders through dividends and repaid $720 million of debt during the year.

Smucker issued its fiscal 2027 outlook. The company expects net sales to decline 3% to 4% year over year, primarily due to lower net price realization and unfavorable volume/mix. Management noted that the sales decline mainly reflects expectations for green coffee deflation, as the company plans to pass lower costs to consumers through pricing.

Adjusted earnings per share are expected in the band of $9.75-$10.25, implying year-over-year growth of 7-12%. The guidance assumes an adjusted gross profit margin of approximately 38%, SD&A expenses rising about 5%, net interest expense of nearly $345 million, an adjusted effective tax rate of 24.3% and weighted-average shares outstanding of 107 million.

Free cash flow is projected to be approximately $1 billion, with capital expenditures of $325 million. Management expects to pay down about $500 million of debt in fiscal 2027 and move toward a leverage ratio of around 3.0 net debt to adjusted EBITDA by the end of the fiscal year. The company expects volume/mix growth across its key platforms — Uncrustables, Cafe Bustelo, Meow Mix and Milk-Bone — in fiscal 2027.

How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended upward during the past month.

VGM ScoresAt this time, Smucker has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a score of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Smucker has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Key Takeaways Flywire's Q1 2026 revenues rose 41% as B2B, Education, Travel and Healthcare drove growth.Flywire raised FY2026 payment-processing ramp-up contribution outlook to 3-4 percentage points.Flywire expects broader B2B software adoption to strengthen long-term growth and profitability. Flywire Corp.'s (FLYW - Free Report) B2B business is becoming a key growth driver as enterprises look to modernize manual, fragmented invoice-to-cash workflows. Its software-enabled payment platform automates invoicing, collections and accounts receivable processes, enabling customers to improve efficiency while expanding payment volumes and software adoption over time.

The momentum was evident in the first quarter of 2026. Flywire reported revenues of $188.1 million, up 41% year over year, while Revenue Less Ancillary Services rose 43% to $184 million, or 37.2% on a constant-currency basis. Management attributed the strong performance to a better-than-expected education season, continued strength in Travel, and payment-processing ramp-up in Healthcare and B2B.

B2B growth is being fueled primarily by expanding existing customer relationships rather than new client wins. Increased payment-processing volumes from B2B invoice migration initiatives, along with the Cleveland Clinic implementation, contributed a mid-single-digit percentage-point tailwind to first-quarter revenue growth. Management expects a similar contribution in the second quarter before these ramp-up benefits moderate in the second half of 2026. It also raised its expected full-year 2026 revenue contribution from payment-processing ramp-up to 3-4 percentage points.

While these B2B ramp-ups carry a lower-margin profile, weighing on adjusted gross margin, they are meaningfully boosting revenue growth and payment volume. As Flywire expands software adoption across its B2B customer base and moves beyond the initial ramp-up period, the business is expected to deliver a stronger mix of software revenues alongside payment processing, supporting long-term growth and profitability.

How Are FLYW’s Competitors Fairing?BILL Holdings (BILL - Free Report) is a listed competitor in AP/AR automation, SMB payments and financial workflows. In its March 2026 quarter, BILL served 493,800 businesses, processed $89 billion in TPV (+12% year over year) and handled 34 million transactions (+14% year over year), showing BILL’s scale in B2B payments.

Corpay (CPAY - Free Report) is another listed competitor in corporate payments, payables, cards and vendor-payment workflows. In first-quarter 2026, CPAY reported 25% year-over-year revenue growth, 11% organic revenue growth and 29% adjusted EPS growth, underscoring CPAY’s commercial payment strength.

FLYW’s Price Performance, Valuation & EstimatesShares of FLYW have rallied 50.6% over the past three months, outperforming the broader industry and the S&P 500 Index.

Image Source: Zacks Investment Research

In terms of forward 12-month P/E, FLYW stock is trading at 15.82X, which is at a discount to the Zacks Internet Software industry’s 27.31X.

Image Source: Zacks Investment Research

Flywire’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been significantly revised upward. It indicates a significant year-over-year increase.

Image Source: Zacks Investment Research

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

July 9 (Reuters) - India's Apollo Micro Systems (APLL.NS), opens new tab will acquire a 41.33% stake in defence ​equipment maker Premier Explosives (PRMR.NS), opens new tab for 15.5 ‌billion rupees ($162.50 million), the companies said on Thursday.

Here are the details:

Get the latest news from India and how it matters to the world with the Reuters India File newsletter. Sign up here.

Per India's takeover regulations, ​Apollo Micro Systems will also offer ​to buy up to an additional ⁠26% stake in Premier Explosives from ​public shareholders at 698 rupees per ​share.

Consolidations have risen in India's fast-growing defence manufacturing sector, which has benefited from increased government spending ​and a push for local production.

The ​deal, expected to complete within five months, is ‌subject ⁠to regulatory approvals, including clearance from the Competition Commission of India.

Premier Explosives, which manufactures high-energy materials, rocket motors, countermeasures ​and munitions ​for the ⁠defence and aerospace sectors, will continue to operate under its ​existing brand after the acquisition.

Apollo ​Micro ⁠said the acquisition combines the companies' defence systems and energetic materials capabilities, helping ⁠expand ​their participation in defence ​and space programmes.

($1 = 95.3875 Indian rupees)

Reporting by Surbhi ​Misra in Bengaluru; Editing by Shinjini Ganguli

Our Standards: The Thomson Reuters Trust Principles., opens new tab

It has been about a month since the last earnings report for Casey's General Stores (CASY - Free Report) . Shares have lost about 7.9% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Casey's due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.

CASY Q4 Earnings Beat on Inside Sales & Fuel Margin StrengthCasey's reported fourth-quarter fiscal 2026 results, with both the top and bottom lines beating the Zacks Consensus Estimate and increased year over year.

The company posted quarterly earnings of $4.37 per share, beating the consensus mark of $3.36 by 30.1%. Earnings rose 66.2% from $2.63 in the prior-year quarter. Revenues of $4.57 billion surpassed the consensus estimate of $4.40 billion by 4% and advanced 14.5% year over year. Inside same-store sales rose year over year, while fuel margins expanded sharply.

CASY’s Quarterly Performance: Key DetailsCasey’s delivered net income of $162.7 million in the fourth quarter, up 65.5% from $98.3 million in the year-ago period. EBITDA increased 33.2% year over year to $350.3 million, driven by higher inside and fuel gross profit.

The company benefited from strength inside the store and at the pump. Total inside sales rose 7.4% from the prior year to $1.52 billion, while total inside gross profit increased 10.5% to $643.4 million.

Casey’s Inside Sales Show Broad MomentumInside same-store sales increased 5.5% compared with 1.7% growth in the prior-year quarter. On a two-year stack basis, inside same-store sales increased 7.4%.

The upside was led by strong demand for whole pizzas, appetizers and sides in the prepared food and dispensed beverage category. Non-alcoholic beverages supported growth in grocery and general merchandise.

CASY’s Margin Profile StrengthensInside margin expanded to 42.4% from 41.2% in the year-ago quarter. Cost of goods management, improved waste and mix shift were the primary drivers of the 120-basis-point margin expansion.

Prepared food and dispensed beverage margin improved to 59.5% from 57.8%. Grocery and general merchandise margin increased to 35.7% from 34.8%, aided by favorable category mix and cost discipline.

Casey’s Segmental Sales TrendsPrepared food and dispensed beverage sales increased 9.2% year over year to $427.6 million. Same-store sales for the category advanced 6.6%, supported by whole pizzas, appetizers and sides.

Grocery and general merchandise sales rose 6.7% to $1.09 billion. Same-store sales in the category increased 5.1%, with notable strength in non-alcoholic beverages, particularly energy drinks.

CASY’s Fuel Business Delivers Strong GainsFuel gallons sold increased 3.6% year over year to 848.3 million, driven by a large store base and same-store gallon growth. Same-store fuel gallons were up 1.5% compared with 0.1% growth in the prior-year quarter.

Fuel gross profit jumped 29.1% to $397.4 million. Fuel margin improved to 46.9 cents per gallon from 37.6 cents a year earlier. Casey’s also generated $15.2 million in renewable fuel credits in the quarter, up $10.8 million from the prior-year period.

Casey’s Expense Trends and Cash PositionTotal operating expenses rose 10.1% year over year to $730 million. Operating 40 more stores accounted for roughly 2% of the increase, while same-store employee expense contributed about 1.5%, mainly due to higher labor rates.

The company ended the quarter with $1.4 billion in available liquidity, including $523 million in cash and cash equivalents and $900 million in available borrowing capacity. Casey’s repurchased about $63 million of shares during the quarter and its board expanded the repurchase authorization to $1 billion.

CASY’s Fiscal 2026 Finish & 2027 ViewFor fiscal 2026, Casey’s reported diluted earnings of $19.16 per share, up 30.9% year over year. Net income increased 30.7% to $714.4 million, while EBITDA rose 23.6% to nearly $1.5 billion.

For fiscal 2027, management expects inside same-store sales to increase 2-5%, with an inside margin above 42%. Same-store fuel gallons sold are expected to range between a 1% decline and a 1% increase. Total operating expenses are projected to rise 5-7%, while EBITDA is expected to grow 8-10%.

Casey’s Store Growth & Shareholder ReturnsCasey’s operated 2,944 stores as of Apr. 30, 2026. During fiscal 2026, the company added 40 new stores through construction, acquired 40 stores and opened one prior acquisition, while closing 41 stores.

The company expects to open at least 120 stores in fiscal 2027 through a mix of mergers and acquisitions and new store construction. Casey’s also raised its quarterly dividend by 14% to 65 cents per share, marking the 27th consecutive annual dividend increase.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in fresh estimates.

VGM ScoresAt this time, Casey's has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Casey's has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

© Vladi333 / Shutterstock.com

Our AST SpaceMobile (NASDAQ:ASTS) 24/7 Wall St. price target is $91.65 over the next 12 months, implying 13.66% upside from the current price of $80.64. Our recommendation is buy with moderate confidence (0.5).

The 10-bagger question is fair given ASTS has already returned 542.04% over five years, but our base case does not see a near-term 10x. The path there requires flawless satellite deployment and MNO contract conversion over a multi-year window.

24/7 Wall St. Price Target Summary Metric Value Current Price $80.64 24/7 Wall St. Price Target $91.65 Upside 13.66% Recommendation BUY Confidence Level 50% A Volatile Path Into July, With Real Catalysts Underneath ASTS is down 7.06% over the past week and 13.85% over the past month, yet still up 76.84% over one year and 11.03% year to date. The stock sits 39% from its 52-week high of $133.86, well off the $36.08 low.

Q1 2026 revenue of $14.73 million missed the $36.58 million consensus, and EPS of -$0.66 came in well below the -$0.20 estimate, dragged by an $88.65 million induced conversion expense.

Underneath the noise, BlueBirds 8-10 are now operational in orbit per late-June updates, a Vodafone Spain direct-to-device agreement targets commercial availability by 2027, and Reddit chatter has cycled from a widely-shared “Down $240k in less than a month” loss post to renewed enthusiasm around a Rakuten contract. Cash and equivalents stood at $3.03 billion.

The Case for $108 and Beyond Bulls have a clean story. AST SpaceMobile has nearly 60 MNO partners covering 3 billion+ subscribers, over $1.20 billion in contracted partner commitments, and definitive agreements with Verizon and stc Group. Management is targeting 45 BlueBird satellites in orbit by year-end 2026 and FY2026 revenue of $150 million to $200 million.

CEO Abel Avellan called the setup a “fortress balance sheet” paired with the “industry’s largest global commercial ecosystem.” Our model’s bull case one-year price is $108.33, a 34.34% return, and the five-year bull case reaches $163.27.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and AST SpaceMobile didn't make the cut. Grab the names FREE today.

The Risks Worth Watching The bear case starts with dilution and losses. Q1 2026’s $191.01 million net loss included $55.35 million in stock-based comp, and insiders have been active sellers. The CFO sold 45,809 shares at roughly $93.81, while the President sold 25,904 shares at $126.64. CEO Avellan entered a variable prepaid forward on 2.5 million shares for roughly $146.7 million, with a floor of $59.58.

Analyst sentiment is mixed with 2 buys, 7 holds, and 2 strong sells. A bear-case one-year price of $69.05 is realistic if launches slip. Bulls would counter that heavy capex and non-cash conversion charges reflect a company scaling a global constellation.

Hold With a Buyer’s Bias Our 24/7 Wall St. price target of $91.65, a buy rating, and moderate 50% confidence reflect a stock priced for execution. The key factor tipping the scale is the growing revenue backlog against a still pre-commercial income statement.

The bull thesis strengthens if BlueBirds 11-13 launch cleanly and FY2026 revenue tracks toward the upper end of guidance. The setup weakens if satellite cadence slips or if further convertible issuance compounds dilution before commercial ramp.

Looking ahead, here is where our model projects ASTS could trade over the next 12 months, assuming current growth trajectories and satellite deployment milestones hold.

Year 24/7 Wall St. Price Target 2026 $91.65 This projection assumes ASTS executes its constellation buildout and converts MOU partners into recurring service revenue. Meaningful upside or downside could come from FCC decisions on spectrum, MNO churn, or a faster than expected European commercial launch.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and AST SpaceMobile didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

A view shows the logo of Brazilian state-run oil firm Petrobras in Rio de Janeiro, Brazil June 5, 2025. REUTERS/Ricardo Moraes Purchase Licensing Rights, opens new tab

CompaniesLA PAZ, July 9 (Reuters) - Bolivia will launch technical talks next week with Brazil's state-run oil firm Petrobras (PETR3.SA), opens new tab on its possible return to exploration and production in the country, while the ​company is also willing to help restructure state energy firm YPFB, Energy Minister ‌Marcelo Blanco said on Thursday.

The government of President Rodrigo Paz is looking to reopen Bolivia to energy investment and revive trade with key partners such as Brazil after years of declining gas output helped drain hard-currency reserves ​and turn a former energy exporter into a country hit by recurring fuel shortages.

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"The goal ​is for them to produce again, to operate here in Bolivia, to ⁠explore, and to have a strategic partnership," Blanco told reporters, adding that Petrobras was open ​to supporting YPFB's restructuring with its past crisis-management experience.

Blanco said the two sides agreed after a ​meeting on Wednesday to set up technical working groups starting next week to evaluate Petrobras' renewed participation across the sector.

He did not provide investment figures or a timeline.

"I am not going to give figures. I will ​not be irresponsible. I never give amounts or exact dates," Blanco said, adding that Bolivia ​was also seeking to work with other investors interested in the country.

YPFB President Sebastian Daroca also said a ‌firm ⁠was expected to submit its final report next week on Bolivia's oil and gas reserves through the end of last year.

He said the government planned to use the figures to discuss how it could boost output in coming years.

The report is being closely watched by analysts and industry ​groups because Bolivia has ​faced longstanding criticism ⁠over delays in publishing updated reserve data, leaving uncertainty over the size of the country's remaining oil and gas resources.

Petrobras halted investments in Bolivia ​after former President Evo Morales nationalized the sector in 2006. Still, ​the Brazilian company ⁠has not been completely absent from Bolivian gas business, as it has been authorized to import Bolivian natural gas into Brazil through border entry points between the two countries.

In March, Paz said ⁠Bolivia wanted ​to restart its relationship with Petrobras under new and clearer ​energy regulations designed to lure foreign capital back to the country after more than a decade of declining gas output.

Reporting ​by Daniel Ramos; Writing by Michael Susin in Barcelona; Editing by Aida Pelaez-Fernandez and Kylie Madry

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Key Takeaways CoreWeave sees rising AI demand driving record backlog and deeper customer commitments.CRWV topped 1 GW of active power and targets more than 1.7 GW by the end of 2026.CoreWeave added over 400 MW of contracted power, lifting total capacity above 3.5 GW. As organizations race to build and deploy increasingly sophisticated AI models, the need for massive computing power seems to compound. This growing demand has created an emerging opportunity for AI-focused cloud infrastructure providers, like CoreWeave, Inc. (CRWV - Free Report) .

Management highlighted four key themes –rising AI demand across hyperscalers and enterprises, a broader platform supporting training, inference, agentic AI workloads, rapid infrastructure expansion with more than 3.5 GW of contracted power and stronger financing that has secured more than $20 billion in debt and equity this year. AI workloads are shifting from training to inference and enterprise production, driving deeper commitments from existing customers while attracting new enterprise clients. This momentum fueled record backlog additions in the first quarter, including initial Vera Rubin deals alongside continued deployment of Blackwell, Hopper and Ampere capacity, with most of the new business expected to support its 2027 growth targets.

CoreWeave's aggressive infrastructure expansion is a key competitive advantage. It continues to strengthen its competitive edge by rapidly converting scarce AI infrastructure into revenue-generating AI cloud capacity. CRWV surpassed 1 GW of active power in the quarter and remains on track to exceed 1.7 gigawatts by the end of 2026. During the quarter, CoreWeave added more than 400 MW of contracted power, increasing its total to over 3.5 GW, with most of the capacity expected to come online by the end of 2027 through long-term lease agreements.

With strong customer demand, strategic global expansion, innovative AI services and partnerships with leading technology companies, CoreWeave appears well-positioned to capitalize on the AI infrastructure boom.

CRWV's AI Dominance Faces Fierce RivalsNebius Group N.V. (NBIS - Free Report) recently unveiled Nebius AI Cloud Aether 3.6, a wide range of enhancements focused on developer productivity, enterprise-grade security, governance and storage performance. The release also marks the debut of Nebius Echo, an AI-powered infrastructure assistant that represents NBIS’ vision for agentic cloud computing. To strengthen its position in the rapidly evolving AI cloud market, NBIS inked an agreement to acquire Eigen AI, in May. By integrating Eigen AI’s optimization stack into its Token Factory platform, NBIS aims to create a vertically integrated AI inference ecosystem that combines massive compute infrastructure, advanced model optimization and enterprise-ready deployment pipelines.

Microsoft (MSFT - Free Report) capitalizes on AI business momentum and Copilot adoption alongside Azure cloud infrastructure expansion. The Azure AI platform continues to benefit from demand across AI and non-AI services, with customer demand exceeding available capacity. It added another GW of capacity during the quarter and remains on track to double its overall data center footprint within two years. New data center investments were announced across four continents. In May, it signed new agreements with U.S. and U.K. government partners, the Center for AI Standards and Innovation and the AI Security Institute to advance AI testing and safety evaluation frameworks.

CRWV’s Price Performance and EstimatesShares of CoreWeave have gained 25.6% year to date against the Internet Software industry’s fall of 8.7%.

Image Source: Zacks Investment Research

In terms of Price/Book, CRWV’s shares are trading at 8.46X, higher than the Internet Software Services industry’s 4.67X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CRWV’s earnings for the current year has been revised downward over the past 60 days.

Image Source: Zacks Investment Research

CRWV currently carries a Zacks Rank #4 (Sell).

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

Key Takeaways Seagate is benefiting from AI-driven storage demand, supporting higher revenue growth and margin expansion.STX is advancing HAMR with Mozaic drives, targeting higher-capacity enterprise HDDs through 2027.STX is boosting shareholder returns with debt reduction, dividends, buybacks and strong cash flow. The AI boom has reshaped the technology landscape, creating massive demand not only for GPUs and cloud infrastructure but also for data storage solutions. As enterprises generate and retain unprecedented amounts of AI training and inference data, storage has become a critical piece of the AI value chain.

Among the biggest beneficiaries of this trend has been Seagate Technology Holdings plc (STX - Free Report) , surging an impressive 505.6% over the past year. It has outpaced the Zacks Computer-Integrated Systems industry, the Zacks Computer & Technology sector and the S&P 500’s run of 218.8%, 34.4%, and 23.1%, respectively, in the same period.

Image Source: Zacks Investment Research

STX’s shares have exceeded its industry peers like International Business Machines Corporation (IBM - Free Report) , but lagged HDD behemoth and its direct competitor Western Digital Corporation (WDC - Free Report) and storage rival Micron Technology (MU - Free Report) . WDC, MU and IBM have gained 751.4%, 676.2% and 4.1%, respectively, during the same time frame.

STX remains one of the world's leading manufacturers of enterprise HDDs and has been aggressively developing next-generation high-capacity drives specifically designed for AI data centers. The company boasts a 52-week high of $1,145. Nonetheless, such an extraordinary rally naturally raises an important question for investors: Can Seagate continue climbing, or has the market already priced in most of the opportunity?

Accelerating AI Infrastructure Spending Fuels STX’s ExpansionAI is driving an explosion in data storage. As hyperscale cloud providers continue expanding AI infrastructure, they increasingly rely on a combination of SSDs for active workloads and HDDs for large-scale data storage. This industry trend plays directly into Seagate's strengths. Major cloud providers, including Microsoft, Amazon, Alphabet and Meta Platforms, continue investing tens of billions of dollars in AI infrastructure. As they expand AI data centers, demand for enterprise storage is rising, creating a strong long-term growth opportunity for Seagate.

Management highlighted that the company is entering a “new era of structural growth” driven by strong AI-led demand, rising adoption of Mozaic products and disciplined execution focused on expanding margins, cash flow and long-term value. While SSDs dominate high-speed applications, HDDs remain significantly more cost-effective for bulk storage—especially critical in hyperscale data centers supporting AI infrastructure. Seagate is well-positioned to capture this expanding opportunity through a technology strategy focused on increasing areal density rather than unit volumes, enabling a more capital- and manufacturing-efficient path to scale while improving cost and power efficiency per terabyte. This supports its target of mid-20% exabyte growth.

HAMR Technology Gives STX a Competitive EdgeInvestment in HAMR technology is STX’s key competitive advantage. Seagate’s focus on areal density and HAMR technology supports capacity growth and cost efficiency, with new product generations planned. Mozaic 4, second-generation HAMR, delivers up to 44TB per drive, 30% more capacity than the first generation. Mozaic 4 shipments began in late March and are expected to command 70% of HAMR shipments by the end of fiscal 2027. Mozaic 5 is in development, targeting 50TB capacity, with qualification shipments in late 2027. HAMR exabyte crossover is expected by the end of 2026. The focus is on increasing capacity per unit rather than unit volume, leveraging technology to improve aerial density.

Second-generation HAMR enables continued growth, with third-generation drives with 50TB capacity expected by the end of next year. Technology innovations include laser, photonic circuitry and media improvements, with minimal impact on the bill of materials. Seagate's strategy is built on durable storage demand, technology leadership and disciplined execution. Rising AI-driven data creation is boosting demand for cost- and energy-efficient, high-capacity HDDs, while its Mozaic platform and HAMR technology strengthen its competitive position. Backed by build-to-order contracts, pricing discipline and long-term supply agreements, Seagate is improving margin visibility and profitability.

Strong hyperscaler investment and sustained nearline storage demand have prompted the company to raise its annual revenue growth outlook to at least 20%, with capacity largely committed through 2027. Seagate's disciplined pricing strategy, supported by build-to-order contracts, provides greater revenue visibility and margin stability. Strong year-over-year and sequential price increases reflect robust demand, while most pricing for fiscal 2027 is already locked in with a significant portion of capacity allocated over the next four quarters. This approach is expected to support sequential revenue and profit growth throughout fiscal 2027, with management anticipating stable pricing trends rather than further acceleration.

Seagate's margins continue to outperform expectations, driven by strong demand, a favorable product mix and technology-led cost efficiencies. Incremental gross margins have exceeded the company's 50% target, supported by higher-capacity drives, improved yields and greater production efficiency. Management expects further margin expansion as Mozaic 5 and other technology advancements enhance cost and performance.

Strong Cash Returns Enhance the Investment CaseConsistent free cash flow generation strengthens Seagate's balance sheet and provides flexibility for future investments. Seagate also rewards shareholders through dividends. The company has maintained an attractive dividend policy while continuing to invest in product innovation. For income-focused investors, this provides an additional layer of return beyond potential share-price appreciation.

Seagate is using its strong cash flow to reduce debt while returning capital to shareholders through dividends and share repurchases. After retiring $641 million in debt last quarter, the company plans to reduce its remaining convertible notes further, expand buybacks and continue investing in growth, reinforcing its commitment to long-term shareholder value. It will maintain capital discipline while continuing the transition and ramp-up of HAMR technology, with fiscal 2026 capital spending expected to remain within its target range of 4–6% of revenue.

Image Source: Zacks Investment Research

However, investors should remain aware of several risks. The HDD industry remains cyclical, making shipments vulnerable to customer inventory corrections, slower enterprise spending and weaker PC demand. Declining SSD prices could also intensify competition, although HDDs continue to offer a significant cost advantage for exabyte-scale storage. Additionally, Seagate's reliance on large hyperscale cloud customers means changes in their purchasing schedules can lead to quarter-to-quarter revenue volatility.

Positive Estimate Revision Trend for STXSTX is currently witnessing an uptrend in estimate revisions. Earnings estimates for fiscal 2026 have inched up 0.3% to $14.93 over the past 60 days, while the same for fiscal 2027 has gone up 6.5% to $28.05.

Image Source: Zacks Investment Research

Valuation VulnerabilitiesGoing by the price/earnings ratio, the company’s shares currently trade at 30.54 forward earnings compared with 13.5 for the industry.

Image Source: Zacks Investment Research

In comparison, the forward 12-month price/earnings multiple for IBM, MU and WDC are 23.35X, 6.73X and 29.54X, respectively.

Is More Upside Ahead for STX Stock?Seagate's growth outlook is driven by several long-term catalysts, including sustained AI infrastructure spending, broader adoption of HAMR technology, increasing enterprise data storage needs and continued expansion of cloud data centers. Improving storage pricing, robust free cash flow and ongoing margin expansion could further boost earnings. Successful execution of its technology roadmap would strengthen Seagate's leadership in enterprise storage and support additional upside over the long term.

For investors who believe AI-driven data creation will continue accelerating over the next decade, Seagate remains an attractive way to gain exposure to one of the essential segments of the AI supply chain. While short-term pullbacks are always possible after such a strong run, the company's technological prowess, improving profitability and exposure to one of the fastest-growing technology trends suggest there could still be further upside over the long term.

Boasting a Zacks Rank #1 (Strong Buy) currently, STX is a portfolio must-have. You can see the complete list of today’s Zacks #1 Rank stocks here.

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Uber CTO Praveen Neppalli Naga said that the company is rolling out AI agents across the company using "agentic pods." Big Event Media/Getty Images for HumanX Conference Uber has a new approach to using AI: "Agentic pods."

Praveen Neppalli Naga, the ride-hailing company's tech chief, said in an X post on Tuesday that Uber embedded 30 of its "most AI-proficient engineers" with teams across the company, including finance, legal, and human resources.

Over two weeks, the engineers worked with employees in those departments, observed their work, and created AI agents to help handle tasks, Naga said. Uber has run 16 such Agentic Pods over the past two months, he said.

Many of the duties that Uber's engineers developed agents for, such as financial pacing reports, involved accessing multiple systems and performing a lot of manual work. The engineers had to work directly with the people responsible for them to understand how to recreate them with AI.

"You can't automate them effectively by looking at process diagrams or documentation," Naga said in his post. "You have to understand how the work actually gets done."

The resulting agents are saving Uber time. Those financial pacing reports can now be made in 10 minutes, down from two days, Naga said. Allocating capital across 150 cities Uber operates in, a task that used to take 15 hours, now takes 30 minutes with AI agents.

Uber's experience with pods points to a role that's become a rare bright spot amid industry layoffs. Despite job cuts, tech companies are still hiring forward-deployed engineers, Business Insider reported in May. The job often involves an engineer from an AI company working with employees at a customer firm.

Whether those efficiencies are worth it is another question.

In May, Uber's chief operating officer, Andrew Macdonald, said on a podcast that it was getting harder for the company to justify spending as much as it has on AI.

Uber, like many tech companies, has ramped up spending on AI. Naga told The Information that Uber maxed out its Claude Code budget for the year this spring. All that spending hasn't led to a similar increase in "useful" consumer features, though, Macdonald said.

Uber plans to keep using the agentic pod model, Naga said in his X post.

"We're now forming a dedicated team to scale this further and go deeper," he said.

"They'll deeply understand the work, redesign it from the ground up, and use AI to fundamentally change how the business operates," he added.

Do you have a story to share about Uber? Contact this reporter at [email protected] or via encrypted messaging app Signal at 808-854-4501. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely.

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Alex Bitter You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

Alex Bitter is a senior retail reporter covering the gig economy, food, and retail. His work focuses major gig delivery and ride-hailing apps, including Uber, Lyft, DoorDash, Instacart, and Walmart's Spark. He is interested in everything from what it's like to work on the apps to the companies' business strategies.Some of his recent stories feature gig workers who have been deactivated on the apps, DoorDash hiring traditional employees to make deliveries, gig workers' use of bots, and gig work expanding into new professions, such as nursing.Alex has also written about Aldi's US expansion, Starbucks' turnaround efforts, and the fallout from Kraft-Heinz's budget cutting. Convenience store chain Sheetz ended its "smile policy" after his reporting.Before joining Insider in September 2020, he wrote about consumer and retail companies for S&P Global Market Intelligence. He's a graduate of the University of Hawai'i at Mānoa and grew up on the Big Island.Alex lives in the Washington, DC, area, where you can find him studying ancient coins or searching for Civil War artifacts with his metal detector in his free time.Got a tip? Reach out at [email protected] or via encrypted messaging app Signal at +1 (808) 854-4501.

Uber AI Artifical Intelligence More Tech Artificial Intelligence

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Amazon (NASDAQ:AMZN | AMZN Price Prediction) and Microsoft (NASDAQ:MSFT) both filed earnings on April 29, 2026, framing two different bets on the AI buildout. Amazon leans on custom silicon and, per a $25 billion multi-tranche bond sale, to fund infrastructure. Microsoft leans on its OpenAI stake and contracted backlog. Same tailwind, different balance sheets.

AWS Reaccelerates While Azure Sprints Ahead Amazon posted EPS of $2.78 against a $1.653 estimate on revenue of $181.52 billion, up 16.61%. AWS grew $37.59 billion in revenue, growing 28%, the fastest pace in fifteen quarters, at a 37.7% operating margin. Ads cleared $70 billion trailing, a real second engine.

Microsoft delivered EPS of $4.27 versus $4.09 expected on $82.89 billion in revenue, up 18.3%. Azure grew 40% (39% constant currency), and the AI business hit $37 billion annual run rate, up 123%. Commercial remaining performance obligations reached $627 billion, nearly doubling year-over-year, contracted demand years out.

Business Driver Amazon Microsoft Cloud growth AWS +28% Azure +40% Q1 CapEx $44.2B $30.88B Operating margin 11.2% 45.6% Custom Silicon Vs. Contracted Compute Andy Jassy said Amazon’s chips business is at $20 billion run rate with triple-digit growth, with total Trainium commitments reaching over $225 billion, including up to 5 GW from Anthropic and 2 GW from OpenAI starting in 2027. Jassy expects Trainium to save “tens of billions of dollars of CapEx each year”.

Microsoft’s leverage is contractual. Satya Nadella framed the quarter around delivering “cloud and AI infrastructure and solutions” for the agentic era. Microsoft leans heavily on NVIDIA silicon and its OpenAI partnership, enormously profitable but leaving less optionality on chips than Amazon has built.

The Capex Bill Is About To Get Louder Amazon’s TTM free cash flow collapsed 95% to $1.2 billion, and long-term debt jumped to $119.1 billion from $65.6 billion. Polymarket traders assign 87.5% probability that 2026 capex tops $200 billion, with a coin-flip on $220 billion or more. Microsoft’s CapEx surged 84.39% year-over-year, and management stayed quiet on numeric guidance. I want to see whether AWS margins hold as this cash deploys.

Why I’m Leaning Toward Amazon Right Now Since the reports, AMZN is down 6.49% and MSFT is down 8.19%. Neither has been rewarded. Amazon’s ability to tap institutional debt cheaply, pair it with a chip stack customers are pre-buying in gigawatts, and still show 29.6% operating income growth on core business tilts the read. Microsoft is a fantastic compounder at 45.6% operating margin, and if you want quality and dividend support, that case is intact. But if custom silicon is the real moat of this cycle, Amazon looks like the fortress trade. I would change my view if AWS margin slips below the mid-30s while capex keeps climbing.

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Six gigawatts. That is the total AMD Instinct GPU capacity AMD (NASDAQ:AMD | AMD Price Prediction) will deploy for Meta under a partnership disclosed alongside its most recent earnings, with the first 1-gigawatt tranche powered by a custom MI450-based GPU. For scale reference, one gigawatt is roughly the output of a large nuclear reactor. Meta is committing to power-plant-scale AMD silicon, and it is doing so on top of a separate 6-gigawatt OpenAI agreement already on the books.

The total investment in compute for AMD has been rumored to be around $300 billion, though we’ll see what ultimately gets invested over time. Indeed, that’s the big question mark right now in financial markets.

What It Means Hyperscalers do not sign gigawatt-scale accelerator agreements as hedges. They sign them when they intend to build. That reframes AMD from a challenger chasing NVIDIA (NASDAQ:NVDA) into a co-supplier for the largest AI infrastructure buildouts in the world.

The financial fingerprints are already on the tape. Q1 FY2026 Data Center revenue reached $5.775 billion, up 57% year over year, making it the largest and fastest-growing of AMD’s four segments. Total Q1 revenue landed at $10.253 billion, up 37.9% year over year, beating the $9.91 billion consensus by 3.41%. Non-GAAP EPS came in at $1.37 versus $1.29 expected, driven by non-GAAP gross margins which expanded to 55% (up 170 basis points year over year).

Cash generation is scaling with the mix shift. Q1 free cash flow hit $2.566 billion, up 252.96% year over year, on operating cash flow of $2.955 billion. Net income more than doubled to $1.383 billion, up 95.06%.

Market Reaction AMD shares closed at $517.82 on July 2, 2026, down 4.26% on the day. That single-session dip is noise inside a much larger move. AMD is up 141.79% year to date from $214.16 at the end of 2025, and up 273.82% over the past year. For context, over the same twelve months, NVIDIA is up 24.06%.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and AMD didn't make the cut. Grab the names FREE today.

Bull Case The AMD bull case rests on a simple observation – the company’s customer roster now looks like NVIDIA’s. AWS, Google Cloud, Microsoft Azure, and Tencent are expanding 5th Gen EPYC-powered instances. Meta is the lead customer for 6th Gen EPYC (Venice and Verano). Oracle Cloud Infrastructure is standing up a 50,000-GPU AI supercluster using AMD Helios rack design in Q3 2026. Samsung is supplying HBM4 memory for the MI455X.

Guidance points to further acceleration. AMD guided Q2 FY2026 revenue to roughly $11.20 billion, implying about 46% year-over-year growth, with non-GAAP gross margin expanding to about 56%. On the Q1 call, CEO Lisa Su said, “Customer engagement around MI450 Series and Helios is strengthening, with leading customer forecasts exceeding our initial expectations and a growing pipeline of large-scale deployments providing us with increasing visibility into our growth trajectory.”

The pressure on rivals is visible in relative performance. Intel (NASDAQ:INTC) still carries a negative EPS of -$0.60 on a trailing basis, with quarterly earnings growth down 71.7% year over year. NVIDIA remains the incumbent, but AMD is winning nameplate capacity commitments rather than trial orders. Analyst posture reflects it: 41 buy or strong buy ratings against 10 holds and zero sells, with a consensus target of $508.31.

Bottom Line Six gigawatts from Meta and another six from OpenAI turn AMD’s AI narrative from optionality into contracted backlog. For long-term holders, the anchor to watch is Data Center revenue, which drove the Q1 beat and underpins Q2 guidance of about $11.20 billion in total revenue.

AMD’s valuation is stretched, with a forward P/E of 77 on a stock up 141.79% year to date leaves little room for execution slips. But, the shipments behind those gigawatts are what the next earnings report will need to prove. That is the number that decides whether the pressure on rivals turns into permanent market share.

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Key Takeaways NKE's recovery is uneven as running, training and North America improve, but Sportswear and China drag.NIKE Direct revenues fell 7% in Q4 fiscal 2026, with Digital down 12% and owned stores down 7%.Wholesale offers relief, rising 4% in Q4 fiscal 2026 and 6% for the year, led mainly by North America. NIKE, Inc. (NKE - Free Report) is trying to turn a narrower set of operating wins into a broader recovery. The problem is that the gains are still uneven.

Running, global football, training and North America are improving. Sportswear, Jordan Streetwear, NIKE Direct and Greater China continue to pressure demand, pricing and near-term visibility.

NKE Recovery Is Split by CategoryThe clearest progress is coming from performance categories. Running has delivered five consecutive quarters of double-digit growth and added roughly $1 billion over that span. Performance product grew mid-single digits in fiscal 2026, with positive retail sales comparisons across running, training and global football in the fourth quarter.

Management expects growth to expand beyond running into training, basketball and ACG in fiscal 2027. Still, Sportswear and Jordan Streetwear remain weak. Sell-through is challenged, discounting is elevated and future order books are being affected.

NIKE Direct Still Drags on GrowthNIKE Direct remains one of the biggest gaps in the recovery. In the fourth quarter of fiscal 2026, NIKE Direct revenues fell 7% on a reported basis and 9% on a currency-neutral basis to $4.1 billion. NIKE Brand Digital declined 12%, while NIKE-owned stores were down 7%.

The weakness matters because Sportswear and Jordan Streetwear together represent about half of NIKE’s revenues. NIKE is reducing promotions, repositioning digital as a premium business and working to elevate 50% of its owned-store fleet by the end of fiscal 2027. That reset can help brand health, but it also slows the pace of revenue improvement.

NKE Wholesale Rebound Offers Some ReliefWholesale is providing a partial offset. Fourth-quarter fiscal 2026 wholesale revenues rose 4% on a reported basis and 1% on a currency-neutral basis to $6.6 billion, driven mainly by North America. In fiscal 2026, wholesale revenues increased 6% on a reported basis and 4% on a currency-neutral basis.

NIKE is rebuilding partner relationships through curated assortments, better in-store presentation and sport-led storytelling. DICK’S Sporting Goods Inc.’s (DKS - Free Report) Foot Locker is an important marker in that process, as NIKE’s revenue growth and retail sales comparisons as the retailer turned positive for the first time in four years. adidas AG (ADDYY - Free Report) , a major athletic footwear and apparel peer, remains a useful comparison point for investors watching whether NIKE can regain product momentum while protecting brand premium.

NIKE China Reset Clouds Near-Term VisibilityGreater China remains a major overhang. Fourth-quarter revenues in the region fell 12% on a reported basis and 17% on a currency-neutral basis to $1.3 billion. NIKE Direct declined 14%, including a 25% drop in NIKE Digital and a 9% decrease in NIKE stores, while wholesale declined 19%.

In fiscal 2026, Greater China revenues declined 11% on a reported basis and 13% on a currency-neutral basis to $5.85 billion. NIKE has seen digital full-price realization improve and inventory decline by double digits, but management expects near-term revenue trends in the region to remain in line with recent performance.

NKE Signals Point to Ongoing CautionThe bottom line is that NIKE’s recovery has real operational green shoots, but not enough broad-based strength yet. Performance categories and wholesale are improving, while Sportswear, Jordan Streetwear, direct channels and China continue to weigh on the pace of a cleaner rebound.

NKE currently carries a Zacks Rank #4 (Sell). The stock also has a Value Score of D, Growth Score of F, Momentum Score of F and VGM Score of F. Style Scores are designed to complement the Zacks Rank, with stronger grades generally pointing to more favorable value, growth or momentum characteristics.

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

For NIKE, those signals support a cautious stance. A weak Rank reflects pressure in earnings estimate trends, while weak Style Scores suggest limited support from valuation, growth and momentum factors. Until category strength spreads more widely across channels and geographies, the stock outlook remains tied to execution proof rather than early signs of improvement.

The artificial intelligence (AI) bellwether has had its bell rung lately. Is the ding a dinner bell for opportunistic investors? Nvidia (NVDA 0.88%) may have kicked off the AI revolution a couple of years ago, but the market has been rotating out of the global leader lately.

Nvidia stock has fallen 14% since hitting an all-time high in May. Despite inching higher through the first three trading days of this week, the shares are lower over the past month. It's a stunning contrast to the overall market, which is clawing toward fresh highs.

Image source: Getty Images.

Rotation out of the leading AI chipmaker while business is still booming is surprising, but it's not without precedent. More importantly, it's not likely to be permanent. Bullish market sentiment turning its buy order attention to the next step of AI beneficiaries, including memory and data storage manufacturers, earlier this year, isn't outlandish, even if that segment has come under selling pressure in recent weeks.

You can go up and down the pick-and-shovel ecosystem in the near term. It just seems as if you can't ignore the lead horse over the long run.

Nvidia stock is facing plenty of challenges right now, but they seem small compared to the opportunity. Let's take a closer look at the company that continues to be the largest player by market cap, but one that is now the cheapest that it's been in years, according to one popular valuation metric.

Today's Change

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You can buy Nvidia for just 16 times next year's earnings You read that subhead correctly. Nvidia is now trading for 23 times this fiscal year's earnings, but an even more jaw-dropping 16 times next year's analyst profit target. There are some potential headwinds out there, and I don't want to dismiss them.

China's DeepSeek is making waves again. Its latest DSpark inference module reportedly improves AI rendering speed by up to 85% without requiring new hardware. If you can do more with existing hardware, there is no need to upgrade to Nvidia's shiniest new chips. That's not something you just sweep under the rug, but do you remember when Nvidia tumbled in early 2025, when DeepSeek made headlines? Nvidia's growing client base needs reliability more than it craves the gamble of cutting corners.

Nvidia's revenue has accelerated for three consecutive quarters. The 85% top-line jump it posted in its fiscal first quarter is the strongest increase in a year and a half. The growth rate isn't sustainable, but it shows that the initial DeepSeek headlines didn't slow Nvidia's skyrocketing trajectory.

Bears can point to growing competition in AI chips and Chinese trade restrictions. Nvidia just had its first major debt offering in five years. Demand is outpacing the uptick in competitors and trade restrictions. Betting against Nvidia could be a mistake here, especially with Nvidia shares at their cheapest level in years.

It all adds up The chart is interesting. The purple line is Nvidia's stock, which has had a stellar run as a market leader, more than tripling over the past three years. The blue line is Nvidia's earnings multiple for the current fiscal year. You see it drop come late January, when the baton is passed to the next fiscal year, but notice how hype exceeded reality in 2024 (Nvidia's fiscal 2025) before normalizing a year later and outright reversing this year. The orange line -- looking out to bottom-line forecasts for the following fiscal year -- is understandably a year ahead of that swing in valuation momentum.

Saying that Nvidia is trading for just 16 times next year's Wall Street profit target means that it's cheaper than the S&P 500 itself. Should Nvidia really be trading at a discount to the market when it's growing considerably faster? Nvidia's growth will decelerate at this point, and margins may contract as rivals improve their hardware alternatives.

The problem -- and your opportunity -- is that this is the same bear case that has been debunked in recent quarters. Nvidia keeps getting stronger, and analyst profit estimates keep rising. In short, by the end of the next fiscal year, there's a fair chance that Nvidia stock's snapshot today was trading for a lot less than 16 times next year's earnings.

Ding? It's your move.