Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Nucor (NUE - Free Report) , which currently has a Momentum Style Score of A. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Nucor currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if NUE is a promising momentum pick, let's examine some Momentum Style elements to see if this steel company holds up.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For NUE, shares are up 0.65% over the past week while the Zacks Steel - Producers industry is up 5.76% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 20.94% compares favorably with the industry's 11.11% performance as well.
While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of Nucor have increased 25.15% over the past quarter, and have gained 93.2% in the last year. In comparison, the S&P 500 has only moved 8.63% and 27.99%, respectively.
Investors should also pay attention to NUE's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. NUE is currently averaging 1,626,453 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with NUE.
Over the past two months, 5 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost NUE's consensus estimate, increasing from $11.92 to $14.66 in the past 60 days. Looking at the next fiscal year, 5 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineGiven these factors, it shouldn't be surprising that NUE is a #1 (Strong Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Nucor on your short list.
Investors might want to bet on Nucor (NUE - Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.
The upward trend in estimate revisions for this steel company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
Consensus earnings estimates for the next quarter and full year have moved considerably higher for Nucor, as there has been strong agreement among the covering analysts in raising estimates.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate RevisionsThe company is expected to earn $4.32 per share for the current quarter, which represents a year-over-year change of +66.2%.
Over the last 30 days, the Zacks Consensus Estimate for Nucor has increased 31.56% because four estimates have moved higher compared to no negative revisions.
Current-Year Estimate RevisionsFor the full year, the earnings estimate of $14.66 per share represents a change of +90.1% from the year-ago number.
The revisions trend for the current year also appears quite promising for Nucor, with five estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 23.56%.
Favorable Zacks RankThe promising estimate revisions have helped Nucor earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom LineNucor shares have added 20.9% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.
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A caller on The Indicator from Planet Money summed up the week’s lithium news in one line: “There is kind of a high environmental cost to getting this lithium out of the earth.”
The headline that prompted the call was striking. The US Geological Survey says the Appalachian region, mostly the Carolinas, holds about 2.3 million metric tons of lithium. That’s enough to cover more than 300 years of current US lithium imports, or to power 130 million electric vehicles.
When a resource discovery hits the news, retail money follows. The caller’s offhand observation flags the financial trap most readers should care about. The gap between “economically recoverable” reserves on paper and actual tons flowing through a battery supply chain is where small investors get hurt.
The Verdict: The Caller Is Right, and the Math Is Worse Than It Looks A discovery sits years away from production, and the gap between the two routinely runs 10 to 20 years. Anyone treating the USGS announcement as a buy signal for a domestic lithium portfolio is confusing geology with cash flow.
Even if the deposit is real and the company holds the rights, US permitting for hardrock pegmatite mining typically runs seven to 10 years. Add another three to five years to build processing infrastructure. During that window, the company funds itself through dilutive equity raises. A 50% share-count increase over a development decade is common.
The supply picture sharpens the point. One American company produces lithium domestically in Nevada. At the same time, the US imports more than half of its lithium from countries like Australia and China. The 300-year figure assumes full extraction at today’s consumption pace. EV battery demand is projected to grow several-fold this decade, so the real import-replacement clock is shorter and depends on capital, water rights, and processing capacity that do not yet exist at scale.
The financial concept worth learning here is option value with a long expiration. The Appalachian deposit is real. For an investor, it behaves like a deeply out-of-the-money call: the payoff requires successful extraction and continued battery demand at scale a decade or more from now. Pricing that option at headline value is the recurring mistake of thematic investing.
Who This Fits and Who Gets Burned The story fits a 35 to 50-year-old with a fully funded retirement account, no consumer credit card debt, and at least 15 years until retirement. A 2% to 3% sleeve of a diversified portfolio in a broad critical-minerals or battery-materials ETF, held through volatility, can capture supply-chain restructuring without single-stock blowup risk. The macro backdrop supports the long thesis: Nucor (NYSE: NUE | NUE Price Prediction) has a $4 billion West Virginia sheet mill that is roughly 85% complete, and a US trade deficit of about $57 billion in February keeps domestic sourcing on the policy agenda.
The story hurts a 60-year-old eyeing early retirement who reads the USGS release and shifts $50,000 from a target-date fund into a thinly traded miner. The development cycle outlasts the retirement runway. Lithium spot prices fell roughly 80% from their 2022 peak. A drawdown of that size inside a five-year window is the difference between retiring at 65 and working until 70.
What to Actually Do With This Headline Get exposure through breadth across funds. Screen broad battery materials or critical-minerals ETFs rather than single junior miners. Diversification is the cheapest hedge against permitting delays and dilution. Cap thematic commodity exposure at 5% of total portfolio. Use the remainder for index funds and bonds matched to your time horizon. Keep at least six months of expenses in a high-yield savings account so you are never forced to sell a 10-year story in year three. Read the share-count history before buying any miner. Pull the last 10-K. If the company has doubled its share count in five years, plan for it to double again before the first production. The caller’s environmental concern is grounded. The financial cost of ignoring development timelines is bigger. A 2.3 million ton deposit in the ground today funds nothing in your brokerage account this year. Treat the headline as a 15-year story, size the position accordingly, and the discovery becomes useful information rather than an expensive distraction.
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.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest 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 ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM 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 A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
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.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
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.
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: Nucor (NUE - Free Report) Headquartered in Charlotte, NC, Nucor Corporation is a leading producer of structural steel, steel bars, steel joists, steel deck and cold finished bars in the United States. It also produces direct reduced iron (“DRI”) that is used in its steel mills. The company has 123 operating facilities, primarily in the United States and Canada. Also, most of its operating facilities and customers are located in North America.
NUE is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Basic Materials stock. NUE has a Momentum Style Score of A, and shares are up 15.9% over the past four weeks.
Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $2.35 to $14.18 per share. NUE also boasts an average earnings surprise of +8.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, NUE should be on investors' short list.
Nucor (NUE - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, NUE broke through the 20-day moving average, which suggests a short-term bullish trend.
The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides more trend reversal signals than longer-term moving averages.
Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.
Over the past four weeks, NUE has gained 6.3%. The company is currently ranked a Zacks Rank #1 (Strong Buy), another strong indication the stock could move even higher.
Looking at NUE's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 6 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on NUE for more gains in the near future.
Banking stocks are among Warren Buffett's favorites, and if you dig through the Berkshire Hathaway portfolio, there are plenty to choose from there. But there are also two non-financial stocks worth considering for your portfolio if you have $300 or more to invest: Coca-Cola (KO +0.11%) and Nucor (NUE +1.99%).
The beverage maker and steel company are obviously in very different businesses, but they each share the characteristic of resilience, which helps them handle uncertainty and economic downturns. That's a characteristic Buffett valued in his investments.
That resiliency is highlighted by the fact that, not only do these two companies pay out dividends, but both are Dividend Kings and have increased their payouts for 50 or more consecutive years.
Image source: Getty Images.
The brand known around the globe Coca-Cola has a massive moat with its brand, as it's one of the most recognizable companies throughout the world. In 2020, Forbes ranked Coca-Cola as the sixth-most valuable brand, and more recently, it ranked the beverage maker in the top 200 on its America's Best Companies list for 2026. That branding power gives it pricing power and allows the company to win plenty of shelf space in grocery and convenience stores.
It's known for its Coca-Cola soda line, but it's also branching out beyond sodas to build a more robust beverage lineup to account for changing consumer tastes. It owns the sports drink brands BODYARMOUR and Vitaminwater, as well as the tea brand Gold Peak. It's also moved into the ready-to-drink alcohol category, with "spiked" lemonade and a collaboration with whiskey maker, Jack Daniel's.
That beverage portfolio is a cash cow, which is why the company has consistently rewarded shareholders with dividends. As mentioned earlier, it's a Dividend King, with 63 consecutive years of dividend payout increases. As of this writing, that dividend payout yields 2.6%. One investing consideration with Coca-Cola is that this isn't a stock known for its price appreciation, as the S&P 500 has easily outperformed it over the last five years. Rather, it's geared toward investors looking to boost their income who also want a stock that is typically less volatile than the broader markets.
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The steel manufacturer that's also a Dividend King Leaving the soda world, we're now entering the steel business with Nucor, the largest steel manufacturer and recycler in North America. Like other commodities, steel is cyclical, as sales depend on growth in the construction sector and on infrastructure projects.
That said, business is booming for Nucor. In its 2026 first-quarter earnings report, net sales of $9.4 billion were a noticeable jump from the $7.8 billion reported the same time a year ago. It also reported net earnings attributable to Nucor stockholders of $743 million, another noticeable jump from the $156 million reported in Q1 2025.
One area of growth expected to continue for the company is data centers, where it provides the steel needed for airflow containment, server network racks and wall units, pathway support structures, and more. In its first-quarter earnings presentation, it mentioned data centers as catalysts for each of its divisions.
Nucor has increased its dividend payout for 53 consecutive years. While the yield on that dividend is less than 1%, it is also an investment with plenty of upside potential in its stock price to boost the total return.
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The stock price has jumped over 42% this year and is up 113% over the past 12 months. There could still be plenty of gains ahead, with the favorable macro tailwind of decreased steel imports to compete with. It also has a West Virginia project in development to serve the high-end automative sector. Still, any potential investor is taking on more risk with this company than, say, owning Coca-Cola. Nucor's beta of 1.8 means the stock is significantly more volatile than the broader markets.
With Nucor trading around $230, you can get a whole share and some fractional shares with $300. Another strategy with $300 is to buy fractional shares of Nucor and two or three whole shares of Coca-Cola, which trades above $80. Owning both could be the start of building out a well-balanced portfolio. Either way, these are two Dividend Kings that should continue to offer reliable income payouts to their shareholders for years to come and two Buffett stocks for long-term investors to consider.
On May 26, 2026, Nucor Corp NUE shares rose 3.6% to a current price of $240.29. The stock has experienced significant price movement recently, trading within a 52-week range of $106.21 to $240.43, showcasing a robust performance over the past year.
GF Value™ verdict: Currently priced at $240.29, NUE is approximately 42.1% overvalued compared to its GF Value™ estimate of $169.06.GF Score™: NUE has a GF Score™ of 93/100, indicating strong overall performance across key financial metrics.Most notable signal: Insider activity shows that insiders have sold $29.9 million worth of shares in the last three months, with no buying activity reported. Is NUE Overvalued or Undervalued? Nucor Corp's current price of $240.29 is significantly above the GF Value™ estimate of $169.06, which suggests that the stock is overvalued by approximately 42.1%. This disparity raises concerns regarding the margin of safety for potential investors, as buying at such a premium may expose them to greater risk should market conditions shift or expectations for future performance fail to materialize. The GF Valuation label classifies NUE as "Significantly Overvalued," indicating that the stock price is not supported by its underlying fundamentals at this time.
While Nucor has demonstrated strong financial performance in terms of growth and profitability, the current valuation presents a risk for new investments. Investors should consider this overvaluation in the context of market conditions and the company's future performance potential. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
How Does NUE's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 23.8x 9.9x Forward P/E 16.4x N/A The current P/E (TTM) ratio of 23.8x is significantly higher than its 5-year median P/E of 9.9x, indicating that NUE is trading at a premium compared to its historical valuation. This analysis aligns with the GF Value™ verdict, reinforcing the conclusion that NUE is overvalued based on historical earnings multiples.
What Does NUE's GF Score™ Tell Us? Metric Rating GF Score™ 93/100 Financial Strength 8/10 Profitability 9/10 Growth 9/10 Valuation 5/10 Momentum 9/10 Nucor's GF Score™ of 93/100 reflects its strong performance overall, particularly in profitability (9/10) and growth (9/10) categories. However, the valuation score of 5/10 indicates that the stock is not favorably positioned in terms of price relative to its intrinsic value. The financial strength rating of 8/10 further supports the company's solid foundation, yet the valuation concerns suggest caution for potential investors.
What Are Insiders Doing with NUE Stock? Recent insider activity has seen a significant sell-off, with insiders selling $29.9 million worth of shares in the last three months and no buying activity reported. This trend of selling could be interpreted as a lack of confidence in the stock's future performance at its current valuation levels. When insiders choose to sell rather than buy, it often raises questions about their expectations for the company's prospects and may signal potential risks for outside investors.
What This Means for Investors Based on the analysis of GF Value™, Nucor Corp NUE is currently viewed as overvalued. The significant disparity between the current price and the GF Value™ estimate suggests that potential investors may want to exercise caution and consider waiting for a more favorable entry point.
For the complete analysis, visit the Nucor Corp NUE 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 NUE's GF Score™?
NUE has a GF Score™ of 93/100, indicating strong overall performance across key financial metrics, which historically correlates with higher long-term returns.
Is NUE overvalued or undervalued?
Nucor Corp is currently considered overvalued, with a GF Value™ estimate of $169.06 compared to its current price of $240.29.
What is NUE's P/E ratio?
NUE's P/E (TTM) is 23.8x, which is significantly above its 5-year median P/E of 9.9x, indicating that the stock is trading at a premium compared to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
A month has gone by since the last earnings report for Nucor (NUE - Free Report) . Shares have added about 6.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Nucor 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 catalysts.
Nucor’s Q1 Earnings and Revenues Top on Higher Volumes and PricesNucor reported earnings of $3.23 per share for the first quarter of 2026, up from 67 cents in the year-ago quarter. It beat the Zacks Consensus Estimate of $2.79.
The company recorded net sales of roughly $9.5 billion, up around 21.3% year over year. The figure beat the Zacks Consensus Estimate of roughly $8.66 billion.
Operating FiguresTotal sales tons to outside customers for steel mills in the first quarter were 5,619,000 tons, up 8% year over year. Volumes were up 22% from the prior quarter. The figure missed our estimate of 5,228,000 tons.
Overall operating rates at the company's steel mills were 86%, up sequentially from 82% and from 80% in the first quarter of 2025.
Segment HighlightsIn the reported quarter, the Steel Mills segment posted earnings of $1.13 billion, up from the fourth quarter due to higher average selling prices and volumes across all product groups.
The Steel Products segment earned $285 million, higher sequentially, reflecting increased volumes and stable average realized pricing.
The Raw Materials segment delivered earnings of $45 million, up from the prior quarter due to higher average selling prices and volumes.
Financial PositionCash and cash equivalents were around $2.2 billion at the end of the quarter, down around 29.5% year over year. Long-term debt was roughly $6.88 billion, up 2.8%.
In the first quarter, Nucor repurchased roughly 0.7 million shares of its common stock.
OutlookThe company expects higher consolidated earnings in the second quarter of 2026, supported by improvements across all three operating segments. In the steel mills segment, earnings are projected to rise due to higher realized selling prices while volumes remain stable. The steel products segment is also anticipated to deliver stronger performance, driven by higher volumes on steady pricing. The raw materials segment is expected to benefit from higher realized pricing, further contributing to overall earnings growth.
How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 30.48% due to these changes.
VGM ScoresAt this time, Nucor has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock has 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 B. 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 Nucor has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry PlayerNucor is part of the Zacks Steel - Producers industry. Over the past month, Steel Dynamics (STLD - Free Report) , a stock from the same industry, has gained 10.4%. The company reported its results for the quarter ended March 2026 more than a month ago.
Steel Dynamics reported revenues of $5.2 billion in the last reported quarter, representing a year-over-year change of +19.1%. EPS of $2.78 for the same period compares with $1.44 a year ago.
For the current quarter, Steel Dynamics is expected to post earnings of $4.14 per share, indicating a change of +106% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.4% over the last 30 days.
Steel Dynamics has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Nucor (NUE - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Nucor currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if NUE is a promising momentum pick, let's examine some Momentum Style elements to see if this steel company holds up.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For NUE, shares are up 2.19% over the past week while the Zacks Steel - Producers industry is up 0.91% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 10.66% compares favorably with the industry's 11.67% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Shares of Nucor have increased 44.86% over the past quarter, and have gained 128.84% in the last year. On the other hand, the S&P 500 has only moved 10.24% and 29.77%, respectively.
Investors should also pay attention to NUE's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. NUE is currently averaging 1,235,016 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with NUE.
Over the past two months, 6 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost NUE's consensus estimate, increasing from $11.76 to $14.84 in the past 60 days. Looking at the next fiscal year, 6 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineGiven these factors, it shouldn't be surprising that NUE is a #1 (Strong Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Nucor on your short list.
Warren Buffett has never been a big technology stock investor. He stuck to companies he understood, and that served him and Berkshire Hathaway (BRKA +0.76%) (BRKB +0.55%) investors well during his 60-year tenure as CEO. But that also led him to fall behind a bit in recent years, by his own admission.
"I would say I understand fewer of the businesses as a percentage of the whole than I did 10 years ago," he said in a recent interview. "I have not learned new industries for some years." Nonetheless, he oversaw the purchase of three stocks closely tied to the largest technology trend in recent history: artificial intelligence.
Buffett's successor, Greg Abel, has pushed the concentration of those holdings to 28% of invested assets after his first quarter in charge of the portfolio.
Image source: The Motley Fool.
1. Apple (21.4%) Apple (AAPL 1.52%) may be Buffett's single best investment as head of Berkshire. He initially purchased shares for the portfolio in 2016, building a sizable position over the next two years. At one point, the stock accounted for half of Berkshire's invested assets before Buffett started trimming the position. "I'm very happy to have it be our largest holding," Buffett said in an interview in March. "I was not happy to have it be as large as almost everything else combined."
It seems Abel agrees with that sentiment. He's said Apple will be a core holding in Berkshire's portfolio, and shareholders can expect very little selling activity from here on out.
Apple has continued to perform well, with its recent results driven by a strong iPhone refresh cycle and continued growth for the high-margin services business. That could gain further steam later this year, as Apple plans to release a revamped Siri personal assistant with more AI-powered capabilities. Higher-end AI features could push existing iPhone users to upgrade to devices capable of using them, and they could open the door for new services sold directly by Apple or through its App Store.
Today's Change
(
-1.52
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-4.49
Current Price
$
291.14
Apple currently faces a challenging environment as memory prices soar due to demand from AI data centers. Management said that it will weigh on its gross margin over the next few quarters, but the company is better positioned to manage rising component costs than any of its competitors. That could enable it to grab market share or maintain better profit margins, and management could manage both with a good pricing strategy and a broadening device portfolio.
The market also likes Apple's position, and it's rewarded shareholders accordingly. After climbing 15% so far this year, the stock now trades at a P/E ratio of nearly 36 times analysts' forward estimates. That's fairly expensive, so it's unlikely Abel is planning to re-add to Berkshire's position, but he seems happy to hold the stock.
2. Alphabet (6.8%) Alphabet (GOOG +0.44%) (GOOGL +0.53%) was one of Buffett's last big purchases as CEO. The Oracle of Omaha oversaw the addition of about 18 million shares of the tech giant to the portfolio last year. Abel tripled down on the stock in the first quarter, and after a strong earnings report sent shares higher, the stock now accounts for nearly 7% of the invested portfolio value.
Over the past year, Alphabet's AI efforts have begun to deliver results, both financially and relative to the performance of competing products. Its Gemini family of models can go toe-to-toe with those from Anthropic and OpenAI. Its Tensor Processing Units (TPUs) are gaining traction among developers seeking better price performance than GPUs.
Today's Change
(
0.53
%) $
1.90
Current Price
$
359.67
Alphabet is spending heavily to expand its cloud computing business, but it's seeing rapidly accelerating revenue growth along with it. Google Cloud revenue climbed 63% year over year last quarter and operating margin expanded from 17.8% last year to 32.9% this year. Integrating its AI efforts into Search and advertising has also produced excellent results, leading to revenue acceleration for Search thanks to increased engagement and better ad targeting driven by AI.
While the market has sent the stock 24% higher since the start of the year, it still trades at just 27 times forward earnings expectations. That looks like a very compelling value for one of the fastest-growing hyperscalers in the market. While it's a higher multiple than Buffett or Abel paid for Berkshire's current position, it still looks like a good stock to deploy additional capital.
3. Nucor (0.3%) Nucor (NUE +1.99%) might not seem like an AI stock at first blush, but the steel manufacturer has tied itself closely to data center buildouts in recent years, benefiting from the massive capital expenditure budgets of U.S. hyperscalers. With the 2024 acquisition of Southwest Data Products and a push to supply more data center needs, management says it's now capable of supplying 95% of the steel needed to build a data center.
The combination of rapid data center buildouts and the Trump administration's tariffs on foreign steel has led to strong pricing power for Nucor. "The data center market continues to be really strong for us. That's where we're seeing a lot of our price increasing," CFO Jack Sullivan said during Nucor's first-quarter earnings call. "And our backlog pricing has benefited from that and will continue to over the course of the year."
Today's Change
(
1.99
%) $
5.20
Current Price
$
266.10
Both the steel mill and raw materials segments have benefited from higher pricing, pushing net income significantly higher. Overall, earnings per share climbed 382% year over year last quarter and nearly doubled from the fourth quarter. Management's second-quarter outlook suggests pricing will continue to support strong earnings growth.
Pricing could ease starting next year, as it opens new facilities scheduled to start production in 2027 and 2028. Still, analysts expect it to deliver steady earnings-per-share growth over the next couple of years. Eventually, however, earnings will drop as the demand cycle shifts downward. At around 17 times trailing earnings, the stock looks somewhat expensive relative to its historic mid-cycle valuation.
Abel notably sold some of Berkshire's position last quarter, ahead of its strong first-quarter earnings release. Whether those results are good enough for him to keep the stock in the portfolio remains to be seen.
Nucor (NUE - Free Report) closed at $258.46 in the latest trading session, marking a +2.77% move from the prior day. This change outpaced the S&P 500's 0.13% gain on the day. Elsewhere, the Dow gained 0.45%, while the tech-heavy Nasdaq added 0.03%.
Coming into today, shares of the steel company had gained 11.37% in the past month. In that same time, the Basic Materials sector gained 3.24%, while the S&P 500 gained 5.25%.
Analysts and investors alike will be keeping a close eye on the performance of Nucor in its upcoming earnings disclosure. The company is predicted to post an EPS of $4.42, indicating a 70% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $9.76 billion, up 15.37% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $14.84 per share and a revenue of $37.05 billion, signifying shifts of +92.48% and +14.01%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Nucor. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 8.82% higher. Nucor currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Nucor is presently being traded at a Forward P/E ratio of 16.95. This denotes a premium relative to the industry average Forward P/E of 15.87.
Also, we should mention that NUE has a PEG ratio of 0.67. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Steel - Producers industry had an average PEG ratio of 0.57 as trading concluded yesterday.
The Steel - Producers industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 80, this industry ranks in the top 33% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
On June 03, 2026, we present a detailed DCF analysis for Nucor Corp NUE . The company has shown impressive price performance, with a year-to-date increase of 59.0% and a remarkable 117.9% rise over the past year.
DCF Earnings-based intrinsic value of $410.03 vs current price of $258.46 (margin of safety: 9.5%) DCF FCF-based intrinsic value of $26.74 vs current price (second opinion suggests significant overvaluation) GF Score™ of 89/100 indicates high reliability of the DCF inputs What Is NUE Worth? DCF Earnings-Based Model The DCF earnings-based model for Nucor Corp utilizes a two-stage approach to estimate the intrinsic value of the stock. The first stage encompasses a growth phase lasting ten years, where we anticipate a robust earnings growth rate of 25.4%. This is followed by a terminal phase, where growth stabilizes at a more modest rate of 4% for the subsequent ten years. The discount rate applied throughout the model is 11%, which reflects the risk-free rate and equity risk premium.
Parameter Value Current EPS (TTM, excl. non-recurring) $9.14 10-Year Growth Rate 25.4% 10-Year Treasury Rate 4.48% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% The calculation summary for the DCF earnings-based model is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 25.4%, discounted at 11% $189.93 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $220.10 Intrinsic Value Growth + Terminal $410.03 With the current price of $258.46 compared to the intrinsic value of $285.59, Nucor Corp appears to be fairly valued, with a margin of safety of 9.5%. It is important to note that GuruFocus uses EPS excluding non-recurring items, as research indicates that stock prices correlate more closely with earnings than with free cash flow. For further details, you can access the NUE DCF Calculator.
What Does the Free Cash Flow DCF Say? The free cash flow (FCF)-based intrinsic value for Nucor Corp is calculated at $26.74. This starkly contrasts with the earnings-based intrinsic value of $410.03, indicating a significant disagreement between the two models. The FCF-based valuation suggests that the stock is significantly overvalued, with a margin of safety of -866.6%.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for Nucor Corp is calculated at $169.43, providing a third perspective on the company's valuation. GF Value™ is GuruFocus' proprietary measure derived from historical trading multiples, past business growth, and future performance estimates. When comparing all three models, the earnings-based DCF suggests the stock is fairly valued, while the FCF-based model and GF Value™ indicate significant overvaluation. For more insights, visit the GF Value™ page.
What Does NUE's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been shown to generate higher long-term returns based on backtested data from 2006 to 2021. Nucor Corp has a GF Score™ of 89/100, indicating strong fundamentals. The predictability rank is 1/5 stars, suggesting that the DCF model may be less reliable for this stock.
Metric Rating GF Score™ 89/100 Financial Strength 8/10 Profitability 9/10 Growth 9/10 Valuation 3/10 Momentum 9/10 For further details, visit the NUE stock page.
Key Assumptions and Limitations It is important to note that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with low predictability ratings, such as Nucor Corp's 1/5 stars, typically produce less reliable DCF estimates. The terminal growth rate of 4% used in this analysis is a simplifying assumption that may not accurately reflect future market conditions.
What This Means for Investors In synthesizing the three valuation models—DCF earnings, DCF FCF, and GF Value™—the overall verdict for Nucor Corp is that the stock is overvalued based on the FCF and GF Value™ perspectives, while the earnings-based DCF suggests it is fairly valued. Investors should consider these insights when evaluating their positions in NUE. For the full DCF analysis, visit the NUE 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 NUE's intrinsic value based on DCF?
According to the DCF analysis, the earnings-based intrinsic value is $285.59, while the FCF-based intrinsic value is $26.74.
Is NUE overvalued or undervalued?
Based on the DCF earnings model, NUE appears fairly valued, but the FCF model and GF Value™ suggest it is significantly overvalued.
How reliable is the DCF model for NUE?
The predictability rank of 1/5 indicates that the DCF model may be less reliable for Nucor Corp.
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].
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- The Board of Directors of Nucor Corporation (NYSE: NUE) declared the regular quarterly cash dividend of $0.56 per share on Nucor's common stock. This cash dividend is payable on August 11, 2026 to stockholders of record on June 30, 2026 and is Nucor's 213th consecutive quarterly cash dividend.
About Nucor
Nucor and its affiliates are manufacturers of steel and steel products, with operating facilities in the United States, Canada and Mexico. Products produced include: carbon and alloy steel -- in bars, beams, sheet and plate; hollow structural section tubing; electrical conduit; steel racking; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; precision castings; steel fasteners; metal building systems; insulated metal panels; overhead doors; steel grating; wire and wire mesh; and utility structures. Nucor, through The David J. Joseph Company and its affiliates, also brokers ferrous and nonferrous metals, pig iron and hot briquetted iron / direct reduced iron; supplies ferro-alloys; and processes ferrous and nonferrous scrap. Nucor is North America's largest recycler.
On June 02, 2026, we delve into the discounted cash flow (DCF) analysis for S&P Global Inc SPGI , a company that has experienced a challenging year with a year-to-date decline of 17.6%. Despite this, SPGI's stock price has shown some resilience, gaining 2.9% over the past week. Below are key insights from our analysis:
DCF Earnings-based intrinsic value of $372.51 vs current price of $428.56 (margin of safety: -15.1%) DCF FCF-based intrinsic value of $573.25 vs current price (second opinion: modestly undervalued with 25.2% margin of safety) GF Score™ of 93/100 indicates high reliability of the DCF inputs What Is SPGI Worth? DCF Earnings-Based Model The DCF earnings-based model for S&P Global Inc SPGI utilizes a two-stage approach to estimate the intrinsic value of the stock. The first stage involves a growth phase where earnings per share (EPS) is projected to grow at a rate of 13.5% annually for the next ten years. This growth is then discounted at a rate of 11%, which is derived from the risk-free rate and equity risk premium. The second stage accounts for a terminal growth rate of 4% for the subsequent ten years, also discounted at 11%.
Parameter Value Current EPS (TTM, excl. non-recurring) $18.43 10-Year Growth Rate 13.5% 10-Year Treasury Rate 4.43% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% The calculation summary for the DCF earnings-based model is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 13.5%, discounted at 11% $208.74 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $163.77 Intrinsic Value Growth + Terminal $372.51 With the current price at $428.56, the intrinsic value of $372.51 indicates that SPGI is fairly valued, with a margin of safety of -15.1%. It is important to note that GuruFocus employs EPS excluding non-recurring items, as research indicates that stock prices correlate more closely with earnings than with free cash flow. For further details, you can access the SPGI DCF Calculator.
What Does the Free Cash Flow DCF Say? In addition to the earnings-based DCF model, we also evaluated S&P Global Inc using a free cash flow (FCF) DCF model. The intrinsic value derived from this approach is $573.25. When comparing the FCF-based intrinsic value with the earnings-based value, we find that they provide differing perspectives on SPGI's valuation. The FCF model suggests that SPGI is modestly undervalued, with a margin of safety of 25.2%.
How Does GF Value™ Compare to the DCF Models? Furthermore, the GF Value™ of S&P Global Inc stands at $575.85, offering a third perspective on the company's valuation. GF Value™ is GuruFocus' proprietary measure, calculated based on historical trading multiples, past business growth, and future performance estimates. When we consider all three models—the DCF earnings-based, DCF FCF, and GF Value™—we observe that they provide a consistent view of SPGI's valuation, with the earnings-based model indicating fair value, while the FCF model suggests modest undervaluation. For more information, visit the GF Value™ page.
What Does SPGI's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns based on backtested data from 2006 to 2021. Below is the GF Score™ breakdown for SPGI:
Metric Rating GF Score™ 93/100 Financial Strength 6/10 Profitability 10/10 Growth 10/10 Valuation 8/10 Momentum 4/10 With a predictability rank of 3/5 stars, this indicates that the DCF model is reasonably reliable for estimating SPGI's valuation. For more insights, visit the SPGI stock page.
Key Assumptions and Limitations It is essential to recognize that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Additionally, stocks with low predictability ratings tend to produce less reliable DCF estimates. The terminal growth rate of 4% used in this analysis is a simplifying assumption that may not fully capture the complexities of future growth.
What This Means for Investors In synthesizing the insights from the three valuation models—DCF earnings-based, DCF FCF, and GF Value™—we find that S&P Global Inc is currently fairly valued according to the earnings-based model, while the FCF model indicates modest undervaluation. The GF Value™ further supports this perspective, suggesting a reliable valuation framework.
For the full DCF analysis, visit the SPGI 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 SPGI's intrinsic value based on DCF?
Answer: earnings-based $372.51, FCF-based $573.25
Is SPGI overvalued or undervalued?
Answer: Based on the DCF and GF Value™ consensus, SPGI is fairly valued.
How reliable is the DCF model for SPGI?
Answer: The predictability rank of 3/5 indicates a reasonable level of reliability for the DCF model.
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].
When S&P Global (SPGI +1.52%), one of the world's largest financial data companies, posted its first-quarter earnings report on April 28, many investors focused on the recently spin-off of its Mobility unit, which provides automotive data, into a new company that will start trading independently on July 1. That divestment should streamline S&P Global's core business, while freeing up more resources to upgrade its generative AI services for analyzing financial data.
However, fewer investors seemed to notice its 25% year-over-year growth in Private Credit revenue in its Ratings segment. That outpaced the company's 10% growth in adjusted revenue for the quarter, and gives investors a much clearer look into the private credit market.
Image source: Getty Images.
Why does private credit matter to S&P Global? S&P Global's Ratings business, which accounted for 31% of its top line in the first quarter, traditionally rates public corporate bonds and broadly syndicated loans (BSLs). But over the past two decades, it expanded its services into the multi-trillion-dollar private credit market.
That expansion reduced its dependence on traditional public debt issuance, which is heavily influenced by fluctuating interest rates. Private credit lenders are often better insulated from those headwinds, since mid-market companies and private equity firms still turn to direct lenders (rather than conventional banks) to quickly secure more funds through choppy market cycles.
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Private investors are also keeping rapidly growing companies private for longer periods instead of going public through traditional IPOs. That structural shift drives up the demand for private credit rating services, which give investors deeper insights into these opaque companies.
By providing these specialized risk assessments, S&P Global positions itself as a "data tollbooth" that serves institutional investors and regulators in this murky market. It also widens its moat against its potential AI-powered challengers in the financial data analysis market, since private investors are less likely to trust smaller companies to crunch all of their data.
What does S&P Global's private revenue growth mean for investors? S&P Global generated "north of $600 million" in revenues from the private markets (including its ratings) in 2025. That only accounted for about 4% of its total revenue, but it's one of its fastest-growing businesses. Its growth also reinforces the idea that S&P Global is an evergreen company that can keep expanding through bull and bear markets -- since its clients will still need to access its analytics and credit rating services even if the economy contracts.
Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends S&P Global. The Motley Fool has a disclosure policy.
New solution significantly reduces credit memo data collection and synthesis time, enabling financial analysts to focus on strategic risk evaluation
, /PRNewswire/ -- S&P Global (NYSE: SPGI) today announced the launch of Credit Memo Builder™ to enhance and streamline the creation of credit decisioning reports. Credit Memo Builder™ aggregates data sources from across the S&P Global enterprise to significantly shorten the drafting process. This new agentic workflow platform empowers loan committees, underwriters and credit analysts to make well-informed credit decisions quickly and confidently.
Credit analysts spend significant time pulling and processing data from disparate systems – a manual, time-intensive process that can hinder timely decisions and increase operational risk. Credit Memo Builder™ directly addresses this challenge, allowing teams to save considerable time and shift their focus from manual data entry to the analytical evaluation of borrower risk and strategic credit assessment.
"At S&P Global, we constantly look for ways to enhance decision-making for our clients," said Whit McGraw, Head of Risk & Valuations Services at S&P Global Market Intelligence. "With Credit Memo Builder™, our objective is to meaningfully improve what can often be a cumbersome credit workflow—cutting through fragmented data and enabling financial teams to operate with greater speed and consistency. By embedding AI to assist and streamline key steps in the process, we're helping clients surface the right insights faster, while maintaining the rigor and control required for high-quality credit analysis."
At the core of Credit Memo Builder™ sits the trusted data, research and analytics from S&P RatingsDirect®, RiskGauge™ and S&P Capital IQ Pro. Built with advanced Cognitive Automation and harnessing Kensho's adaptive data retrieval capabilities, Credit Memo Builder™ seamlessly connects structured and unstructured data for an automated credit output. It synthesizes curated information from internal and external sources—including ratings and macro research, financials, news and transcripts into a cohesive, analyst-ready format. This integration ensures that users have access to reliable, comprehensive data to inform their decisions.
A key feature of Credit Memo Builder™ is its intuitive and flexible prompting that facilitates a user friendly and reliable AI-driven way of creating credit memos. The platform maintains human "analyst-in-the-loop" oversight allowing users to flexibly upload additional information and request AI-assisted revisions, designed to support accuracy and assist users in producing outputs aligned with relevant standards. Transparency is built in, with in-line citations linked to exact data sources, and insights into how responses are generated, ensuring every memo is robust and auditable.
Credit Memo Builder™ is part of S&P Global Market Intelligence's agentic AI offerings, alongside CreditCompanion™, helping clients bring greater speed, consistency and insight to the credit analysis workflow.
Credit Memo Builder™ is an analytical workflow tool and is not a substitute for independent credit analysis or credit ratings issued by S&P Global Ratings.
For more information about Credit Memo Builder™, click here.
For more information on S&P Global products and solutions, please reach out to our sales team here.
About S&P Global
S&P Global (NYSE: SPGI) enables businesses, governments, and individuals with trusted data, expertise and technology to make decisions with conviction. We are Advancing Essential Intelligence through world-leading benchmarks, data, and insights that customers need in order to plan confidently, act decisively, and thrive in a rapidly changing global landscape.
From helping our customers assess new investments across the capital and commodities markets to navigating the energy expansion, acceleration of artificial intelligence, and evolution of public and private markets, we enable the world's leading organizations to unlock opportunities, solve challenges, and plan for tomorrow – today.
Learn more at www.spglobal.com.
Media Contacts
Orla O'Brien
S&P Global
+1 857-407-8559
[email protected]
Amanda Oey
S&P Global Market Intelligence
+1 212-438-1904
[email protected] or [email protected]
, /PRNewswire/ -- S&P Dow Jones Indices ("S&P DJI") conducted a consultation with market participants on potential changes to the S&P U.S. Indices Methodology and Dow Jones U.S. Total Stock Market Indices Methodology (collectively, the "Relevant Index Families") related to MegaCap companies.
The Index Committee appreciates the market engagement received in connection with this consultation and thanks all respondents for their feedback.
S&P DJI's Index Committee continually monitors market developments to ensure indices meet their stated objectives and considers methodology changes as needed to help ensure its indices continue to do so.
Market consultations are the primary mechanism through which the Index Committee engages with market participants and other stakeholders to seek feedback on whether methodology changes are necessary or appropriate, and to assess potential methodology developments. Consultations also provide an opportunity for any member of the public to submit input. This process is designed to preserve the independence of the Index Committee, effectively mitigate potential conflicts of interest, and help ensure transparency and fairness.
The Index Committee carefully reviews all consultation responses received. However, while all responses are reviewed and considered, the Index Committee is not bound by any comments or information submitted as part of the consultation.
S&P 500, S&P MidCap 400, and S&P SmallCap 600 Results:
Based on S&P DJI's Index Committee review of the markets and after consideration of responses received from a wide range of market participants, no changes will be made to the eligibility criteria including financial viability screens, seasoning period, or minimum IWF, for the S&P 500, S&P MidCap 400, or S&P SmallCap 600 as a result of the S&P Dow Jones Indices consultation on the treatment of MegaCap companies. Accordingly, there will be no changes to existing methodology for this index family.
S&P DJI determined that exceptions to the financial viability, seasoning, and IWF requirements should not be granted solely based on market capitalization. The decision not to adopt the proposed exceptions preserves core index principles by maintaining consistent application of these key requirements. Although there may be trade-offs between strict adherence to these eligibility requirements and broad representativeness, the current methodology provides substantial market coverage and sector balance. As a result, the indices can continue to meet their stated objectives while preserving their role as representative and investable benchmarks for the U.S. equity market.
The table below summarizes the consultation results.
Proposed
Methodology
Changes
Current
Result
IPO Seasoning
Period to be
reduced to six
months from 12
months
Initial public offerings should be traded on an
eligible exchange for at least 12 months before
being considered for addition to an index.
Spin-offs or in-specie distributions from existing
constituents are not required to have 12 months of
trading prior to their inclusion in the S&P
Composite 1500.
Companies that migrate from an ineligible
exchange, emerge from bankruptcy, are newly
designated to be domiciled in the U.S. for index
purposes by S&P Dow Jones Indices, or convert
from an ineligible share or organizational type to an
eligible type do not need to trade on an eligible
U.S. exchange for 12 months before being
considered for addition.
No Change
Investable
Weight Factor
(IWF) minimum
is waived for
MegaCap
companies
To be eligible for addition, a stock must have an
IWF of at least 0.10.
Companies passing the total company level market
capitalization criteria are also required to
have a security level float-adjusted market
capitalization (FMC) that is at least 50% of the
respective index's total company level minimum
market capitalization threshold.
No Change
Financial
Viability
exception for
MegaCap
companies
S&P Composite 1500. Generally Accepted
Accounting Principles (GAAP) net income from
continuing operations must be positive for:
o the most recent quarter, and
o the sum of the most recent four consecutive
quarters
Rule Exceptions. Exceptions to the above criteria
include:
• Migrations from one S&P Composite 1500 index
to another do not need to meet the financial
viability, liquidity, or 50% of the respective
index's total company level minimum market
capitalization threshold criteria.
• Companies that are spun-off from current S&P
Composite 1500 constituents do not need to
meet the outside addition criteria
• Non-S&P Composite 1500 companies that
acquire S&P Composite 1500 index
constituents, but do not fully meet all of the
eligibility criteria, may still be added to an S&P
Composite 1500 index at the discretion of the
Index Committee if the merger consideration
includes the acquiring company issuing stock to
target company shareholders, and the
Committee determines that the addition could
mitigate turnover and enhance the
representativeness of the index as a market
benchmark.
No Change
S&P Total Market Index (TMI), S&P Completion Index (CI), and Dow Jones U.S. Total Stock Market Index (TSM)
The S&P Total Market Index (TMI), S&P Completion Index (CI), and Dow Jones U.S. Total Stock Market Index (TSM) are broad market indices intended to represent the investment universe. The following changes will be applied.
Proposed
Methodology
Changes
Current
Result
MegaCap
Classification
--
--
Investable Weight
Factor (IWF) –
S&P Total Market
Index
To be eligible for addition, a stock must have an
IWF of at least 0.10. Current constituents have no
minimum requirement.
To be eligible for addition, a stock must have
either:
• IWF of at least 0.10, or
• Float-adjusted market capitalization
greater than or equal to 10% of the
total company level market
capitalization of the 100th largest
company in the S&P Total Market
Index, ranked by total market
capitalization as of the reference
date.
Current constituents have no minimum
requirement.
Investable Weight
Factor (IWF) –
Dow Jones U.S.
Total Stock Market
Index
To be eligible for addition, a stock must have an
IWF of at least 0.10. Current constituents have no
minimum requirement.
To be eligible for addition, a stock must have
either:
• IWF of at least 0.10, or
• Float-adjusted market capitalization
greater than or equal to 10% of the
total company level market
capitalization of the 100th largest
company in the Dow Jones U.S. Total
Stock Market Index, ranked by total
market capitalization as of the
reference date.
Current constituents have no minimum
requirement.
An IPO that meets the requirements of the updated Investable Weight Factor (IWF) eligibility rule is eligible for fast-track entry, provided the company meets all other applicable fast-track criteria as well. Fast-track assessment is made using the closing price on the first day of trading on an eligible exchange. Once S&P Dow Jones Indices announces that an IPO is eligible for fast-track addition, it is added to the index with five business days' lead time. For more information on IPO fast track entry, see the relevant index methodology.
Float Release after the end of IPO Lock-Up Period
Consultation respondents generally supported implementing float increases following the release of lock-up shares gradually, or in tranches where appropriate, depending on company-specific circumstances.
S&P DJI applies the published methodology as the default approach. In accordance with the Index Committee's governance framework, the Index Committee may, in certain circumstances, exercise discretion in the implementation of float increases after the end of the IPO lock-up period to reduce market impact, support replicability, and promote orderly implementation, taking into account company-specific facts, such as size of the index event and timelines.
Any such decision will be communicated in advance where possible.
IMPACTED INDICES
Index Name
Index Code
S&P Total Market Index (TMI)
SPTMI
S&P Completion Index (CI)
SPCMI
Dow Jones U.S. Total Stock Market Index
DWCF
Please note that if a company is included within the above indices, such company may become eligible for derived indices that use the above index as a starting universe. For example, the derived indices include, but are not limited to, size, sector, style, factor, and sustainability indices derived from the impacted indices. Please refer to the individual index methodologies for more information on eligibility and timing.
IMPLEMENTATION TIMING
S&P DJI is implementing the above described methodology changes to the S&P Total Market Index (TMI), S&P Completion Index (CI), and Dow Jones U.S. Total Stock Market Index (TSM) effective prior to the market open on Monday, June 8, 2026.
For more information about S&P Dow Jones Indices, please visit www.spglobal.com/spdji.
ABOUT S&P DOW JONES INDICES
S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets.
S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies and governments to make decisions with confidence. For more information, visit www.spglobal.com/spdji.
SummaryCompaniesSpaceX is world's biggest-ever IPO, targeting $1.75 trillion valuationS&P 500 inclusion requires company to be profitable, among other rulesSpaceX posted $4.94 billion loss in 2025June 4 (Reuters) - S&P Global (SPGI.N), opens new tab said on Thursday it was not changing the requirements for entry into its major indices, dealing a setback to Elon Musk's SpaceX by effectively ruling out a swift entry for the world's biggest-ever IPO into the benchmark S&P 500 index (.SPX), opens new tab.
Musk has rewritten the IPO playbook for SpaceX in many ways from planning to give retail investors a bigger role in allocations to pushing for early index inclusion, and structuring governance to preserve strong founder control.
Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here.
The company is raising $75 billion and targeting a $1.75 trillion valuation that would place it among the top 10 most valuable U.S.-listed firms, even as only a fraction of its shares are available for trading.
But S&P said "exceptions to the financial viability, seasoning, and IWF (investable weight factor) requirements should not be granted solely based on market capitalization".
To be included in the S&P 500, a company must be profitable under Generally Accepted Accounting Principles in its most recent quarter as well as for the sum of its most recent four quarters, according to one of the rules S&P left unchanged.
SpaceX posted a net loss of $4.94 billion in 2025, even as revenue rose 33% to $18.67 billion.
INVESTOR CONSULTATIONSS&P had consulted with investors about shortening the time a megacap company must be publicly listed before joining its indexes, waiving minimum float requirements and removing its profitability requirement.
Item 1 of 2 A 3D-printed miniature model of Elon Musk and a SpaceX logo are seen in this illustration created on January 23, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
[1/2]A 3D-printed miniature model of Elon Musk and a SpaceX logo are seen in this illustration created on January 23, 2025. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab
The S&P 500 is Wall Street's most widely followed benchmark. Passive S&P 500 index funds with trillions of dollars in assets would have been forced to buy up SpaceX shares had rules been changed to admit it to the index.
"It speaks highly of the credibility of S&P Dow Jones Indices to be rules-based and make sure there's profitability before entrance to the index," said Art Hogan, chief market strategist at B. Riley Wealth.
"Making exceptions because companies are so large and have been private so long yet are still not profitable, didn't make a great deal of sense."
Nasdaq has already made changes that will make it easier for SpaceX, Anthropic and other newly listed megacaps to join its Nasdaq 100 (.NDX), opens new tab index.
Nasdaq 100 index funds will be forced to buy a sizeable portion of publicly available SpaceX shares when the company joins that index.
Exchange operators have ramped up efforts to boost initial public listings as richly valued technology firms such as SpaceX and AI giants Anthropic and OpenAI edge closer to public offerings, amid growing concerns over a steady decline in the number of U.S.-listed companies.
S&P Global said it would modify entry rules for its broader S&P Total Market Index and Dow Jones U.S. Total Stock Market Index, creating a pathway for SpaceX to join those less widely followed indexes.
SpaceX has also already become eligible for inclusion in both the Russell U.S. Equity Indexes and the FTSE Global Equity Index Series under the newly announced fast-entry rules from the index provider FTSE Russell.
Reporting by Noel Randewich in San Francisco and Pritam Biswas and Shivansh Tiwary in Bengaluru; Editing by Arun Koyyur and Jamie Freed
Our Standards: The Thomson Reuters Trust Principles., opens new tab
San Francisco correspondent covering the stock market with a focus on Big Tech, semiconductors and other Silicon Valley companies
, /PRNewswire/ -- Mark Grant, Senior Vice President of Investor Relations and Treasurer of S&P Global (NYSE: SPGI), will participate in the Mizuho Technology Conference 2026 on June 10, 2026 in New York, New York. Mr. Grant is scheduled to speak from 10:30 a.m. to 11:05 a.m. (Eastern Daylight Time). The "fireside chat" will be webcast and may include forward-looking information. Heather Balsky, Senior Director of Investor Relations will join for investor meetings.
Webcast Instructions: Live and Replay
The webcast (audio-only) will be available live and in replay through the Company's Investor Relations website http://investor.spglobal.com/Investor-Presentations. The webcast replay will be available about 12 hours after the end of the presentation and will remain accessible for 90 days, ending on September 7, 2026. Any additional information presented during the session will be made available on the Company's Investor Presentations web page.
About S&P Global
S&P Global (NYSE: SPGI) enables businesses, governments, and individuals with trusted data, expertise and technology to make decisions with conviction. We are Advancing Essential Intelligence through world-leading benchmarks, data, and insights that customers need in order to plan confidently, act decisively, and thrive in a rapidly changing global landscape.
From helping our customers assess new investments across the capital and commodities markets to navigating the energy expansion, acceleration of artificial intelligence, and evolution of public and private markets, we enable the world's leading organizations to unlock opportunities, solve challenges, and plan for tomorrow — today. Learn more at www.spglobal.com.
Investor Relations: http://investor.spglobal.com
Contact:
Investor Relations:
Mark Grant
Senior Vice President, Investor Relations and Treasurer
Tel: +1 (347) 640-1521
[email protected]
, /PRNewswire/ -- S&P Dow Jones Indices will make the following changes to the S&P 500, S&P MidCap 400, and S&P SmallCap 600 indices effective prior to the open of trading on Monday, June 22, 2026, to coincide with the quarterly rebalance. The changes ensure that each index is more representative of its market capitalization range. The companies being removed from S&P MidCap 400 and S&P SmallCap 600 are no longer representative of the mid-cap and small-cap market space, respectively.
Following is a summary of the changes that will take place prior to the open of trading on the effective date:
Effective Date
Index Name
Action
Company Name
Ticker
GICS Sector
June 22, 2026
S&P 500
Addition
Marvell Technology
MRVL
Information Technology
June 22, 2026
S&P 500
Deletion
Pool Corp
POOL
Consumer Discretionary
June 22, 2026
S&P 500
Addition
Flex
FLEX
Information Technology
June 22, 2026
S&P 500
Deletion
The Campbell's Company
CPB
Consumer Staples
June 22, 2026
S&P MidCap 400
Addition
Roku
ROKU
Communication Services
June 22, 2026
S&P MidCap 400
Deletion
Flex
FLEX
Information Technology
June 22, 2026
S&P MidCap 400
Addition
Coeur Mining
CDE
Materials
June 22, 2026
S&P MidCap 400
Deletion
BellRing Brands
BRBR
Consumer Staples
June 22, 2026
S&P MidCap 400
Addition
Semtech
SMTC
Information Technology
June 22, 2026
S&P MidCap 400
Deletion
Coty
COTY
Consumer Staples
June 22, 2026
S&P MidCap 400
Addition
Sanmina
SANM
Information Technology
June 22, 2026
S&P MidCap 400
Deletion
Concentrix
CNXC
Industrials
June 22, 2026
S&P MidCap 400
Addition
Viavi Solutions
VIAV
Information Technology
June 22, 2026
S&P MidCap 400
Deletion
Blackbaud
BLKB
Information Technology
June 22, 2026
S&P SmallCap 600
Addition
Pool
POOL
Consumer Discretionary
June 22, 2026
S&P SmallCap 600
Deletion
Embecta
EMBC
Health Care
June 22, 2026
S&P SmallCap 600
Addition
The Campbell's Company
CPB
Consumer Staples
June 22, 2026
S&P SmallCap 600
Deletion
Universal Health Realty Trust
UHT
Real Estate
June 22, 2026
S&P SmallCap 600
Addition
Coty
COTY
Consumer Staples
June 22, 2026
S&P SmallCap 600
Deletion
Semtech
SMTC
Information Technology
June 22, 2026
S&P SmallCap 600
Addition
Concentrix
CNXC
Industrials
June 22, 2026
S&P SmallCap 600
Deletion
Sanmina
SANM
Information Technology
June 22, 2026
S&P SmallCap 600
Addition
Blackbaud
BLKB
Information Technology
June 22, 2026
S&P SmallCap 600
Deletion
Viavi Solutions
VIAV
Information Technology
June 22, 2026
S&P SmallCap 600
Addition
Credit Acceptance
CACC
Financials
June 22, 2026
S&P SmallCap 600
Deletion
Oxford Industries
OXM
Consumer Discretionary
June 22, 2026
S&P SmallCap 600
Addition
Lazard
LAZ
Financials
June 22, 2026
S&P SmallCap 600
Deletion
Gogo
GOGO
Communication Services
June 22, 2026
S&P SmallCap 600
Addition
Eastern Bankshares
EBC
Financials
June 22, 2026
S&P SmallCap 600
Deletion
PRA Group
PRAA
Financials
June 22, 2026
S&P SmallCap 600
Addition
Wesbanco
WSBC
Financials
June 22, 2026
S&P SmallCap 600
Deletion
Insteel Industries
IIIN
Industrials
June 22, 2026
S&P SmallCap 600
Addition
Warby Parker
WRBY
Consumer Discretionary
June 22, 2026
S&P SmallCap 600
Deletion
Ethan Allen Interiors
ETD
Consumer Discretionary
June 22, 2026
S&P SmallCap 600
Addition
Nicolet Bankshares
NIC
Financials
June 22, 2026
S&P SmallCap 600
Deletion
Cytek Biosciences
CTKB
Health Care
June 22, 2026
S&P SmallCap 600
Addition
Liquidia
LQDA
Health Care
June 22, 2026
S&P SmallCap 600
Deletion
Monro
MNRO
Consumer Discretionary
June 22, 2026
S&P SmallCap 600
Addition
Rush Street Interactive
RSI
Consumer Discretionary
June 22, 2026
S&P SmallCap 600
Deletion
Vital Farms
VITL
Consumer Staples
June 22, 2026
S&P SmallCap 600
Addition
United States Lime & Minerals
USLM
Materials
June 22, 2026
S&P SmallCap 600
Deletion
Cable One
CABO
Communication Services
June 22, 2026
S&P SmallCap 600
Addition
InvenTrust Properties
IVT
Real Estate
June 22, 2026
S&P SmallCap 600
Deletion
Forward Air
FWRD
Industrials
ABOUT S&P DOW JONES INDICES
S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets.
S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence. For more information, visit www.spglobal.com/spdji/en/.
Marvell Technology and Flex Set to Join S&P 500; Others to Join S&P MidCap 400 and S&P SmallCap 600 PR Newswire
NEW YORK, June 5, 2026
, /PRNewswire/ -- S&P Dow Jones Indices will make the following changes to the S&P 500, S&P MidCap 400, and S&P SmallCap 600 indices effective prior to the open of trading on Monday, June 22, 2026, to coincide with the quarterly rebalance. The changes ensure that each index is more representative of its market capitalization range. The companies being removed from S&P MidCap 400 and S&P SmallCap 600 are no longer representative of the mid-cap and small-cap market space, respectively.
Following is a summary of the changes that will take place prior to the open of trading on the effective date:
Effective Date
Index Name
Action
Company Name
Ticker
GICS Sector
June 22, 2026
S&P 500
Addition
Marvell Technology
MRVL
Information Technology
June 22, 2026
S&P 500
Deletion
Pool Corp
POOL
Consumer Discretionary
June 22, 2026
S&P 500
Addition
Flex
FLEX
Information Technology
June 22, 2026
S&P 500
Deletion
The Campbell's Company
CPB
Consumer Staples
June 22, 2026
S&P MidCap 400
Addition
Roku
ROKU
Communication Services
June 22, 2026
S&P MidCap 400
Deletion
Flex
FLEX
Information Technology
June 22, 2026
S&P MidCap 400
Addition
Coeur Mining
CDE
Materials
June 22, 2026
S&P MidCap 400
Deletion
BellRing Brands
BRBR
Consumer Staples
June 22, 2026
S&P MidCap 400
Addition
Semtech
SMTC
Information Technology
June 22, 2026
S&P MidCap 400
Deletion
Coty
COTY
Consumer Staples
June 22, 2026
S&P MidCap 400
Addition
Sanmina
SANM
Information Technology
June 22, 2026
S&P MidCap 400
Deletion
Concentrix
CNXC
Industrials
June 22, 2026
S&P MidCap 400
Addition
Viavi Solutions
VIAV
Information Technology
June 22, 2026
S&P MidCap 400
Deletion
Blackbaud
BLKB
Information Technology
June 22, 2026
S&P SmallCap 600
Addition
Pool
POOL
Consumer Discretionary
June 22, 2026
S&P SmallCap 600
Deletion
Embecta
EMBC
Health Care
June 22, 2026
S&P SmallCap 600
Addition
The Campbell's Company
CPB
Consumer Staples
June 22, 2026
S&P SmallCap 600
Deletion
Universal Health Realty Trust
UHT
Real Estate
June 22, 2026
S&P SmallCap 600
Addition
Coty
COTY
Consumer Staples
June 22, 2026
S&P SmallCap 600
Deletion
Semtech
SMTC
Information Technology
June 22, 2026
S&P SmallCap 600
Addition
Concentrix
CNXC
Industrials
June 22, 2026
S&P SmallCap 600
Deletion
Sanmina
SANM
Information Technology
June 22, 2026
S&P SmallCap 600
Addition
Blackbaud
BLKB
Information Technology
June 22, 2026
S&P SmallCap 600
Deletion
Viavi Solutions
VIAV
Information Technology
June 22, 2026
S&P SmallCap 600
Addition
Credit Acceptance
CACC
Financials
June 22, 2026
S&P SmallCap 600
Deletion
Oxford Industries
OXM
Consumer Discretionary
June 22, 2026
S&P SmallCap 600
Addition
Lazard
LAZ
Financials
June 22, 2026
S&P SmallCap 600
Deletion
Gogo
GOGO
Communication Services
June 22, 2026
S&P SmallCap 600
Addition
Eastern Bankshares
EBC
Financials
June 22, 2026
S&P SmallCap 600
Deletion
PRA Group
PRAA
Financials
June 22, 2026
S&P SmallCap 600
Addition
Wesbanco
WSBC
Financials
June 22, 2026
S&P SmallCap 600
Deletion
Insteel Industries
IIIN
Industrials
June 22, 2026
S&P SmallCap 600
Addition
Warby Parker
WRBY
Consumer Discretionary
June 22, 2026
S&P SmallCap 600
Deletion
Ethan Allen Interiors
ETD
Consumer Discretionary
June 22, 2026
S&P SmallCap 600
Addition
Nicolet Bankshares
NIC
Financials
June 22, 2026
S&P SmallCap 600
Deletion
Cytek Biosciences
CTKB
Health Care
June 22, 2026
S&P SmallCap 600
Addition
Liquidia
LQDA
Health Care
June 22, 2026
S&P SmallCap 600
Deletion
Monro
MNRO
Consumer Discretionary
June 22, 2026
S&P SmallCap 600
Addition
Rush Street Interactive
RSI
Consumer Discretionary
June 22, 2026
S&P SmallCap 600
Deletion
Vital Farms
VITL
Consumer Staples
June 22, 2026
S&P SmallCap 600
Addition
United States Lime & Minerals
USLM
Materials
June 22, 2026
S&P SmallCap 600
Deletion
Cable One
CABO
Communication Services
June 22, 2026
S&P SmallCap 600
Addition
InvenTrust Properties
IVT
Real Estate
June 22, 2026
S&P SmallCap 600
Deletion
Forward Air
FWRD
Industrials
ABOUT S&P DOW JONES INDICES
S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets.
S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence. For more information, visit www.spglobal.com/spdji/en/.
View original content:https://www.prnewswire.com/news-releases/marvell-technology-and-flex-set-to-join-sp-500-others-to-join-sp-midcap-400-and-sp-smallcap-600-302793159.html
New collaboration brings S&P Global's essential intelligence into Cohere's secure enterprise AI platform, North, extending the reach of S&P Global data across the applications and platforms where customers work. Customers can now access financial data directly within Cohere's secure agentic AI platform, accelerating research, analysis, and reporting workflows across financial services. , /PRNewswire/ -- S&P Global (NYSE: SPGI) today announced a strategic collaboration with Cohere, a leading global sovereign AI provider for governments and regulated industries, to bring its trusted financial data directly into Cohere's secure enterprise platform, North. The collaboration will enable customers to leverage S&P Global's essential intelligence across more AI and agentic workflows grounded in verifiable fact, delivering faster research and greater accuracy with trusted, citation-backed information.
With this integration, customers can run sensitive on-premise workloads directly within North powered by Cohere's cutting-edge AI models, combining S&P Global's trusted data with their own enterprise data to generate faster, more accurate answers to complex questions. The collaboration reflects S&P Global's strategy of integrating its data across the AI platforms where customers operate, ensuring its differentiated data translate into real productivity gains, no matter which AI environment a customer chooses.
"We've done the work on the backend to make our data AI-ready, build the retrieval infrastructure, and partner with best-in-class AI providers, so that customers can simply put S&P Global to work in the platforms they already use," said Bhavesh Dayalji, Chief AI Officer of S&P Global and CEO of Kensho. "As agentic workflows become the norm, we deliver value by ensuring that customers can access our data seamlessly and accurately, wherever they work."
"By combining S&P Global's financial intelligence with Cohere's enterprise‑grade sovereign AI platform, we're giving financial institutions a secure foundation to build agentic workflows wherever their data lives that deliver measurable impact," said Frank O'Dowd, Chief Revenue & Commercial Officer of Cohere. "Regulated industries need AI they can trust with their most sensitive workloads, and they want it deeply connected to the proprietary data that drives their business. This collaboration marks a major step forward in how the global financial ecosystem puts high‑trust AI to work."
The Cohere collaboration builds on S&P Global's broader strategy of making its data available across the AI platforms that customers use. This approach ensures customers can access S&P Global's high-quality intelligence in their preferred AI environments, with data validated at every step through source citations without the friction of building custom pipelines.
That reach is enabled by S&P Global and Kensho's sustained investment in building a foundational data retrieval layer for customers, enabling access to S&P Global intelligence at scale across AI and agentic workflows.
To learn more about S&P Global's AI solutions, visit: spglobal.com
Media Contacts:
Orla O'Brien
S&P Global
+1 857-407-8559
[email protected]
Madeline McSherry
Kensho
[email protected]
About S&P Global
S&P Global (NYSE: SPGI) enables businesses, governments, and individuals with trusted data, expertise and technology to make decisions with conviction. We are Advancing Essential Intelligence through world-leading benchmarks, data, and insights that customers need in order to plan confidently, act decisively, and thrive in a rapidly changing global landscape. From helping our customers assess new investments across the capital and commodities markets to navigating the energy expansion, acceleration of artificial intelligence, and evolution of public and private markets, we enable the world's leading organizations to unlock opportunities, solve challenges, and plan for tomorrow – today.
About the Kensho LLM-ready API
The Kensho LLM-ready API integrates with any large language model, enabling customers to use natural language to query a range of S&P Global datasets, including S&P Capital IQ Financials, earnings call transcripts, and more. Unlike typical APIs, it is optimized for LLMs by offering a simplified structure that supports function calling patterns. It comes with a Python library that streamlines everything from authentication to LLM integration. Designed for professionals such as investment bankers, equity analysts, consultants, and other data-driven roles, this LLM-ready API supports efficient retrieval of financial data, including financial statement line items, security identifiers, and company information—ideal for creating pitch books, research reports, and market positioning presentations. The API was developed by Kensho, S&P Global's hub for AI innovation and transformation.
Moody's and S&P Global each run a protected ratings franchise alongside a data business exposed to AI. In early 2026 their results and their share prices began to separate the two.
Getty Images
For most of their history, the two companies that dominate credit ratings have been valued as steady, single franchises. In early 2026 the split inside them came into view. Moody’s and S&P Global each run two different businesses: a ratings operation that assigns the grades bond issuers cannot do without, and a data and analytics arm that sells research and tools into a market now filling with AI competitors. The first is hard to dislodge. The second is not, and investors have started to treat them differently.
An equity research note published on Substack in March framed each company as a blend of a ratings franchise largely insulated from AI and a data and analytics business in its path, and argued the shares had sold off roughly in line with their exposure to the second. That note is one analyst's opinion, not company disclosure, but the divide it describes is the one the financial results now show.
Why ratings are hard to displaceA credit rating is wired into the rules of finance. Bank capital requirements, the securities a money-market fund may hold, and the terms of countless investment mandates all reference ratings from a recognized agency. An issuer selling a bond generally needs one, and in practice that means Moody's or S&P. Software can read a balance sheet, but it cannot vote itself into those rules, and that is the moat under the ratings business.
The numbers show where the money still comes from. In its fourth-quarter and full-year 2025 results, reported February 10, 2026, S&P Global said ratings revenue rose 12% in the quarter, with transaction revenue lifted by a 28% jump in billed issuance. Moody's, in its results reported February 18, 2026, said revenue at Moody's Investors Service, its ratings arm, rose 17% in the quarter to $946 million. Issuers still pay to be rated, and that revenue grew.
Where AI sits inside the agenciesBoth companies are putting AI into their own products rather than waiting for it to arrive from outside. S&P Global introduced a generative-AI tool it calls CreditCompanion in May 2025, built into its RatingsDirect platform to search and summarize its own ratings and research. Moody's has built generative-AI tools across its analytics line, including a research assistant and a set of agents aimed at credit and portfolio work. So far the agencies have pointed AI at research and analysis, not at producing the ratings themselves.
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Where the exposure isThe exposed half is data and analytics, the part that sells information rather than the rating. That is the work AI tools are learning to do, and it is a large business for both. S&P Global reported full-year 2025 revenue of $15.336 billion across five divisions, only one of which is ratings. Moody's reported full-year revenue of $7.7 billion, with its Moody's Analytics arm generating $943 million in the fourth quarter alone, up 9%. The faster ratings revenue grows, the more the slower-growing analytics side stands out as the part with something to prove against AI.
Trade publication The DESK reported in February that rating-agency share prices fell that week after the release of new analytics tools built on Anthropic's Claude model, which the publication tied to investor sensitivity over how AI might reach the agencies' data and research business. The same report noted Moody's already uses generative AI in its credit analysis and that S&P and Fitch launched AI research tools in 2025. The reported share-price move is a market event described by a third party, not a company disclosure.
What the guidance saysManagement set out 2026 expectations that lean on continued growth, not retreat. S&P Global guided to 2026 adjusted diluted EPS of $19.40 to $19.65 and organic constant-currency revenue growth of 6.0% to 8.0%, and reaffirmed a plan to return at least 85% of adjusted free cash flow to shareholders. Moody's guided to 2026 adjusted diluted EPS of $16.40 to $17.00 and said it plans $2.0 billion in share repurchases alongside a higher dividend. Both companies described AI as something they are integrating into products, and both still guided to double-digit earnings growth.
What to watchThe signal to follow is whether the two halves keep separating. If investors stay convinced the ratings franchise is safe and the data arm is exposed, the agencies' valuations will track their analytics revenue more closely than their ratings fees, and management will keep being asked about AI for that reason. The harder question sits one layer down: whether AI stays a tool the agencies sell into their own research, or becomes a competitor that erodes the data business from outside. The ratings franchise is not the part at risk. The information business built around it is.
S&P Global is rated a 'buy' as it trades below historical valuation despite robust growth, strong margins, and a 53-year dividend increase streak. SPGI's spin-off of the Mobility segment and ongoing AI investments are expected to enhance growth, margins, and business focus, with a July 2026 completion for the spin-off. Q1 2026 results exceeded expectations, with revenue up 10.3% and non-GAAP EPS up 14%, yet shares have declined 18.8% YTD amid AI disruption fears.
Law enforcement warns there may be a surge in converter thefts stemming from increased value
, /PRNewswire/ -- New CARFAX data estimates more than 137,000 catalytic converters were stolen in 2025, with thousands more estimated stolen at the start of this year. Law enforcement warns thieves target these emission-control devices to get at the valuable precious metals they contain, including platinum, palladium and rhodium.
Here are the Top Vehicles Most Frequently Targeted Nationwide:
Ford F-150 pickup truck Hyundai Tucson SUV Ford Explorer SUV Ram 2500 heavy-duty pickup truck Chevrolet Silverado pickup truck Chevrolet Traverse SUV Ram 3500 heavy-duty pickup truck Ford EcoSport SUV Ford Expedition SUV Chevrolet Trax SUV "There are a wide range of vehicles impacted, and most of these are pickup trucks and SUVs, which tend to sit higher off the ground, making it easier for thieves to get in and out," said Patrick Olsen, Editor-in-Chief at CARFAX. "Experts also tell us that while thieves can make anywhere from $25-$300 for a standard catalytic converter, converters from hybrid vehicles can sell for up to $1,400 because they have even more of those precious metals inside."
Several factors may be contributing to continued catalytic converter thefts, including rising precious metal prices. Rhodium, one of the metals found in catalytic converters, has more than doubled in value over the past year, reaching about $11,000 per ounce in March. Prices today remain below the peak of roughly $30,000 per ounce reached in 2021.
Some law enforcement tells CARFAX they've seen a resurgence in catalytic converter thefts, including a recent incident in Maryland where the Sykesville Police Department confirmed at least two drivers were victimized just weeks ago. The trend comes as replacement costs can reach $3,000, particularly for motorists without comprehensive insurance coverage.
"Thieves stripped these catalytic converters in a matter of minutes, leaving the car owners to face thousands of dollars in out-of-pocket repair bills," said Cpl. Annelise Barrett of the Sykesville Police Department. "We are seeing a noticeable bump in these incidents, not only in our area, but in the surrounding cities as well."
To protect your vehicles, law enforcement recommends the following safety measures:
Park securely: Utilize a locked garage whenever possible. Choose high-visibility areas: If parking outside, choose well-lit spaces with high foot traffic. Upgrade security: Install motion-sensor lights and increase your vehicle alarm's sensitivity. Install a physical deterrent: Consider adding a metal cage or lock around your catalytic converter. Thieves target easy opportunities; adding even a minor challenge can cause them to move on. Make identification easier: If possible, engrave your VIN on the catalytic converter. If it is stolen, the VIN can help law enforcement, scrapyards, and pawn shops identify and recover the part. About CARFAX
CARFAX, part of S&P Global Mobility, helps millions of people every day confidently shop, buy, service, and sell cars with innovative solutions powered by CARFAX® vehicle history information. The expert in vehicle history since 1984, CARFAX provides CARFAX Car Listings, CARFAX Car Care, CARFAX History-Based Value , and the flagship CARFAX Vehicle History Report to consumers and the automotive industry. CARFAX owns the world's largest vehicle history database and is nationally recognized as a top workplace by The Washington Post. Shop, Buy, Service, Sell – Show me the CARFAX®.
S&P Global Mobility is a division of S&P Global (NYSE: SPGI). S&P Global is the world's foremost provider of credit ratings, benchmarks, analytics, and workflow solutions in the global capital, commodity, and automotive markets.
June 10, 2026 13:45 ET | Source: Oma Säästöpankki Oyj
OMA SAVINGS BANK PLC STOCK EXCHANGE RELEASE 10 JUNE 2026 AT 20.45 EEST, OTHER INFORMATION DISCLOSED ACCORDING TO THE RULES OF THE EXCHANGE
S&P Global Ratings affirmed the BBB/A-2 credit rating and maintained the negative outlook for Oma Savings Bank Plc
On 10 June 2026, S&P Global Ratings (S&P) has affirmed that the short-term and long-term issuer credit ratings of Oma Savings Bank Plc (OmaSp or the Company) remain unchanged and are BBB/A-2. S&P expects that OmaSp's asset quality will gradually improve in the next 24 months. S&P also estimates that the Company's financial position will remain solid.
At the same time, S&P assigned BBB+/A-2 short-term and long-term resolution counterparty ratings (RCRs) to OmaSp.
S&P also decided to maintain the negative outlook for OmaSp's credit rating. According to S&P, the negative outlook reflects downside risk from deteriorating asset quality and credit provisioning above normalized losses.
S&P's press release will be available at www.omasp.fi Investors > Debt investors > Credit ratings.
DISTRIBUTION
Nasdaq Helsinki Ltd
Major media
www.omasp.fi
OmaSp is a solvent and profitable Finnish bank. About 600 professionals provide nationwide services through OmaSp’s 48 branch offices and digital service channels to over 200,000 private and SME customers. OmaSp focuses primarily on retail banking operations and provides its clients with a broad range of banking services both through its own balance sheet as well as by acting as an intermediary for its partners’ products. The intermediate products include credit, investment, and loan insurance products. OmaSp is also engaged in mortgage banking operations.
OmaSp’s core idea is to provide personal service to its customers, both in digital and traditional channels. OmaSp strives to offer a premium-level customer experience through personal service and easy accessibility. In addition, the development of operations and services is customer oriented. The personnel are committed, and OmaSp seeks to support their career development with varied tasks and continuous development. A substantial part of the personnel also own shares in OmaSp.
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.
CompaniesFollow-UpPresumably whenever a stockpicker—whether investor or analyst—chooses the next big idea, that choice isn’t made cavalierly. Neither should the decision to bail if the stock moves in an unanticipated, and unwanted, direction. After much pondering, I recommend staying the course with S&P Global.
LONDON, Ontario--(BUSINESS WIRE)--As Canadians head into the summer months, the used vehicle market is facing increasing pressure, as economic conditions become more challenging nationwide.
The June CARFAX Canada Used Vehicle Market Insights Report reveals that while prices remain elevated compared to pre-pandemic levels, they have generally plateaued so far this year and have come down significantly from 2025.
In April, 30.9% of used vehicles listed for sale had reported damage, with an average listing price $7,464 lower than undamaged vehicles — a significant gap. This spread reflects the variability in how damage impacts value, influenced by both damage severity and vehicle type. While CARFAX Canada offers VIN-specific valuations that capture this variability at the individual vehicle level, the figures in this report are based on broad market estimates.
Used vehicle inventory is climbing fast, but not enough to outstrip levels seen last year. Supply remains constrained due to reduced new vehicle production earlier in the decade and the associated follow-on effect of lower leasing volumes in the same period.
Although most buyers are seeing value in the market, this has yet to translate into sustained transaction growth. Used and new sales are off to a slow start this year, with demand continuing to be constrained by macroeconomic conditions and affordability pressures. While transactions have shown a modest rebound in recent months, overall volumes remain below year-ago levels.
Electric Vehicles
The EV market continues to show volatility, but consumer interest is building. Amongst Canadians planning to purchase a used vehicle in the next 12 months, 22% are considering a Battery Electric Vehicle (BEV). This demand is being driven by expanding infrastructure and higher gas prices, which reached an average of 178.8 cents per litre in April — the highest level for regular unleaded gas seen since July of 2022. But supply remains tight, with BEVs representing just 4% of all used listings and inventory heavily skewed towards higher-priced models.
With gas prices not anticipated to level off anytime soon and new, likely more affordable Chinese EVs arriving on Canadian soil this year — albeit in limited quantities — electric demand is expected to gain momentum. Some Chinese models from manufacturers like BYD, are expected to retail at a lower price point than the average price for a used EV today, helping to improve accessibility. CARFAX Canada research shows that while fuel savings are the number one driver for prospective EV buyers, high price tags remain the biggest barrier. For more EV insights, check out our full report: “What’s next for EVs, and how dealers can get ahead.”
Market Snapshot
Key Takeaways
There were 254,881 used vehicle transactions in April 2026, up 1.2% month-over-month and down 7.2% year-over-year, signalling a modest rebound after recent declines, though demand remains below last year’s levels. Used inventory continues to build for the selling season, with a significant 21.6% month-over-month gain in April. However, this rise has not meaningfully eased longer-term supply constraints, with inventory levels staying essentially flat year-over-year. The national average used vehicle listing price has plateaued since February, showing a modest increase of 0.8% from March, and falling 3.8% from the same time last year. The average used EV listing price reached $40,893 in April, up 4.7% month-over-month after showing a downward trend since late 2025. Recent volatility is being driven by rising fuel costs and limited inventory. CARFAX Canada Used Vehicle Market Insights arm the auto industry with the knowledge to decode market trends, sharpen buying and selling strategies, and navigate an increasingly complex vehicle marketplace with confidence.
For the latest trends and insights on the average price by vehicle condition, region, market segment, and vehicle type, view the full June CARFAX Canada Used Vehicle Market Insights Report here: https://www.carfax.ca/media/carfax-canada-used-vehicle-market-insights-2026-06
About CARFAX Canada
CARFAX Canada, a part of S&P Global (NYSE: SPGI), is Canada’s definitive source of automotive information, delivering vehicle history, valuation and service solutions. Drawing on billions of data records from thousands of sources, its products enable used vehicle buyers, sellers and vehicle service providers to make informed decisions. CARFAX Canada is dedicated to transparency and is trusted to provide vehicle history, valuation and service information to dealerships, vehicle manufacturers, consumers, service shops, major auctions, governments, insurance providers and police agencies.
Connect with CARFAX Canada on Instagram, Facebook and LinkedIn.
New Sustainable1 dataset flags corporate conduct assessed against UNGC principles
, /PRNewswire/ -- S&P Global Energy, the leading independent provider of information, data, analysis, benchmark prices and workflow solutions for the commodities, energy expansion and energy transition markets, today announced that S&P Global Sustainable1 has launched the United Nations Global Compact (UNGC) Screening Dataset.1
The dataset is a one-stop screening solution that provides a structured method to help investment managers, bankers and non-financial corporates assess whether companies are aligned with the 10 UNGC Principles. S&P Global Sustainable1 has applied the UNGC Screening Dataset to a proprietary list of 16,500 companies globally and expects to cover an estimated 24,000.
This dataset combines two evidence streams that enable customers to identify potential misalignment across human rights, labor, environment and anti-corruption principles, providing companies with timely and critical oversight of evolving risks:
Controversy Screening: Tracks corporate controversies linked to one or more UNGC principles. Business Involvement Screening: Flags corporate revenues originating from specific controversial products. "When investors evaluate portfolio risk, understanding any controversies companies are involved in can be a critical step. To help investors understand these risks, we have launched the S&P Global Sustainable1 UNGC Screening Dataset. This comprehensive, foundational tool identifies corporate conduct assessed against UNGC principles and better informs investment decisions," said Thomas Yagel, Head of Sustainable1 at S&P Global Energy. "The UNGC Screening Dataset provides clear and actionable UNGC alignment labels, enabling investors to integrate S&P Global Sustainable1 insights into their decision-making, portfolio construction and ongoing risk oversight."
Leveraging S&P Global's AI capabilities, this new dataset utilizes proprietary AI and machine learning models to systematically identify, classify, and quantify ESG and business risks. The AI models continuously screen millions of public sources globally – across news, NGOs, regulators, and other stakeholders – in multiple languages to detect emerging risk incidents in real time. These AI–driven insights are then validated and contextualized by a dedicated Controversy Research team within Sustainable1, strengthening accuracy, consistency and decision–ready risk indicators for investors.
Using this dataset, S&P Global Sustainable1 published a white paper, "How S&P Global data helps investors navigate the risks of corporate controversies", which found that misalignment in companies is most frequently linked to human rights-related controversies. The concentration of cases tied to human rights – and, to a lesser extent, environmental impacts and corruption – provides indicators for investors as to where they may face the most persistent and material sources of controversy-driven risk. By integrating these risk indicators into portfolio construction and ongoing oversight, investors can more consistently identify elevated exposure; engage companies from a clearer baseline of evidence and strengthen accountability expectations aligned with the UNGC principles.
Details of the UNGC Screening Dataset are available here. Read the full white paper here.
For more information on S&P Global products and solutions, please reach out to our teams here.
1 The UN is not affiliated with, does not endorse, and has not reviewed the S&P Global Sustainable1 UNGC Screening Dataset.
Media Contact
Kathleen Tanzy
S&P Global Energy, Americas/EMEA
+1 917-331-4607
[email protected]
About S&P Global Energy
At S&P Global Energy, our comprehensive view of global energy and commodities markets enables our customers to make superior decisions and create long-term, sustainable value. Our four core capabilities are: Platts for pricing and news; CERA for research and advisory; Horizons for energy expansion and sustainability solutions; and Events for industry collaboration.
S&P Global Energy is a division of S&P Global (NYSE: SPGI). S&P Global enables businesses, governments, and individuals with trusted data, expertise, and technology to make decisions with conviction. We are Advancing Essential Intelligence through world-leading benchmarks, data, and insights that customers need in order to plan confidently, act decisively, and thrive in a rapidly changing global landscape. Learn more at www.spglobal.com/energy
Warren Buffett, former CEO of Berkshire Hathaway, popularized the term "moat" to describe a company with secure competitive advantages, as if it were protected by a moat around the proverbial castle.
Many of his stock picks over the years had this competitive moat. But one moat-protected stock that Buffett never owned is Standard & Poor's Global (SPGI +1.52%), and I'm not sure why -- it may be the best wide-moat stock in the financial sector.
Buffett does own S&P Global's major competitor, Moody's, and has for a long time, but I think SPGI is an even better stock, with multiple moats.
Image source: Getty Images.
Since 2016, when S&P Global spun off from McGraw-Hill, SPGI stock has had one negative year: 2022, when it fell 29%. But over that 10-year stretch, it has an average annualized return of about 14.5%, beating the benchmark it owns, the S&P 500. The stock price is down 17% year to date, but at its low valuation, it looks like a screaming buy.
Multiple moats S&P Global's primary moat is its credit ratings business, which is the leader in the space alongside Moody's. Combined, they own about 80% of the market share, while the rest is held by Fitch and a few smaller players.
This is not a business that is easily penetrated because of the regulatory hoops companies have to jump through, the costs and complexities involved, the trust that needs to be established, and the network effect because other companies rely on these ratings. Plus, there is only a need for a limited number of reputable ratings agencies; otherwise, the ratings could become watered down.
So this lucrative, asset-light business is not going anywhere, though it will fluctuate with the market and credit issuance. When credit issuance is high, this business will dominate, but when it is not, S&P has other durable businesses that can fill the void.
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The other moat is its indexing business, perhaps the one most associated with the company. S&P is the leading indexer through its various benchmarks, including the S&P 500. This is not its most lucrative business, but it is steady and has been growing, buoyed by huge assets in ETFs that track the S&P 500 and other indexes. In the first quarter of 2026, the indexing business was SPGI's fastest growing, with revenue up 17% year over year.
A solid buy The third major business is Market Intelligence, the biggest revenue driver, along with ratings. It is one of the market leaders, providing data, intelligence, analysis, and insights for institutions. It recently spun off its mobility/transportation data business to focus more on its core offerings.
The combination of the three major moat-protected segments provides SPGI with a balanced, durable revenue stream that allows the stock to navigate various market conditions, thereby ensuring its consistency. In Q1, SPGI saw revenue increase 10% year over year, while earnings rose 32%. For the full year, it anticipates revenue growth of 6.3% to 8.3%.
The stock is down 17% year to date, due to speculative fears of artificial intelligence (AI) disruption, among other issues. But the stock is as cheap as it's been in a while, trading at 21 times forward earnings. At this valuation, it is a no-brainer buy.
The Late-Stage Bull Market Is a Buying Opportunity for TechAutomatic Data Processing NASDAQ: ADP President and CEO Maria Black said the human capital management provider is seeing a “generally stable” but still muted labor environment, while positioning the company for what she described as a “defining moment” for the HCM industry.
Speaking with Tien-Tsin Huang, who covers payments processors and IT services at JPMorgan, Black said ADP’s data gives it a “front row seat” into labor, wage and employment trends, though she emphasized that the company is not in the business of predictive modeling.
Get ADP alerts:
3 Large Cap Stocks Announce Big Buyback Boosts Amid +20% FallsBlack pointed to ADP’s guidance for roughly 1% “pays per control” growth, which she described as a same-store-style measure of the number of pays per company at ADP. She said the company was pleased to see an uptick in the second and third quarters, allowing it to raise that guide back to roughly 1%.
“I think our lens is that it’s a relatively muted environment. It’s relatively stable,” Black said.
ADP Sees Stable Labor Trends, Some Sector Strength 3 Stocks That Benefit if Companies Cut Costs in 2026Black discussed ADP’s National Employment Report and its newer weekly “National Employment Report Pulse,” or NERP. She said the weekly number was 42,250, while the April report was 109,000. She characterized the broader labor backdrop as a “low hire, low fire” environment.
On the technology sector, Black said IT is still adding jobs, citing 11,000 in February, 16,000 in March and 4,000 in April. She also said some areas, including trades and hospitality, are showing growth, while other sectors remain under more pressure.
Black Says AI Adds Complexity, Not Less Demand for HCM Black said the rise of artificial intelligence is changing jobs and tasks, but she argued it does not reduce the need for payroll, compliance and workforce management systems.
“As AI gets infused into work, we don’t see the need to manage people and payroll and the very functions of HCM to go away,” Black said. “We actually see them becoming even more important.”
She highlighted the complexity of payroll, saying it must be “100% accurate 100% of the time,” and noted that regulatory requirements continue to expand. Black cited areas such as data privacy, data lodgment, federal and state regulatory conflicts, and the EU Pay Transparency Directive.
Black also emphasized ADP’s role in what she called the “final mile” of payroll: connections with regulators, carriers, brokers and banking institutions. She said ADP communicates with “tens of thousands of entities” to complete payroll accurately.
Pricing, Retention and AI Monetization Huang noted that ADP’s recent key performance indicators, including net-positive pricing, retention and client satisfaction scores, appeared to counter some investor concerns about AI disruption. Black said ADP’s model is based on value-based pricing and investments that create productivity and efficiency for clients.
Black said ADP is guiding to 130 basis points of price this year, up from 100 basis points. She said clients continue to ask ADP to bring more value and are willing to pay for it when the value is clear.
Asked whether ADP will monetize AI tools separately or through its normal pricing cadence, Black said the answer is “both.” She said AI can support ADP’s recurring revenue model through more bookings, longer client relationships and referrals. She also said there could be opportunities for new revenue lines, pointing to benchmarking, analytics and employment verification as examples of how ADP has already monetized data-driven tools.
Bookings, Competition and Lyric Black said ADP was pleased with year-to-date bookings momentum and described third-quarter performance as broad-based. She cited international operations, Compliance Solutions, Retirement Services and Insurance Services as areas of strength. She said the company is entering the fourth quarter with “good momentum” and “solid pipelines.”
Black also discussed ADP’s investments in sales headcount, tools and technology, including “The Zone,” a proprietary platform designed to use AI in the sales process by serving up the right lead, seller and offer at the right time.
On competition, Black said ADP operates in a “highly competitive” space and monitors peers closely. However, she said she has not seen anything unusual in the competitive environment. She added that ADP is distinctive because it spans the full spectrum of customers, from very small businesses to global employers with as many as 1 million employees.
Black described ADP’s Lyric platform as a “TAM expander” into enterprise HR. She said Lyric is architected at the employee level and supports “dynamic teams,” multiple reporting managers and task-based work, which she said is becoming more important as AI changes work patterns. She said Lyric, combined with Global Payroll across 140 countries, Global Time and WorkForce Software, has changed ADP’s conversations with enterprise and multinational clients.
Product Roadmap, PEO and Capital Allocation Black said ADP Assist is the company’s overarching framework for AI offerings inside its platforms. She said ADP Assist is deployed across HCM domains including payroll, time, benefits, HR and tax. One cited example was ADP Assist for payroll, which she said is shaving 30 minutes off the payroll cycle for users.
Black also pointed to digital transformation in the down market, including implementation and onboarding automation. She said ADP now has line of sight to “almost entirely automate” some onboarding work.
On the company’s professional employer organization, or PEO, Black said secular demand remains strong, supported by complexity in labor management, regulation and rising healthcare costs. She said roughly 50% of new PEO clients come from ADP’s existing client base, though not every ADP client is a fit for the PEO model.
Black also addressed the RUN/Clover partnership with Fiserv, saying her enthusiasm “only continues to grow.” She said RUN has been placed into the Clover platform and CashFlow Central into the ADP platform, with sales motions aligned between the teams.
Regarding capital allocation, Black said ADP stepped up share repurchases through the end of 2026 and referenced the company’s 51st year of dividends, calling ADP a Dividend King. She said ADP remains open to acquisitions, citing the recent PEI acquisition in Mexico and the $1.2 billion acquisition of WorkForce Software nearly two years ago.
Black closed by emphasizing client trust as a central advantage for ADP as the company navigates technological, economic and workforce changes.
About Automatic Data Processing NASDAQ: ADPAutomatic Data Processing, Inc (ADP) is a global provider of cloud-based human capital management (HCM) and payroll solutions. Founded in 1949 and headquartered in Roseland, New Jersey, ADP began as a payroll processing company and has evolved into a diversified provider of workforce management, HR, benefits administration, tax and compliance services, and analytics for employers of all sizes.
ADP's product portfolio includes payroll processing and tax filing, time and attendance systems, benefits administration, talent management, and HR outsourcing.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Automatic Data Processing Right Now?Before you consider Automatic Data Processing, you'll want to hear this.
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Key Takeaways ADP expands its global HCM and outsourcing reach with cloud-based multi-country solutions.ADP strengthened its HCM suite through acquisitions, including WorkForce Software.Automatic Data Processing paid $2.4 billion in dividends during fiscal 2025. Shares of Automatic Data Processing, Inc. (ADP - Free Report) have had a decent run over the past month. The stock has gained 9.5% against the 6.5% decline of the industry. The Zacks S&P 500 composite has gained 3.7% during the said time frame.
The company’s fourth-quarter fiscal 2026 earnings are expected to increase 14.6% year over year. Its 2026 and 2027 earnings are projected to rise 10.6% and 9.3%, respectively. Revenues are anticipated to grow 6.6% in 2026 and 5.5% in 2027.
Factors That Bode Well for ADPAutomatic Data Processing benefits from its three-tier business strategy, enabling it to sustain and strengthen its position as a leading Human Capital Management (HCM) technology and services provider. The company delivers a complete suite of cloud-based HCM and Human Resource Outsourcing (HRO) solutions. ADP is expanding its international HCM and HRO businesses with established local, in-country software and cloud-based multi-country solutions to broaden its presence across diverse markets.
The company also pursues buyouts as a driver for its overall growth. Acquisitions such as Celergo, WorkMarket, Global Cash Card and The Marcus Buckingham Company have enhanced ADP’s global capabilities, diversified its offerings and strengthened its competitive positioning. The recent acquisition of WorkForce Software has improved the company’s HCM solutions suite.
ADP continues to reward shareholders through consistent dividend payments and share repurchases. In fiscal 2025, 2024, 2023 and 2022, the company paid out $2.4 billion, $2.2 billion, $1.9 billion and $1.7 billion in dividends, respectively. Such moves indicate the company’s commitment to returning value to shareholders and underscore its confidence in its business.
ADP's current ratio (a measure of liquidity) at the end of the third-quarter fiscal 2026 was 1.04, lower than the industry average of 1.93. However, a current ratio of more than 1 often indicates that the company will be able to easily pay off its short-term obligations.
Risks to WatchADP faces significant competition in each of its product lines. Both its Employer Services and Professional Employer Organization Services segments compete with other independent business outsourcing companies in most of their operating regions. The company has observed a few negative impacts on its retention rate due to the rising competition and migration from the legacy business.
The outsourcing industry is labor-intensive and heavily dependent on foreign talent. Surging talent costs amid intensifying competition could limit the company’s ability to continue investing in technology and talent while balancing growth initiatives with profitability.
ADP’s Zacks Rank & Stocks to ConsiderAutomatic Data Processing currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks from the broader Zacks Computer and Technology sector are Cisco Systems (CSCO - Free Report) and Dell Technologies (DELL - Free Report) .
Cisco Systems carries a Zacks Rank of 2 (Buy) at present. It has a long-term (next five years) earnings growth expectation of 9.6%.
CSCO delivered a trailing four-quarter earnings surprise of 2%, on average.
Dell Technologies has a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 22.3%.
DELL beat the Zacks Consensus Estimate in three of the last four reported quarters and missed once, with an average earnings surprise of 1.2%.
On May 26, 2026, Automatic Data Processing Inc ADP shares fell 3.1% to a current price of $218.35. This decline comes amid a 52-week trading range of $188.16 to $329.93. The stock has seen significant fluctuations, with a year-to-date drop of 14.4% and a one-year decline of 30.3%.
GF Value™ verdict: The current price of $218.35 is 27.7% below the GF Value™ estimate of $301.91, indicating the stock is undervalued.GF Score™: With a score of 87/100, ADP is rated as strong, suggesting solid long-term performance potential.Most notable signal: Insiders have recently bought $0.7 million worth of shares while selling $0.4 million, indicating a net positive sentiment among management. Is ADP Overvalued or Undervalued? Currently, ADP's stock price of $218.35 is significantly lower than the GF Value™ of $301.91, which suggests that the stock is undervalued by approximately 27.7%. This margin of safety can be appealing for potential investors, as it indicates room for upside should the market correct itself. The GF Valuation label identifies ADP as "Modestly Undervalued," suggesting that while there is an opportunity for appreciation, it may not be without risks. Investors should consider the overall market conditions and the company's fundamentals before making decisions based solely on valuation metrics.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given the current price is well below the GF Value™, it presents a potential opportunity for those looking to invest in stocks with strong fundamentals.
How Does ADP's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 20.4x 30.4x Forward P/E 17.9x - ADP's current P/E ratio of 20.4x is significantly below its 5-year median P/E of 30.4x, indicating that the stock is trading at a valuation much lower than its historical average. The forward P/E of 17.9x further suggests a potential for future price appreciation. This P/E analysis aligns with the GF Value™ verdict, reinforcing the conclusion that the stock is undervalued compared to its historical valuation metrics.
What Does ADP's GF Score™ Tell Us? Metric Rating GF Score™ 87/100 Financial Strength 6/10 Profitability 9/10 Growth 10/10 Valuation 8/10 Momentum 2/10 The GF Score™ of 87/100 indicates that ADP is positioned favorably in terms of potential long-term returns. The strongest areas are Growth, with a perfect score of 10/10, and Profitability, which scores 9/10, suggesting robust operational efficiency and potential for future earnings growth. However, the Momentum rank of 2/10 highlights recent weaknesses in price performance, which may raise concerns for short-term investors.
What Are Insiders Doing with ADP Stock? In the past three months, insider activity at ADP has shown a slight positive trend, with insiders purchasing $0.7 million worth of shares while simultaneously selling $0.4 million. This net buying activity can be seen as a positive signal, indicating that those with the most insight into the company believe the stock is undervalued at current levels. This could suggest a level of confidence in the company's future performance.
What This Means for Investors Based on the GF Value™ analysis, Automatic Data Processing Inc ADP is currently undervalued, presenting a potential opportunity for long-term investors. However, it is essential to consider the broader market context and the company's fundamentals in conjunction with this valuation assessment.
For the complete analysis, visit the Automatic Data Processing Inc ADP 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 ADP's GF Score™?
ADP's GF Score™ is 87/100, indicating that it is rated as strong and has potential for higher long-term returns based on historical performance.
Is ADP overvalued or undervalued?
ADP is considered undervalued, with its current price being 27.7% below the GF Value™ estimate, suggesting potential for price appreciation.
What is ADP's P/E ratio?
ADP's current P/E ratio is 20.4x, which is significantly below its 5-year median P/E of 30.4x, indicating that the stock is trading at a lower valuation compared to its historical averages.
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].
On May 27, 2026, we delve into the DCF analysis for Automatic Data Processing Inc ADP , a company currently facing mixed price performance with a year-to-date decline of 14.4% and a significant drop of 30.3% over the past year. Below are key highlights from our analysis:
DCF Earnings-based intrinsic value of $214.16 compared to the current price of $218.35 (margin of safety: -2.0%) DCF Free Cash Flow (FCF)-based intrinsic value of $226.17, providing a second opinion on valuation GF Score™ of 87/100 indicates a high reliability of the DCF inputs What Is ADP Worth? DCF Earnings-Based Model To determine the intrinsic value of ADP using a Discounted Cash Flow (DCF) model, we apply a two-stage approach. The first stage accounts for a high growth period over the next ten years, while the second stage estimates the terminal value based on a more stable growth rate. Below are the assumptions used in our DCF model:
Parameter Value Current EPS (TTM, excl. non-recurring) $10.74 10-Year Growth Rate 13.3% 10-Year Treasury Rate 4.47% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the first stage, we project EPS growth at 13.3% annually for ten years, discounted at a rate of 11%. The calculated value for this growth stage is $120.41 per share. In the second stage, we apply a terminal growth rate of 4% for an additional ten years, which results in a terminal stage value of $93.75 per share. The summary of our calculations is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 13.3%, discounted at 11% $120.41 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $93.75 Intrinsic Value Growth + Terminal $214.16 With the current price at $218.35, our intrinsic value of $214.16 indicates that ADP is fairly valued, with a margin of safety of -2.0%. It is important to note that GuruFocus uses EPS excluding non-recurring items, as research shows stock prices correlate more closely with earnings than with free cash flow. For further details, visit the ADP DCF Calculator.
What Does the Free Cash Flow DCF Say? In addition to the earnings-based DCF model, we also evaluated ADP using a Free Cash Flow (FCF)-based DCF model. The intrinsic value derived from the FCF analysis is $226.17. This value provides a second perspective on ADP's valuation, and when compared with the earnings-based intrinsic value of $214.16, we see a slight divergence. However, both models suggest that ADP is fairly valued, with the FCF model indicating a margin of safety of 3.5%.
How Does GF Value™ Compare to the DCF Models? According to GuruFocus, the GF Value™ for ADP is $301.91, indicating that the stock is 27.7% undervalued based on this proprietary measure. GF Value™ is calculated from historical trading multiples, past business growth, and future performance estimates. While the DCF models suggest that ADP is fairly valued, the GF Value™ presents a more optimistic view, suggesting that all three valuation methods (DCF earnings, DCF FCF, and GF Value™) provide differing perspectives on ADP's valuation. For more information, visit the GF Value™ page.
What Does ADP's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested from 2006 to 2021). Below is a summary of ADP's GF Score™ metrics:
Metric Rating GF Score™ 87/100 Financial Strength 6/10 Profitability 9/10 Growth 10/10 Valuation 8/10 Momentum 2/10 With a predictability rank of 4/5 stars, this indicates that the DCF model is more reliable for ADP. For more details, visit the ADP 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. Additionally, stocks with low predictability ratings tend to produce less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not fully capture the complexities of future growth.
What This Means for Investors In summary, the three valuation models—DCF earnings, DCF FCF, and GF Value™—provide a comprehensive view of ADP's valuation. While the DCF earnings model suggests a fair valuation, the FCF model indicates a slight undervaluation, and the GF Value™ suggests that ADP may be undervalued based on historical performance metrics. Overall, ADP appears to be fairly valued based on the DCF analysis, but the GF Value™ presents a more favorable outlook. For the full DCF analysis, visit the ADP 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 ADP's intrinsic value based on DCF?
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].
, /PRNewswire/ -- For the four weeks ending May 9, 2026, U.S. private employers added an average of 35,750 jobs per week, according to the NER Pulse, a weekly update of the monthly ADP National Employment Report (NER).
Hiring slowed from the previous week. These numbers are preliminary and could change as new data is added.
The NER Pulse is an estimate of the week-over-week change in employment based on a four-week moving average. These estimates are based on ADP's finely tuned, high-frequency data. The data is seasonally adjusted and have a two-week lag to allow for more complete and accurate estimates of real-time employment trends.
The NER Pulse, including 12 weeks of historical data, publishes every Tuesday at 8:15 a.m. ET, except weeks when ADP Research publishes the monthly National Employment Report which is built on a reference week that includes the 12th day of the month. The press release is available Tuesdays at 8:15 a.m. ET in the ADP Media Center. The NER Pulse is also available shortly after 8:15 a.m. ET on release days at ADP Research and in Main Street Macro.
The next NER Pulse will be released June 9, 2026. For upcoming release dates please refer to the calendar on the NER website.
The ADP National Employment Report and the NER Pulse are produced by ADP Research in collaboration with the Stanford Digital Economy Lab.
About ADP Research
The mission of ADP Research is to make the future of work more productive through data-driven discovery. Companies, workers, and policy makers rely on our finely tuned data and unique perspective to make informed decisions that impact workplaces around the world.
To subscribe to monthly email alerts or obtain additional information about ADP Research, including employment and pay data, methodology, and a calendar of release dates, please visit https://www.adpresearch.com.
About ADP (NASDAQ: ADP)
ADP has been shaping the world of work with innovation and expertise for more than 75 years. As a global leader in HR and payroll solutions, ADP continuously works to solve business challenges for our clients and their workers, from simple, easy-to-use tools for small businesses to fully integrated platforms for global enterprises – and everything in between. Always Designing for People means we're focused on just that – people. We use our unmatched AI-driven insights and proven expertise to design innovative solutions that help people achieve greater success at work. More than 1.1 million clients across 140+ countries rely on ADP's exceptional service to support their people and drive their business forward. HR, Talent, Time Management, Benefits, Compliance, and Payroll. Learn more at ADP.com.
ADP, the ADP logo, and Always Designing for People, ADP National Employment Report, and ADP Research are registered trademarks of ADP, Inc. All other marks are the property of their respective owners.
A month has gone by since the last earnings report for Automatic Data Processing (ADP - Free Report) . Shares have added about 3.7% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is ADP 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 catalysts.
ADP's Q3 Earnings Beat EstimatesAutomatic Data Processing posted third-quarter fiscal 2026 adjusted earnings per share of $3.37, beating the Zacks Consensus Estimate of $3.28 by 2.7%. The metric increased 10.1% from the year-ago quarter.
Total revenues came in at $5.94 billion, topping the consensus mark of $5.86 billion by 1.4% and rising 7% year over year. Operationally, Employer Services client revenue retention and overall client satisfaction reached record highs for the third quarter.
ADP Posts Broad-Based Top-Line GrowthADP’s revenue performance reflected gains across its two operating segments. Employer Services revenues increased 7% year over year to $4.04 billion, whereas PEO Services revenues rose 7% to $1.91 billion.
Client funds tailwinds also remained supportive. Interest on funds held for clients increased 14% year over year to $403.9 million, driven by average client funds balances that rose 9% to $48.3 billion and an average yield of 3.3%, up 10 basis points.
Automatic Data Processing Sees Employer Services LiftEmployer Services continued to be a key growth engine in the quarter. Management cited solid business booking growth, while retention and client satisfaction set record highs for the third quarter.
Profitability improved meaningfully in the segment. Employer Services’ margin expanded 130 basis points year over year, with ADP pointing to operational productivity improvements alongside growth in client funds interest revenues as notable contributors.
ADP’s PEO Segment Mix Weighs on MarginPEO Services turned in another quarter of revenue expansion, but profitability moved the other way. Segment margin declined 120 basis points year over year, reflecting a combination of business mix and cost items within the segment.
ADP noted that zero-margin benefits pass-through growth was a key factor behind the margin pressure. Higher state unemployment insurance costs and higher selling expenses also contributed. On an operating metric basis, average worksite employees increased 2% year over year to about 762,000.
Automatic Data Processing Expands Adjusted Operating ProfitADP converted its revenue growth into higher operating profit. Adjusted EBIT increased 10% year over year to $1.79 billion and the adjusted EBIT margin improved to 30.2%, representing an 80-basis-point expansion.
Below the operating line, ADP’s effective tax rate for the quarter was 23.7% on both a reported and adjusted basis. On a GAAP basis, net earnings increased 9% year over year to $1.36 billion, while diluted earnings per share rose 10% to $3.38.
ADP’s Balance Sheet Shows Higher Client Fund LevelsAutomatic Data Processing ended March 31, 2026, with cash and cash equivalents of $3.23 billion. Funds held for clients totaled $46.41 billion, matched by client funds obligations of $46.77 billion, underscoring the scale of client funds activity in the quarter.
On leverage, long-term debt stood at $3.98 billion. Through the first nine months of fiscal 2026, ADP generated $4.01 billion in cash from operating activities. Capital returns remained sizable, with $1.46 billion used for share repurchases and $1.94 billion paid out in dividends over the same nine months.
Automatic Data Processing Raises FY26 OutlookADP raised its fiscal 2026 outlook following the quarter’s results. The company expects total revenue growth of 6-7% and an adjusted EBIT margin expansion of 70-80 basis points. It also lifted its adjusted diluted earnings per share growth view to 10-11%.
Within the outlook, ADP updated expectations for client funds contribution, projecting interest on funds held for clients of $1.340 billion to $1.350 billion, and total contribution from the client funds extended investment strategy of $1.300 billion to $1.310 billion. Strategically, ADP highlighted continued investment in AI across products and service delivery, including further deployment of ADP Assist agents and an expanded agentic AI ecosystem through ADP Marketplace, alongside scaling GenAI capabilities across service operations via “The Zone.”
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.
VGM ScoresCurrently, ADP has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a score 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 upward for the stock, and the magnitude of these revisions looks promising. Interestingly, ADP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerADP belongs to the Zacks Internet - Software industry. Another stock from the same industry, F5 Networks (FFIV - Free Report) , has gained 18.4% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
F5 reported revenues of $811.7 million in the last reported quarter, representing a year-over-year change of +11%. EPS of $3.90 for the same period compares with $3.42 a year ago.
F5 is expected to post earnings of $3.98 per share for the current quarter, representing a year-over-year change of -4.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.9%.
F5 has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
Throughout the first quarter of the year, the tech sector was a laggard as fears of an artificial intelligence (AI) bubble carried over from the selloff that began in October 2025.
But since the start of the second quarter, that corner of the market has rallied—so much so that it has now overtaken energy as the best performer among the S&P 500’s 11 sectors in 2026.
Get Salesforce alerts:
But within tech, there has been one notable omission from the rally: software. As fears over AI’s encroachment on the industry linger, beaten-down stocks operating in that space have amassed some of the worst year-to-date (YTD) losses across the market.
However, management at some software companies are viewing these corrections as a golden opportunity to take advantage of undervalued shares, signaling that they believe the market has mispriced their stocks.
For the following three companies, that is evidenced through enormous share repurchase authorizations that could prove to be prudent decisions in the long term.
Salesforce Announces Its Largest-Ever Stock BuybackSalesforce Today
$166.07 -0.38 (-0.23%)
As of 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$161.40▼
$276.80Dividend Yield1.06%
P/E Ratio19.22
Price Target$259.26
Authorized stock buybacks allow—but do not require—companies to repurchase their own stock. Regardless, San Francisco-based Salesforce NYSE: CRM is going all in.
The cloud software company, which focuses on customer relationship management and enterprise applications, announced a share repurchase program on March 16, the largest in its history.
The $25 billion accelerated stock buyback plan accounts for more than 14% of CRM’s shares outstanding.
According to the company’s press release, the plan calls for the repurchase of 103 million shares and “represents the immediate execution of half of the $50 billion aggregate Share Repurchase Program authorized by Salesforce’s Board of Directors in February 2026.”
Those 103 million shares account for approximately 80% of the total shares that the company anticipates repurchasing. From its Jan. 7 YTD high, CRM fell by more than 38% before hitting its YTD low on April 10. Since then, the stock has gained a modest 9.1%.
Of the 39 analysts currently covering Salesforce, 26 have assigned it a Buy rating. Overall, it receives a consensus Moderate Buy rating with an average 12-month price target that implies around 35% potential upside.
Adobe’s Repurchase Plan Aims to Take Advantage of a 5-Year LullAdobe Today
$204.02 -14.78 (-6.76%)
As of 04:00 PM Eastern
52-Week Range$196.90▼
$405.00P/E Ratio11.88
Price Target$285.73
On April 21, San Jose-based Adobe NYSE: ADBE announced a $25 billion stock repurchase authorization that will account for nearly 25% of the company’s shares outstanding.
According to a company press release, Adobe is aiming to return value to shareholders while minimizing dilution.
The plan is a “direct expression of confidence in [Adobe’s] robust cash flow and…long-term value,” says Dan Durn, executive vice president and CFO.
Shareholders are hoping the plan can serve as a shot in the arm for the sluggish stock. After posting a four-year average annual revenue growth rate of 21.31% from 2018 to 2021, Adobe has seen that metric fall to an average of just 10.77% over the past four years.
That resulted in a dramatic drop-off in the company’s net change in cash and equivalents, which fell from $472 million in 2024 to -$2.2 billion in 2025. Still, Adobe has beat earnings expectations for 13 consecutive quarters, and 15 of the last 17 dating back to Q1 FY2022.
But investors have had to endure some pain. Shares of ADBE have dropped around 28% YTD, about 40% over the past year, and more than 50% over the past five years. The stock is virtually flat since the company announced its share repurchase program, but based on analysts’ average 12-month price target, it could see approximately 35% potential upside.
Despite Its Impressive Earnings Streak, ADP Has Yet to Turn a CornerAutomatic Data Processing Today
ADP
Automatic Data Processing
$226.21 +0.44 (+0.19%)
As of 04:00 PM Eastern
52-Week Range$188.16▼
$315.98Dividend Yield3.01%
P/E Ratio21.10
Price Target$244.29
While a $6 billion share repurchase authorization may pale in comparison to the $25 billion announcements of the other two stocks on this list, New Jersey-based Automatic Data Processing NASDAQ: ADP plans to buy back 403 million common shares, or nearly 6% of the company’s shares outstanding.
Since ADP—which provides payroll processing, workforce management, HR, benefits administration, tax, and compliance services software—announced the program on Jan. 14, the stock went on to lose nearly 27% before hitting its YTD low on April 10. Since then, the stock has rallied more than 16%.
That has been welcome news to investors who saw revenue growth fall from a four-year high of nearly 10% in 2022 to just over 7% in 2025. Still, ADP has managed to beat earnings expectations for an impressive 24 consecutive quarters dating back to Q4 FY2020, and 34 out of 35 quarters dating back to Q4 FY2017.
Analysts are maintaining a tepid outlook, though, with the stock receiving a consensus Hold rating and a 12-month price target that implies around 13% potential upside.
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Automatic Data Processing is a US-based global technology company providing cloud-based enterprise human resources management software and services. ADP improved its revenue from $11.7 billion in FY 2016 to $20.6 billion in FY 2025. That's a compound annual growth rate of 6.5%. ADP has a stellar financial position. Its long-term debt/equity ratio is 0.6, while the interest coverage ratio is right around 13.
, /PRNewswire/ -- Private sector employment increased by 122,000 jobs in May and pay was up 4.4 percent year-over-year according to the May ADP National Employment Report® produced by ADP Research in collaboration with the Stanford Digital Economy Lab ("Stanford Lab").
ADP Research The ADP National Employment Report is an independent measure of the labor market based on the anonymized weekly payroll data of more than 26 million private-sector employees in the United States. ADP's Pay Insights captures over 15 million individual pay change observations each month. Together, the jobs report and pay insights use ADP's fine-grained data to provide a representative and highfrequency picture of the private-sector labor market.
"Hiring was more broad-based in May than we've seen in the last few years," said Dr. Nela Richardson, chief economist, ADP. "The labor market continues to show sustained momentum going into the summer hiring season."
May 2026 Report Highlights
View the ADP National Employment Report and interactive charts at www.adpemploymentreport.com.
JOBS REPORT
Private employers added 122,000 jobs in May
Eight out of 10 supersectors showed gains last month, and employers of all sizes were hiring.
Change in U.S. Private Employment: 122,000
Change by Industry
- Goods-producing: 8,000
Natural resources/mining -3,000 Construction 8,000 Manufacturing 3,000 - Service-providing: 114,000
Trade/transportation/utilities 36,000 Information -9,000 Financial activities 7,000 Professional/business services 11,000 Education/health services 57,000 Leisure/hospitality 8,000 Other services 4,000 Change by U.S. Regions
- Northeast: 35,000
New England 18,000 Mid-Atlantic 17,000 - Midwest: 21,000
East North Central 13,000 West North Central 8,000 - South: 23,000
South Atlantic -12,000 East South Central 14,000 West South Central 21,000 - West: 45,000
Mountain 20,000 Pacific 25,000 Change by Establishment Size
- Small establishments: 67,000
1-19 employees 49,000 20-49 employees 18,000 - Medium establishments: 17,000
50-249 employees 10,000 250-499 employees 7,000 - Large establishments: 40,000
500+ employees 40,000 PAY INSIGHTS
Pay for job-stayers rose 4.4 percent in May
Year-over-year pay growth for job-stayers was steady at 4.4 percent. For job-changers, the pace of growth slowed slightly, to 6.5 percent from 6.6 percent in April.
Median Change in Annual Pay
- Job-stayers 4.4%
- Job-changers 6.5%
Median Change in Annual Pay for Job-Stayers by Industry
- Goods-producing:
Natural resources/mining 4.2% Construction 4.5% Manufacturing 4.8% - Service-providing:
Trade/transportation/utilities 4.4% Information 4.0% Financial activities 5.1% Professional/business services 4.1% Education/health services 4.2% Leisure/hospitality 4.5% Other services 4.1% Median Change in Annual Pay for Job-Stayers by Firm Size
- Small firms:
1-19 employees 2.5% 20-49 employees 4.1% - Medium firms:
50-249 employees 4.7% 250-499 employees 4.8% - Large firms:
500+ employees 4.8% To see Pay Insights by U.S. State, Gender, and Age for Job-Stayers, visit here:
The April total number of jobs added was revised from 109,000 to 105,000.
For additional information about the ADP National Employment Report, including historical files, employment and pay data, methodology, and a calendar of release dates, please visit https://adpemploymentreport.com/.
The June 2026 ADP National Employment Report will be released on July 1, 2026 at 8:15 a.m. ET.
About ADP Research
The mission of ADP Research is to make the future of work more productive through data-driven discovery. Companies, workers, and policy makers rely on our finely tuned data and unique perspective to make informed decisions that impact workplaces around the world.
To subscribe to monthly email alerts or obtain additional information about ADP Research, including employment and pay data, methodology, and a calendar of release dates, please visit https://www.adpresearch.com.
About ADP (NASDAQ: ADP)
ADP has been shaping the world of work with innovation and expertise for more than 75 years. As a global leader in HR and payroll solutions, ADP continuously works to solve business challenges for our clients and their workers, from simple, easy-to-use tools for small businesses to fully integrated platforms for global enterprises – and everything in between. Always Designing for People means we're focused on just that – people. We use our unmatched AI-driven insights and proven expertise to design innovative solutions that help people achieve greater success at work. More than 1.1 million clients across 140+ countries rely on ADP's exceptional service to support their people and drive their business forward. HR, Talent, Time Management, Benefits, Compliance, and Payroll. Learn more at ADP.com
ADP, the ADP logo, and Always Designing for People, ADP National Employment Report, and ADP Research are registered trademarks of ADP, Inc. All other marks are the property of their respective owners.
(Kitco News) - The gold market could see renewed selling pressure as the U.S. labor market remains resilient, with the private sector creating slightly more jobs than expected in May.
According to some analysts, the healthy labor market will force the Federal Reserve to pay more attention to the ongoing inflation threat.
Private-sector payroll processor ADP said Wednesday that 122,000 jobs were created in May, up from 109,000 jobs in April. The data came in slightly better than expected, as consensus estimates had forecast a reading of 118,000.
"Hiring was more broad-based in May than we've seen in the last few years," said Dr. Nela Richardson, chief economist at ADP. "The labor market continues to show sustained momentum going into the summer hiring season."
The report said that eight out of 10 supersectors posted gains last month and that employers of all sizes were hiring.
Expectations that the Federal Reserve will have to raise interest rates by the end of the year continue to pressure the gold market, with prices struggling below $4,500 an ounce. Spot gold last traded at $4,460.40 an ounce, down 0.60% on the day.
Along with the solid headline number, the report noted relatively steady wage inflation. Wages for workers who stayed in their jobs rose 4.4% annually last month, unchanged from April. At the same time, workers who changed jobs saw their annual wage increase 6.5%, down slightly from 6.6% in April.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
, /PRNewswire/ -- Private sector employment increased by 122,000 jobs in May and pay was up 4.4 percent year-over-year according to the MayADP National Employment Report®produced by ADP Research in collaboration with the Stanford Digital Economy Lab ("Stanford Lab").
The ADP National Employment Report is an independent measure of the labor market based on the anonymized weekly payroll data of more than 26 million private-sector employees in the United States. ADP's Pay Insights captures over 15 million individual pay change observations each month. Together, the jobs report and pay insights use ADP's fine-grained data to provide a representative and highfrequency picture of the private-sector labor market.
"Hiring was more broad-based in May than we've seen in the last few years," said Dr. Nela Richardson, chief economist, ADP. "The labor market continues to show sustained momentum going into the summer hiring season."
May 2026 Report Highlights
View the ADP National Employment Report and interactive charts at www.adpemploymentreport.com.
JOBS REPORT
Private employers added 122,000 jobs in May
Eight out of 10 supersectors showed gains last month, and employers of all sizes were hiring.
Change in U.S. Private Employment: 122,000
Change by Industry
- Goods-producing: 8,000
Natural resources/mining -3,000 Construction 8,000 Manufacturing 3,000- Service-providing: 114,000
Trade/transportation/utilities 36,000 Information -9,000 Financial activities 7,000 Professional/business services 11,000 Education/health services 57,000 Leisure/hospitality 8,000 Other services 4,000 Change by U.S. Regions
- Northeast: 35,000
New England 18,000 Mid-Atlantic 17,000 - Midwest: 21,000
East North Central 13,000 West North Central 8,000 - South: 23,000
South Atlantic -12,000 East South Central 14,000 West South Central 21,000 - West: 45,000
Mountain 20,000 Pacific 25,000 Change by Establishment Size
- Small establishments: 67,000
1-19 employees 49,000 20-49 employees 18,000 - Medium establishments: 17,000
50-249 employees 10,000 250-499 employees 7,000 - Large establishments: 40,000
500+ employees 40,000 PAY INSIGHTS
Pay for job-stayers rose 4.4 percent in May
Year-over-year pay growth for job-stayers was steady at 4.4 percent. For job-changers, the pace of growth slowed slightly, to 6.5 percent from 6.6 percent in April.
Median Change in Annual Pay
- Job-stayers 4.4%
- Job-changers 6.5%
Median Change in Annual Pay for Job-Stayers by Industry
- Goods-producing:
Natural resources/mining 4.2% Construction 4.5% Manufacturing 4.8%- Service-providing:
Trade/transportation/utilities 4.4%Information 4.0%Financial activities 5.1%Professional/business services 4.1%Education/health services 4.2%Leisure/hospitality 4.5%Other services 4.1%Median Change in Annual Pay for Job-Stayers by Firm Size
- Small firms:
1-19 employees 2.5%20-49 employees 4.1%- Medium firms:
50-249 employees 4.7%250-499 employees 4.8%- Large firms:
500+ employees 4.8%To see Pay Insights by U.S. State, Gender, and Age for Job-Stayers, visit here:
The April total number of jobs added was revised from 109,000 to 105,000.
For additional information about the ADP National Employment Report, including historical files, employment and pay data, methodology, and a calendar of release dates, please visit https://adpemploymentreport.com/.
The June 2026 ADP National Employment Report will be released on July 1, 2026 at 8:15 a.m. ET.
About ADP Research
The mission of ADP Research is to make the future of work more productive through data-driven discovery. Companies, workers, and policy makers rely on our finely tuned data and unique perspective to make informed decisions that impact workplaces around the world.
To subscribe to monthly email alerts or obtain additional information about ADP Research, including employment and pay data, methodology, and a calendar of release dates, please visit https://www.adpresearch.com.
About ADP (NASDAQ: ADP)
ADP has been shaping the world of work with innovation and expertise for more than 75 years. As a global leader in HR and payroll solutions, ADP continuously works to solve business challenges for our clients and their workers, from simple, easy-to-use tools for small businesses to fully integrated platforms for global enterprises – and everything in between. Always Designing for People means we're focused on just that – people. We use our unmatched AI-driven insights and proven expertise to design innovative solutions that help people achieve greater success at work. More than 1.1 million clients across 140+ countries rely on ADP's exceptional service to support their people and drive their business forward. HR, Talent, Time Management, Benefits, Compliance, and Payroll. Learn more at ADP.com
ADP, the ADP logo, and Always Designing for People, ADP National Employment Report, and ADP Research are registered trademarks of ADP, Inc. All other marks are the property of their respective owners.
View original content to download multimedia:https://www.prnewswire.com/news-releases/adp-national-employment-report-private-sector-employment-increased-by-122-000-jobs-in-may-annual-pay-was-up-4-4-302790127.html
Key Takeaways ADP Posts Highest Private-Sector Jobs Since January 2025JOLTS Yesterday Saw a Spike in Job Openings for AprilMacy's & Medtronic Beat on Earnings; AVGO, CRWD & PVH Later Wednesday, June 3rd, 2026
Jobs Week Coming Up Roses So Far: JOLTS, ADP
Don’t look now, but the labor market in the U.S. has demonstrably improved. Where we had been at historic lows on job openings and under water on private-sector payrolls roughly a year ago, we’re now seeing monthly highs that go back prior to the second Trump administration.
Yesterday’s Job Openings and Labor Turnover Survey (JOLTS) report for April spiked to 7.6 job openings, up from 6.88 million expected and the 6.89 million reported. This is the highest monthly tally since November of 2024, after two downward-moving months. Job Quits quieted to 3.0 million in the month.
The biggest change between March and April was in the near-million-job swing among Professional/Business Services positions, which went from -318K in the former month to +668K in the latter. In March, only the Northeast region gained in job opportunities; for April, only the Midwest did not show a gain in new job openings.
Automatic Data Processing (ADP - Free Report) released its monthly private-sector payroll report this morning for May, posting +122K new jobs filled outside the government sector — the strongest month for this metric since January of 2025. It improves above the +117K consensus estimate and the downwardly revised +105K for April.
Small businesses bounced back in a big way: +67K new private-sector jobs were gained at firms of fewer than 50 employees. Large companies (over 500 employees) grew by +40K, and medium-sized businesses added +17K. Unsurprisingly, Education/Healthcare led by industry, +57K, followed by renewed strength in Trade/Transportation/Utilities at +36K, +11K at Professional/Business consulting, and +8K in Construction. This last may speak to the spreading out of AI investment to material parts of the economy — the building out of data centers includes plenty of construction work.
“Hiring has been more broad-based,” ADP Chief Economist Nela Richardson said, which bears out these findings. Meanwhile, wage gains in the private sector have been a non-factor: those who stayed in their current jobs made +4.4% more on average, whereas jobs changers averaged +6.6%. This remains a very narrow bar in the relatively short time ADP has kept this metric.
Q1 Earnings at a Glance: M, MDT & More to Come
Retail companies wrap up Q1 earnings season this morning, with department store major Macy’s (M - Free Report) reporting its most impressive quarter in years: earnings of $0.13 per share trounced the +$0.02 expected, for a positive earnings surprise of +550%. Revenues also outpaced estimates, but by a more modest +1.28%. Raised guidance helped sentiment, and shares are up around +1% in today’s pre-market. For more on M’s earnings, click here.
Medtronic (MDT - Free Report) , the world’s largest medical device company, also beat estimates this morning, for its fiscal Q4. Earnings of $1.55 per share improved over the Zacks consensus by a penny, on revenues of $9.81 billion — its highest growth in a decade — and above expectations by +1.48%. Shares are up +4% at this hour of the pre-market, but still down nearly -20% year to date. For more on MDT’s earnings, click here.
After today’s close, the earnings parade sweeps up some of its final noteworthy reporters. These include semiconductor giant Broadcom (AVGO - Free Report) , cybersecurity major CrowdStrike (CRWD - Free Report) and Calvin Klein/Tommy Hilfiger parent PVH (PVH - Free Report) .
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, /PRNewswire/ -- For the four weeks ending May 23, 2026, U.S. private employers added an average of 29,000 jobs per week, according to the NER Pulse, a weekly update of the monthly ADP National Employment Report (NER).
Employment growth eased for the third consecutive week. These numbers are preliminary and could change as new data is added.
ADP Research Week ending
Change
(Four-week moving
average, seasonally
adjusted)
5/23/2026
29,000
5/16/2026
30,500
5/9/2026
35,750
5/2/2026
40,750
4/25/2026
33,000
4/18/2026
30,250
4/11/2026
39,250
4/4/2026
40,250
3/28/2026
40,250
3/21/2026
26,000
3/14/2026
15,250
3/7/2026
10,000
The NER Pulse is an estimate of the week-over-week change in employment based on a four-week moving average. These estimates are based on ADP's finely tuned, high-frequency data. The data is seasonally adjusted and have a two-week lag to allow for more complete and accurate estimates of real-time employment trends.
The NER Pulse, including 12 weeks of historical data, publishes every Tuesday at 8:15 a.m. ET, except weeks when ADP Research publishes the monthly National Employment Report which is built on a reference week that includes the 12th day of the month. The press release is available Tuesdays at 8:15 a.m. ET in the ADP Media Center. The NER Pulse is also available shortly after 8:15 a.m. ET on release days at ADP Research and in Main Street Macro.
The next NER Pulse will be released June 16, 2026. For upcoming release dates please refer to the calendar on the NER website.
The ADP National Employment Report and the NER Pulse are produced by ADP Research in collaboration with the Stanford Digital Economy Lab.
About ADP Research
The mission of ADP Research is to make the future of work more productive through data-driven discovery. Companies, workers, and policy makers rely on our finely tuned data and unique perspective to make informed decisions that impact workplaces around the world.
To subscribe to monthly email alerts or obtain additional information about ADP Research, including employment and pay data, methodology, and a calendar of release dates, please visit https://www.adpresearch.com.
About ADP (NASDAQ: ADP)
ADP has been shaping the world of work with innovation and expertise for more than 75 years. As a global leader in HR and payroll solutions, ADP continuously works to solve business challenges for our clients and their workers, from simple, easy-to-use tools for small businesses to fully integrated platforms for global enterprises – and everything in between. Always Designing for People means we're focused on just that – people. We use our unmatched AI-driven insights and proven expertise to design innovative solutions that help people achieve greater success at work. More than 1.1 million clients across 140+ countries rely on ADP's exceptional service to support their people and drive their business forward. HR, Talent, Time Management, Benefits, Compliance, and Payroll. Learn more at ADP.com.
ADP, the ADP logo, and Always Designing for People, ADP National Employment Report, and ADP Research are registered trademarks of ADP, Inc. All other marks are the property of their respective owners.
ToplineStrategy on Monday disclosed a bitcoin purchase valued at more than $100 million, after billionaire Michael Saylor’s firm—the world’s largest institutional holder of bitcoin—announced a rare sale of the cryptocurrency amid a broad drop in the world’s most valuable digital asset.
Bitcoin’s price recently dropped under $60,000 for the first time since 2024.
Getty Images for Bitcoin Magazine
Key FactsStrategy, in a Securities and Exchange Commission filing on Monday, disclosed it purchased 1,550 bitcoin for $101.3 million last week at an average price of $65,332 per coin, which it funded through $181 million in stock sales.
The announcement comes roughly a week after Strategy disclosed the sale of 32 bitcoins to raise about $2.5 million to pay dividends to stockholders, the company’s second such sale and its first since December 2022, amplifying bearish sentiment for the crypto market as bitcoin’s value fell below $60,000 for the first time since October 2024.
Bitcoin’s value rose as high as $63,926 early Monday, up as much as 8% since hitting a recent low of $59,159 on Friday.
Strategy rose 3.8% as of Monday morning, though shares have plummeted by more than 33% over the last month.
big number845,256. That’s Strategy’s total bitcoin holdings, aggregated at a market value of $63.9 billion, or about $75,680 per token, according to Strategy’s disclosure.
tangentCardano’s ADA token, once the world’s third-largest cryptocurrency behind bitcoin and ethereum, dropped to a low of just under $0.16 on Monday, its lowest level since December 2020. That extended a more than 26% decline for the token over the last week, following the cancellation of Cardano’s flagship summit.
key backgroundBroader pessimism spread across the crypto market following Strategy’s latest bitcoin sale, erasing the record-setting surge for the world’s largest cryptocurrency that followed the 2024 presidential election. President Donald Trump’s push for the U.S. to become the “crypto capital of the world” fueled demand and optimism for the crypto market, with promises of pro-crypto legislation pushing bitcoin above $120,000 by July 2025, and then to $122,000 just days later. Bitcoin’s value has steadily declined since hitting a peak in October 2025, following waning demand for spot bitcoin ETFs and lower odds of interest rate cuts. A hotter-than-expected labor market report last week further increased betting odds of an interest rate hike, aiding in bitcoin’s sell-off.
orbes valuationSaylor, who founded Strategy, then known as MicroStrategy, in 1989, has an estimated net worth of $3.8 billion as of Monday. His fortune plummeted during the dot-com crash, but Strategy’s bitcoin investments made Saylor a billionaire once again, as Saylor has directed his firm to shift its corporate coffers into bitcoin.
further readingForbesBitcoin Falls Below $60,000—Erasing Trump-Fueled RallyBy Ty RoushForbesCardano—Once The Third-Largest Cryptocurrency—Hits 6-Year Low: Here’s WhyBy Ty Roush
Schiff argued that the transaction highlighted a growing problem for Strategy’s capital allocation model.
In an X post on June 8, Schiff called the purchase "damage control, while also increasing its U.S. dollar reserves by $100 million."
He claimed that if Strategy sold common stock below the level required to make Bitcoin purchases accretive, existing shareholders effectively suffered dilution.
To commentators agreeing with Schiff’s interpretation, he said the stock sale is “the beginning of the end.”
Diluting MSTR ShareholdersThe criticism centers on Strategy’s adjusted multiple-to-net-asset-value (mNAV) which measures how much investors are paying relative to the company’s Bitcoin holdings.
Trader Crypto Kaleo pointed to comments Saylor made during Strategy’s Q1 earnings call, where he stated that issuing common stock to buy BTC is accretive only when MSTR trades above roughly 1.22x mNAV.
Strategy’s adjusted mNAV recently fell to around 1.2x, below the threshold Saylor previously identified.
That raises concerns whether newly issued shares could reduce Bitcoin exposure on a per-share basis rather than increase it.
"The cash raise and BTC acquisition was funded entirely by common MSTR ATM sales," Kaleo noted. "He’s diluting MSTR common shareholders."
Image: Shutterstock
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Strategy stock is showing exceptional strength. Why is MSTR stock up today? Crypto Market BackdropSome analysts suggested that Michael Saylor may have sold a small amount of Bitcoin to reset expectations before buying more at lower levels. They argued the sale showed Strategy can adjust its holdings when needed without abandoning its long‑term strategy. Even so, they pointed to macro pressure, weak equities, oil uncertainty and capital rotation into AI as the larger forces weighing on crypto.
Bitcoin's decline did not show the heavy volume that usually marks a lasting bottom. One analyst said Bitcoin may still drift toward the low $50,000 range. Others noted that AI has attracted about $400 billion in capital inflows over the past six months, pulling money away from Bitcoin in the short term.
Strategy Adds 1,550 BitcoinStrategy announced it bought 1,550 BTC for $101 million at an average price of $65,332. This is the company's first purchase since selling 32 coins last week. The buy brings total holdings to 845,256 BTC acquired for just under $64 billion at an average of $75,680 per coin.
The latest purchase came in about $10,000 below that average, which means Strategy lowered its cost basis for the first time since it began accumulating Bitcoin. To fund the buy and rebuild liquidity, the company issued $181 million in common stock and increased its USD reserve by $100 million, bringing total cash reserves to $1 billion.
Regulatory Tailwind: The CLARITY ActMore than 200 companies signed a letter urging Senate leadership to schedule a vote on the Digital Asset Market CLARITY Act. The bill recently advanced out of the Senate Banking Committee and was placed on the Senate Legislative Calendar. Lawmakers are pushing to move it before the July recess.
MSTR Shares Are ClimbingMSTR Price Action: Strategy shares were up 5.94% at $127.60 at the time of publication on Monday, according to Benzinga Pro.
Image: PJ McDonnell/Shutterstock.com
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