Track market-moving stories before they get noisy

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.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To 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.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: EOG Resources (EOG - Free Report) Headquartered in Houston, TX, EOG Resources Inc. is primarily engaged in the exploration and production of crude oil, natural gas liquids (NGLs) and natural gas. While the company maintains operations in the United States and Trinidad, the vast majority of its activities are concentrated across oil-rich resource plays in the United States.

EOG is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 9.14; value investors should take notice.

Eight analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $5.33 to $14.76 per share. EOG also boasts an average earnings surprise of +7.7%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, EOG should be on investors' short list.

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 EOG Resources (EOG - 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. EOG Resources currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for EOG that show why this oil and gas company shows promise as a solid momentum pick.

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 EOG, shares are up 7.87% over the past week while the Zacks Oil and Gas - Exploration and Production - United States industry is up 2.68% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 8.96% compares favorably with the industry's 2.56% performance as well.

While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of EOG Resources have increased 16.65% over the past quarter, and have gained 28.18% in the last year. In comparison, the S&P 500 has only moved 7.46% and 24.67%, respectively.

Investors should also pay attention to EOG'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. EOG is currently averaging 3,607,223 shares for the last 20 days.

Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with EOG.

Over the past two months, 8 earnings estimates moved higher compared to 1 lower for the full year. These revisions helped boost EOG's consensus estimate, increasing from $10.48 to $14.83 in the past 60 days. Looking at the next fiscal year, 9 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom LineTaking into account all of these elements, it should come as no surprise that EOG is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep EOG Resources on your short list.

EOG Resources is positioned for stellar 2026 performance, driven by elevated oil prices and minimal hedging, enabling full upside capture. EOG expects to generate $8.5 billion in free cash flow in 2026, up from $4.8 billion in 2025, supporting robust shareholder returns. Management prioritizes aggressive share buybacks over special dividends, enhancing per-share metrics and enabling sustainable dividend growth.

EOG Resources, Inc. (EOG) Presents at Bernstein 42nd Annual Strategic Decisions Conference Transcript

A month has gone by since the last earnings report for EOG Resources (EOG - Free Report) . Shares have added about 5.1% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is EOG Resources 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 latest earnings report in order to get a better handle on the important catalysts.

EOG Q1 Earnings Beat EstimatesEOG Resources posted adjusted earnings of $3.41 per share in the first quarter of 2026, up 18.8% from the year-ago level of $2.87. The bottom line beat the Zacks Consensus Estimate for earnings of $3.07 by 11.1%.

Total revenues of $6.92 billion increased 22.1% year over year and beat the consensus mark of $6.3 billion.

Strong quarterly results were supported by higher production, with total crude-oil-equivalent volumes averaging 1,383.8 MBoe/d in the quarter, reflecting strong production execution.

EOG Profitability Gains Reflect Higher Output

EOG Resources showed solid leverage to production growth. Net income was $2 billion, translating to reported earnings of $3.70 per share, while adjusted net income was $1.8 billion. Income taxes totaled $575 million, implying an effective tax rate of 22.5% in the period.

Cost control helped keep the earnings flow-through intact even as activity remained elevated. Lease and well expenses were $462 million, and depreciation, depletion and amortization was $1.19 billion. For investors, the quarter reinforced that EOG’s earnings power is being driven by a combination of operating scale and steady expense execution.

EOG Resources Mix Skews Toward Crude & Marketing

EOG Resources’ top-line composition highlighted the importance of product and midstream-linked contributions. Revenues from crude oil and condensate were $3.58 billion, while natural gas liquids generated $664 million and natural gas contributed $1.02 billion. In total, revenues from sales of crude oil and condensate, NGLs, and natural gas were $5.26 billion.

The company also recorded $1.50 billion in gathering, processing and marketing revenues, which can add variability to reported revenues, depending on volumes and market conditions. Other items included $113 million in gains on mark-to-market derivative contracts and $31 million in gains on asset dispositions, helping round out operating revenues during the quarter.

EOG Volume & Price Data Point to Liquids’ Strength

EOG delivered a clear year-over-year step-up in liquids volumes. Crude oil and condensate volumes rose to 548.5 MBbld from 502.1 MBbld in the year-ago quarter. Natural gas liquids volumes increased to 332.1 MBbld from 241.7 MBbld, while natural gas volumes climbed to 3,020 MMcfd from 2,080 MMcfd.

Realized pricing provided added support on the liquids side. Composite crude oil and condensate pricing averaged $72.47 per barrel versus $72.87 a year ago, while NGL pricing averaged $22.20 per barrel compared with $26.29. Natural gas pricing improved to $3.76 per Mcf from $3.41, reflecting a stronger gas price environment than the prior-year quarter.

EOG Resources Cash Generation Fuels Returns

EOG Resources’ cash profile remained a core pillar of the quarter. Net cash provided by operating activities was $2.97 billion, while capital expenditure was $1.64 billion. That spread drove free cash flow of $1.49 billion, underscoring the company’s ability to self-fund its program and still return meaningful capital.

Shareholder returns remained active. EOG declared a regular quarterly dividend of $1.02 per share and paid out $544 million in regular dividends in the quarter. It also repurchased 3.2 million shares for $402 million at an average purchase price of $125 per share, ending the period with $2.9 billion remaining under its repurchase authorization.

EOG Guidance Reallocates Capital Toward Liquids

Management’s forward view emphasized portfolio flexibility. For the second quarter of 2026, EOG guided total crude-oil-equivalent volumes to 1,368.8-1,413.8 MBoed, with crude oil and condensate volumes expected at 546-551 MBod. For 2026, the total crude-oil-equivalent volume is projected at 1,373.7-1,418.7 MBoed, while crude oil and condensate volumes are guided at 546-551 MBod.

Capital spending remains anchored. The company reiterated a 2026 capital expenditure plan of $6.3-$6.7 billion. On pricing assumptions embedded in guidance, EOG expects U.S. crude oil and condensate realizations to average $2.25-$4.25 above WTI for the full year, while U.S. natural gas realizations are expected to run $1.30 below Henry Hub to 70 cents above, reflecting a planning posture that leans into liquids while managing near-term gas softness.

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

The consensus estimate has shifted 12.48% due to these changes.

VGM ScoresAt this time, EOG Resources has a nice Growth Score of B, a score with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

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

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

If you put $10,000 into the Energy Select Sector SPDR Fund (NYSEARCA:XLE) on the last trading day of 2025 and forgot about it, you would be sitting on roughly $13,131 as of the June 8 close. The same $10,000 in the S&P 500 would be worth about $10,840. Energy, the sector everyone wrote off as a value trap stuck behind the AI trade, is up about 31% year to date against 8.4% for SPY. That gap, almost 23 points in five months, is the single most surprising scoreboard in the 2026 market.

The headline you may have seen says 29%. The actual number is a touch better. XLE opened the year at $44.42 and closed Monday at $58.33. Over one year, the fund is up about 44%, versus roughly 23% for SPY. Over five years, it has more than doubled, up about 152%. The fund is a plain-vanilla SPDR with a fee that rounds to almost nothing, and it does one thing well, which is concentrate your money in a handful of the biggest US oil and gas names. Top of the book is heavy. Exxon at 23.7% and Chevron at 17.6% together are 41.3% of the fund. Add ConocoPhillips and EOG and you have most of the explanation.

What Actually Did the Work The mechanism is straightforward. Sector concentration met a sector-specific catalyst, and the catalyst is geopolitics. According to the EIA, the Strait of Hormuz has been effectively closed to shipping traffic since late February following military action, removing access to a corridor that carried nearly 20% of global oil supply. Brent went vertical. Daily spot prices touched $138 per barrel on April 7, the highest since the weeks after Russia invaded Ukraine, and the April monthly average came in around $117 per barrel. WTI followed, with the YTD high at $114.58 on the same day.

Prices have since cooled. Brent printed $98.29 on June 1 and WTI sat at $95.96, which the St. Louis Fed places in the 82.8th percentile of its trailing 12-month range. That is the important part. Even after a meaningful pullback, crude is trading well above where the integrated majors built their 2026 budgets. The 12-month WTI average is $72.26, and current spot is more than $20 above it.

Now look at how the top holdings translated that into earnings. Exxon Mobil (NYSE:XOM | XOM Price Prediction) posted adjusted EPS of $1.16 versus a $1.01 consensus, a 15% beat and the fourth straight. Underlying earnings rose to $8.77 billion from $7.58 billion year over year, even after roughly $3.88 billion in unfavorable derivative timing and $706 million in Middle East supply-disruption losses washed through the GAAP line. CEO Darren Woods told investors that "ExxonMobil is a fundamentally stronger company than it was just a few years ago, built to perform through disruption and across market cycles." The buyback authorization for the year is $20 billion. The stock is up 27.8% YTD.

Chevron (NYSE:CVX) did even better at the EPS line, with $1.41 versus $0.97 expected, a 46% beat and the sixth in a row. Production jumped 15% year over year to 3,858 MBOED as the Hess deal bedded in, and US output cleared 2 million barrels per day for a third straight quarter. The company returned $2.5 billion in buybacks in the quarter, raised the dividend for a 39th consecutive year, and Mike Wirth framed the result as evidence that the portfolio held up "despite heightened geopolitical volatility and related supply disruptions." Shares are up about 27% YTD.

ConocoPhillips (NYSE:COP) and EOG Resources (NYSE:EOG), the two big E&P names in the top ten, told a parallel story with a different texture. COP beat by roughly 12% on EPS, kept its target of returning 45% of cash from operations to shareholders, and pulled Qatar out of 2026 production guidance because of the Middle East situation. EOG benefited from the Encino acquisition, pushing production to 1,383.8 MBoed from 1,090.4 a year earlier and revenue up about 18% to $6.92 billion. EOG is the standout performer of the four, up about 36% YTD, with COP up 28.9%.

The pattern is clean. Three years of M&A (Hess into Chevron, Marathon into ConocoPhillips, Encino into EOG) finished integrating just as Brent prices spiked. The synergies are real, the cost work is real, and the capital return engines kept running on schedule. Then a Middle East shock dropped onto the top line. That is how a sector ETF turns a single-digit broad market into a 31% mover.

The Soft Patch Inside the Run The recent tape complicates the story a little. XLE is up only about 5% over the last month, and crude has been the reason. WTI has fallen from a May peak near $112 to $96, and natural gas has gone in the other direction entirely, with Henry Hub dropping from a January 23 spike of $30.72 per MMBtu to $3.07 on June 1. The EIA now expects Henry Hub to average $2.83 per MMBtu in Q2 2026, 11% below Q2 2025. So one of the two commodities driving the rally is rolling over. The other has slipped about 16% off its high but is still pricing a risk premium.

What You Watch From Here The forward look hinges on two indicators a reader can actually track. The first is the Strait of Hormuz. The EIA’s May STEO assumes Brent averages around $106 per barrel in May and June, then steps down to $89 in Q4 2026 and $79 in 2027 as shut-in production gradually returns. If tanker traffic genuinely resumes, the risk premium that built XLE’s YTD comes out of the price, and the integrated names re-rate toward a $75 to $85 crude backdrop rather than $95 to $100. The second is OPEC spare capacity, which the EIA now models at 2.5 million barrels per day in 2027, down from a prior estimate of 3.8 million. Less cushion in the system means the next disruption hits harder, which is the structural reason this trade has a longer half-life than a typical war-premium spike.

Retail is starting to notice. Reddit sentiment on XLE has run 76 to 80 (bullish to very bullish) over the past several days, anchored by a single WSB post titled "You hear that, Mr. Anderson? That is the sound of inevitability." Mention volume is still low, which is usually how these trades work before they get crowded. The Exxon news cycle, with retail flagging "Exxon warns oil inventories near record lows, price spike ahead" as the top driver on June 1, suggests the inventory tightness narrative is still doing work.

The honest read is that XLE’s YTD is mostly a Hormuz trade wearing the costume of an earnings story. The earnings are genuine, the cost work is genuine, and the capital returns are durable. But the marginal dollar in the price came from a tanker chokepoint, and the EIA, the futures curve, and the integrated CEOs themselves are all guiding to a lower oil price in 2027. If the strait reopens cleanly, the broad market starts closing the gap. If it does not, or if the next disruption arrives before the first one resolves, the sector that has refused to quit in 2026 keeps doing exactly that. Watch Hormuz traffic, watch the Brent curve, and watch whether WTI holds the $90 line. That is the whole game from here.

, /PRNewswire/ -- TriNet (NYSE: TNET), a leading provider of comprehensive human resources solutions for small and medium-size businesses (SMBs), today announced it will release financial results for the first quarter ended March 31, 2026, before U.S. market hours on Thursday, April 30, 2026.

TriNet will host a conference call at 5:30 a.m. PT (8:30 a.m. ET) on April 30, 2026, to discuss the financial results. A live webcast of the conference call can be accessed on the Investor Relations section of TriNet's website at investor.trinet.com. Participants can pre-register for the webcast by going to: https://events.q4inc.com/attendee/214291011 or pre-register for the conference call by visiting https://dpregister.com/sreg/10208266/103c777f574 (note that you will get a unique PIN to enable instant access to the call).

Participants who do not pre-register for the call can still join by dialing +1 (412) 317-5426 and asking to attend the TriNet fourth quarter earnings conference call.

A replay of the webcast will be available on the TriNet site for approximately one year.

About TriNet
TriNet (NYSE: TNET) provides comprehensive HR solutions, technology, expertise, and access to world-class benefits that enable SMBs to attract and develop top-tier talent. Rooted in more than 30 years of supporting entrepreneurs and adapting to the ever-changing modern workplace, TriNet empowers SMBs to focus on what matters most—growing their business and enabling their people. For more information, visit TriNet.com or follow us on Facebook, LinkedIn and Instagram.

TriNet and the TriNet logo are registered trademarks of TriNet. All other trademarks, service marks, registered trademarks, or registered service marks are the property of their respective owners.

SOURCE TriNet Group, Inc.

On April 24, 2026, Trinet Group Inc TNET shares rose 3.1% to a current price of $40.11. The stock has seen a 52-week range between $33.61 and $88.56, highlighting significant volatility over the past year.

GF Value™ verdict: Current price of $40.11 is 62.5% below the GF Value™ estimate of $107.05.GF Score™: 68/100, indicating an above-average performance potential.Most notable signal: Insider activity has shown no buying with $0.0M sold in the last 3 months. Is TNET Overvalued or Undervalued? The current price of Trinet Group Inc TNET at $40.11 is significantly below the GF Value™ estimate of $107.05, suggesting that the stock may be undervalued by approximately 62.5%. This margin of safety presents an opportunity for potential investors looking for stocks that are trading at a discount to their intrinsic value. However, the GF Valuation label categorizes TNET as a "Possible Value Trap," indicating that while the stock appears undervalued, it may come with risks that warrant caution. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

While the undervaluation presents a tempting opportunity, it is essential to consider the underlying factors that may have contributed to the stock's significant decline of 47.2% over the past year. The business environment, competitive landscape, and internal company challenges could potentially hinder recovery, making it crucial for investors to approach this opportunity with thorough analysis.

How Does TNET's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 12.7x 18.0x Forward P/E 9.5x N/A Trinet Group Inc's current P/E ratio of 12.7x is notably lower than its 5-year median P/E of 18.0x, indicating that the stock is trading at a discount compared to its historical valuation. This analysis aligns with the GF Value™ verdict, reinforcing the perspective that TNET may be undervalued based on traditional valuation metrics.

What Does TNET's GF Score™ Tell Us? Metric Rating GF Score™ 68 Financial Strength 5/10 Profitability 8/10 Growth 5/10 Valuation 2/10 Momentum 2/10 The GF Score™ of 68/100 indicates that Trinet Group Inc demonstrates above-average potential for long-term returns. The strongest area is its profitability rank of 8/10, suggesting that the company has maintained healthy profit margins and operational efficiency. Conversely, the weakest areas are the valuation and momentum ranks, both at 2/10, indicating challenges in sustaining price appreciation and overall valuation attractiveness.

What Are Insiders Doing with TNET Stock? In the past three months, there has been no insider buying activity for Trinet Group Inc, with insiders selling $0.0M worth of stock. This lack of insider purchasing could be interpreted as a lack of confidence in the stock's immediate future, as insiders typically buy shares when they believe the stock is undervalued or poised for growth. The absence of buying signals may warrant caution for potential investors.

What This Means for Investors Based on the GF Value™ assessment, Trinet Group Inc TNET is currently undervalued. However, the stock's potential value trap designation and the lack of insider buying activity suggest that investors should proceed with caution and conduct thorough due diligence before making any investment decisions.

For the complete analysis, visit the Trinet Group Inc TNET 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 TNET's GF Score™?

TNET has a GF Score™ of 68/100, indicating above-average performance potential according to GuruFocus' scoring system.

Is TNET overvalued or undervalued?

According to GF Value™, TNET is currently undervalued, with a significant margin suggesting a potential opportunity for investors.

What is TNET's P/E ratio?

TNET's P/E ratio is 12.7x, which is significantly below its historical 5-year median P/E of 18.0x, indicating that the stock is trading at a discount 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].

11% Growth in GAAP Earnings per Diluted Share to $1.90 for the First Quarter 2026

25% Growth in Adjusted Net Income per Diluted Share to $2.48 for the First Quarter 2026

Returned Approximately $71 million to Shareholders Through Stock Repurchases and Dividends

, /PRNewswire/ -- TriNet Group, Inc. (NYSE: TNET), a leading provider of comprehensive and flexible human capital management (HCM) solutions for small and medium-size businesses (SMBs), today announced financial results for the first quarter ended March 31, 2026. The first quarter highlights below include non-GAAP financial measures which are reconciled later in this release.

"TriNet is off to a strong start in 2026," said Mike Simonds, President and CEO. "The largest of our repricing efforts is behind us, expenses are prudently managed, and investments in our products and services are being made through internal development, acquisition, and partnerships."

Simonds continued, "We are seeing building momentum in our go-to-market efforts, supported by stronger pipeline, a more tenured sales team, and accelerating channel activity. With the early success of TriNet Assistant, we believe our investments in AI position us to improve service, scale efficiently, and support a return to growth. 2026 stands to be an exciting year for TriNet."

First quarter highlights include:

Total revenues decreased 5% to $1.2 billion compared to the same period last year. Professional service revenues decreased 10% to $189 million compared to the same period last year. Net income was $89 million, or $1.90 per share, compared to net income of $85 million, or $1.71 per share, in the same period last year. Adjusted Net Income was $116 million, or $2.48 per diluted share, compared to Adjusted Net Income of $99 million, or $1.99 per diluted share, in the same period last year. Adjusted EBITDA was $186 million, representing an Adjusted EBITDA Margin of 15.2%, compared to Adjusted EBITDA of $162 million, representing an Adjusted EBITDA Margin of 12.6% in the same period last year. Average Worksite Employees (WSEs) decreased 12% as compared to the same period last year as compared to the previous quarter, to approximately 300,000. Generated $149 million in Net cash provided by operating activities, and $123 million in Free Cash Flow. Full-Year 2026 Guidance

In addition to announcing our first quarter 2026 results, we are reiterating our full-year 2026 guidance. Non-GAAP financial measures are reconciled later in this release.

Full Year 2026

(dollars in millions, except for per share amounts)

Low

High

Total Revenues

$     4,750

$     4,900

Professional Service Revenues

$        625

$        645

Insurance Cost Ratio

90.75 %

89.25 %

Adjusted EBITDA Margin

7.5 %

8.7 %

Diluted net income per share of common stock

$       2.15

$       3.05

Adjusted Net Income per share - diluted

$       3.70

$       4.70

Quarterly Report on Form 10-Q

We anticipate filing our Quarterly Report on Form 10-Q ("Form 10-Q") for the three months ended March 31, 2026 with the U.S. Securities and Exchange Commission (SEC) and making it available at http://www.trinet.com on or about April 30, 2026. This press release should be read in conjunction with the Form 10-Q and the related Notes to Consolidated Financial Statements and Management's Discussion and Analysis of Financial Condition and Results of Operations contained in the Form 10-Q.

Earnings Conference Call and Audio Webcast

TriNet will host a conference call at 5:30 a.m. PT today to discuss its first quarter results for 2026. TriNet encourages participants to pre-register for the webcast. The live webcast of the conference call can be accessed on the Investor Relations section of TriNet's website at https://investor.trinet.com. Participants can pre-register for the webcast by going to: https://events.q4inc.com/attendee/214291011. Callers can pre-register for the conference call by going to: https://dpregister.com/sreg/10208266/103c777f574. For those who would like to join the call but have not pre-registered, they can do so by dialing +1 (412) 317-5426 and requesting the "TriNet Conference Call." A replay of the webcast will be available on this website for approximately one year. A telephonic replay will be available for two weeks following the conference call at +1 (412) 317-0088 conference ID: 4129824.

About TriNet

TriNet is a leading provider of Human Resources solutions for small and medium size businesses, offering advanced technology-enabled services that include human capital expertise, employee benefits such as health insurance and retirement plans, payroll and payroll tax administration, risk mitigation, and compliance consulting. Our long-term objective is to be the premier provider of HR services for a broad range of SMBs through industry leading benefits, sales distribution excellence, and a world class services delivery model. For more information, please visit TriNet.com or follow us on Facebook, LinkedIn and Instagram.

Use of Non-GAAP Financial Measures

Reconciliations of non-GAAP financial measures to TriNet's financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section titled "Non-GAAP Financial Measures."

Forward-Looking Statements

This press release contains, and statements made during the above referenced conference call will contain, statements that are not historical in nature, are predictive in nature, or that depend upon or refer to future events or conditions or otherwise contain forward-looking statements within the meaning of Section 21 of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, including, among other things, TriNet's expectations and assumptions regarding: TriNet's financial guidance for the full-year 2026 and the underlying assumptions; TriNet's mid-term outlook and the underlying assumptions; TriNet's development, launch and on-going support of initiatives including AI-powered TriNet Assistant; expansion of our broker channel and new partnerships; TriNet's ability to build momentum in its business; and TriNet's ability to execute on our strategy. Forward-looking statements are often identified by the use of words such as, but not limited to, "ability," "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "goal," "guidance," "impact," "intend," "may," "objective," "plan," "project," "should," "strategy," "support," "target," "value," "will," "would" and similar expressions or variations intended to identify forward-looking statements. These statements are not guarantees of future performance but are based on management's expectations as of the date hereof and assumptions that are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from our current expectations and any past or future results, performance or achievements expressed or implied by the forward-looking statements. Investors are cautioned not to place undue reliance upon any forward-looking statements.

Important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include: our ability to manage unexpected changes in workers' compensation and health insurance claims and costs, including by WSEs; our ability to mitigate the distinct business risks we face as a co-employer; the effects of volatility in the financial and economic environment on the businesses that make up our client base; our inability to realize or sustain the expected benefits from our business realignment initiatives, and any associated increases in costs as a result of these initiatives; loss of clients for reasons beyond our control and the short-term contracts we typically use with our clients; the impact of regional or industry-specific economic and health factors on our operations; the impact of failures or limitations in the business systems and centers we rely upon; changes in our insurance coverage or our relationships with key insurance carriers; our ability to improve our services and technology to satisfy client and regulatory expectations, including with respect to artificial intelligence; our ability to effectively integrate businesses we have acquired or may acquire in the future; our ability to effectively manage and improve our operational effectiveness and resiliency; our ability to price our services at rates that our clients continue to find attractive; our ability to attract and retain qualified personnel; the effects of increased competition and our ability to compete effectively; the impact on our business of cyber-attacks, breaches, disclosures and other data-related incidents; our ability to comply with evolving data privacy, artificial intelligence and security laws; our ability to manage changes in, uncertainty regarding, or adverse application of the complex laws and regulations that govern our business; changing laws and regulations governing health insurance and employee benefits; our ability to keep pace with changes in technology or provide timely enhancements to our solutions and support, including with respect to artificial intelligence; risks associated with our international operations, including potential political or economic risks; our ability to operate a business subject to numerous complex laws; changing laws and regulations governing health insurance and other traditional employee benefits at the federal, state, and local levels; our ability to be recognized as an employer of worksite employees and for our benefits plans to satisfy all requirements under federal and state regulations; changes in the laws and regulations that govern what it means to be an employer, employee or independent contractor; the impact of new and changing laws regarding remote work; our ability to comply with the licensing requirements that govern our solutions; the failure of third-party service providers performing their functions; the failure to comply with anti-corruption laws and regulations, economic and trade sanctions, and similar laws; the outcome of existing and future legal and tax proceedings; fluctuation in our results of operations, stock price and maintenance of performance measures year over year due to factors outside of our control; our ability to comply with the restrictions of our indebtedness and meet our debt obligations; the need for additional capital or to restructure our existing debt; the continuation of our stock repurchase program; and the impact of concentrated ownership in our stock by Atairos and other large stockholders and the anti-takeover provisions in our charter documents and under Delaware law. Any of these factors could cause our actual results to differ materially from our anticipated results.

Further information on risks that could affect TriNet's results is included in our filings with the SEC, including under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are available on our investor relations website at http://investor.trinet.com and on the SEC website at www.sec.gov. Copies of these filings are also available by contacting TriNet Corporation's Investor Relations Department at (510) 875-7201. Except as required by law, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements in this press release, and any forward-looking statements in this press release speak only as of the date of this press release. In addition, we do not assume any obligation, and do not intend, to update any of our forward-looking statements, except as required by law.

Contacts:

Investors:

Media:

Alex Bauer

Renee Brotherton / Josh Gross

TriNet

TriNet

[email protected]

[email protected]

[email protected]

(408) 646-5103

Key Financial and Operating Metrics

We regularly review certain key financial and operating metrics to evaluate growth trends, measure our performance and make strategic decisions. These key financial and operating metrics may change over time. Our key financial and operating metrics for the periods presented were as follows:

Three Months Ended March 31,

(in millions, except per share and Operating Metrics data)

2026

2025

% Change

Income Statement Data:

Total revenues

$    1,226

$ 1,292

(5)

%

Income before tax

123

115

7

Net income

89

85

5

Diluted net income per share of common stock

1.90

1.71

11

Non-GAAP measures (1):

Adjusted EBITDA

186

162

15

Adjusted Net income

116

99

17

Free Cash Flow

123

79

56

Operating Metrics:

Insurance Cost Ratio

84 %

88 %

(4)

%

Average WSEs

300,215

340,744

(12)

Total WSEs

299,434

339,625

(12)

(1)

Refer to Non-GAAP measures definitions and reconciliations from GAAP measures under the heading "Non-GAAP Financial Measures"

(in millions)

March 31, 2026

December 31, 2025

% Change

Balance Sheet Data:

Cash and cash equivalents

$          340

$          287

18

%

Working capital

258

231

12

Total assets

3,420

3,797

(10)

Debt

896

895

—

Total stockholders' equity

83

54

54

Three Months Ended March 31,

(in millions)

2026

2025

% Change

Cash Flow Data:

Net cash provided by operating activities

$        149

$           95

57

%

Net cash used in investing activities

(13)

(8)

63

Net cash used in financing activities

(645)

(494)

31

TRINET GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited)

Three Months Ended March 31,

(in millions except per share data)

2026

2025

Professional service revenues

$            189

$            209

Insurance service revenues

1,023

1,065

Interest income

14

18

Total revenues

1,226

1,292

Insurance costs

856

942

Cost of providing services

70

71

Sales and marketing

69

67

General and administrative

59

46

Systems development and programming

19

20

Depreciation and amortization of intangible assets

17

17

Interest expense, bank fees and other

13

14

Total costs and operating expenses

1,103

1,177

Income before tax

123

115

Income taxes

34

30

Net income

$              89

$              85

Other comprehensive income, net of income taxes

(2)

2

Comprehensive income

$              87

$              87

Net income per share:

Basic

$            1.90

$            1.72

Diluted

$            1.90

$            1.71

Weighted average shares:

Basic

47

49

Diluted

47

49

TRINET GROUP, INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)

March 31,

December 31,

(in millions, except share and per share data)

2026

2025

Assets

Current assets:

Cash and cash equivalents

$             340

$             287

Restricted cash, cash equivalents and investments

1,122

1,694

Accounts receivable, net

7

20

Payroll funds receivable

451

264

Prepaid expenses, net

64

82

Other payroll assets

449

474

Other current assets

51

47

Total current assets

2,484

2,868

Restricted cash, cash equivalents and investments, noncurrent

122

128

Property and equipment, net

22

11

Operating lease right-of-use asset

38

36

Goodwill

461

461

Software and other intangible assets, net

155

153

Other assets

138

140

Total assets

$           3,420

$           3,797

Liabilities and stockholders' equity

Current liabilities:

Accounts payable and other current liabilities

$              89

$              86

Client deposits and other client liabilities

49

57

Accrued wages

542

555

Accrued health insurance costs, net

193

207

Accrued workers' compensation costs, net

44

42

Payroll tax liabilities and other payroll withholdings

1,289

1,671

Operating lease liabilities

11

10

Insurance premiums and other payables

9

9

Total current liabilities

2,226

2,637

Long-term debt, noncurrent

896

895

Accrued workers' compensation costs, noncurrent, net

109

106

Deferred taxes

54

55

Operating lease liabilities, noncurrent

39

37

Other non-current liabilities

13

13

Total liabilities

3,337

3,743

Total stockholders' equity

83

54

Total liabilities & stockholders' equity

$           3,420

$           3,797

TRINET GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Three Months Ended March 31,

(in millions)

2026

2025

Operating activities

Net income

$                  89

$                  85

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization of intangible assets

17

17

Amortization of deferred costs

13

12

Amortization of ROU asset, lease modification, impairment, and abandonment

2

2

Deferred income taxes

—

(1)

Stock based compensation

16

13

Other

1

3

Changes in operating assets and liabilities:

Accounts receivable, net

—

1

Prepaid expenses, net

22

7

Other assets

(11)

(6)

Accounts payable and other liabilities

—

(11)

Accrued wages

—

(17)

Accrued health insurance costs, net

—

1

Accrued workers' compensation costs, net

2

2

Payroll taxes liabilities and other payroll withholdings

—

(10)

Operating lease liabilities

(2)

(3)

Net cash provided by operating activities

149

95

Investing activities

Purchases of marketable securities

(25)

(27)

Proceeds from sale and maturity of marketable securities

38

34

Acquisitions of property and equipment and software

(26)

(16)

Proceeds from sale of business

—

1

Net cash used in investing activities

(13)

(8)

Financing activities

Change in WSE and TriNet Trust related assets and liabilities, net

(571)

(388)

Repurchase of common stock

(58)

(90)

Awards effectively repurchased for required employee withholding taxes

(3)

(4)

Dividends paid

(13)

(12)

Net cash used in financing activities

(645)

(494)

Effect of exchange rate changes on cash and cash equivalents

(1)

—

Net change in cash and cash equivalents, unrestricted and restricted

(510)

(407)

Cash and cash equivalents, unrestricted and restricted:

Beginning of period

1,902

1,691

End of period

$              1,392

$              1,284

Supplemental disclosures of cash flow information

Interest paid

$                  24

$                  25

Supplemental schedule of noncash investing and financing activities

Cash dividend declared, but not yet paid

$                  13

$                  13

Payable for purchase of property and equipment

$                   6

$                   1

Receivable from sale of business

$                  —

$                   6

Non-GAAP Financial Measures

In addition to the selected financial measures presented in accordance with U.S. Generally Accepted Accounting Principles (GAAP), we monitor other non-GAAP financial measures that we use to manage our business, to make planning decisions, to allocate resources and to use as performance measures in our executive compensation plan. These key financial measures provide an additional view of our operational performance over the long term and provide information that we use to maintain and grow our business.

The presentation of these non-GAAP financial measures is used to enhance the understanding of certain aspects of our financial performance. It is not meant to be considered in isolation from, superior to, or as a substitute for the directly comparable financial measures prepared in accordance with GAAP.

Non-GAAP Measure

Definition

How We Use The Measure

Adjusted EBITDA

• Net income, excluding the effects of:

- income tax provision,

- interest expense, bank fees and other,

- depreciation,

- amortization of intangible assets,

- stock based compensation expense,

- amortization of cloud computing arrangements, and

- restructuring costs.

• Provides period-to-period comparisons on a consistent basis and an understanding as to how our management evaluates the effectiveness of our business strategies by excluding certain non-recurring costs, which include restructuring costs, as well as certain non-cash charges such as depreciation and amortization, and stock-based compensation and certain impairment charges recognized based on the estimated fair values. We believe these charges are either not directly resulting from our core operations or not indicative of our ongoing operations.

• Enhances comparisons to the prior period and, accordingly, facilitates the development of future projections and earnings growth prospects.

• Provides a measure, among others, used in the determination of incentive compensation for management.

• We also sometimes refer to Adjusted EBITDA margin, which is the ratio of Adjusted EBITDA to total revenues.

Adjusted Net Income

• Net income, excluding the effects of:

- effective income tax rate (1),

- stock based compensation expense,

- amortization of intangible assets, net,

- non-cash interest expense,

- restructuring costs, and

- the income tax effect (at our effective tax rate (1) of these pre-tax adjustments.)

• Provides information to our stockholders and board of directors to understand how our management evaluates our business, to monitor and evaluate our operating results, and analyze profitability of our ongoing operations and trends on a consistent basis by excluding certain non-cash charges.

Free Cash Flow

• Net cash provided by operating activities reduced
by capital expenditures

• Provides information on the strength of our liquidity and available cash.

• Provides management with a measure to assist in making planning decisions, evaluate our performance and allocate resources.

• We also sometimes refer to Free Cash Flow Conversion ratio, which is the ratio of free cash flow to Adjusted EBITDA.

(1)

Non-GAAP effective tax rate is 25.5%  and 25% for 2026 and 2025, respectively, which excludes the income tax impact from stock-based compensation, changes in uncertain tax positions, and nonrecurring benefits or expenses from federal legislative changes.

Reconciliation of GAAP to Non-GAAP Measures

The table below presents a reconciliation of Net income to Adjusted EBITDA:

Three Months Ended March 31,

(in millions)

2026

2025

Net income

$        89

$        85

Provision for income taxes

34

30

Stock based compensation

16

13

Interest expense, bank fees and other

13

14

Depreciation and amortization of intangible assets

17

17

Amortization of cloud computing arrangements

3

2

Restructuring costs

14

1

Adjusted EBITDA

$      186

$      162

Adjusted EBITDA Margin

15.2 %

12.6 %

The table below presents a reconciliation of Net income to Adjusted Net Income and Adjusted Net Income per share - diluted:

Three Months Ended March 31,

(in millions, except per share data)

2026

2025

Net income

$          89

$          85

Effective income tax rate adjustment

3

1

Stock based compensation

16

13

Amortization of intangible assets

2

2

Non-cash interest expense

—

1

Restructuring costs

14

1

Income tax impact of pre-tax adjustments

(8)

(4)

Adjusted Net Income

$        116

$          99

GAAP weighted average shares of common stock - diluted

47

49

Adjusted Net Income per share - diluted

$       2.48

$       1.99

The table below presents a reconciliation of Net cash provided by operating activities to Free Cash Flow:

Three Months Ended

March 31,

(in millions)

2026

2025

Net cash provided by operating activities

$      149

$        95

Acquisitions of property and equipment and software

(26)

(16)

Free Cash Flow (a)

$      123

$        79

Adjusted EBITDA (b)

$      186

$      162

Free Cash Flow Conversion Ratio (a)/(b)

66 %

49 %

Reconciliation of GAAP to Non-GAAP Measures for the full-year 2026 guidance.

Low and high percentages represent increases (decreases) from the same period in the previous year.

The table below presents a reconciliation of net income to Adjusted Net Income and Adjusted Net Income per share - diluted:

FY 2025

Year 2026 Guidance

(in millions, except per share data)

Actual

Low

High

Net income

$155

(34) %

(6) %

Effective income tax rate adjustment

8

(30)

28

Stock based compensation

65

3

3

Amortization of intangible assets

10

—

—

Non-cash interest expense

3

(100)

(100)

Restructuring costs

11

33

33

Income tax impact of pre-tax adjustments

(22)

6

6

Adjusted Net Income

$230

(23) %

(3) %

GAAP weighted average shares of common stock - diluted

49

Adjusted Net Income per share - diluted

$4.73

$3.70

$4.70

SOURCE TriNet Group, Inc.

For the quarter ended March 2026, TriNet Group (TNET - Free Report) reported revenue of $370 million, up 5.7% over the same period last year. EPS came in at $2.48, compared to $1.99 in the year-ago quarter.

The reported revenue represents a surprise of +14.24% over the Zacks Consensus Estimate of $323.88 million. With the consensus EPS estimate being $1.91, the EPS surprise was +29.84%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how TriNet performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Interest income: $14 million versus $11.91 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -22.2% change.Revenues- Insurance service revenues: $1.02 billion versus the three-analyst average estimate of $1.05 billion. The reported number represents a year-over-year change of -3.9%.Revenues- Professional service revenues: $189 million compared to the $182.22 million average estimate based on three analysts. The reported number represents a change of -9.6% year over year.View all Key Company Metrics for TriNet here>>>

Shares of TriNet have returned +19.2% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- TriNet (NYSE: TNET), a leading provider of comprehensive human resources solutions for small and medium-size businesses (SMBs), today announced that its President and CEO, Mike Simonds, and CFO, Mala Murthy, will present or participate at the following three conferences:

The 21st Annual Needham Technology, Media, & Consumer Conference, May 13, 2026, at 8:45am ET (5:45am PT). The Stifel 2026 Boston Cross Sector 1x1 Conference on Wednesday, June 3, 2026. The Baird Global Consumer, Technology & Services Conference, June 4, 2026. A live webcast and replay of the 21st Annual Needham Technology, Media, & Consumer Conference session will be available on the Investor Relations section of the TriNet website at investor.trinet.com.

About TriNet
TriNet is a leading provider of Human Resources solutions for small and medium-size businesses, offering advanced technology-enabled services that include human capital expertise, employee benefits such as health insurance and retirement plans, payroll and payroll tax administration, risk mitigation, and compliance consulting. Our long-term objective is to be the premier provider of HR services for a broad range of SMBs through industry leading benefits, sales distribution excellence, and a world class services delivery model. For more information, visit TriNet.com or follow us on Facebook, LinkedIn and Instagram.

TriNet and the TriNet logo are registered trademarks of TriNet. All other trademarks, service marks, registered trademarks, or registered service marks are the property of their respective owners.

SOURCE TriNet Group, Inc.

Also from this source

TriNet Group (TNET - Free Report) closed the last trading session at $39.64, gaining 3.5% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $51.8 indicates a 30.7% upside potential.

The mean estimate comprises five short-term price targets with a standard deviation of $10.35. While the lowest estimate of $45.00 indicates a 13.5% increase from the current price level, the most optimistic analyst expects the stock to surge 76.6% to reach $70.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.

However, an impressive consensus price target is not the only factor that indicates a potential upside in TNET. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Why TNET Could Witness a Solid UpsideAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 12%, as three estimates have moved higher compared to no negative revision.

Moreover, TNET currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much TNET could gain, the direction of price movement it implies does appear to be a good guide.

Here are three stocks with buy rank and strong income characteristics for investors to consider today, June 8:

Dow Inc. (DOW - Free Report) : This materials science company witnessed the Zacks Consensus Estimate for its current year earnings increasing 693.8% the last 60 days.

This Zacks Rank #1 company has a dividend yield of 4.1%, compared with the industry average of 1.4%.

Luxfer Holdings PLC (LXFR - Free Report) : This industrial materials and components company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 7.1% the last 60 days.

This Zacks Rank #1 company has a dividend yield of 3.1%, compared with the industry average of 0.0%.

TriNet Group, Inc. (TNET - Free Report) : This human resources (HR) services provider has witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.1% in the last 60 days.

This Zacks Rank #1 company has a dividend yield of 2.5%, compared with the industry average of 0.5%.

See the full list of top ranked stocks here.

Find more top income stocks with some of our great premium screens.

The increasing demand for business process outsourcing (BPO), driven by its flexibility and reduced costs, aids the Zacks Outsourcing industry. The upsurge in data encryption and cybersecurity risks necessitates the need to pivot toward outsourcing. Trends like the Internet of Things (IoT), cloud computing, Artificial Intelligence (AI) and Machine Learning (ML) are transforming the sector.

Investors can consider TriNet (TNET - Free Report) and Barrett Business Services (BBSI - Free Report) from the Outsourcing market.

About the Industry Outsourcing involves delegating a company's internal operations to external resources or third-party contractors to enhance operational efficiency. Within the Zacks Outsourcing sector, one can find companies that provide human capital, business management and IT solutions, primarily catering to small and medium-sized enterprises. These services encompass a broad spectrum, including HR support, payroll management, administration of benefits, retirement planning and insurance services. Certain firms excel in delivering business process services, with a strong focus on transaction processing, analytics and global automation solutions. This outsourcing approach empowers businesses to concentrate on their core competencies, while external experts manage these critical functions.

What's Shaping the Future of the Outsourcing Industry? Consistent Growth in Business Process & IT Outsourcing: BPO services witness higher demand due to greater flexibility, lower costs and improved service quality. Per our long-term outlook, outsourced IT services will cover a wide array of functions, including programming and technical support, which will boost their demand. This will enable companies to outsource their entire IT departments, lowering costs and allowing them to focus on core operations. The shortage of in-house engineering talent will drive the outsourcing trend.

Urgency of Cybersecurity Measures: The demand for robust data encryption and cybersecurity measures is increasing amid heightened public awareness and evolving cyber threats, such as ransomware and national-level cyberattacks. To mitigate cybersecurity threats, companies are focusing on employee security awareness training and breach detection systems. Businesses are increasingly turning to outsourced cybersecurity services to reduce risks, maintain compliance and support scalability in their operations.

Changing Industry Trends: The outsourcing sector is being transformed by trends such as IoT, cloud computing, AI and ML. These innovations improve efficiency, support innovation and increase competitiveness, transforming the outsourcing landscape for businesses to streamline operations. For instance, IoT data can be collected, processed and analyzed in the cloud, enabling real-time decision-making and predictive maintenance for clients. By integrating AI and ML into customer support outsourcing, companies can provide swifter, effective and consistent customer support while optimizing operational costs.

Zacks Industry Rank Indicates Bright Near-Term Prospects The Zacks Outsourcing industry, which is housed within the broader Zacks Business Services sector, currently carries a Zacks Industry Rank #112. This rank places it in the top 45% of 247 Zacks industries.

The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates continued underperformance in the near term. Our research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.

Before we present a few stocks that you may want to consider for your portfolio, let us take a look at the industry’s recent stock market performance and current valuation.

Industry Underperforms Sector & S&P 500 Over the past year, the Zacks Outsourcing industry underperformed the broader Zacks Business Services sector and the Zacks S&P 500 composite.

The industry has declined 36.5% over this period compared with the broader sector’s 22.9% dip and against the Zacks S&P 500 composite’s 27.5% rally.

1-Year Price Performance

Industry Trades Cheaper Than Sector & S&P 500 On the basis of forward 12-month price-to-earnings (P/E), commonly used for valuing outsourcing stocks, the industry is currently trading at 16.72X compared with the S&P 500’s 21.43X and the sector’s 16.88X.

In the past five years, the industry has traded as high as 33.22X and as low as 4.94X, with the median being 16.92X, as the charts below show.

Price-to-Forward 12 Months’ P/E Ratio

2 Outsourcing Stocks Poised for Growth TriNet: This human capital management service provider for the U.S.-based small and medium-sized businesses registered an impressive start to 2026, delivering $2.48 in adjusted EPS, rising 24.6% year over year. The strength in operational performance was fueled by prudent expense management and a health fee repricing strategy that brought all customers at par with the historical risk practices.

Management expects to register an adjusted EPS of $2.15-$3.05 for 2026, and the fact that the company is tracking toward the top half of the outlook bolsters strength in future profitability. The company delivered a solid insurance performance, yielding an 84% insurance cost ratio, strengthened by lower-than-forecast health trends and one-time claim development from 2025.

TNET witnessed 12% year-over-year growth in Request for Proposal (RFP) in the first quarter of 2026. Robust growth in RFP can be attributed to the company’s broker strategy providing an impetus to the deal flow.

The company entered partnerships and acquired Cocoon, improving its product ecosystem. TriNet’s operational prowess was further elevated by the rollout of TriNet Assistant, a gen-AI tool that mitigates inbound volumes during tax season, lowering inbound customer contracts by 6%.

The Zacks Consensus Estimate for the company’s 2026 EPS of $4.6 remained unchanged over the past 30 days. TNET shares have gained 33.3% over the past month.

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

Price and Consensus: TNET

Barrett Business Services: BBSI offers business management solutions for the U.S.-based small and mid-sized companies. The company witnessed a 5% year-over-year gain in its top line in the first quarter of 2026. Despite macroeconomic setbacks, the company achieved a 1.9% year-over-year increase in its total worksite employees, fueled by robust sales volume and client retention that surpasses historical averages.

On a regional basis, the East Coast delivered double-digit growth for the 20th time in a row and the Pacific Northwest returned to growth. This growth was further bolstered by BBSI’s asset-light geographic expansion, adding nearly 550 worksite employees.

The company secured a 93% book renewal rate, adding nearly 140 clients and 3,500 participants. A promising California workers’ compensation pricing environment is expected to aid profitability and margins. With the successful rollout of products like employee file cabinet and performance management modules, the company strengthened its balance sheet with $92 million in cash as of the end of the first quarter of 2026 against zero current debt.

The Zacks Consensus Estimate for the company’s 2026 EPS has been unchanged at $1.88 over the past 30 days. BBSI shares have gained 27.8% over the past month.

BBSI currently has a Zacks Rank of #3 (Hold).

Price and Consensus: BBSI

, /PRNewswire/ -- Alaska Air Group Inc., the parent company of Alaska Airlines Inc., Hawaiian Airlines, Inc. and Horizon Air Industries Inc., today announced it will webcast a fireside chat with Chief Financial Officer Shane Tackett at 8:45 a.m. ET, Wednesday, June 3, 2026, from the TD Cowen 10th Annual Future of the Consumer Conference. The presentation will be webcast live at news.alaskaair.com/investor-relations.

About Alaska Air Group
Alaska Airlines, Hawaiian Airlines and Horizon Air are subsidiaries of Alaska Air Group, and McGee Air Services is a subsidiary of Alaska Airlines. We are a global airline with hubs in Seattle, Honolulu, Portland, Anchorage, Los Angeles, San Diego and San Francisco. We deliver remarkable care as we fly our guests to more than 140 destinations throughout North America, Latin America, Asia, the Pacific and Europe. Guests can book travel at alaskaair.com and hawaiianairlines.com. Alaska and Hawaiian are members of the oneworld alliance. Members of our Atmos Rewards loyalty program can earn and redeem points with oneworld airlines and our additional global partners that serve over 1,000 worldwide destinations. Learn more about what's happening at Alaska and Hawaiian at news.alaskaair.com. Alaska Air Group is traded on the New York Stock Exchange (NYSE) as "ALK." 

SOURCE Alaska Air Group

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In the latest trading session, Alaska Air Group (ALK - Free Report) closed at $46.59, marking a +1.35% move from the previous day. This change outpaced the S&P 500's 0.58% gain on the day. At the same time, the Dow added 0.05%, and the tech-heavy Nasdaq gained 0.91%.

Coming into today, shares of the airline had gained 20% in the past month. In that same time, the Transportation sector gained 3.65%, while the S&P 500 gained 4.96%.

Investors will be eagerly watching for the performance of Alaska Air Group in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be -$0.87, reflecting a 148.88% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $4.1 billion, showing a 10.64% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of -$1.04 per share and a revenue of $15.84 billion, representing changes of -142.62% and +11.22%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Alaska Air Group. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 264.86% downward. Alaska Air Group currently has a Zacks Rank of #3 (Hold).

The Transportation - Airline industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 212, positioning it in the bottom 14% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

Shares in Alaska Air Group (ALK +2.25%) rose by 12.7% in an excellent week for airline stocks. The move comes as the sector climbs a wall of worry driven by soaring jet fuel prices stemming from the closure of the Strait of Hormuz. While the market's prior concerns are understandable, there's growing anecdotal evidence suggesting that airlines, including Alaska Air, might emerge from the period in better shape than many expect.

This week's airline updates Southwest Airlines (LUV +2.77%) CEO Robert Jordan gave a presentation at the Bernstein 42nd Annual Strategic Decisions Conference, and his remarks surprised the market. It's no secret that jet fuel prices have soared, and that's challenging airlines' profitability. Still, it doesn't appear to have affected end demand, with Delta Air Lines previously telling investors that strong demand in the first quarter was continuing into the second quarter, even as it raised prices.

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That positive trend, with Southwest's Jordan telling investors that Southwest had participated in seven consecutive fare increases with "no drop off in demand at all." Jordan went on to note that "I'm becoming increasingly bullish that we will be able to cover these fuel increases with revenue increases," and also believes that "the industry will retain a much higher percent of the fare increases that would be typical historically."

What it means to Alaska Air Given that Alaska competes with Southwest on some routes and is suffering from rising jet fuel prices, the news from Southwest is particularly relevant. For example, in its recent first-quarter earnings report, Alaska's management said higher fuel costs would impact earnings per share (EPS) by $0.70 in the first quarter and by more than $3 in the second quarter.

Image source: Getty Images.

These are significant numbers from an airline that analysts expect to report a $0.77-per-share loss in 2026 and then $6.32 in EPS in 2027. However, if Alaska can offset fuel costs with higher prices, then those estimates might need a positive revision.

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool recommends Alaska Air Group, Delta Air Lines, and Southwest Airlines. The Motley Fool has a disclosure policy.

Sievert brings a track record of value creation, brand strength and deep ties to the Seattle business community. He's also a licensed pilot.

In the latest close session, Alaska Air Group (ALK - Free Report) was down 4.65% at $41.87. This move lagged the S&P 500's daily loss of 0.74%. At the same time, the Dow lost 1.21%, and the tech-heavy Nasdaq lost 0.89%.

The airline's shares have seen an increase of 14.02% over the last month, surpassing the Transportation sector's gain of 1.93% and the S&P 500's gain of 5.39%.

The upcoming earnings release of Alaska Air Group will be of great interest to investors. The company is expected to report EPS of -$0.87, down 148.88% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $4.1 billion, showing a 10.64% escalation compared to the year-ago quarter.

ALK's full-year Zacks Consensus Estimates are calling for earnings of -$1.01 per share and revenue of $15.84 billion. These results would represent year-over-year changes of -141.39% and +11.22%, respectively.

It is also important to note the recent changes to analyst estimates for Alaska Air Group. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 356.03% decrease. Right now, Alaska Air Group possesses a Zacks Rank of #4 (Sell).

The Transportation - Airline industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 224, positioning it in the bottom 9% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

SummaryCompaniesMiddle East conflict sends jet fuel prices soaring, disrupts airspaceBudget airlines most vulnerable to failure, M&A, airline body chief saysSlow aircraft, engine deliveries deepening airline woesAirline body sticks with net-zero-by-2050 targetRIO DE JANEIRO, June 6 (Reuters) - Soaring jet fuel prices driven by conflict in the Middle East are likely ​to push more airlines into bankruptcy and spur more sector consolidation this year and next, the head of the global airline body said on Saturday.

Global airlines ‌are grappling with higher fuel costs driven by the U.S. and Israel’s war with Iran, which has choked jet fuel supplies and disrupted key air corridors, forcing costly detours.

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Budget carriers have been among the hardest hit, lacking higher margin revenue streams such as premium cabins, high-paying travelers and credit card loyalty programs.

The strain is already showing: U.S. budget airline Spirit Airlines collapsed last month, and it will not be the last, said ​Willie Walsh, director general of the International Air Transport Association, the industry’s main trade body.

“Unfortunately, I think there will be some carriers that will find this high fuel ​price very difficult to cope with," Walsh told Reuters at IATA's annual summit in Rio de Janeiro, adding he expects some airlines to ⁠go out of business and others to be acquired by larger carriers.

Airlines are also expected to protect margins by cutting unprofitable routes, while fares, which have surged since the outbreak of ​the Iran war, are unlikely to come down soon, Walsh said.

Even so, the pressure does not spell the end of the low-cost airline model, which continues to thrive outside the United States, ​where the big three carriers, United Airlines, Delta Air Lines and American Airlines, are squeezing out budget competitors, Walsh said.

“I don't see that the low-cost model is broken; in fact, quite the opposite," he said, highlighting Ryanair's strong performance in Europe as an example.

There is one blockbuster deal Walsh does not see happening: United Airlines CEO Scott Kirby’s audacious proposal to buy arch rival American Airlines and create a U.S. aviation behemoth. ​The idea, which surfaced earlier this year, failed to get done despite Kirby raising it with President Donald Trump.

"I don't think that's going to happen. I think the regulatory hurdles ​would be very significant. I don't know whether that was a genuine effort to pursue consolidation or Scott just trying to stir up some media," Walsh said.

MIDDLE EAST AIRLINE WOESThe Iran conflict has upended traffic ‌flows through ⁠Middle Eastern hubs such as Dubai, Doha and Abu Dhabi, creating acute challenges for Gulf carriers including Emirates, Qatar Airways and Etihad.

Walsh said he didn't think the conflict would do permanent damage to the Gulf as an aviation hub given its strategic geographic importance and the value of the popular Gulf carriers, which account for 14% of global capacity.

“That capacity cannot be replaced by airlines from other regions around the world," Walsh said.

"Once things settle down, I would expect the Gulf carriers to regain their important position in the market."

Adding to the strain is the slow ​pace of aircraft deliveries from Boeing and ​Airbus, along with engine delays from GE ⁠Aerospace and Pratt & Whitney, a unit of RTX, limiting airlines’ ability to expand fleets and improve efficiency.

Walsh said the industry is increasingly frustrated by the delays, particularly as engine makers post strong profits while airlines struggle. He estimates supply chain disruption cost airlines about $11 billion last year.

"We're ​disappointed that they're not moving faster. We're disappointed that they're not sharing the pain that the airline industry is sharing," he said.

Aircraft ​and engine makers have said ⁠that much of the delays are out of their control, stemming from post‑pandemic supply chain disruptions and political trade disputes.

Walsh said competition will eventually emerge from China, where Comac is developing aircraft to rival Boeing and Airbus, though it still faces certification hurdles in Europe and the United States and remains reliant on Western engines and avionics.

"Probably 10 to 15 years from now, people won't just ⁠talk about Airbus ​and Boeing. It'll be: Airbus, Boeing, Comac," he said.

As airlines come under financial strain and climate policies lose ​momentum in the U.S. under Donald Trump, industry leaders have grown more cautious about meeting a 2050 net zero emissions target.

Walsh said IATA is not ready to abandon the goal.

“I certainly believe it's more challenging to achieve net zero ​in 2050 because we've not made the progress that we had expected to see on the development of sustainable fuels," he said.

Reporting by Joe Brock; Editing by Sanjeev Miglani and Rod Nickel

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

Joe Brock is Reuters' aerospace and defense editor, based in Los Angeles, where he leads a global team of reporters covering airlines, aerospace, weapons manufacturers, and the space industry. Joe has previously worked in Singapore, Johannesburg, Abuja and London as a reporter and bureau chief. He has received several awards for his investigative journalism, including from the Society for Advancing Business Editing and Writing and The Society of Publishers in Asia.

SummaryCompaniesIATA cuts 2026 profit forecast on fuel costs and war disruptionIran war drives up fuel bills, reroutes flights, hits marginsAirlines expected to cut routes, keep fares highRIO DE JANEIRO, June 7 (Reuters) - The global airline industry nearly halved its ​2026 profit forecast on Sunday, citing conflict in the Middle East that has driven up fuel costs, disrupted key air ‌corridors and exposed the fragility of a sector operating on thin margins.

The International Air Transport Association, which represents more than 370 airlines accounting for about 85% of global air traffic, said in its annual report that it now expects the industry to post a combined net profit of $23 billion in 2026, well below a previous projection of ​about $41 billion and down from $45 billion in 2025.

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The downgrade underscores airlines' exposure to geopolitical shocks and fuel volatility, even as passenger ​demand remains resilient, planes are flying fuller and revenues are set to rise to more than $1.1 trillion.

"There are two ⁠major factors: one is the significant increase in jet fuel prices, which has gone way higher than I think anybody would have expected, and ​then the disruption to the airlines in the Gulf region, so that combination has led us to reduce the forecast," IATA Director General Willie Walsh ​told Reuters at the group's annual meeting in Rio de Janeiro.

Walsh said he expects some smaller airlines to go bankrupt or be taken over by bigger carriers this year and next as higher fuel costs bite. U.S. low-cost carrier Spirit Airlines shut down last month, the first airline casualty of the Iran war.

Airlines are also expected to cut ​unprofitable routes to protect margins, while fares - which have surged since the start of the Iran war - are unlikely to fall soon, Walsh said.

"In ​an environment where demand remains pretty robust, but capacity comes down, that will likely lead to a situation where fares will remain elevated," Walsh said.

Jet fuel prices have jumped this week.People attend the International Air Transport Association (IATA) Annual General Meeting in Rio de Janeiro, Brazil, June 6, 2026. REUTERS/Tita Barros. Purchase Licensing Rights, opens new tab

FUEL COST SHOCK ‌WIPES OUT ⁠HIGHER REVENUESThe Middle East conflict, triggered by U.S. and Israeli airstrikes on Iran, has forced airlines to reroute flights around closed or restricted airspace, adding hours to some journeys, increasing fuel burn and straining already tight capacity.

At the same time, oil prices have surged on fears of supply disruption, pushing jet fuel prices sharply higher and widening refinery margins, leaving airlines facing a steep jump in their largest cost.

Gulf airlines such as Emirates, Qatar Airways ​and Etihad Airways face the greatest ​operational uncertainty after a near-complete ⁠shutdown of regional airspace at the start of the conflict.

Walsh said most regions should remain profitable, though at lower levels, while Middle East airlines are likely to slip into the red due to the conflict and weaker ​demand.

IATA expects airlines' fuel bill to surge to about $350 billion this year from roughly $252 billion in 2025, with ​fuel accounting for ⁠nearly a third of operating costs.

That is eroding profitability per passenger, with airlines now expected to earn about $4.50 per passenger, roughly half last year's level.

On the upside, IATA expects industry revenues to rise 9.4% to around $1.16 trillion this year, driven by steady travel demand, higher fares, and growing income from extras such ⁠as seat ​upgrades and onboard services.

Aircraft shortages are also squeezing the sector. Delivery delays at Boeing and ​Airbus are forcing airlines to keep older, less fuel-efficient planes in service for longer, raising maintenance bills and blunting efforts to improve margins, Walsh said.

Reporting by Gabriel Araujo, Luciana Magalhaes, Rajesh Kumar Singh and Allison Lampert. Writing by Joe Brock. Editing by Mark Potter

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

Gabriel is a Sao Paulo, Brazil-based reporter covering Latin America's financial and breaking news from the region's largest economy. A graduate of the University of Sao Paulo, joined Reuters while in college as a Commodities & Energy intern and has been with the firm ever since. Previously covered sports - including soccer and Formula One - for Brazilian radios and websites.

Rajesh Kumar Singh is the U.S. Aviation Correspondent at Reuters, based in Chicago, where he reports on airlines, aircraft manufacturers, and regulatory developments that shape the global aviation industry. Prior to this role, he covered U.S. manufacturing and trade policy, including the U.S.–China trade wars, where his work delved into the disruption facing American businesses and the strategic responses of major corporations. He began his career with Reuters in India, where he reported on a wide range of issues covering the country's economic complexities—from its recovery after the global financial crisis to the challenges of inflation and governance.

On June 09, 2026, Alaska Air Group Inc ALK shares rose 6.8% today, reaching a current price of $45.13. This increase comes amid a 52-week range of $33.03 to $65.88, reflecting the stock's volatility over the past year.

GF Value™ verdict: Current price of $45.13 is 27.9% below the GF Value™ estimate of $62.62, indicating undervaluation.GF Score™: 77/100, suggesting the stock is above average in quality.Most notable signal: The financial strength score is 4/10, indicating some concerns in this area. Is ALK Overvalued or Undervalued? With a current price of $45.13 compared to the GF Value™ of $62.62, Alaska Air Group Inc appears undervalued by 27.9%. This discrepancy presents a potential opportunity for investors, as the market may not fully recognize the company's intrinsic value at this time. The GF Valuation label of "Modestly Undervalued" further supports this assessment, suggesting that while there is room for growth, caution should be exercised due to the inherent risks in the airline industry.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given the current valuation, ALK may be an attractive option, but investors should consider the company's financial strength and other risk factors before making decisions.

How Does ALK's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 85.2x 24.9x Forward P/E 370.3x N/A Currently, ALK's P/E (TTM) of 85.2x is significantly above its 5-year median P/E of 24.9x, indicating that the stock is trading at a premium compared to its historical average. This high P/E ratio suggests that market expectations may be overly optimistic, which is contrary to the undervaluation indicated by the GF Value™. Therefore, while the GF Value™ suggests a margin of safety, the elevated P/E ratio raises concerns about potential overvaluation.

What Does ALK's GF Score™ Tell Us? Metric Rating GF Score™ 77 Financial Strength 4/10 Profitability 7/10 Growth 8/10 Valuation 4/10 Momentum 5/10 The GF Score™ of 77/100 indicates that Alaska Air Group Inc is positioned above average in terms of quality, with its strongest areas being growth (8/10) and profitability (7/10). However, the financial strength score of 4/10 and valuation score of 4/10 highlight weaknesses that could be concerning for potential investors. The overall scores suggest that while the company has growth potential, its financial health and current valuation may warrant further scrutiny.

What Are Insiders Doing with ALK Stock? There have been no insider transactions in the last three months for Alaska Air Group Inc. This lack of activity may suggest that insiders currently do not see a compelling reason to buy or sell their shares, indicating a neutral sentiment regarding the company's performance or outlook at this time.

What This Means for Investors Based on the GF Value™ assessment, Alaska Air Group Inc appears to be undervalued at the current price of $45.13. However, potential investors should consider the company's financial strength and high P/E ratio, which may indicate risks that could affect future performance.

For the complete analysis, visit the Alaska Air Group Inc ALK 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 ALK's GF Score™?

ALK's GF Score™ is 77/100, indicating above-average quality and potential for long-term returns based on key financial metrics.

Is ALK overvalued or undervalued?

ALK is currently undervalued, with a GF Value™ of $62.62 compared to its market price of $45.13, suggesting a potential investment opportunity.

What is ALK's P/E ratio?

ALK's P/E (TTM) is 85.2x, which is significantly higher than its 5-year median of 24.9x, indicating it is trading at a premium compared to its historical valuations.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Alaska's latest livery acts as a tribute to Seattle sports and the many people working to bring an amazing soccer experience to the Pacific Northwest

, /PRNewswire/ -- Seattle is getting ready to welcome the world, and Alaska Airlines is marking the moment with a new aircraft livery launched as an Official Seattle World Cup 2026™ Host City Supporter, in partnership with Qatar Airways.

As Seattle's hometown global airline, Alaska is proud to unveil the custom aircraft decal honoring SeattleFWC26, a tribute to the many people working to bring an unforgettable tournament experience to the Pacific Northwest.

Alaska's latest custom aircraft decal honoring SeattleFWC26 Displayed on a Boeing 737-9 MAX with tail number 985AK, the design features the Seattle Host City logo alongside a dynamic soccer ball in motion, symbolizing the speed, excitement and momentum of the game. Inspired by elements from the official Seattle Host City poster, the livery also incorporates the iconic whale tail graphic, creating a distinctive connection to the Pacific Northwest and Seattle's maritime heritage. On the underside of the aircraft, the bold declaration "WE ARE SEATTLE" serves as a powerful statement of Alaska's pride in its hometown and reflects the airline's commitment to welcoming fans from across its network and beyond.

"We could not ask for a better hometown supporter than Alaska Airlines to carry Seattle and our region's story to the world," said Peter Tomozawa, CEO of SeattleFWC26. "This livery is more than a design; it is a reflection of who we are as the Pacific Northwest, innovative, welcoming, and proud, and an open invitation to experience that firsthand."

The airline's partnership with SeattleFWC26 also supports key community initiatives throughout the spring and summer, including: support for last month's inaugural Blind Soccer international tournament, community art installations highlighting the airline's nonprofit partnerships in the Seattle-area such as Northwest Association for Blind Athletes and the Museum of Flight and a flag raising ceremony where Alaska will join other Host City Supporters to help raise the Seattle Host City Flag atop the Space Needle.

"We are honored to welcome the world to Seattle alongside the local Seattle FIFA World Cup Host Committee," said Eric Edge, Vice President of Brand and Marketing at Alaska Airlines. "Our new livery is a celebration of our hometown and everything it has to offer, as well as a recognition of Alaska's growing connection to destinations around the globe."

Images and videos of the aircraft can be found at news.alaskaair.com.

About Alaska, Hawaiian and Horizon
Alaska Airlines, Hawaiian Airlines and Horizon Air are subsidiaries of Alaska Air Group, and McGee Air Services is a subsidiary of Alaska Airlines. We are a global airline with hubs in Seattle, Honolulu, Portland, Anchorage, Los Angeles, San Diego and San Francisco. We deliver remarkable care as we fly our guests to more than 140 destinations throughout North America, Latin America, Asia, the Pacific and Europe. Guests can book travel at alaskaair.com and hawaiianairlines.com. Alaska and Hawaiian are members of the oneworld alliance. Members of our Atmos Rewards loyalty program can earn and redeem points with oneworld airlines and our additional global partners that serve over 1,000 worldwide destinations. Learn more about what's happening at Alaska and Hawaiian at news.alaskaair.com. Alaska Air Group is traded on the New York Stock Exchange (NYSE) as "ALK." 

About Seattle FIFA World Cup 26™ Local Organizing Committee
SeattleFWC26 is the local organizing committee for Seattle's participation as one of the 16 Host Cities selected for the FIFA World Cup 26™. As a not-for-profit organization, SeattleFWC26's vision is to foster a lasting legacy for our region, guided by the spirit of soccer, innovation, and inclusion. To keep up to date on the latest news and involvement opportunities with SeattleFWC26, please visit https://www.seattlefwc26.org.

SOURCE Alaska Airlines

Patterson-UTI (PTEN - Free Report) came out with a quarterly loss of $0.06 per share versus the Zacks Consensus Estimate of a loss of $0.1. This compares to break-even earnings per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +40.77%. A quarter ago, it was expected that this provider of onshore contract drilling services would post a loss of $0.11 per share when it actually produced a loss of $0.02, delivering a surprise of +81.82%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Patterson-UTI, which belongs to the Zacks Oil and Gas - Drilling industry, posted revenues of $1.12 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 3.13%. This compares to year-ago revenues of $1.28 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Patterson-UTI shares have added about 72.8% since the beginning of the year versus the S&P 500's gain of 3.2%.

What's Next for Patterson-UTI?While Patterson-UTI has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Patterson-UTI was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.08 on $1.1 billion in revenues for the coming quarter and -$0.31 on $4.39 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Drilling is currently in the top 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Noble Corporation PLC (NE - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on April 26.

This company is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of -19.2%. The consensus EPS estimate for the quarter has been revised 19.4% higher over the last 30 days to the current level.

Noble Corporation PLC's revenues are expected to be $728.18 million, down 16.7% from the year-ago quarter.

On April 23, 2026, Patterson-UTI Energy Inc PTEN shares rose 3.0% today, closing at $11.14. The stock has shown notable price performance over the past year, with a 100.0% increase. The shares have traded within a 52-week range of $5.10 to $11.75.

GF Value™ verdict: PTEN is trading at $11.14, which is 37.4% above its GF Value™ of $8.11, indicating it is overvalued.GF Score™: PTEN has a score of 68/100, which is considered above average.Most notable signal: Insiders have sold $5.1M worth of shares in the last 3 months, with no buying activity recorded. Is PTEN Overvalued or Undervalued? Patterson-UTI Energy Inc's current price of $11.14 is significantly above the calculated GF Value™ of $8.11, suggesting the stock is overvalued by 37.4%. This overvaluation presents a risk for potential investors, as the market price does not reflect the estimated intrinsic value based on historical performance and future expectations. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. The GF Valuation label indicates that the stock is significantly overvalued, which could lead to a price correction if market conditions shift.

The margin of safety in this scenario is notably slim, as the current price surpasses the GF Value™ by a substantial margin. Investors may want to consider the implications of this overvaluation before making investment decisions, particularly given the lack of insider buying activity, which could signal a lack of confidence in the stock's current pricing.

How Does PTEN's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 756.5x 11.3x The current forward P/E ratio of 756.5x is significantly above the 5-year median P/E of 11.3x, indicating that PTEN is trading at an exceptionally high valuation compared to its historical levels. This analysis aligns with the GF Value™ verdict, reinforcing the notion that PTEN is overvalued at its current price.

What Does PTEN's GF Score™ Tell Us? Metric Rating GF Score™ 68/100 Financial Strength 6/10 Profitability 5/10 Growth 4/10 Valuation 5/10 Momentum 3/10 The GF Score™ of 68/100 indicates that PTEN is positioned well above average in terms of its overall quality. However, the mixed scores reveal areas of concern, particularly in momentum, which is rated at only 3/10, suggesting weaker price performance relative to its peers. Financial strength is moderately rated at 6/10, while profitability and valuation rankings are both at 5/10, indicating stable but not exceptional performance in these areas. The growth rank of 4/10 indicates potential for improvement, which may not be fully realized in the current overvalued market price.

What Are Insiders Doing with PTEN Stock? Recent insider activity has shown a notable trend, with insiders selling $5.1 million worth of shares in the past three months and no recorded buying. This pattern often signals a lack of confidence in the company's future prospects from those closest to the business. The absence of insider buying could be interpreted as a sign that insiders do not view the current price as an attractive entry point, which may warrant caution for potential investors.

What This Means for Investors Based on the analysis of GF Value™, Patterson-UTI Energy Inc PTEN is currently overvalued. This assessment is supported by both the current price relative to GF Value™ and the high forward P/E ratio compared to historical norms. Potential investors may want to exercise caution when considering PTEN at this valuation level.

For the complete analysis, visit the Patterson-UTI Energy Inc PTEN 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 PTEN's GF Score™?

PTEN's GF Score™ is 68/100, indicating that the stock is above average in terms of overall quality and potential for long-term returns.

Is PTEN overvalued or undervalued?

PTEN is currently overvalued, trading at 37.4% above its GF Value™ of $8.11.

What is PTEN's P/E ratio?

PTEN's forward P/E ratio is 756.5x, which is significantly higher than its 5-year median P/E of 11.3x, indicating that the stock is trading at an inflated 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].