Booking Holdings: Managing Seasonal Revenue CyclesBooking (BKNG +0.80%) provides travel and restaurant online reservation services globally, offering consumers options for flights, rental cars, and hotel distribution.
It recently executed a stock split, and for the quarter ended March 31, 2026, it reported approximately 20% net income margin.
Airbnb: Expanding Global Accommodation OptionsAirbnb (ABNB +1.08%) operates a global online marketplace that connects hosts offering private rooms or vacation homes with guests seeking accommodations.
It established a rewards partnership with Delta Air Lines, while for the quarter ended March 31, 2026, it reported approximately 6% net income margin.
Why Revenue Matters for Retail InvestorsRevenue represents the total sales a business generates before any operating expenses are subtracted. Understanding this top-line figure helps investors evaluate the fundamental demand for a business's core offerings.
Foolish TakeExamining the revenue trends for Booking and Airbnb reveal key insights. Clearly, the third quarter provides a significant sales bump to both as a result of the summer travel season. Moreover, each company is enjoying year-over-year sales growth, indicating they are experiencing business expansion.
Although Booking’s revenue towers over its rival, Airbnb’s rate of revenue growth is faster. In Q1, Airbnb’s $2.7 billion in sales represented an 18% year-over-year increase while Booking’s $5.5 billion equated to 16% growth.
This suggests Airbnb’s efforts to expand beyond its marketplace for owner-operated travel lodgings are working. The company has added hotels to its offerings, and partnered with other businesses to provide services such as grocery delivery as part of a customer’s vacation stay.
Meanwhile, Booking’s stock has been hammered, dropping to a 52-week low of $150.14 on May 20, due to the U.S. conflict with Iran, which the company cited as a headwind to its business in the region. Consequently, Booking forecasted Q2 revenue to rise between 4% and 6% year over year, a far cry from its 16% Q1 growth.
New feature, powered by payments infrastructure from PayPal, gives travelers flexibility while helping independent travel companies compete with larger booking platforms
, /PRNewswire/ -- The Tour Guy, one of Europe's largest and most trusted tour operators and destination marketplaces, today announced the launch of its new "Reserve Now, Pay Later" feature – enabled by PayPal (NYSE: PYPL) – giving travelers the ability to secure high-demand tours in advance without being charged until closer to their travel date.
The launch reflects a growing shift in how consumers plan and pay for travel — prioritizing flexibility, convenience, and trust — while also signaling how mid-sized travel companies are leveraging modern payments infrastructure to offer capabilities traditionally associated with larger booking platforms.
For travelers, the benefit is simple: secure access to in-demand experiences — such as the Colosseum, the Vatican, or day trips from major European cities — without committing cash months in advance.
"The reality of European travel is that the best experiences require planning ahead," said Sean Finelli, Co-Founder and CEO of The Tour Guy. "But paying for everything six months before your trip doesn't match how people want to manage their money today. This gives travelers the confidence and flexibility to book early without the immediate financial pressure."
Unlike traditional "buy now, pay later" options, The Tour Guy's approach is not a loan-based product. There are no credit checks, interest rates, or third-party financing structures. Instead, the feature allows customers to reserve their spot while securely storing payment details, with charges processed closer to the travel date.
The system is powered by PayPal's payment infrastructure, utilizing its security protocols to protect transactions, while also ensuring a high level of reliability for both travelers and the business.
Beyond consumer convenience, the launch highlights a broader industry shift: the increasing ability for small and mid-sized travel companies to deliver sophisticated booking experiences once limited to large online travel agencies.
"For a long time, features like this were only available through the biggest platforms," Finelli added. "What's changing is that companies like ours can now deliver the same level of flexibility and trust — without losing the quality and depth of the experience."
This evolution is particularly important in travel, where booking decisions require balancing availability with financial flexibility. By removing the need for upfront payment, The Tour Guy aims to reduce friction in the planning process while encouraging travelers to book earlier and more confidently.
The feature is now available across select tours and experiences, with plans to expand more broadly across The Tour Guy's portfolio.
About The Tour Guy
The Tour Guy is a leading provider of curated tours and immersive travel experiences across Europe. Known for expert guides and seamless logistics, the company specializes in simplifying complex itineraries and delivering meaningful, story-driven experiences. From skip-the-line access to iconic landmarks to guided day trips from major cities like Paris and Rome, The Tour Guy helps travelers experience more while stressing less.
A month has gone by since the last earnings report for Booking Holdings (BKNG - Free Report) . Shares have lost about 3.2% 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 Booking Holdings 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 catalysts.
Booking Holdings Q1 Earnings & Revenues Beat Estimates, Rise Y/YBooking Holdings reported first-quarter 2026 adjusted earnings of $1.14 per share, beating the Zacks Consensus Estimate by 3.64%. The figure increased 14% year over year.
Revenues of $5.53 billion edged past the Zacks Consensus Estimate by 0.61% and increased 16% year over year and about 10% on a constant currency (cc) basis.
Revenues as a percentage of gross bookings were 10.3% in the first quarter of 2026, up about 10 basis points year over year, driven by the estimated impact of the situation in the Middle East.
BKNG’s Q1 Top Line in DetailMerchant revenues were $3.70 billion (66.8% of total revenues), up 26.7% year over year. Agency revenues were $1.53 billion (27.6% of total revenues), down 2.3% year over year. Advertising & Other revenues were $306 million (5.5% of total revenues), up 9.3% year over year. The mix underscores the company’s continued scale in its payments-enabled model, which management highlighted as a contributor to revenue growth in the quarter.
First-quarter room nights of 338 million grew 6% year over year, even as the company cited headwinds tied to the Middle East conflict.
Alternative accommodation room nights at Booking.com grew 5.5% year over year, with total listings reaching 8.8 million, up 9% year over year.
Merchant gross bookings grew 24.3% year over year to $38.7 billion, representing 72% of total gross bookings.
Total gross bookings rose 15% year over year to $53.8 billion, with management noting a meaningful foreign-exchange benefit and modest constant-currency accommodation ADR gains.
Approximately 21 million airline tickets were booked across Booking Holdings' platforms in the first quarter, witnessing a 28.5% year-over-year increase.
BKNG’s Q1 Operating ResultsMarketing expense, a highly variable expense line, increased 16.4% year over year. Marketing expense as a percentage of gross bookings was 3.8% in the first quarter of 2026, which was four basis points higher year over year, driven primarily by the situation in the Middle East, as certain bookings sourced through paid channels were subsequently canceled.
Sales and other expenses were $804 million, up 14.6% year over year. As a percentage of total gross bookings, sales and other expenses were 1.5%, similar to the first quarter of 2025. General and administrative expenses declined 29.3% year over year to $100 million, while information technology expenses rose 19.7% to $240 million. Personnel expenses increased to $893 million in the first quarter, up approximately 28.8% year over year.
Adjusted fixed operating expenses increased 14% year over year due to adverse FX changes and $53 million in one-time benefits in the first quarter of 2025.
Profitability reflected operating discipline. Operating income was $1.27 billion, an increase of 19.7% year over year. Net income margin improved to 19.6% compared to 7.0% a year-ago quarter.
Adjusted EBITDA rose 19% year over year to approximately $1.29 billion. Adjusted EBITDA margin was 23.3%, expanded 50 basis points year over year, with the company pointing to leverage in adjusted fixed operating expenses as a key driver of the adjusted profit expansion.
BKNG’s Q1 Balance Sheet & Cash FlowAs of March 31, 2026, the company's cash and investments totaled $16.8 billion, down from $17.8 billion as of Dec. 31, 2025.
Booking Holdings had $15.4 billion of total long-term debt, down from $16.9 billion as of Dec. 31, 2025.
Free cash flow was $3.1 billion, up compared with $1.4 billion reported in the previous quarter.
Shareholder payouts also included a quarterly cash dividend of $0.42 per share. Separately, the company noted that it effected a 25-for-1 stock split on April 2, 2026, and that per-share figures have been retroactively adjusted to reflect the split.
Booking Holdings’ Q2 & 2026 GuidanceFor the second quarter of 2026, room night growth is expected between 2% and 4%. Gross bookings, revenues and adjusted EBITDA are each projected to grow 4% to 6%. Constant-currency gross bookings growth expected at 2% to 4%.
For full-year 2026, BKNG expects gross bookings growth in the high-single-digit to low-double-digit range, constant-currency gross bookings growth in the high-single-digit range, and constant-currency revenue growth in the mid-to-high-single-digit range. Adjusted EBITDA growth is expected to be slightly faster than revenue growth, while adjusted earnings growth is projected in the low-to-mid-teens.
How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -7.97% due to these changes.
VGM ScoresCurrently, Booking Holdings has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors.
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 broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Booking Holdings has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
The next generation of Priceline's AI travel assistant brings Anthropic's Claude into the company's proprietary AI stack, allowing travelers to move from trip idea to booking in one conversation
, /PRNewswire/ -- Priceline today introduced the next generation of Penny, its AI-powered travel assistant and one of the most advanced AI booking experiences in travel. Agentic by design, Penny has the ability to understand complex trip requests, evaluate real-time pricing and availability, and surface tradeoffs. Where traditional online travel search requires navigating filters, tabs and separate browser windows, Penny can take a request like, "compare flights from New York to Paris, Berlin, or Madrid for the first week of July," share options across destinations, and let travelers book their trip without leaving the conversation.
The next generation of Priceline's AI travel assistant brings Anthropic's Claude into the company's proprietary AI stack, allowing travelers to move from trip idea to booking in one conversation. The experience is built around a live, interactive map where options surface and sharpen as the conversation evolves. A preference layer combines traveler behavior with stated preferences travelers choose to share, helping Penny distinguish between what someone has done before and what matters for this trip, from budget and location to loyalty and trip purpose. Penny is designed with privacy in mind, giving travelers visibility and control over the data it can access, a foundation for the trust required as AI moves from assistant to agent.
Penny also brings a point of view to the options it surfaces, helping travelers move beyond what is available to what is most relevant. Penny's Pick highlights Penny's top recommendation across hotels, flights and rental cars, weighing the traveler's stated preferences, the context of the conversation and overall value. Penny's Take goes deeper on a single property, offering a candid read on why a hotel best fits the trip and the details worth knowing before booking. Penny's Take is in beta for hotels and will expand across the platform over time.
Penny runs on Priceline's proprietary AI stack, bringing together preference learning, memory, deals technology, and leading AI models. The result is a multi-modal planning experience where conversation, maps, recommendations and real-time travel inventory work together as travelers build their plans. The latest Claude models support core conversational reasoning and planning, marking Priceline's first Anthropic integration into a consumer-facing product. Google Cloud and OpenAI also support capabilities across search and voice. These systems connect Penny to real-time travel inventory from thousands of partners in more than 100 countries and decades of Priceline booking data. Through AI-powered translation, Penny now also converses in multiple languages, meeting travelers in the language they think and plan in.
"Our conviction from the start was that the real advantage in AI travel would not come from the model alone, but from connecting it to the context, inventory and deals that make travel bookable," said Sejal Amin, Chief Technology Officer, Priceline. "By starting Penny at more complex problems in travel booking and building outward into search, maps, preference learning and this new experience, we've designed a system that understands why a traveler makes a choice and can carry that understanding from one trip to the next."
Priceline was one of the first major travel brands to put an AI agent directly in front of customers, starting with some of the points of greatest friction in travel: checkout and customer care. That decision gave Penny a foundation in the moments closest to booking, where travelers indicate what information they need, what questions slow them down and what helps them move forward. Today, Penny operates as a coordinated system of more than 10 specialized agents that support everything from hotel search and recommendations to flights, rental cars, and customer service.
That foundation is already translating into results. In early testing, the subset of travelers who engage with Penny have shown stronger engagement and higher conversion than those who do not, while increased Penny usage has helped reduce customer support contacts. Priceline has estimated that travelers who used Penny saved an average of nearly ten minutes per trip compared with those who called customer support. A 2026 Evercore ISI analysis also found that Priceline Penny delivered the strongest end-to-end booking experience among the AI travel tools it tested.¹ The next generation of Penny builds on that momentum, advancing Priceline's role in Booking Holdings' broader vision of the Connected Trip, where every element of travel, from inspiration to the return home, works together seamlessly on behalf of the traveler.
"The value of AI in travel comes from connecting models to the real context of inventory, deals, and trip purpose," said Guillaume Princen, Head of International - Technology Companies, Anthropic. "Penny pairs that foundation with Claude's frontier capabilities in reasoning and agentic problem-solving to handle complex decisions that turn an idea into a booked trip."
"Travel planning has always been the hardest part of a trip. It doesn't have to be," said Cobus Kok, Vice President, AI Experiences, Priceline. "The next generation of Penny is built around a simple idea: describe the trip you want, and Penny handles the rest, helping travelers understand their choices, book with confidence and get to the trip they want faster."
To see Penny in action, watch the demo at youtube.com/priceline. Travelers can experience the next generation of Penny at priceline.com/penny.
About Priceline
Priceline, part of Booking Holdings Inc. (NASDAQ: BKNG), has been helping travelers get better deals for more than 25 years. Using proprietary technology to analyze billions of data points, Priceline unlocks savings across hotels, flights, rental cars, cruises, vacation packages, and more. With inventory from trusted travel brands in more than 110 countries, 24/7 customer service, Priceline VIP, and Penny, its AI-powered travel assistant, Priceline helps travelers save smarter and book with confidence. No one deals more deals than Priceline.
¹ Evercore ISI, "The Agentic OTA Opportunity?," March 24, 2026.
Booking Holdings (BKNG - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this online booking service have returned -2.1%, compared to the Zacks S&P 500 composite's +4.6% change. During this period, the Zacks Internet - Commerce industry, which Booking Holdings falls in, has lost 6.9%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Booking Holdings is expected to post earnings of $2.48 per share, indicating a change of +11.7% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $10.44 points to a change of +14.5% from the prior year. Over the last 30 days, this estimate has changed -0.2%.
For the next fiscal year, the consensus earnings estimate of $12.35 indicates a change of +18.3% from what Booking Holdings is expected to report a year ago. Over the past month, the estimate has changed -0.1%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Booking Holdings.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Booking Holdings, the consensus sales estimate for the current quarter of $7.19 billion indicates a year-over-year change of +5.7%. For the current and next fiscal years, $29.4 billion and $32.08 billion estimates indicate +9.2% and +9.1% changes, respectively.
Last Reported Results and Surprise HistoryBooking Holdings reported revenues of $5.53 billion in the last reported quarter, representing a year-over-year change of +16.2%. EPS of $1.14 for the same period compares with $0.99 a year ago.
Compared to the Zacks Consensus Estimate of $5.5 billion, the reported revenues represent a surprise of +0.61%. The EPS surprise was +3.64%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Booking Holdings is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Booking Holdings. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Booking Holdings (BKNG - Free Report) .
Booking Holdings currently has an average brokerage recommendation (ABR) of 1.56, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 39 brokerage firms. An ABR of 1.56 approximates between Strong Buy and Buy.
Of the 39 recommendations that derive the current ABR, 27 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 69.2% and 5.1% of all recommendations.
Brokerage Recommendation Trends for BKNG
Check price target & stock forecast for Booking Holdings here>>>
The ABR suggests buying Booking Holdings, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Should You Invest in BKNG?In terms of earnings estimate revisions for Booking Holdings, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $10.44.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Booking Holdings. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Booking Holdings.
In the latest trading session, Booking Holdings (BKNG - Free Report) closed at $160.59, marking a -2.07% move from the previous day. This move lagged the S&P 500's daily loss of 1.62%. Meanwhile, the Dow experienced a drop of 1.87%, and the technology-dominated Nasdaq saw a decrease of 1.98%.
The online booking service's shares have seen an increase of 2.14% over the last month, surpassing the Retail-Wholesale sector's loss of 6.71% and the S&P 500's loss of 0.03%.
The investment community will be paying close attention to the earnings performance of Booking Holdings in its upcoming release. It is anticipated that the company will report an EPS of $2.48, marking a 11.71% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $7.19 billion, reflecting a 5.74% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.44 per share and a revenue of $29.4 billion, indicating changes of +14.47% and +9.23%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Booking Holdings. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Booking Holdings is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Booking Holdings currently has a Forward P/E ratio of 15.71. This represents a discount compared to its industry average Forward P/E of 16.72.
Meanwhile, BKNG's PEG ratio is currently 0.98. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Internet - Commerce industry stood at 0.98 at the close of the market yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 150, positioning it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: CVS Health (CVS - Free Report) Headquartered in Woonsocket, RI, CVS Health Corporation (formerly known as CVS Caremark Corporation) is a health solutions company with integrated offerings across the entire spectrum of pharmacy care. On Sep 3, 2014, CVS Caremark Corporation announced a change of its corporate name to CVS Health to reflect its broader healthcare commitment. In 2018, CVS Health acquired insurance giant Aetna for $70-billion.
CVS is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 12.25; value investors should take notice.
11 analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.25 to $7.40 per share. CVS also boasts an average earnings surprise of +16.8%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, CVS should be on investors' short list.
After its blockbuster Q1 2026 earnings report that caused shares to gain 9.8%, pharmaceutical behemoth Eli Lilly and Company NYSE: LLY continues to rack up wins. These include a Food and Drug Administration (FDA) proposal that would pressure compounders, as well as strong clinical results for its oral GLP-1, Foundayo.
Eli Lilly and Company Today
LLY
Eli Lilly and Company
$1,137.01 -23.94 (-2.06%)
As of 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$623.78▼
$1,182.73Dividend Yield0.61%
P/E Ratio40.39
Price Target$1,227.74
Now, the company is back in the news with a key development that highlights its strong position in the GLP-1 arena. Lilly has reached an agreement with CVS Health NYSE: CVS, the owner of the nation’s largest pharmacy benefit manager (PBM), Caremark. The agreement will extend coverage of Lilly’s top GLP-1s, allowing patients to access them through their existing insurance.
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Clearly, this is a positive as it should increase demand for Lilly’s products. However, it also weakens Lilly’s biggest competitor, as CVS backtracks on its prior move to cut Lilly out of its coverage.
CVS Reunites With Lilly After Backing NovoWith this announcement, all three of the United States' largest PBMs will soon cover Lilly’s entire portfolio of approved obesity medications. Express Scripts, owned by Cigna Group NYSE: CI, and Optum Rx, owned by UnitedHealth Group NYSE: UNH, already covered the drugs. Caremark will begin to cover Foundayo on June 1, while coverage will begin on Oct. 1 for Zepbound.
However, what makes this announcement particularly interesting is the context. Just over a year ago, CVS struck a deal with Lilly’s main competitor, Novo Nordisk A/S NYSE: NVO. This made Novo’s Wegovy CVS’s preferred GLP-1 treatment and excluded Zepbound from its coverage. Combined with its slightly disappointing earnings report on May 1, 2025, this power move between Lilly’s top rival and the largest PBM sent LLY shares down almost 12%.
Now, CVS has reneged on that decision that delivered a real blow to Lilly shares. According to a CVS spokesperson, “What this change means is that, for those clients that do (choose to provide coverage), they will have equal access to both the Novo and Lilly products, and consumers will have the same co-pays for each.” In other words, if an employer covers GLP-1s for obesity, their employees can access Novo and Lilly’s products equally and for the same co-pay.
This should largely reverse the negative effect of CVS’s initial decision—limiting access to Lilly’s drugs and hurting demand. Additionally, it removes the advantage that Novo had of being the only available option to CVS clients.
Timing is another positive aspect of this decision, as Lilly is looking to increase demand for Foundayo. Its oral GLP-1 has fallen behind Novo’s Wegovy pill—which received FDA approval several months earlier. By now being on equal footing with Novo within Caremark, Lilly may have an easier time catching up. Lilly shares gained by 4% on the day of this announcement as investors noticed the positive implications for the company.
Zooming in on Valuation Amid Lilly’s ReboundDespite the many positive developments that Lilly has seen in late 2026, the stock has underperformed overall. Shares are down around 1% compared to the S&P 500’s gain of over 10%. This comes as its latest earnings really kicked off the recovery—prior to the report, shares were down nearly 21% in 2026. Now, Lilly trades less than 5% below its all-time high. Given this, it is worth examining the stock’s valuation to get a more complete understanding of the outlook for LLY shares.
Currently, the stock trades at a forward price-to-earnings (P/E) ratio near 29x. This is substantially above the S&P 500’s forward P/E near 21x, and even further above the S&P 500 healthcare sector’s forward P/E near 17x. Based on these measures, Lilly’s valuation looks fairly elevated.
However, when compared to Lilly’s own history, that is not the case. Over the past three years, Lilly’s average forward P/E is nearly 43x. Thus, its current level is around 33% below this average—a much more favorable comparison. When looking over the past 52 weeks, Lilly’s average forward P/E is around 30x, just slightly above its current level.
Lilly’s forward P/E has also come down meaningfully from 32x—when the stock traded near its current price in February. This signals that earnings estimates have caught up with the stock price a bit—a positive signal. Overall, Lilly is certainly not a cheap stock, and it will need to continue putting up strong growth in order to maintain its valuation. However, these metrics show that it is also not a name that necessarily screams "overvalued."
Eli Lilly and Company Stock Forecast Today12-Month Stock Price Forecast:
$1,227.74
7.12% Upside
Moderate Buy
Based on 30 Analyst Ratings
Current Price$1,146.19High Forecast$1,400.00Average Forecast$1,227.74Low Forecast$850.00Eli Lilly and Company Stock Forecast Details
Analysts Remain Constructive on Lilly’s Upside PotentialThe outlook for Lilly shares, according to Wall Street analyst price targets, remains positive. The MarketBeat consensus price target on the stock currently sits near $1,227, implying about 15% upside in shares.
The average of targets updated after the company’s earnings report is moderately higher at $1,239.
Among these updates, Rothschild & Co Redburn’s $900 target is the most bearish. Meanwhile, Barclay’s $1,400 target is the most bullish.
Should You Invest $1,000 in Eli Lilly and Company Right Now?Before you consider Eli Lilly and Company, you'll want to hear this.
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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: CVS Health (CVS - Free Report) Headquartered in Woonsocket, RI, CVS Health Corporation (formerly known as CVS Caremark Corporation) is a health solutions company with integrated offerings across the entire spectrum of pharmacy care. On Sep 3, 2014, CVS Caremark Corporation announced a change of its corporate name to CVS Health to reflect its broader healthcare commitment. In 2018, CVS Health acquired insurance giant Aetna for $70-billion.
CVS is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. CVS has a Growth Style Score of B, forecasting year-over-year earnings growth of 10.2% for the current fiscal year.
12 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.30 to $7.44 per share. CVS boasts an average earnings surprise of +16.8%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, CVS should be on investors' short list.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Let's take a look at what these Wall Street heavyweights have to say about CVS Health (CVS - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
CVS Health currently has an average brokerage recommendation (ABR) of 1.32, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 25 brokerage firms. An ABR of 1.32 approximates between Strong Buy and Buy.
Of the 25 recommendations that derive the current ABR, 20 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 80% and 8% of all recommendations.
Brokerage Recommendation Trends for CVS
Check price target & stock forecast for CVS Health here>>>
The ABR suggests buying CVS Health, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is CVS a Good Investment?In terms of earnings estimate revisions for CVS Health, the Zacks Consensus Estimate for the current year has increased 4.1% over the past month to $7.44.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for CVS Health. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for CVS Health may serve as a useful guide for investors.
Investors might want to bet on CVS Health (CVS - Free Report) , as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for CVS Health basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
For CVS Health, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for CVS HealthFor the fiscal year ending December 2026, this drugstore chain and pharmacy benefits manager is expected to earn $7.44 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for CVS Health. Over the past three months, the Zacks Consensus Estimate for the company has increased 4%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of CVS Health to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Despite Eli Lilly's (LLY 2.05%) dominance in the weight management market, the company has encountered several obstacles in this field, including spotty insurance coverage for its anti-obesity medicine, Zepbound. If Eli Lilly could make headway in that area, it could boost the already fast-growing sales of this medicine. That's why recent news from CVS Health (CVS +1.47%) was so important. Let's look deeper into it.
Image source: The Motley Fool.
CVS Health does a 180 On May 28, CVS Caremark, the pharmacy benefits manager (PBM) under CVS Health's umbrella, announced it would start covering Zepbound on Oct. 1. This news is especially important, as CVS had previously removed the medicine from its formulary. So, this is quite the reversal. Further, CVS Health will also cover Eli Lilly's new GLP-1 pill, Foundayo, effective June 1.
These developments allowed Eli Lilly to catch up to its biggest competitor, Novo Nordisk, whose competing subcutaneous and oral weight loss medicines were already covered by CVS Caremark. Also, as Eli Lilly noted, this decision means the three largest PBMs in the U.S. will cover Zepbound and Foundayo. CVS's decision will help more patients access these medicines at reasonable prices. The expanded access may also help Eli Lilly fend off the threat posed by some telemedicine companies that have built a business model around offering cheaper, knockoff versions of Zepbound.
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Is Eli Lilly stock a buy? Can Eli Lilly continue riding the weight loss tailwind over the next few years, even as competition intensifies? Yes, it can. The drugmaker's coverage progress and early success with Foundayo -- which was only approved in April -- highlight that the anti-obesity market is far from having peaked. Some 80% of Foundayo's patients had never taken GLP-1s before, perhaps because they didn't like injections.
Eli Lilly's broad portfolio can help address the needs of many others who are still sitting on the sidelines. Meanwhile, the company's revenue and earnings are growing much faster than those of its similarly sized peers and continue to impress Wall Street. In the first quarter, Eli Lilly's sales jumped by 56% year over year to $19.8 billion, while its adjusted net earnings per share soared to $8.55, up 156% from the year-ago period.
Further, Eli Lilly has a meaningful lineup and pipeline beyond its core diabetes and weight loss products. Over the next five years, the company should ramp up sales of non-GLP-1 drugs while launching several new ones. Some might argue that, although Eli Lilly is performing well, its shares are far too expensive. They are trading at 29.3x forward earnings, versus an average of 16.9x for healthcare stocks. But Eli Lilly has earned a premium given its fantastic results and strong pipeline. That's why the stock remains attractive at current levels.
Prosper Junior Bakiny has positions in Eli Lilly and Novo Nordisk. The Motley Fool has positions in and recommends Eli Lilly. The Motley Fool recommends CVS Health and Novo Nordisk. The Motley Fool has a disclosure policy.
UnitedHealth Group Inc. (NYSE:UNH) is emerging as a leading artificial intelligence enabler within the managed care sector, according to a Thursday investor note from Morgan Stanley.
Morgan Stanley raised its price forecast on UnitedHealth to $453 from $395 and maintained its Overweight rating.
UnitedHealth Leads Managed Care AI OpportunityAnalyst Erin Wright named UnitedHealth its top pick, citing growing AI-related revenue opportunities, operational improvements, and the potential for meaningful earnings expansion as adoption accelerates across healthcare workflows.
Wright said two themes have recently shaped the managed care landscape.
AI Adoption Moves Beyond Pilot ProgramsMorgan Stanley noted that AI has progressed well beyond experimental stages and is now embedded in several core functions across the managed care ecosystem.
The firm said healthcare remains particularly well-positioned for AI-driven efficiencies because of its large volume of sensitive data and the persistence of manual, labor-intensive processes.
Beyond reducing operating expenses, Morgan Stanley believes AI could improve medical loss ratios and create incremental revenue opportunities through AI-enabled products and services.
The firm noted that UnitedHealth has consistently been one of the industry’s most vocal advocates for AI deployment.
Earnings Outlook Supported By Improving TrendsMorgan Stanley’s analysis focused only on insurers’ insurance operations, which the firm described as a conservative approach.
It said additional upside could emerge from other business segments, including pharmacy benefit management and specialty pharmacy operations.
The firm also cautioned that not all cost savings will immediately flow to earnings, as companies may choose to reinvest those gains.
It pointed to UnitedHealth and CVS Health Corp. (NYSE:CVS) as examples of organizations currently reinvesting savings into their businesses.
UnitedHealth Remains Top PickMorgan Stanley said UnitedHealth has strengthened its operational footing and remains well-positioned to adapt its Medicare Advantage business if needed to support profitability improvements.
The firm also pointed to ongoing restructuring efforts within Optum Health, saying the turnaround is beginning to take shape in 2026.
With much of the restructuring underway, Morgan Stanley believes execution is now the primary driver of further margin recovery.
UNH Price Action: UnitedHealth Group shares were up 0.46% at $398.30 at the time of publication on Friday. The stock is trading near its 52-week high of $404.15, according to Benzinga Pro data.
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It has been about a month since the last earnings report for CVS Health (CVS - Free Report) . Shares have added about 8.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is CVS Health due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
CVS Health Tops Q1 Earnings and Revenue EstimatesCVS Health Corporation delivered first-quarter 2026 adjusted earnings of $2.57 per share, up 14.2% from the year-ago quarter. The figure beat the Zacks Consensus Estimate of $2.21 by 16.38%.
Total revenues rose 6.2% year over year to $100.43 billion, topping the consensus mark of $94.37 billion by 6.41%. Operating execution improved across the enterprise, while days claims payable ended the quarter at 42.9 days.
CVS Posts Higher Revenues on Broad Segment Gains
CVS generated revenue growth across all three operating segments in the first quarter. Health Services remained the largest contributor, with segment revenues of $48.24 billion, up 11% year over year, reflecting pharmacy drug mix and brand inflation.
Health Care Benefits revenues increased 3.3% to $35.97 billion, supported by strength in the Government business. Pharmacy & Consumer Wellness revenues were essentially flat at $31.99 billion, as prescription growth and mix benefits were largely offset by regulatory-related price reductions and reimbursement pressure.
CVS Health Expands Consolidated Margins on Operating Leverage
CVS Health’s consolidated profitability improved as operating income rose faster than the top line. Operating income increased 38.7% year over year to $4.68 billion, supported by higher segment contributions and the absence of items recorded in the prior-year period.
From a margin standpoint, gross profit (total revenues less cost of products sold and health care costs) increased to $15.62 billion from $14.40 billion a year ago. Gross margin expanded 40 basis points (bps) to 15.6%, while operating margin improved 110 bps to 4.7%.
Adjusted operating income rose 12.5% to $5.15 billion. Adjusted operating margin also improved 30 bps year over year, reaching 5.1%, aided by lower operating expenses of $10.94 billion compared with $11.02 billion last year.
CVS Health ended the quarter with cash and cash equivalents of $9.54 billion, up from $8.45 billion at year-end 2025. Net cash provided by operating activities was $4.25 billion in the first quarter, supporting capital returns and balance sheet actions.
During the quarter, the company repaid $1.52 billion of long-term debt and paid $847 million in dividends. Long-term debt stood at $60.53 billion as of March 31, 2026, leaving continued deleveraging and disciplined capital deployment as important watch items alongside the operating recovery underway across the portfolio.
CVS Raises 2026 Outlook as Costs Stay Elevated
Management raised full-year 2026 targets following the quarter’s performance. CVS lifted its GAAP diluted earnings per share outlook to a range of $6.24-$6.44 (previously $5.94-$6.14) and boosted adjusted earnings guidance to the band of $7.30-$7.50 (earlier $7.00-$7.20). Going by the Zacks Consensus Estimate, adjusted earnings per share for 2026 is forecasted at $7.14.
Meanwhile, revenues for the year are projected to be at least $405 billion. The Zacks Consensus Estimate for the same stands at $406.01 billion.
The company also increased its cash flow from operations outlook to at least $9.5 billion (earlier at least $9.0 billion). CVS said that the update reflects increases in the Health Care Benefits and Pharmacy & Consumer Wellness segments while maintaining a cautious view for the remainder of the year, given elevated cost trends and potential macro headwinds.
How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended upward during the past month.
VGM ScoresCurrently, CVS Health has a average Growth Score of C, a grade with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top quintile 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 trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise CVS Health has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry PlayerCVS Health is part of the Zacks Medical Services industry. Over the past month, Avantor, Inc. (AVTR - Free Report) , a stock from the same industry, has gained 14.6%. The company reported its results for the quarter ended March 2026 more than a month ago.
Avantor reported revenues of $1.58 billion in the last reported quarter, representing no change year over year. EPS of $0.17 for the same period compares with $0.23 a year ago.
Avantor is expected to post earnings of $0.19 per share for the current quarter, representing a year-over-year change of -20.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.7%.
Avantor has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
In the latest trading session, CVS Health (CVS - Free Report) closed at $95.93, marking a +1.17% move from the previous day. This change outpaced the S&P 500's 2.65% loss on the day. Elsewhere, the Dow saw a downswing of 1.35%, while the tech-heavy Nasdaq depreciated by 4.18%.
The drugstore chain and pharmacy benefits manager's shares have seen an increase of 8.54% over the last month, surpassing the Medical sector's gain of 3.33% and the S&P 500's gain of 5.47%.
The investment community will be closely monitoring the performance of CVS Health in its forthcoming earnings report. The company's upcoming EPS is projected at $1.85, signifying a 2.21% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $100.18 billion, up 1.28% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.44 per share and revenue of $409 billion. These totals would mark changes of +10.22% and +1.72%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for CVS Health. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.1% increase. CVS Health presently features a Zacks Rank of #2 (Buy).
Digging into valuation, CVS Health currently has a Forward P/E ratio of 12.75. This indicates a discount in contrast to its industry's Forward P/E of 15.35.
It's also important to note that CVS currently trades at a PEG ratio of 0.93. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Medical Services stocks are, on average, holding a PEG ratio of 1.46 based on yesterday's closing prices.
The Medical Services industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 107, placing it within the top 44% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
The Dow’s industrial-era anchors are quietly outpacing the broader market. Over the past year, the SPDR S&P 500 ETF Trust (NYSEARCA: SPY) returned 24.37%, and the Dow tracker returned 20.22%. Three “old economy” Dow components have left both benchmarks in the dust, and they share more than just a ticker on the same index.
What unites them:
Hard-asset moats (industrial machinery and dealer networks, a global capital franchise, a national pharmacy and insurance footprint) B2B and cycle sensitivity (construction and power, dealmaking and trading, healthcare utilization and PBM volumes) Dominant market positions with steep scale barriers. Each is also leveraging the AI buildout to drive recent earnings beats. Here is the countdown.
3. CVS Health CVS Health (NYSE: CVS | CVS Price Prediction) shares have advanced 52.1% over the past year to $95.93. The Q1 2026 report delivered adjusted EPS of $2.57 against a $2.21 consensus, a 16.47% beat, on revenue of $100.43 billion. Aetna led the way, with Health Care Benefits adjusted operating income surging 52.6% to $3.04 billion as the medical benefit ratio improved to 84.6%.
Management raised FY26 adjusted EPS guidance to $7.30 to $7.50 and launched Health100, a health tech subsidiary built on Google Cloud AI. Aetna now processes 83% of prior authorizations in real time. The analyst consensus target sits at $103.04. Forward P/E of 13x keeps the valuation modest. Risks include pharmacy reimbursement pressure, drug pricing regulation, and a $5.72 billion goodwill impairment last year that still hangs over the Health Care Delivery unit.
2. Goldman Sachs Goldman Sachs (NYSE: GS) trades at $1,038.68, up 71.4% over the past year. Q4 2025 EPS came in at $14.01 versus an $11.76 estimate, a 19.13% beat, capping a year of four consecutive double-digit earnings beats. Full-year EPS was $51.32 on net income of $17.18 billion, the second-highest annual result on record.
Advisory fees jumped 41% year over year in Q4, Equities financing hit a record $2.13 billion, and AUM reached $3.61 trillion. CEO David Solomon said the firm expects momentum to accelerate in 2026, “activating a flywheel of activity across our entire firm.” The “One GS 3.0” AI productivity push, a 12.5% dividend hike to $4.50, and $12.36 billion in 2025 buybacks underscore the capital-return story. The consensus target of $947.60 is already below the current quote, and ratings skew toward Hold.
The shares may be pricing in much of the M&A revival Goldman’s own outlook flags, with a 15% expected increase in completed U.S. M&A deals in 2026.
1. Caterpillar Caterpillar (NYSE: CAT) is the runaway leader here. Shares trade at $904.28, up 159.1% over the past year and 57.9% year to date. Q1 2026 EPS of $5.54 beat the $4.64 consensus by 19.30%, on revenue of $17.42 billion (+22.2% year on year).
The engine is Power Generation, which grew 41% in Q1 on data center demand for large reciprocating engines and turbines. Jim Cramer recently called CAT “infrastructure money, construction money and data center money,” noting “CAT generators to back up the usual power sources” as a hidden data center opportunity. CEO Joe Creed pointed to a “record backlog” as a foundation for momentum. Buybacks totaled $5.0 billion in Q1 alone. The consensus target is $936.99, with 14 Buy and 11 Hold ratings. Forward P/E of 37x is rich for a cyclical, and Q4 carried $1.03 billion in tariff-driven manufacturing costs. The bull case rests on Vanguard’s projection that AI spending will add another $450 billion in investment in the coming year.
The Common Thread The opening premise is borne out by the data. Each name pairs an irreplaceable physical or franchise moat with cycle-leveraged B2B exposure and a dominant competitive position, then layers an AI-era growth vector on top. Caterpillar sells the picks and shovels of the data center buildout, Goldman is monetizing the dealmaking flywheel while running AI through its own back office, and CVS is wiring Aetna and Caremark into a Google Cloud AI platform. Investors weighing fresh entries should respect the cyclical reversal risk, tariff drag, and healthcare regulatory pressure that still underlie these stories. These old-economy stocks are leading the market.
Investors interested in Medical stocks should always be looking to find the best-performing companies in the group. CVS Health (CVS - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Medical sector should help us answer this question.
CVS Health is one of 888 individual stocks in the Medical sector. Collectively, these companies sit at #6 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. CVS Health is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for CVS' full-year earnings has moved 4% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that CVS has returned about 20.9% since the start of the calendar year. In comparison, Medical companies have returned an average of -4.4%. This means that CVS Health is performing better than its sector in terms of year-to-date returns.
Align Technology (ALGN - Free Report) is another Medical stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 7.4%.
For Align Technology, the consensus EPS estimate for the current year has increased 3.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, CVS Health belongs to the Medical Services industry, a group that includes 62 individual stocks and currently sits at #109 in the Zacks Industry Rank. On average, stocks in this group have lost 8.1% this year, meaning that CVS is performing better in terms of year-to-date returns.
Align Technology, however, belongs to the Medical - Dental Supplies industry. Currently, this 13-stock industry is ranked #64. The industry has moved -6.4% so far this year.
CVS Health and Align Technology could continue their solid performance, so investors interested in Medical stocks should continue to pay close attention to these stocks.
CVS Health faced intense investor scrutiny in 2024 and 2025 amid efforts to recover from a downturn but has since turned things around. Q1 2026 results showed that the insurance business is exploding for CVS. CVS also posted other positive signs of growth, such as improved retail pharmacy market share.
SAN FRANCISCO, June 11, 2026 (GLOBE NEWSWIRE) -- CVS Health is using Fluency, the Accel-backed enterprise AI deployment platform, to support deployment of autonomous AI agents across parts of its operations. The company is working to move AI initiatives from pilot programs into production environments using Fluency to identify where AI can deliver the greatest operational impact.
The announcement comes as many enterprises continue to struggle to generate returns from multi-million dollar AI investments. Fluency was built to address what its founders describe as the “deployment gap,” the point where promising AI pilots become difficult to scale across real operational environments.
The Deployment Gap Plaguing Enterprise AI
Despite record spending across healthcare, financial services, retail, and other sectors, the majority of enterprise AI programs are failing to deliver expected ROI. According to Fluency’s founders, the issue is rarely the AI models themselves. It is the lack of visibility needed to identify the right deployment opportunities, build mission-critical agents, and prove the business impact after deploying AI.
“Most enterprises today don’t have an AI access problem, they have a prioritization problem,” said Finnlay Morcombe, CEO and Co-founder of Fluency. “Teams are struggling to identify where AI can create the most operational impact across systems, departments, and workflows. Without that strategic clarity, implementation efforts often become fragmented and difficult to scale.”
“Many organizations still struggle to operationalize AI beyond isolated pilots,” added Oliver Farnill, co-founder of Fluency. “The challenge is not just deploying AI tools, but understanding how they fit into existing workflows and how success should be measured once they are live.”
Where AI strategy meets execution
Fluency builds AI automations using the same operational data that identifies automation opportunities in the first place. This approach ensures that deployed AI agents are grounded in the realities of the business, including its systems, processes, and unique operational requirements. By aligning automation with real-world business context, Fluency helps address one of the key challenges behind failed AI deployments: solutions that are not designed to work effectively within the environments they are intended to serve.
How CVS and Other Fortune 500 Companies Are Overcoming It
CVS Health manages one of the largest pharmacy networks in the U.S., handling millions of prescriptions, complex supply chains, and constant insurance coordination.
It operates across large, complex workflows involving pharmacies, insurance coordination, and supply chain systems. Fluency is helping provide visibility into these workflows so AI can be deployed more efficiently across all operational environments.
Key Outcomes:
Automations in production workflows grounded in real work data.Full deployment lifecycle: work visibility, AI deployment, and ROI measurementLive with major enterprise clients including CVS HealthBacked by Accel and built specifically for enterprise AI deployment About Fluency
Fluency sees all work across every team, recommends exactly what to automate, and tracks the results. Working across all tools and teams from day one, creating a unified view of enterprise execution without the need for integrations.
With Fluency, companies measure ROI on AI deployments with precision, proving which initiatives move KPIs and which don't. Leaders can automatically discover and optimize work, identify automation opportunities, and track the impact of AI on business outcomes.
Fluency builds a live work ontology of how an enterprise operates, tying activity directly to revenue, cost, speed, quality, and risk. Fluency is the foundation that makes improvement continuous, automatic, and AI-first.
Media Contact:
Genius PR
Phone number:
Email: [email protected]
Website: https://usefluency.com
LinkedIn: https://www.linkedin.com/company/usefluency/
San Francisco, CA, US
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7cbc277f-4a1a-4a16-bbdf-cf3c46a0f9e4
CVS Health execs discuss how the company is using AI and other technologies to reduce administrative burdens and deliver more proactive care experiences.
CVS Health (CVS - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this drugstore chain and pharmacy benefits manager have returned +3.4%, compared to the Zacks S&P 500 composite's -0.2% change. During this period, the Zacks Medical Services industry, which CVS Health falls in, has gained 5.5%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
CVS Health is expected to post earnings of $1.85 per share for the current quarter, representing a year-over-year change of +2.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +1%.
The consensus earnings estimate of $7.44 for the current fiscal year indicates a year-over-year change of +10.2%. This estimate has changed -0.2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $8.37 indicates a change of +12.5% from what CVS Health is expected to report a year ago. Over the past month, the estimate has changed +0.8%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for CVS Health.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For CVS Health, the consensus sales estimate for the current quarter of $100.18 billion indicates a year-over-year change of +1.3%. For the current and next fiscal years, $409 billion and $425.13 billion estimates indicate +1.7% and +3.9% changes, respectively.
Last Reported Results and Surprise HistoryCVS Health reported revenues of $100.43 billion in the last reported quarter, representing a year-over-year change of +6.2%. EPS of $2.57 for the same period compares with $2.25 a year ago.
Compared to the Zacks Consensus Estimate of $94.38 billion, the reported revenues represent a surprise of +6.41%. The EPS surprise was +16.29%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
CVS Health is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about CVS Health. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Have you been paying attention to shares of CVS Health (CVS - Free Report) ? Shares have been on the move with the stock up 3.4% over the past month. The stock hit a new 52-week high of $100.55 in the previous session. CVS Health has gained 26.6% since the start of the year compared to the -3.6% move for the Zacks Medical sector and the -6.8% return for the Zacks Medical Services industry.
What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 6, 2026, CVS Health reported EPS of $2.57 versus consensus estimate of $2.21 while it beat the consensus revenue estimate by 6.41%.
For the current fiscal year, CVS Health is expected to post earnings of $7.44 per share on $409 in revenues. This represents a 10.22% change in EPS on a 1.72% change in revenues. For the next fiscal year, the company is expected to earn $8.37 per share on $425.13 in revenues. This represents a year-over-year change of 12.5% and 3.94%, respectively.
Valuation MetricsThough CVS Health has recently hit a 52-week high, what is next for CVS Health? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
CVS Health has a Value Score of A. The stock's Growth and Momentum Scores are C and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 13.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 15.4X. On a trailing cash flow basis, the stock currently trades at 6.7X versus its peer group's average of 10.1X. Additionally, the stock has a PEG ratio of 0.98. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making CVS Health an interesting choice for value investors.
Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, CVS Health currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if CVS Health passes the test. Thus, it seems as though CVS Health shares could still be poised for more gains ahead.
How Does CVS Stack Up to the Competition?Shares of CVS have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Labcorp Holdings Inc. (LH - Free Report) . LH has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of A.
Earnings were strong last quarter. Labcorp Holdings Inc. beat our consensus estimate by 3.91%, and for the current fiscal year, LH is expected to post earnings of $18.00 per share on revenue of $14.71 billion.
Shares of Labcorp Holdings Inc. have gained 4.4% over the past month, and currently trade at a forward P/E of 14.73X and a P/CF of 10.68X.
The Medical Services industry is in the top 44% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CVS and LH, even beyond their own solid fundamental situation.
Key Takeaways STNE qualified with a low P/B profile and a projected 23.6% long-term EPS growth rate.USNA, STRA and NEXA made the screen while posting projected EPS growth of 12.0% to 15.7%.CVS joined the list with integrated health offerings and a projected 13.7% long-term EPS growth rate. When assessing a company’s valuation, investors typically rely on metrics such as the price-to-earnings (P/E) ratio and the price-to-sales (P/S) ratio. The P/E ratio measures how much investors are willing to pay for each dollar of a company’s earnings, while the P/S ratio indicates the value the market assigns to each dollar of revenues generated by the business.
Although P/E and P/S multiples are among the most widely used valuation tools, the price-to-book (P/B) ratio is another useful metric, particularly for identifying potentially undervalued stocks and companies with attractive long-term growth prospects. The P/B ratio compares a company’s market value with its book value, providing insight into how the market values the firm's net assets.
The P/B ratio is calculated as:
P/B Ratio = Market Capitalization ÷ Book Value of Equity
or equivalently,
P/B Ratio = Share Price ÷ Book Value per Share.
This metric can help identify attractively priced stocks with upside potential. Some such stocks are StoneCo (STNE - Free Report) , USANA Health Sciences (USNA - Free Report) , Strategic Education (STRA - Free Report) , Nexa Resources (NEXA - Free Report) and CVS Health Corporation (CVS - Free Report) . Let us understand the concept of book value.
What is Book Value?There are several ways in which book value can be defined. Book value is the total value that would be left over, according to the company’s balance sheet, if it went bankrupt immediately. In other words, this is what shareholders would theoretically receive if a company liquidates all its assets after paying off all its liabilities.
It is calculated by subtracting total liabilities from the total assets of a company. In most cases, this equates to common stockholders’ equity on the balance sheet. However, depending on the company’s balance sheet, intangible assets should also be subtracted from total assets to determine book value.
Book Value Per Share = (Total Assets – Total Liabilities) ÷ Number of Outstanding Shares
Understanding P/B RatioBy comparing the book value of equity to its market price, we get an idea of whether a company is under- or overpriced. Like P/E or P/S ratios, it is always better to compare the P/B ratio within industries.
A P/B ratio of less than one means that the stock is trading at less than its book value or the stock is undervalued and, therefore, a good buy. Conversely, a stock with a ratio greater than one can be interpreted as being overvalued or relatively expensive.
For example, a stock with a P/B ratio of 2 means that we pay $2 for every $1 of book value. Thus, the higher the P/B, the more expensive the stock.
But there is a warning. A P/B ratio of less than one can also mean that the company is earning weak or even negative returns on its assets or that the assets are overstated. In such a case, the stock should be shunned because it may be destroying shareholder value. Conversely, the stock’s price may be significantly high — thereby pushing the P/B ratio to more than one — in the likely case that it has become a takeover target, a good enough reason to own the stock.
Moreover, the P/B ratio is not without limitations. It is useful for businesses like finance, investments, insurance and banking or manufacturing companies with many liquid/tangible assets on the books. However, it can be misleading for firms with significant R&D expenditure, high debt, service companies, or those with negative earnings.
In any case, the ratio is not particularly relevant as a standalone number. One should analyze other ratios like P/E, P/S and debt to equity before arriving at a reasonable investment decision.
Screening ParametersPrice to Book (common Equity) less than X-Industry Median: A lower P/B compared with the industry average implies that there is enough room for the stock to gain.
Price to Sales less than X-Industry Median: The P/S ratio determines how much the market values every dollar of the company’s sales/revenues — a lower ratio than the industry makes the stock attractive.
Price to Earnings using F(1) estimate less than X-Industry Median: The P/E ratio (F1) values a company based on its current share price relative to its estimated earnings per share — a lower ratio than the industry is considered better.
PEG less than 1: PEG links the P/E ratio to the future growth rate of the company. The PEG ratio portrays a more complete picture than the P/E ratio. A value of less than 1 indicates that the stock is undervalued, and investors need to pay less for a stock that has bright earnings growth prospects.
Current Price greater than or equal to $5: They must all be trading at a minimum of $5 or higher.
Average 20-Day Volume greater than or equal to 100,000: A substantial trading volume ensures that the stock is easily tradable.
Zacks Rank less than or equal to #2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
Value Score equal to A or B: Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best opportunities in the value investing space.
5 Low Price-to-Book StocksHere are five of the 14 stocks that qualified for the screening:
StoneCo provides financial technology solutions. The company offers an end-to-end cloud-based technology platform to conduct electronic commerce across in-store, online and mobile channels. StoneCo is based in Sao Paulo, Brazil.
STNE has a Zacks Rank #2 and a Value Score of A. STNE has a projected 3-5-year EPS growth rate of 23.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
USANA Health Sciences develops and manufactures high-quality nutritional, personal care and weight management products. USANA Health Sciences currently has a Zacks Rank #2 and a Value Score of A. USNA has a projected 3-5-year EPS growth rate of 12.0%.
Herndon, VA-based Strategic Education, through its subsidiaries Strayer University and New York Code and Design Academy (NYCDA), provides a range of post-secondary education and other academic programs in the United States. NYCDA is a New York City-based provider of web and application software development courses. Strategic Education has a projected 3-5-year EPS growth rate of 15%.
STRA currently has a Zacks Rank #2 and a Value Score of A.
Luxembourg City, Brazil-based Nexa Resources is an integrated zinc producer. It is engaged in developing and operating mining and smelting assets, primarily in Latin America. NEXA currently has a Value Score of A and a Zacks Rank #1. NEXA has a projected 3-5-year EPS growth rate of 15.7%.
Headquartered in Woonsocket, RI, CVS Health Corporation (formerly known as CVS Caremark Corporation) is a health solutions company with integrated offerings across the entire spectrum of pharmacy care.
CVS Health has a Zacks Rank #2 and a Value Score of A. CVS has a projected 3-5-year EPS growth rate of 13.7%.
Key Takeaways Prologis posted Q1 2026 core FFO of $1.50 per share, topping estimates on strong leasing activity.PLD raised its 2026 cash same-store NOI outlook after 66.7M square feet of leases commenced.Prologis started $1.3B in build-to-suit data center projects to expand beyond logistics real estate. Prologis, Inc. (PLD - Free Report) remains a scaled owner of infill logistics facilities that are central to modern distribution networks. Development, disciplined capital recycling and new strategic capital ventures extend the growth runway, while data centers and energy broaden the platform.
Last month, PLD posted first-quarter 2026 core funds from operations (FFO) per share of $1.50, up 5.6% from $1.42 a year ago. The figure beat the Zacks Consensus Estimate of $1.48 by 1.49%. Results were supported by robust leasing activity, while net earnings per share rose to $1.05 from 63 cents in the year-ago quarter.
While shares of this Zacks Rank #2 (Buy) REIT have rallied 15.6% over the past six months, outperforming the industry's growth of 7.9%, there is still room for further appreciation.
Image Source: Zacks Investment Research
Factors That Make Prologis Stock a Solid PickHealthy Operating Performance: Prologis’ infill portfolio remains attractive to distribution users because many sites are near major airports, seaports and ground transportation corridors. In first-quarter 2026, 66.7 million square feet of leases commenced across the owned and managed operating and development portfolio, and management described logistics lease signings of about 64 million square feet as a quarterly record.
Retention was 75.8%, and both average and period-end occupancy were 95.3%. Rent capture stayed positive, with net effective rent change of 31.9% and cash rent change of 16.8% on the Prologis share portfolio in the first quarter of 2026. Cash same-store NOI grew 8.8% in the quarter, and management raised its 2026 cash same-store NOI outlook to 6.25%-7%, supporting continued rent roll-up as leases reset.
Acquisitions & Development: Prologis continues to deploy capital through a mix of acquisitions, development and recycling, allowing it to shift spending as market pricing and funding costs change. In first-quarter 2026, Prologis’ share of acquisitions was $268 million at a 4.7% stabilized cap rate, while development starts were $1.78 billion and stabilizations were $1.11 billion at a 7.6% estimated yield and 34.8% estimated margin.
For 2026, management raised its outlook for development starts to $3.50-$4.50 billion and maintained acquisitions at $1.00 to $1.50 billion. Dispositions are still expected at $1.75 to $2.25 billion, which supports funding for new projects while limiting balance sheet strain.
Data Center Diversification: Prologis is expanding beyond traditional logistics real estate by scaling digital infrastructure that can be paired with its existing land positions. In first-quarter 2026, the company started $1.3 billion of build-to-suit data center developments, and management highlighted this activity as a step forward in building the platform. Data center demand is being shaped by cloud adoption and higher computing intensity. Management’s 2026 capital deployment plan includes data centers within development activity, reinforcing its commitment to scale this business line to diversify earnings.
Balance Sheet Strength and ROE: Prologis maintains a healthy balance sheet position with ample flexibility. As of March 31, 2026, this industrial REIT had a total available liquidity of $6.7 billion. As of the same date, the company's weighted average interest rate on its share of the total debt was 3.3%, with a weighted average term of 8.1 years. Debt to adjusted EBITDA was 4.8X. The company’s credit ratings as of were A2 (Outlook Stable) from Moody’s and A (Outlook Stable) from Standard & Poor’s, enabling PLD to borrow at an advantageous rate.
This REIT’s trailing 12-month return on equity (ROE) highlights its growth potential. The company’s ROE of 6.47% compares favorably with the industry’s 2.2%, reflecting that PLD is more efficient in using shareholders’ funds than its peers. Given its balance sheet strength and prudent financial management, the company is well-poised to capitalize on growth opportunities.
Dividend: Solid dividend payouts are arguably the biggest enticements for REIT shareholders, and Prologis remains committed to that. In February 2026, the company’s board hiked its quarterly dividend by 5.9% to $1.07 per share from $1.01 paid earlier, taking the annualized dividend to $4.28 per share. In the last five years, Prologis has increased its dividend five times, and its five-year annualized dividend growth rate is 11.09%. Given the company’s solid operating platform, opportunities for growth and decent financial position compared with the industry, this dividend rate is expected to be sustainable over the near term. Check Prologis’ dividend history here.
Other Stocks to ConsiderSome other top-ranked stocks from the broader REIT sector are Chatham Lodging Trust REIT (CLDT - Free Report) and American Tower (AMT - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for CLDT’s 2026 FFO per share is pegged at $1.27, which indicates year-over-year growth of 24.5%.
The consensus estimate for AMT’s full-year FFO per share is pinned at $10.95, which calls for a 1.8% increase from the year-ago period.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Backing founders at the forefront of a global transformation in maritime and logistics
NEW YORK--(BUSINESS WIRE)--TMV today announced the launch of TMV Logistics, LP, a $200M venture fund dedicated to maritime and logistics innovation and safety. The fund is anchored by strategic commitments from American Bureau of Shipping (ABS), the global leader in classification and technical advisory services and Prologis Ventures, the strategic investment arm of Prologis (NYSE: PLD), the world's leading logistics real estate company. TMV Logistics will back pre-seed through Series A companies rebuilding the core infrastructure of maritime, shipbuilding, ports, and intermodal logistics.
Investing in a Multi-Decade Maritime and Logistics Build Cycle
Across the global maritime industrial base, a generational shift is underway. Policy intent has moved into execution, with governments and industry aligning around the strategic importance of shipbuilding, shipping, and maritime infrastructure. This is catalyzing a new wave of company building with urgency and scale and accelerating rapid, system-wide scaling.
In the United States, federal shipbuilding investment is scaling rapidly, rising from $33.35B in FY2024 to $47.3B in FY2026, with a proposed $65.8B for FY2027. This mirrors a broader global trend, as leading maritime nations commit capital to modernize yards, expand fleets, and strengthen supply chains. International investment remains central, with more than $150B from South Korea and Japan supporting expanded shipbuilding capacity.
At the same time, ports and intermodal logistics networks face growing pressure to increase capacity amid geopolitical disruption, energy volatility, and labor constraints. These dynamics are accelerating adoption of automation, AI, robotics, and alternative energy systems, reshaping how global supply chains operate.
The TMV Maritime and Logistics fund will invest across five core technology themes:
Industrial-grade autonomy and operationally resilient systems Verticalized robotics for real-world deployment Operational AI for decision-making and orchestration Maritime dual-use technologies Energy transition and next-generation fuels Strategic Anchor Partners
“ABS has long believed that the future of maritime safety and performance will be shaped by closer collaboration with innovators at the frontier of technology,” said John McDonald, ABS Chairman and CEO. “Our partnership with TMV Logistics reflects that conviction. By combining ABS’s technical leadership with TMV’s early-stage access and ecosystem reach, we are positioning ourselves at the source of innovation that will define safer, more resilient, and higher-performing global fleets, shipyards, and maritime infrastructure.”
American Bureau of Shipping, founded in 1862, is a global leader providing classification, certification, and technical advisory services for marine and offshore assets, supporting governments and protecting critical infrastructure. With more than 160 years of maritime expertise and a global technical network, ABS brings a front-row seat to the most pressing innovation needs in maritime today.
“With a global footprint across logistics real estate, we see firsthand how constraints at ports and along maritime corridors ripple through the entire supply chain,” said Will O’Donnell, MD, Global Corporate Development; Growth, Prologis Ventures. “Investing in maritime innovation is a natural extension of our work to improve flow, visibility and efficiency from port to warehouse at global scale.”
Prologis, the world’s leading logistics real estate company with over $235 billion in assets under management, brings an unparalleled view of global supply chains from the warehouse floor to the port gate. As both an owner, operator and strategic investor, Prologis is uniquely positioned to support TMV’s efforts to connect its portfolio companies with companies, infrastructure, and pilot opportunities at scale.
Where Operators and Innovators Converge
“We’re in the foothills of a multi-decade rebuild of maritime and industrial infrastructure,” said Marina Hadjipateras, Co-Founder and a Managing Partner at TMV. “What’s changed is not just capital, but who is deploying it. Operators are no longer sitting on the sidelines– they’re using venture as a strategic tool. TMV Logistics sits at that intersection, backing the companies building the next layer of coordination, resilience, and capability across the global system.”
In addition to capital, anchor partners will serve as active strategic collaborators supporting diligence, shaping product development, and acting as potential customers, design partners, and ecosystem integrators for TMV’s portfolio companies.
"Maritime AI is a once-in-a-generation opportunity, and the companies being built right now will set the standards for the next fifty years. TMV brings over two decades of go-to-market expertise, deep commercial relationships, and a founder mentality that treats business development as a core competency. That combination is what turns early-stage bets into category leaders." said Soraya Darabi, Co-Founder and a Managing Partner, TMV.
Industry Advisors
TMV Logistics is supported by an advisory network spanning maritime infrastructure, ports, intermodal logistics, automation, and dual-use innovation. Advisors include senior leaders from ConGlobal, Fenix Marine Services, Maersk, Flexport, Dorian LPG, and the defense innovation ecosystem. Together, they provide TMV Logistics with deep operational expertise, strategic industry relationships, and real-time market insight that strengthen the fund’s sourcing, diligence, and portfolio support across the global maritime and logistics value chain.
ABOUT TMV
TMV is an early-stage venture firm investing in founders remaking the industries that move the world. Since its inception in 2016, TMV’s portfolio has grown to more than 50 investments across AI, healthcare, maritime, and logistics. With $230 million in assets under management, TMV’s portfolio companies have collectively raised more than $1 billion in follow-on funding. Visit www.tmv.vc to learn more.
ABOUT ABS
ABS is a global leader in classification and technical advisory services, dedicated to delivering a safer and cleaner future for the marine and offshore industries, serving governments and protecting critical infrastructure. For more than 160 years, ABS has set the standard for safety and excellence, continually innovating in fields such as digitalization, cybersecurity, clean technology, and artificial intelligence.
ABOUT PROLOGIS VENTURES
Prologis Ventures is the strategic investment arm of Prologis, the world’s leading logistics real estate company. With over $300M invested across 50+ portfolio companies, Prologis Ventures is at the forefront of supply chain innovation, backing disruptive technologies that address their customers' most pressing challenges. To learn more visit www.prologis.com/about/prologis-ventures.
, /PRNewswire/ -- Prologis, Inc. (NYSE: PLD) today announced that Dan Letter, chief executive officer, and Tim Arndt, chief financial officer, will present at REITWeek 2026 on Tuesday, June 2, at 11:00 a.m. ET.
Prologis' presentation will be broadcast live via audio webcast and an audio replay will be available thereafter. The live broadcast and replay can be accessed on https://ir.prologis.com/events-presentations.
About Prologis
The world runs on logistics. At Prologis, we don't just lead the industry, we define it. We create the intelligent infrastructure that powers global commerce, seamlessly connecting the digital and physical worlds. From agile supply chains to clean energy solutions, our ecosystems help your business move faster, operate smarter and grow sustainably. With unmatched scale, innovation and expertise, Prologis is a category of one – not just shaping the future of logistics but building what comes next. Learn more at Prologis.com.
Forward-Looking Statements
The statements in this document that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which we operate as well as management's beliefs and assumptions. Such statements involve uncertainties that could significantly impact our financial results. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," and "estimates" including variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future—including statements relating to rent and occupancy growth, acquisition and development activity, including data center developments and power procurement related thereto, contribution and disposition activity, general conditions in the geographic areas where we operate, expectations regarding new lines of business, our debt, capital structure and financial position, our ability to earn revenues from co-investment ventures, form new co-investment ventures and the availability of capital in existing or new co-investment ventures—are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and, therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) international, national, regional and local economic and political climates and conditions; (ii) changes in global financial markets, interest rates and foreign currency exchange rates; (iii) increased or unanticipated competition for our properties; (iv) risks associated with acquisitions, dispositions and development of properties, including the integration of the operations of significant real estate portfolios; (v) maintenance of Real Estate Investment Trust status, tax structuring and changes in income tax laws and rates; (vi) availability of financing and capital, the levels of debt that we maintain and our credit ratings; (vii) risks related to our investments in our co-investment ventures, including our ability to establish new co-investment ventures; (viii) risks of doing business internationally, including currency risks; (ix) environmental uncertainties, including risks of natural disasters; and (x) those additional factors discussed in reports filed with the Securities and Exchange Commission by us under the heading "Risk Factors." We undertake no duty to update any forward-looking statements appearing in this document except as may be required by law.
, /PRNewswire/ -- FIBRA Prologis (BMV: FIBRAPL14), a leading owner and operator of Class-A industrial real estate in Mexico, has acquired a building from Prologis located in the Toluca submarket of Greater Mexico City, for an aggregate purchase price of US$94 million, including closing costs. The building is 100% leased in dollars to a global e-commerce player.
"This acquisition reflects our continued focus on expanding our portfolio with high-quality assets in Mexico's most strategic and dynamic markets," said Héctor Ibarzabal, CEO, FIBRA Prologis. "By adding this facility, we are strengthening our presence in key logistics hubs."
ABOUT FIBRA PROLOGIS
FIBRA Prologis is a leading owner and operator of Class-A industrial real estate in Mexico. As of March 31, 2026, the company's portfolio comprised 516 Investment Properties, totaling 86.9 million square feet (8.1 million square meters). This includes 350 logistics and manufacturing facilities across 6 industrial core markets in Mexico, comprising 65.8 million square feet (6.1 million square meters) of Gross Leasing Area (GLA) and 166 buildings with 21.1 million square feet (1.9 million square meters) of non-strategic assets in other markets.
FORWARD-LOOKING STATEMENTS
The statements in this release that are not historical facts are forward-looking statements. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which FIBRA Prologis operates, management's beliefs and assumptions made by management. Such statements involve uncertainties that could significantly impact FIBRA Prologis financial results. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future — including statements relating to rent and occupancy growth, acquisition activity, development activity, disposition activity, general conditions in the geographic areas where we operate, our debt and financial position, are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) national, international, regional and local economic climates, (ii) changes in financial markets, interest rates and foreign currency exchange rates, (iii) increased or unanticipated competition for our properties, (iv) risks associated with acquisitions, dispositions and development of properties, (v) maintenance of real estate investment trust ("FIBRA") status and tax structuring, (vi) availability of financing and capital, the levels of debt that we maintain and our credit ratings, (vii) risks related to our investments, (viii) environmental uncertainties, including risks of natural disasters, (ix) risks related to the coronavirus pandemic, and (x) those additional factors discussed in reports filed with the "Comisión Nacional Bancaria y de Valores" and the Mexican Stock Exchange by FIBRA Prologis under the heading "Risk Factors." FIBRA Prologis undertakes no duty to update any forward-looking statements appearing in this release.
Non-Solicitation - Any securities discussed herein or in the accompanying presentations, if any, have not been registered under the Securities Act of 1933 or the securities laws of any state and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the Securities Act and any applicable state securities laws. Any such announcement does not constitute an offer to sell or the solicitation of an offer to buy the securities discussed herein or in the presentations, if and as applicable.
Key Takeaways Prologis is seen as the better REIT pick now, offering a stronger blend of quality and growth.Prologis had record leasing: 64M sq ft signed; cash same-store NOI 8.8%; occupancy 95.3%.Realty Income: 98.9% occupancy, 103.4% rent recapture, and 6.6% YoY AFFO/share growth in Q1. Realty Income (O - Free Report) and Prologis (PLD - Free Report) are two of the best-known REITs, but they give investors very different kinds of real estate exposure. Realty Income, often called “The Monthly Dividend Company,” is built around long-term net leases, a large retail-heavy portfolio and a steady monthly payout. Prologis, on the other hand, is the global leader in logistics real estate, with warehouses, distribution assets, data center opportunities and energy-related growth tied to modern supply chains.
This is a useful comparison for investors looking beyond the broad REIT label. Realty Income offers stability, diversification and income dependability. Prologis offers exposure to logistics demand, digital infrastructure and a development platform that can create value over time.
Both have scale, strong tenant relationships and access to capital, but their growth profiles are not the same. The better choice depends on whether an investor wants a steadier income story or a stronger long-term growth engine.
The Case for Realty IncomeRealty Income’s biggest strength is still its dependable business model. The company owned or held interests in more than 15,500 properties at the end of the first quarter of 2026, leased to 1,786 clients across 92 industries. This level of diversification helps reduce reliance on any single tenant, property type or market. Compared with Prologis, which is more focused on logistics real estate, Realty Income gives investors broader exposure across retail, industrial, gaming and other net lease categories.
The company also continues to deliver steady operating performance. In the first quarter, Realty Income reported 98.9% portfolio occupancy, a rent recapture rate of 103.4% on re-leased properties and 6.6% year-over-year AFFO per share growth. Those are solid numbers for a large, mature REIT. Realty Income also raised its 2026 AFFO per share guidance and increased its full-year investment volume outlook to $9.5 billion, showing that management still sees room to deploy capital at scale.
Another positive is Realty Income’s dividend record. The company has declared hundreds of consecutive monthly dividends and has increased its dividend for more than 31 straight years as a public company. For investors who mainly want predictable income, that consistency is hard to ignore. Prologis also pays a dividend, but Realty Income’s identity is more clearly built around monthly cash returns and a long history of dividend growth.
However, Realty Income’s growth profile is not as exciting as Prologis’. Same-store rental revenues increased only 0.8% in the first quarter, and its 2026 AFFO per share growth guidance points to a low-single-digit growth rate. Its private capital partnerships with Apollo and GIC, along with its U.S. Core Plus fund, could help over time, but the business still looks more like a steady income compounder than a faster-growing real estate platform.
The Case for PrologisPrologis stands out because it sits at the center of global logistics. The company owns or has investments in properties and development projects expected to total about 1.3 billion square feet across 20 countries, serving roughly 6,500 customers. Compared with Realty Income’s more diversified net lease model, Prologis has a sharper focus on warehouses and supply chain infrastructure, which remain critical to e-commerce, retail distribution, manufacturing and business-to-business activity.
Its first-quarter results showed that demand is still healthy. Prologis delivered record leasing, with 64 million square feet of lease signings and 66.7 million square feet of leases commenced across its operating and development portfolio. Occupancy was 95.3%, retention was 75.8%, and cash same-store NOI grew 8.8%. These figures compare well with Realty Income’s steadier but slower same-store rental revenue growth, and they point to stronger internal growth from Prologis’ existing portfolio.
Prologis also has a stronger development engine. During the quarter, it started $1.78 billion of development on its share, with an estimated value creation of $571 million from development starts. Its build-to-suit activity is especially important because it shows that large customers are still willing to commit to new space. Its broader platform includes logistics assets, data centers and energy. The data center angle is especially important, as Prologis has been advancing power-secured sites and build-to-suit projects tied to major technology demand. Realty Income is also deploying capital at scale, but Prologis has a more visible path to creating value through development.
The balance sheet and capital platform add another layer to the case. Realty Income has a solid balance sheet, supported by $3.9 billion of available liquidity, net debt to adjusted EBITDAre of 5.2X and strong investment-grade ratings. Prologis looks even stronger, with $6.7 billion of liquidity, debt-to-adjusted EBITDA of 4.8X, a 3.3% weighted average interest rate and an 8.1-year debt term. Both are well-positioned, but PLD has better financial flexibility.
Prologis also expanded its Strategic Capital platform through partnerships with GIC and La Caisse. Like Realty Income, Prologis is using private capital to grow, but PLD’s platform appears more directly tied to high-growth logistics, data center and energy opportunities.
How Do Estimates Compare for Realty Income & Prologis?The Zacks Consensus Estimate for Realty Income’s 2026 and 2027 sales implies year-over-year growth of 8.55% and 7.33%, respectively. The consensus mark for 2026 and 2027 funds from operations (FFO) per share suggests a year-over-year increase of 3.74% and 3.28%, respectively. Over the past month, estimates for O’s 2026 and 2027 FFO per share have been tweaked southward.
For Realty Income:
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Prologis’ 2026 and 2027 sales calls for year-over-year growth of 4.92% and 3.39%, respectively. The consensus estimates for both 2026 and 2027 FFO per share have been revised marginally upward over the past seven days. The figures suggest a year-over-year increase of 6.37% and 7.28%, respectively.
For Prologis:
Image Source: Zacks Investment Research
Price Performance and Valuation of O & PLDSo far in the year, Realty Income shares have risen 9.4%, while Prologis stock has rallied 14.1%. In comparison, the S&P 500 composite has advanced 10.4% in the same time frame.
Image Source: Zacks Investment Research
O is trading at a forward 12-month price-to-FFO, which is a commonly used multiple for valuing REITs, of 13.70X, which is above its three-year median.
Meanwhile, PLD is presently trading at a forward 12-month price-to-FFO of 22.94X, which is also above its three-year median of 20.81X. Both O and PLD carry a Value Score of D.
Image Source: Zacks Investment Research
Conclusion: PLD Has the EdgeRealty Income remains a strong REIT for investors who value monthly income, high occupancy and a diversified net lease portfolio. It is steady, proven and built for dependable cash flow. However, Prologis looks like the better stock to consider now for investors seeking a stronger blend of quality and growth. Its record leasing, stronger same-store NOI growth, global logistics footprint, development pipeline, and expanding data center and energy opportunities give it more ways to compound over time. Realty Income is the steadier income play, but Prologis has the more compelling long-term growth setup. Estimate revisions also suggest that Prologis stands out as the better REIT pick currently.
While PLD carries a Zacks Rank #2 (Buy), O has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Prologis (PLD - Free Report) closed at $143.47 in the latest trading session, marking a -1.49% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.22%. Meanwhile, the Dow gained 0.72%, and the Nasdaq, a tech-heavy index, added 0.21%.
Coming into today, shares of the industrial real estate developer had gained 2.55% in the past month. In that same time, the Finance sector gained 1.12%, while the S&P 500 gained 6.04%.
The investment community will be paying close attention to the earnings performance of Prologis in its upcoming release. The company is predicted to post an EPS of $1.54, indicating a 5.48% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.13 billion, up 5.17% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.18 per share and revenue of $8.56 billion, indicating changes of +6.37% and +4.92%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Prologis. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.16% higher. As of now, Prologis holds a Zacks Rank of #2 (Buy).
In terms of valuation, Prologis is currently trading at a Forward P/E ratio of 23.58. Its industry sports an average Forward P/E of 13.05, so one might conclude that Prologis is trading at a premium comparatively.
It's also important to note that PLD currently trades at a PEG ratio of 3.2. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The REIT and Equity Trust - Other industry had an average PEG ratio of 2.48 as trading concluded yesterday.
The REIT and Equity Trust - Other industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 39% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
The First Trust S&P REIT Index Fund (NYSEARCA:FRI) gives investors exposure to American commercial real estate cash flow without picking between malls, warehouses, and senior living towers. Because REITs must distribute at least 90% of taxable income, FRI’s payout rises and falls with rent collected by underlying companies. The question for income investors is whether those rent rolls, concentrated in a handful of large names, can sustain payouts in a 4.4% 10-year Treasury world where refinancing rates sit in the 86th percentile of the past year.
How the rent flows into your account FRI is a plain pass-through vehicle with no options overlay, leverage, or synthetic credit reach. Its distribution equals whatever REIT holdings pay, net of a small expense drag. Dividend safety collapses into one question: are payouts from top constituents covered by real cash flow, and can those balance sheets absorb the current refinancing curve, which now prices 10-year money near 4.5% and 30-year money near 5%? Coverage and leverage drive the verdict.
The six names that carry the distribution Welltower (NYSE:WELL | WELL Price Prediction) is the heaviest weight at roughly $152 billion. Q1 normalized FFO of $1.47 per share against a $0.74 quarterly dividend yields roughly 2x coverage, and management declared its 220th consecutive quarterly payment while raising 2026 FFO guidance to $6.21 to $6.35. Senior management bought shares in February under long-term plans, 33 acquisitions against 2 disposals. This dividend carries minimal risk.
Prologis (NYSE:PLD) covers its $1.07 quarterly dividend with $1.50 Q1 Core FFO, debt-to-EBITDA improved to 4.8x from 5.3x, and a 5.6GW data center power pipeline that monetizes the same land base twice. Simon Property Group (NYSE:SPG) raised its quarterly payout 7% to $2.25, with Real Estate FFO of $3.17 per share and mall occupancy at 96%. Digital Realty Trust (NYSE:DLR) generated $2.04 Core FFO against a $4.88 annual dividend, with the largest hyperscale AI inference lease ever signed behind the guide raise. Coverage is comfortable across all three.
The two names worth scrutinizing are the leveraged ones. Realty Income yields 5.2% and trades at a forward earnings multiple of 39, but the income story rests on AFFO of $1.13 per share covering an annualized $3.25 dividend, roughly 1.4x. Net debt to EBITDA of 5.2x, interest coverage of 1.47x, and $471 million in 2025 impairments mean cushion is real but thin. The monthly cadence holds at 670 consecutive payments, but a rerun of 2022’s rate shock would compress the spread between new investments and borrowing costs that fund the raises.
Iron Mountain is the structural outlier. AFFO covers the $0.86 quarterly dividend at about 1.68x, and data center revenue grew 47%. The balance sheet carries negative stockholders equity of $938 million, $17.1 billion in debt, and interest expense up 15% year over year. CEO William Meaney sold over 256,000 shares on March 1 alone at $108. The dividend is covered today; refinancing math is the variable.
Price versus payout Total return has done the heavy lifting. Welltower is up 18% year to date, Digital Realty up 27%, and Iron Mountain up 53%. Only Realty Income lagged the cohort with a 1.5% one-month decline. Investors are not collecting yield from a sinking NAV, which matters because FRI’s income story dies when capital losses overwhelm the distribution.
The verdict FRI’s distribution looks safe in 2026. All six largest constituents raised full-year guidance, each covers its dividend with FFO or AFFO, and the Fed’s 75 basis points of cuts since September 2025 have eased refinancing pressure. The real risk lives at the tail: Realty Income’s leverage spread and Iron Mountain’s negative equity make the back end of the index more rate-sensitive than the headline yield suggests. For investors focused on diversified REIT income, FRI spreads single-name balance sheet risk across the cohort; investors more focused on dividend growth quality will find that concentration sits in Welltower, Prologis, and Simon.
On June 02, 2026, we present a DCF analysis for Prologis Inc PLD , a leading logistics real estate investment trust. The company has experienced a price performance of +32.5% over the past year, despite a recent decline of -4.7% in the past week. Here are some key points to consider:
DCF Earnings-based intrinsic value of $68.98 vs current price of $139.02 (margin of safety: -101.5%) DCF FCF-based intrinsic value of $89.98 vs current price (second opinion: -54.5% margin of safety) GF Score™ of 91/100 indicates strong reliability of the DCF inputs What Is PLD Worth? DCF Earnings-Based Model The DCF earnings-based model for Prologis Inc estimates the intrinsic value of the stock using a two-stage growth model. In the first stage, we project earnings growth for the next ten years, followed by a terminal growth phase. The assumptions used in this model are outlined in the table below:
Parameter Value Current EPS (TTM, excl. non-recurring) $2.65 10-Year Growth Rate 17.3% 10-Year Treasury Rate 4.43% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the first ten years, we expect the EPS to grow at a rate of 17.3% per year, which is then discounted at a rate of 11%. The calculated value for this growth stage is $36.30 per share. After this growth phase, we apply a terminal growth rate of 4% for the next ten years, also discounted at 11%, resulting in a terminal stage value of $32.68 per share. The summary of these calculations is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 17.3%, discounted at 11% $36.30 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $32.68 Intrinsic Value Growth + Terminal $68.98 With the current price standing at $139.02, the intrinsic value of $68.98 indicates that the stock is significantly overvalued, with a margin of safety of -101.5%. It is important to note that GuruFocus utilizes EPS excluding non-recurring items, as research shows that stock prices correlate more closely with earnings than with free cash flow. For further details, you can access the PLD DCF Calculator.
What Does the Free Cash Flow DCF Say? In addition to the earnings-based DCF model, we also consider the free cash flow (FCF) DCF model. The FCF-based intrinsic value for Prologis Inc is calculated at $89.98 per share. When comparing this value with the earnings-based intrinsic value of $68.98, we find that both models suggest the stock is overvalued, albeit to different extents. The FCF model indicates a margin of safety of -54.5%, which is classified as modestly overvalued.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for Prologis Inc is calculated at $132.36, providing a third perspective on the valuation. GF Value™ is GuruFocus' proprietary measure derived from historical trading multiples, past business growth, and future performance estimates. When we analyze the three valuation models—DCF earnings, DCF FCF, and GF Value™—we see that they all indicate the stock is overvalued. For more information, visit the GF Value™ page.
What Does PLD's GF Score™ Tell Us? The GF Score™ ranks stocks on a scale from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Higher GF Score™ values are associated with better long-term returns, as evidenced by backtesting from 2006 to 2021. The GF Score™ for Prologis Inc is 91/100, indicating a strong investment profile. Below is a summary of the GF Score™ metrics:
Metric Rating GF Score™ 91/100 Financial Strength 5/10 Profitability 8/10 Growth 10/10 Valuation 7/10 Momentum 8/10 With a predictability rank of 1/5 stars, it is essential to note that higher predictability ratings lead to more reliable DCF estimates. For additional insights, visit the PLD stock page.
Key Assumptions and Limitations It is important to recognize that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with low predictability ratings, such as Prologis Inc's 1/5 stars, tend to produce less reliable DCF estimates. The terminal growth rate of 4% used in our calculations is a simplifying assumption that may not reflect future market conditions accurately.
What This Means for Investors In summary, the three valuation models—DCF earnings, DCF FCF, and GF Value™—all indicate that Prologis Inc is overvalued at its current price of $139.02. The earnings-based intrinsic value of $68.98 and the FCF-based intrinsic value of $89.98 suggest a significant disparity from the market price. Therefore, investors should exercise caution. For the full DCF analysis, visit the PLD DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is PLD's intrinsic value based on DCF?
[Answer: earnings-based $68.98, FCF-based $89.98]
Is PLD overvalued or undervalued?
[Answer using DCF + GF Value™ consensus]
How reliable is the DCF model for PLD?
[Answer using predictability rank 1/5]
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
The Finance group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Prologis (PLD - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Finance sector should help us answer this question.
Prologis is a member of our Finance group, which includes 831 different companies and currently sits at #6 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Prologis is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for PLD's full-year earnings has moved 0.7% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, PLD has moved about 10% on a year-to-date basis. Meanwhile, stocks in the Finance group have gained about 0.9% on average. As we can see, Prologis is performing better than its sector in the calendar year.
Another Finance stock, which has outperformed the sector so far this year, is Acadia Realty Trust (AKR - Free Report) . The stock has returned 6.7% year-to-date.
The consensus estimate for Acadia Realty Trust's current year EPS has increased 0.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Prologis is a member of the REIT and Equity Trust - Other industry, which includes 90 individual companies and currently sits at #85 in the Zacks Industry Rank. This group has gained an average of 9.1% so far this year, so PLD is performing better in this area.
Acadia Realty Trust, however, belongs to the REIT and Equity Trust - Retail industry. Currently, this 19-stock industry is ranked #107. The industry has moved +17.2% so far this year.
Going forward, investors interested in Finance stocks should continue to pay close attention to Prologis and Acadia Realty Trust as they could maintain their solid performance.
Prologis (PLD - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for Prologis basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
For Prologis, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for PrologisFor the fiscal year ending December 2026, this industrial real estate developer is expected to earn $6.18 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for Prologis. Over the past three months, the Zacks Consensus Estimate for the company has increased 0.7%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Prologis to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Let's take a look at what these Wall Street heavyweights have to say about Prologis (PLD - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Prologis currently has an average brokerage recommendation (ABR) of 1.78, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 23 brokerage firms. An ABR of 1.78 approximates between Strong Buy and Buy.
Of the 23 recommendations that derive the current ABR, 14 are Strong Buy, representing 60.9% of all recommendations.
Brokerage Recommendation Trends for PLD
Check price target & stock forecast for Prologis here>>>
The ABR suggests buying Prologis, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is PLD a Good Investment?Looking at the earnings estimate revisions for Prologis, the Zacks Consensus Estimate for the current year has increased 0.2% over the past month to $6.18.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Prologis. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Prologis may serve as a useful guide for investors.
, /PRNewswire/ -- Prologis, Inc. (NYSE: PLD) will host a webcast and conference call with senior management to discuss its second quarter results, current market conditions and future outlook on Thursday, July 16, 2026, at 9:00 a.m. PT/12:00 p.m. ET.
To access a live broadcast of the call, please dial +1 (877) 897-2615 (toll-free from the United States and Canada) or +1 (201) 689-8514 (from all other countries). A live webcast can be accessed from the Investor Relations section of www.prologis.com.
A telephonic replay will be available July 16 - July 30 at +1 (877) 660-6853 (from the United States and Canada) or +1 (201) 612-7415 (from all other countries) using access code 13757425. The webcast replay will be posted in the Investor Relations section of www.prologis.com under "Events & Presentations."
About Prologis
The world runs on logistics. At Prologis, we don't just lead the industry, we define it. We create the intelligent infrastructure that powers global commerce, seamlessly connecting the digital and physical worlds. From agile supply chains to clean energy solutions, our ecosystems help your business move faster, operate smarter and grow sustainably. With unmatched scale, innovation and expertise, Prologis is a category of one–not just shaping the future of logistics but building what comes next. Learn more at Prologis.com.
Forward-Looking Statements
The statements in this document that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which we operate as well as management's beliefs and assumptions. Such statements involve uncertainties that could significantly impact our financial results. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," and "estimates" including variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future—including statements relating to rent and occupancy growth, acquisition and development activity, including data center developments and power procurement related thereto, contribution and disposition activity, general conditions in the geographic areas where we operate, expectations regarding new lines of business, our debt, capital structure and financial position, our ability to earn revenues from co-investment ventures, form new co-investment ventures and the availability of capital in existing or new co-investment ventures—are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and, therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) international, national, regional and local economic and political climates and conditions; (ii) changes in global financial markets, interest rates and foreign currency exchange rates; (iii) increased or unanticipated competition for our properties; (iv) risks associated with acquisitions, dispositions and development of properties, including the integration of the operations of significant real estate portfolios; (v) maintenance of Real Estate Investment Trust status, tax structuring and changes in income tax laws and rates; (vi) availability of financing and capital, the levels of debt that we maintain and our credit ratings; (vii) risks related to our investments in our co-investment ventures, including our ability to establish new co-investment ventures; (viii) risks of doing business internationally, including currency risks; (ix) environmental uncertainties, including risks of natural disasters; and (x) those additional factors discussed in reports filed with the Securities and Exchange Commission by us under the heading "Risk Factors." We undertake no duty to update any forward-looking statements appearing in this document except as may be required by law.
In the latest close session, Prologis (PLD - Free Report) was up +1.39% at $143.79. This move outpaced the S&P 500's daily gain of 0.41%. On the other hand, the Dow registered a gain of 1.73%, and the technology-centric Nasdaq decreased by 0.09%.
Heading into today, shares of the industrial real estate developer had lost 0.76% over the past month, lagging the Finance sector's gain of 0.2% and the S&P 500's gain of 4.59%.
Analysts and investors alike will be keeping a close eye on the performance of Prologis in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.54, marking a 5.48% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.13 billion, indicating a 5.17% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.18 per share and a revenue of $8.56 billion, signifying shifts of +6.37% and +4.92%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Prologis. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.16% higher. At present, Prologis boasts a Zacks Rank of #2 (Buy).
In terms of valuation, Prologis is presently being traded at a Forward P/E ratio of 22.96. This expresses a premium compared to the average Forward P/E of 12.52 of its industry.
One should further note that PLD currently holds a PEG ratio of 3.12. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the REIT and Equity Trust - Other industry had an average PEG ratio of 2.51.
The REIT and Equity Trust - Other industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 89, finds itself in the top 37% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
The Columbia Research Enhanced Real Estate ETF (NYSEARCA:CRED) pays a 3.64% distribution funded by the dividends of its underlying REITs, and that yield is the entire reason most income investors are looking at it. CRED is a small, rules-based fund that has paid quarterly since its April 28, 2023 inception, and the question worth answering is whether the income stream behind that 3.6% number is actually durable.
How CRED Generates Its Distribution CRED is a passive ETF that tracks the FTSE NAREIT All Equity REITs Index methodology after screening out the bottom performers, which leaves it concentrated in the largest, highest-quality U.S. REITs. The fund’s distribution is simply the pass-through of dividends paid by its holdings, minus the 0.33% expense ratio. There are no options premiums, no leverage, and no return-of-capital gimmicks. If the underlying REITs keep paying, CRED keeps paying.
That means dividend safety here is really a question about four or five companies. The top weights are Prologis at 12%, Equinix at 10%, Simon Property Group at 8%, American Tower at 8%, and Digital Realty at 6%. Together they drive roughly 45% of CRED’s income.
What the Top Holdings Are Actually Paying With Prologis (NYSE:PLD | PLD Price Prediction) is the cleanest piece of the portfolio. Q1 2026 Core FFO came in at $1.50 per share against a $1.07 dividend, a payout ratio near 70%. Management raised full-year guidance to $6.07 to $6.23, leverage improved to 4.8x debt-to-EBITDA, and same-store NOI grew 9%. The dividend has risen every year from $0.48 quarterly in 2018 to $1.07 today. This is as safe as REIT income gets.
Equinix is the wrinkle. The data center REIT just raised its dividend 10% to $5.16 quarterly, its 11th straight year of growth, and 2026 AFFO per share guidance of $41.93 to $42.74 covers the roughly $20.64 annualized payout almost twice over. Yet free cash flow was negative $2.57 billion in 2025 because Equinix is spending more than $4 billion a year building AI-driven capacity, and total debt climbed to $21.4 billion from $17.6 billion. AFFO covers the dividend; the growth is being funded with capital markets access. If credit conditions tighten meaningfully, that calculus changes.
American Tower raised its dividend to $1.79 in Q1, with 2026 AFFO guidance of $10.90 to $11.07 per share against an annualized $7.16 payout, a roughly two-thirds payout ratio. 4.9x net leverage leaves modest cushion at current rates, but Q1 free cash flow of $941 million easily funds the distribution.
Simon Property Group just lifted its dividend 7% to $2.25, with 2026 Real Estate FFO guidance of $13.10 to $13.25. Occupancy is 96% and tenant sales hit $819 per square foot. The retail-tenant risk is real in a downturn, but coverage today is comfortable at a 68% payout.
Top Holdings at a Glance Prologis — industrial/logistics REIT with the strongest coverage in the portfolio. Equinix — data center REIT; AFFO covers dividend but capex is heavy. American Tower — cell towers plus data centers; two-thirds AFFO payout. Simon Property Group — mall/retail REIT; comfortable coverage with cyclical risk. Digital Realty — data center REIT rounding out the top weights. Total Return Reality Check A 3.6% yield does not matter if NAV erodes. CRED has held up: shares are up 12% year-to-date and total return since inception is about 33%. The 10-year Treasury near 4.5% is the main pressure point, since higher rates compress REIT valuations and raise refinancing costs.
The Verdict CRED’s distribution is safe in the sense that matters: every major holding generates FFO or AFFO that comfortably covers its dividend, and most are still raising payouts. The structural caveat is that CRED’s $3.38 million in AUM is extremely small, which raises closure risk independent of dividend safety. Income investors who want the same exposure with deeper liquidity should look at Vanguard Real Estate ETF (NYSEARCA:VNQ), which holds many of the same names at a lower expense ratio. CRED’s income is durable. The fund itself is the smaller question.
Key Takeaways Prologis gets the edge over Federal Realty for scale, resilience and broader growth potential.Prologis is expanding beyond logistics with data centers and a 5.6-gigawatt power pipeline.Federal Realty shows strong leasing and 58 years of dividend hikes, but has a narrower runway. Prologis (PLD - Free Report) and Federal Realty (FRT - Free Report) give investors two very different ways to own real estate. Prologis is tied to logistics, e-commerce, supply chains, data centers and energy infrastructure. Federal Realty banks on open-air retail, mixed-use neighborhoods and high-income consumers.
Both are large, seasoned REITs with strong brands in their markets, and both entered 2026 with better operating momentum than many investors might have expected.
The comparison is useful because each company is leaning on a different long-term need. Prologis benefits when companies need modern distribution space close to customers, and it is adding new growth lanes around power and digital infrastructure. Federal Realty benefits when retailers want productive locations in affluent, dense trade areas. That makes this less of a simple warehouse-versus-shopping-center debate and more of a question about durability, growth options and execution.
The Case for PrologisPrologis starts with scale, which is very difficult to match. Its portfolio spans about 1.3 billion square feet across 20 countries and serves roughly 6,500 customers. The scale matters because logistics tenants often need a global partner, not just a local landlord. It also gives PLD broader customer insight across supply chains, e-commerce and business-to-business demand.
The latest operating numbers support that advantage. Prologis reported record leasing, with 66.7 million square feet of leases commenced in the quarter and 75.8% retention. Its average occupancy was 95.3% on an owned and managed basis, while cash same-store NOI rose 8.8%. Federal Realty also showed solid leasing, but PLD’s operating base is far larger and tied to the essential movement of goods.
Prologis also has more visible growth channels beyond its core warehouse business. The company is scaling data centers, with major build-to-suit starts, and has a 5.6-gigawatt power pipeline. This gives PLD exposure to cloud computing, artificial intelligence and grid-constrained energy demand, areas that can expand its opportunity set beyond traditional logistics.
The balance sheet adds another reason to favor PLD. The company reported about $6.7 billion of available liquidity, a debt-to-adjusted EBITDA of 4.8 times and a weighted average term of 8.1 years. It also raised its 2026 core FFO outlook and same-store NOI guidance.
Compared with Federal Realty, PLD offers a broader platform, stronger infrastructure angles and more paths to compound growth. The combination gives investors confidence through changing cycles, while FRT remains more concentrated in one property type and consumer channel overall.
The Case for Federal RealtyFederal Realty’s main appeal is the quality and focus of its retail real estate. The company owns 104 properties with 29.0 million commercial square feet, about 3,800 tenants and roughly 2,500 residential units. Its best-known destinations, including Santana Row, Pike & Rose and Assembly Row, are built around dense, higher-income communities where retailers want long-term presence.
The first-quarter results were encouraging. Federal Realty generated core FFO per share growth of 10.6% year over year, signed a first-quarter record 649,078 square feet of comparable retail leases and delivered 13% cash rent growth on those leases. Its 96.1% leased rate shows that retailers still want space in its centers, especially where income levels and traffic are strong.
Federal Realty also stands out for consistency. Its portfolio was 96.1% leased at quarter-end, and the company raised its 2026 core FFO outlook. It has also increased its dividend for 58 straight years, the longest streak in the REIT industry. For investors who like retail real estate, that record speaks to the durability of the platform and management’s long-term discipline.
The drawback is that Federal Realty’s growth runway looks narrower than Prologis’. Retail demand is healthy in its best markets, but the business is still tied to consumer spending, tenant health and redevelopment execution. Occupancy was 93.8%, below PLD’s level, and FRT’s risks include tenant failures, vacancies and higher project costs. PLD has those real estate risks, too, but its demand drivers look broader. This matters when choosing between durable growth options.
How Do Estimates Compare for PLD & FRT?The Zacks Consensus Estimate for Prologis’ 2026 and 2027 sales implies year-over-year growth of 4.92% and 3.39%, respectively. The consensus mark for 2026 and 2027 funds from operations (FFO) per share has been revised higher, suggesting year-over-year growth of 6.37% and 7.28%, respectively.
Estimates for Prologis:
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Federal Realty’s 2026 and 2027 sales indicates year-over-year growth of 6.26% and 4.39%, respectively. The consensus mark for 2026 and 2027 FFO per share has been revised upward over the past month, and the figures suggest year-over-year increases of 4.02% and 4.82%, respectively.
Estimates for Federal Realty:
Image Source: Zacks Investment Research
Price Performance & Valuation of PLD & FRTSo far in the quarter, Prologis shares have gained 11.4%, and Federal Realty stock has rallied 17.4%.
Image Source: Zacks Investment Research
PLD is trading at a forward 12-month price-to-FFO, which is a commonly used multiple for valuing REITs, of 23.08X, which is above its one-year median of 20.81X.
FRT is presently trading at a forward 12-month price-to-FFO of 16.25X, which is also above its one-year median of 14.46X.
Image Source: Zacks Investment Research
Conclusion: PLD Has the EdgeFederal Realty is a high-quality REIT with a strong retail portfolio, proven leasing power and an unmatched dividend record. It is not a weak competitor in this face-off. Still, Prologis looks like the better stock to consider. PLD’s logistics platform is much larger, its customer base is more global, and its growth strategy reaches into data centers and energy infrastructure.
PLD also combines strong occupancy, cash same-store NOI growth, liquidity and raised guidance. For investors choosing between the two, Prologis offers the better mix of scale, resilience, execution and future growth potential across cycles, especially as supply chains evolve globally.
Currently, PLD and FRT each carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
April 30, 2026 09:30 ET | Source: Aecon Group Inc.
TORONTO, April 30, 2026 (GLOBE NEWSWIRE) -- Aecon Group Inc. (TSX: ARE) (“Aecon”) announced today that Hamilton LRT Civil & Utilities Alliance has been selected by Metrolinx as the development partner for the Hamilton LRT Civil and Utilities Works project in Ontario. Under the alliance, Metrolinx is the project owner, Aecon is the construction partner responsible for project delivery, and a joint venture between Hatch, Egis and Systra is the design partner.
Hamilton LRT Civil & Utilities Alliance has executed an alliance development phase agreement with Metrolinx to collaboratively negotiate scope, cost, and schedule of various elements of the project. The development phase will be approximately 18 to 24 months and will be followed by the construction implementation phase.
The Hamilton LRT will bring 14 kilometres of modern, reliable and frequent LRT service across Hamilton’s downtown core from McMaster University to Eastgate, with connections to key destinations and institutions along the corridor. The 17-stop LRT line will also feature connections to GO Transit and Hamilton’s HSR bus service.
“Aecon’s experience building some of the most transformative transit projects of this generation, including three modern LRTs in Ontario, will be of great value to this critical project for Hamilton,” said Jean-Louis Servranckx, President and Chief Executive Officer, Aecon Group Inc. “We are harnessing the collective strengths of our civil and utilities teams to self-perform this vital project. The collaborative development phase provides benefits to all stakeholders, and we look forward to working with our client to advance this project that will improve mobility for growing communities.”
Further information about the project is available on the Metrolinx website.
About Aecon
Aecon Group Inc. (TSX: ARE) is a North American construction and infrastructure development company with global experience. Aecon delivers integrated solutions to private and public-sector clients through its Construction segment in the Civil, Urban Transportation, Nuclear, Utility and Industrial sectors, and provides project development, financing, investment, management, and operations and maintenance services through its Concessions segment. Join our online community on X, LinkedIn, Facebook, and Instagram @AeconGroupInc.
For further information:
Adam Borgatti
SVP, Corporate Development and Investor Relations
416-297-2600 [email protected]
The information in this press release includes certain forward-looking statements which may constitute forward-looking information under applicable securities laws. These forward-looking statements are based on currently available competitive, financial and economic data and operating plans but are subject to risks and uncertainties. Forward-looking statements may include, without limitation, statements regarding the operations, business, financial condition, expected financial results, performance, prospects, ongoing objectives, strategies and outlook for Aecon, including statements regarding the various phases of the project and expectations regarding project timelines, and the anticipated mobility benefits for the communities. Forward-looking statements may in some cases be identified by words such as "may," "will," "expects," "target," "future," "plans," "believes," "anticipates," "estimates," "projects," "intends," "should" or the negative of these terms, or similar expressions.
In addition to events beyond Aecon's control, there are factors which could cause actual or future results, performance or achievements to differ materially from those expressed or inferred herein including, but not limited to, the risk of not being able to meet contractual schedules and other performance requirements, the risks associated with a third party’s failure to perform; the risk of not being able to meet its labour needs at reasonable costs; the risk of not being able to address any supply chain issues which may arise; the risk of the anticipated benefits from the project not being fully realized; and the risk of not being able to complete the collaborative development phase and construction implementation phase as anticipated. These forward-looking statements are based on a variety of factors and assumptions including but not limited to that: none of the risks identified above materialize, there are no unforeseen changes to economic and market conditions, and no significant events occur outside the ordinary course of business. These assumptions are based on information currently available to Aecon, including information obtained from third-party sources. While Aecon believes that such third-party sources are reliable sources of information, Aecon has not independently verified the information. Aecon has not ascertained the validity or accuracy of the underlying economic assumptions contained in such information from third-party sources and hereby disclaims any responsibility or liability whatsoever in respect of any information obtained from third-party sources.
Risk factors are discussed in greater detail in Section 13 - "Risk Factors" in Aecon’s 2025 Management’s Discussion and Analysis for the fiscal year ended December 31, 2025, and in Aecon’s Management’s Discussion and Analysis for the fiscal quarter ended March 31, 2026, filed on SEDAR+ (www.sedarplus.ca). Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Aecon undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
PASADENA, Calif., May 6, 2026 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE), the first, preeminent, longest-tenured and pioneering owner, operator and developer of collaborative Megacampus™ ecosystems in AAA life science and advanced technology innovation cluster locations, today announced that Joel S.
TORONTO, May 08, 2026 (GLOBE NEWSWIRE) -- Aecon Group Inc. (TSX: ARE) (“Aecon”) announced today that Chairman John M. Beck will not stand for re-election to Aecon’s Board of Directors at the Annual Meeting of Shareholders on June 1, 2026 (the “AGM”). As part of the transition, Scott Thon, Lead Director, will step into the role of independent Chair of the Board, assuming his re-election to the Board by Shareholders at the AGM.
In recognition of his dedicated service and contributions to Aecon’s success over his 60-year career, the Board will confer upon John the title of “Chairman Emeritus.”
“Serving Aecon throughout my career has been a tremendous point of pride, and helping to shape the company’s evolution has been a true honour,” said John M. Beck, Chairman, Aecon Group Inc. “I thank our shareholders for their trust, Aecon’s talented leadership team for their commitment, and our employees for their collective contributions over the years. I firmly believe that Aecon is stronger than ever before, and I am confident Scott Thon and the Board of Directors will guide Aecon’s strategic growth to deliver lasting value to shareholders in the years to come.”
“John has overseen Aecon’s strategic direction and operations for over six decades, providing exceptional leadership through significant transformation and growth. His vision has delivered some of the most remarkable landmark projects of this generation,” said Scott Thon, Lead Director, Aecon Group Inc. “Throughout his award-winning career, John has established a world-class company with a distinguished reputation as an industry icon. John’s legacy will forever be linked to Aecon’s success. Personally, and on behalf of the entire Board of Directors, I want to thank John for his vast contributions to our customers, employees and shareholders.”
After graduating from McGill University’s Civil Engineering program in 1963, John joined his family’s Prefac Concrete business in Montreal and embarked on a strategy of mergers, acquisitions and organic growth that grew the scale, geographic presence and market diversity of the business across Canada. After acquiring the company’s brand predecessor, Armbro, the company was listed on the Toronto Stock Exchange in 1987. In 2001, Armbro officially changed its name to Aecon, amalgamating several acquired businesses. Mr. Beck has guided Aecon over the years in its evolution as a diverse and multidisciplinary North American company with global expertise – serving as Founder, former Chief Executive Officer and Executive Chairman.
“John is a trailblazer in our industry. His mentorship, counsel and deep expertise have been invaluable to me – and continuing to lead this exceptional company is my distinct privilege,” said Jean-Louis Servranckx, President and Chief Executive Officer, Aecon Group Inc. “On behalf of Aecon’s executive management team, I congratulate John on his extraordinary career as he transitions to Chairman Emeritus. Aecon looks forward to continuing to execute our growth strategy to advance our evolution.”
Mr. Thon joined Aecon’s Board in 2021 and has served as Lead Director since 2024. He has held a number of senior positions in the energy sector over the last 40 years, and is currently an executive officer and director of Berkshire Hathaway Energy.
About Aecon
Aecon Group Inc. (TSX: ARE) is a North American construction and infrastructure development company with global experience. Aecon delivers integrated solutions to private and public-sector clients through its Construction segment in the Civil, Urban Transportation, Nuclear, Utility and Industrial sectors, and provides project development, financing, investment, management, and operations and maintenance services through its Concessions segment. Join our online community on X, LinkedIn, Facebook, and Instagram @AeconGroupInc.
For further information:
Adam Borgatti
SVP, Corporate Development and Investor Relations
416-297-2600 [email protected]
The information in this press release includes certain forward-looking statements. These forward-looking statements are based on currently available competitive, financial and economic data and operating plans but are subject to risks and uncertainties as discussed in greater detail in Section 13 – “Risk Factors” in Aecon’s 2025 Management’s Discussion and Analysis for the fiscal year ended December 31, 2025, and in Aecon’s Management’s Discussion and Analysis for the fiscal quarter ended March 31, 2026, filed on SEDAR+ (www.sedarplus.ca). Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Aecon undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
Investors in Alexandria Real Estate Equities, Inc. (ARE - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Jul 17, 2026 $32.50 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for Alexandria Real Estate Equities shares, but what is the fundamental picture for the company? Currently, Alexandria Real Estate Equities is a Zacks Rank #3 (Hold) in the REIT and Equity Trust – Other industry that ranks in the Top 24% of our Zacks Industry Rank. Over the last 60 days, the Zacks Consensus Estimate for the current quarter has moved from $1.62 per share to $1.63 in that period.
Given the way analysts feel about Alexandria Real Estate Equities right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
, /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE) today announced that the company will conduct a conference call and audio webcast on Tuesday, August 4, 2026 at 2:00 p.m. Eastern Time (ET), in conjunction with the release of its second quarter 2026 operating and financial results. Alexandria will release its operating and financial results after the market closes on Monday, August 3, 2026.
To participate in this conference call, dial (833) 366-1125 (U.S./Canada) or (412) 902-6738 (international) shortly before 2:00 p.m. ET and ask the operator to join the call for Alexandria Real Estate Equities, Inc. The live audio webcast can be accessed on the company's website at http://investor.are.com/webcasts. A replay of the call will be available from 4:00 p.m. ET on Tuesday, August 4, 2026 through 4:00 p.m. ET on Tuesday, August 11, 2026. To access the replay, dial (855) 669-9658 (U.S./Canada) or (412) 317-0088 (international) and enter access code 5367901.
About Alexandria Real Estate Equities, Inc.
Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500® company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. With our founding in 1994, Alexandria pioneered the life science real estate niche. Alexandria is the preeminent and longest-tenured owner, operator and developer of collaborative Megacampus™ ecosystems in AAA life science innovation cluster locations, including Greater Boston, the San Francisco Bay Area, San Diego, Seattle, Maryland, Research Triangle and New York City. For more information, please visit www.are.com.
It has been about a month since the last earnings report for Alexandria Real Estate Equities (ARE - Free Report) . Shares have added about 20% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Alexandria Real Estate Equities 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.
Alexandria’s Q1 FFO Meets Estimates, Revenues Top on Tenant CollectionsAlexandria Real Estate Equities reported first-quarter 2026 AFFO per share of $1.73, in line with the Zacks Consensus Estimate. The metric declined 24.8% from $2.30 in the year-ago quarter.
Total revenues came in at $671.0 million, down 11.5% year over year. The top line edged past the Zacks Consensus Estimate, delivering a revenue surprise of 0.35%. Results reflected solid tenant collections and continued leasing activity during the quarter.
Alexandria’s Leasing Volume Stays Active in Q1During the quarter, Alexandria executed 647,356 RSF of leasing, led by 380,687 RSF of renewals and re-leasing. Leasing of previously vacant space totaled 148,734 RSF, while development and redevelopment leasing contributed 117,935 RSF.
Management also highlighted momentum after quarter-end, noting executed leases and/or letters of intent aggregating 276,188 RSF from April 1 through April 27, 2026, tied to the development and redevelopment pipeline. The company added that 72% of first-quarter leasing activity was generated from its existing tenant base.
Alexandria’s Tenant Base Remains a Key DifferentiatorAlexandria continued to emphasize tenant quality and cash-flow visibility. As of March 31, 2026, investment-grade or publicly traded large-cap tenants represented 55% of annual rental revenues, in effect, supporting stability in a choppier demand backdrop for life science real estate.
The company’s lease structure also remained geared toward embedded growth, with 97% of leases containing annual rent escalations. Weighted-average remaining lease term stood at 7.5 years for all tenants and 9.9 years for the top 20 tenants, reinforcing the long-duration nature of its contracted revenues.
Alexandria’s Rental Rates & Occupancy Show Pressure PointsThe company registered a negative rental rate of 15% during the quarter. On a cash basis, the rental rate decreased 15.8%. As of March 31, 2026, occupancy of operating properties was 87.7%, down 3.7% from the prior quarter and 4% from the year-ago quarter. Our estimate for the same was 89.4%.
On a year-over-year basis, same-property NOI decreased 11.9% and 11.7% on a cash basis.
Interest expenses jumped 26.9% year over year to $64.6 million.
Alexandria’s Balance Sheet Actions in FocusAlexandria underscored liquidity and debt-term advantages. As of March 31, 2026, the company reported $4.17 billion of liquidity and a weighted-average remaining debt term of 10 years. It also noted that only 9% of total debt matures through 2028. The net debt and preferred stock to adjusted EBITDA was 6.8X, and the fixed-charge coverage was 3.4X for the first quarter of 2026 on an annualized basis.
The quarter included notable capital markets and liability management activity. In February 2026, the company completed tender offers to repurchase $1.33 billion of debt principal amount, recognizing a $366.4 million gain on early extinguishment of debt. It funded the repurchase largely by issuing $750 million of 5.25% unsecured senior notes due 2036 and incremental commercial paper borrowings, intended to be repaid through planned dispositions and sales of partial interests.
Alexandria’s Capital Recycling Plan and 2026 OutlookA major strategic priority remains capital recycling to fund the business and reduce funding needs. As of April 27, 2026, Alexandria outlined $2.90 billion at the midpoint of its 2026 guidance for dispositions and sales of partial interests, with $151 million completed and pending, $2.181 billion identified and in process, and an additional $568 million projected.
For 2026, Alexandria maintained its updated FFO per share (as adjusted) guidance range of $6.30-$6.50 (midpoint $6.40). The company expects occupancy of operating properties to be between 86.2% and 87.8%. Rental rate changes for lease renewals and re-leasing of space are to be within negative 9% and negative 1%. Same-property NOI performance is projected in the range of negative 10.5%-8.5%.
How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended upward during the past month.
VGM ScoresAt this time, Alexandria Real Estate Equities has a poor Growth Score of F, a score with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Alexandria Real Estate Equities has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerAlexandria Real Estate Equities belongs to the Zacks REIT and Equity Trust - Other industry. Another stock from the same industry, Crown Castle (CCI - Free Report) , has gained 5.2% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Crown Castle reported revenues of $1.01 billion in the last reported quarter, representing a year-over-year change of -4.8%. EPS of $0.50 for the same period compares with $1.10 a year ago.
For the current quarter, Crown Castle is expected to post earnings of $1.00 per share, indicating a change of -2% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
Crown Castle has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
On May 27, 2026, Alexandria Real Estate Equities Inc ARE shares rose 3.0% today, closing at $49.93. The stock has seen a 52-week range with a high of $88.24 and a low of $39.41, indicating significant volatility over the past year.
GF Value™ verdict: Current price of $49.93 vs GF Value™ of $97.24, indicating a 48.7% upside.GF Score™: 58/100, which is considered average.Most notable signal: Insider activity shows a net purchase of $0.9M in the last 3 months. Is ARE Overvalued or Undervalued? According to the GF Value™, Alexandria Real Estate Equities Inc ARE is currently trading at $49.93, which is significantly below its estimated fair value of $97.24. This represents a margin of safety of 48.7%, suggesting that the stock is undervalued based on intrinsic value metrics. However, it is important to note that the GF Valuation label indicates that this could be a possible value trap, meaning that while there may appear to be an opportunity, risks are associated with investing at this time. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
Investors might find an opportunity in ARE, but they should proceed with caution given the company's current financial strength rating of 4/10 and a profitability rank of 6/10. The potential for recovery exists, but the financial metrics suggest that investors need to be aware of the inherent risks, particularly in light of the stock's past performance, which has seen a decline of 24.3% over the past year.
How Does ARE's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 75.7x 55.5x The current P/E ratio of 75.7x is significantly above its 5-year median P/E of 55.5x, indicating that the stock is trading at a premium compared to its historical valuation. This suggests that the P/E analysis disagrees with the GF Value™ verdict, which implies that while ARE may be undervalued in terms of intrinsic value, it is overvalued based on its earnings potential relative to historical performance.
What Does ARE's GF Score™ Tell Us? Metric Rating GF Score™ 58 Financial Strength 4/10 Profitability 6/10 Growth 3/10 Valuation 2/10 Momentum 4/10 The GF Score™ of 58/100 indicates that ARE is positioned in the average category when it comes to long-term return potential. The strongest area is profitability, rated at 6/10, suggesting that the company has some solid profit-generating capabilities. However, the weakest area is valuation, rated at 2/10, which aligns with the concerns raised by its high P/E ratio and the GF Value™ analysis. Overall, the mixed scores highlight the need for careful consideration before making any investment decisions.
What Are Insiders Doing with ARE Stock? Recent insider activity for Alexandria Real Estate Equities Inc shows that insiders bought $1.2 million worth of shares while selling $0.3 million in the last three months, indicating a net purchase of $0.9 million. This pattern of net insider buying could suggest that those with the most intimate knowledge of the company's prospects are optimistic about its future performance, despite the stock's recent struggles. However, potential investors should consider this alongside other financial indicators when assessing the stock's overall health.
What This Means for Investors In summary, Alexandria Real Estate Equities Inc ARE appears undervalued based on its GF Value™ of $97.24 compared to the current price of $49.93. However, the stock's high P/E ratio and average GF Score™ suggest that investors should approach this opportunity with caution, keeping in mind the risk factors indicated by its financial strength and valuation metrics.
For the complete analysis, visit the Alexandria Real Estate Equities Inc ARE stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is ARE's GF Score™?
ARE has a GF Score™ of 58/100, which is considered average in terms of long-term return potential.
Is ARE overvalued or undervalued?
ARE is currently undervalued according to its GF Value™ of $97.24, compared to its current price of $49.93.
What is ARE's P/E ratio?
ARE's P/E ratio is 75.7x, which is significantly higher than its 5-year median P/E of 55.5x, indicating it is trading at a premium compared to historical valuations.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Value-oriented, high-yield assets can serve as a shelter against potential drawdown risks in the richly priced large-cap growth arena. The trick is to find the highest-yielding opportunities possible without taking on the income reduction and NAV decay risks.
, /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE) today announced that its Board of Directors declared a quarterly cash dividend of $0.72 per common share for the second quarter of 2026. The dividend is payable on July 15, 2026 to stockholders of record on June 30, 2026.
The declared dividend of $0.72 per common share is consistent with that of the preceding quarter and reflects the company's commitment to fortify its already strong balance sheet, enhance financial flexibility and preserve liquidity. In addition to conserving significant capital, the dividend provides a competitive yield on its common stock of 5.8%, based on the closing stock price on May 28, 2026. Additionally, the company's dividend payout ratio (quarterly common stock dividends divided by quarterly funds from operations) remains conservative at 42% for the three months ended March 31, 2026.
About Alexandria Real Estate Equities, Inc.
Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500® company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. With our founding in 1994, Alexandria pioneered the life science real estate niche. Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative Megacampus™ ecosystems in AAA life science innovation cluster locations, including Greater Boston, the San Francisco Bay Area, San Diego, Seattle, Maryland, Research Triangle, and New York City. For more information, please visit www.are.com.
This press release includes "forward-looking statements" within the meaning of the federal securities laws. Actual results might differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained in the company's Annual Report on Form 10-K and other periodic reports filed with the Securities and Exchange Commission.
TORONTO, June 01, 2026 (GLOBE NEWSWIRE) -- Aecon Group Inc. (TSX: ARE) (“Aecon” or the “Corporation”) announced today that the nominees listed in the Management Information Circular dated April 29, 2026 were elected as Directors of Aecon, to hold office until the close of the next Annual General Meeting of the Corporation or until their successors are appointed.
Scott Thon was re-elected to Aecon’s Board of Directors and appointed independent Board Chair, as John M. Beck did not stand for re-election, and the Board conferred upon Mr. Beck the title of Chairman Emeritus.
“On behalf of my fellow members of the Board and Aecon’s management, we thank John for his strategic direction, exceptional leadership and extensive contributions to Aecon’s clients, employees, and shareholders – shaping Aecon’s evolution with extraordinary vision over his award-winning 60-plus year career,” said Scott Thon, Board Chair, Aecon Group Inc.
Shareholders also adopted all other resolutions submitted for their approval, as disclosed in the Management Information Circular dated April 29, 2026 including the advisory vote on the Corporation’s approach to executive compensation, and the re-appointment of PricewaterhouseCoopers LLP as the auditors of the Corporation to hold office until the close of the next Annual Meeting of the Corporation and that the board of directors be authorized to fix the auditors’ remuneration.
The complete voting results for each item of business are as follows:
Election of Directors
Name of NomineeVotes in Favour% Votes in FavourVotes Against% Votes AgainstScott Thon37,701,79895.3%1,841,7194.7%Susan Wolburgh Jenah38,350,17497.0%1,193,3433.0%Leslie Kass39,231,90999.2%311,6080.8%Stuart Lee37,158,44494.0%2,385,0756.0%Jeffrey Lyash39,419,88799.7%123,6320.3%Rod Phillips37,152,86794.0%2,390,6526.0%Eric Rosenfeld34,346,48386.9%5,197,03413.1%Jean-Louis Servranckx39,492,52299.9%50,9970.1%Deborah S. Stein36,869,10293.2%2,674,4156.8%Scott Stewart39,471,56599.8%71,9540.2%
Advisory Vote on Executive Compensation
Votes in Favour% Votes in FavourVotes Against% Votes Against36,532,42192.4%3,011,0987.6%
Re-Appointment and Remuneration of Auditors
Votes in Favour% Votes in FavourVotes Withheld% Votes Withheld38,240,94196.0%1,590,8984.0%
Dividend
Aecon’s Board of Directors approved its next quarterly dividend of 19.25 cents per common share. The dividend will be paid on July 3, 2026, to shareholders of record as of June 23, 2026. Unless indicated otherwise, all common share dividends paid by Aecon to shareholders are designated as “eligible” dividends for the purpose of the Income Tax Act (Canada) and any similar provincial legislation.
About Aecon
Aecon Group Inc. (TSX: ARE) is a North American construction and infrastructure development company with global experience. Aecon delivers integrated solutions to private and public-sector clients through its Construction segment in the Civil, Urban Transportation, Nuclear, Utility and Industrial sectors, and provides project development, financing, investment, management, and operations and maintenance services through its Concessions segment. Join our online community on X, LinkedIn, Facebook, and Instagram @AeconGroupInc.
Statement on Forward-Looking Information
The information in this press release includes certain forward-looking statements. These forward-looking statements are based on currently available competitive, financial and economic data and operating plans but are subject to risks and uncertainties as discussed in greater detail in Section 13 – “Risk Factors” in Aecon’s 2025 Management’s Discussion and Analysis for the fiscal year ended December 31, 2025, and in Aecon’s Management’s Discussion and Analysis for the fiscal quarter ended March 31, 2026, filed on SEDAR+ (www.sedarplus.ca). Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Aecon undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
For further information:
Adam Borgatti
SVP, Corporate Development and Investor Relations
416-297-2600 [email protected]
