Quantum Computing's Commercial Breakout Has ArrivedGlobalFoundries NASDAQ: GFS Chief Financial Officer Sam Franklin said the chipmaker sees a path to significantly higher profitability over the next several years, driven by a mix shift toward faster-growing end markets, technology services, manufacturing productivity and better utilization of its existing footprint.
Speaking at a TD Cowen event hosted by analyst Krish Sankar, Franklin said GlobalFoundries is targeting an exit gross margin of about 30% in 2026, 40% by the end of 2028 and 45% over the longer term. He said the company’s margin plan is tied to investments already made, customer design-win momentum and an expanded ability to serve customers earlier in the design process.
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Margin Targets Rely on Mix, Services and Scale Quantum Stocks Just Got a Lifeline—Who Benefits Most?Franklin said the company’s roughly 10-point margin bridge from 2026 to 2028 is based on four main factors: mix, technology services, manufacturing efficiency and scale. He said mix alone could contribute about five points of margin improvement over the next few years.
Communications infrastructure and data center is one example of the mix shift, Franklin said. The segment grew a little under 30% last year, about 32% in the first quarter and is expected to grow in the high-30% range for the full year. He also pointed to automotive and IoT as important margin contributors.
3 Stocks Trump Could Back Next as USA Rare Earths Revives the Federal Catalyst TradeFranklin said GlobalFoundries is also building its technology services revenue, historically referred to as non-wafer revenue. He cited the company’s acquisition of MIPS and the pending acquisition of Synopsys’ ARC IP business as part of a broader effort to build RISC-V capabilities. Technology services have historically been about 8% to 10% of revenue, were above 13% in the first quarter and are expected to be 12% to 14% over the longer term, he said.
CapEx Increase Tied to Demand Visibility Sankar asked whether the company’s expected $1.3 billion to $1.4 billion in capital spending this year is mainly related to silicon photonics. Franklin said silicon photonics is a major beneficiary, but not the only area receiving investment.
Franklin said net capital spending is expected to be in the range of 15% to 20% of revenue this year, up from 7% to 10% in recent years. He said the increase reflects stronger demand visibility, the ability to expand efficiently within the company’s existing facilities and support from government funding and customer partnerships.
In addition to silicon photonics, Franklin cited demand for FDX solutions and silicon germanium capabilities, including applications in data center transimpedance amplifier drivers. He said the company’s current three-year model does not rely on modular expansion and remains within its longer-term target of net CapEx at about 20% of revenue.
Silicon Photonics and Data Center Growth in Focus Franklin said GlobalFoundries sees two phases of growth in silicon photonics. The first is tied to pluggable optical transceivers, where he said the company has a strong position and a growing customer base following its acquisition of AMF last year. The company is targeting a $1 billion silicon photonics run rate exiting 2028.
The second phase is expected to come from co-packaged optics, with an inflection point in late 2028 into 2029. Franklin said the company has set a target of $2 billion in silicon photonics revenue over the longer term. He said GlobalFoundries recorded two tape-outs on its co-packaged optics solution in the first quarter.
Franklin described GlobalFoundries’ SCALE platform as an ecosystem-based silicon photonics co-packaged advanced light engine solution. He said the company has invested more than $1 billion in R&D and CapEx over roughly a decade to develop its photonics capabilities. He added that GlobalFoundries can manufacture an electrical integrated circuit within its own technology nodes, while also supporting third-party EICs developed on single-digit nanometer nodes.
Franklin said the company is working with several founding members of the OCI MSA and believes its solution exceeds the demand requirements under those principles. He also said GlobalFoundries and TSMC are the only companies with “fully fledged” co-packaged optics solutions taping out in the market today, while adding that he does not expect the market to have a single winner.
Quantum, Satellite and Defense Opportunities Franklin said GlobalFoundries does not have a strong need to pursue single-digit nanometer logic, saying the company’s served available market can nearly double toward the end of the decade and into the 2030s using technologies greater than 10 nanometers. He pointed to automotive, IoT, communications infrastructure, data center and smart mobile as markets where the company’s portfolio fits customer requirements.
On satellite communications, Franklin said low Earth orbit satellite-related revenue is expected to grow from a “standing start” in 2024 to about $100 million in 2025. He said GlobalFoundries is supporting commercial satellite communications customers with RF front-end content and 22FDX solutions for beamforming applications.
Franklin also discussed aerospace and defense, which GlobalFoundries categorizes within IoT. He said the company remains a trusted foundry with a relationship with the U.S. Department of Defense, and noted that first-quarter technology services revenue included healthier mask and reticle-related revenue tied to aerospace and defense applications.
On quantum computing, Franklin called a recently announced $375 million CHIPS R&D grant a strong endorsement of GlobalFoundries’ role in the semiconductor ecosystem and quantum technology. He said the company aims to be a “quantum foundry of choice” with a modality-agnostic platform, using FDX, advanced packaging and quantum process design kits. Franklin said the U.S. government’s approximately 1% equity stake is viewed separately from grant funding and is not expected to include restrictions similar to prior CHIPS Act frameworks.
Capital Returns and Mubadala Ownership Franklin said GlobalFoundries’ long-term plan is not premised on growth in smart mobile devices, though the category remains important. Smart mobile accounted for about 34% of first-quarter revenue, the lowest level in the company’s history, he said, as other end markets have grown faster.
The CFO said the company is moving toward a more systematic capital allocation framework. He said GlobalFoundries plans to return about 50% of free cash after investments to shareholders, including through a newly initiated dividend. He also said the board approved $500 million in share repurchases at the start of the year, of which about $400 million has been completed.
Addressing Mubadala’s ownership, Franklin said management supports more float coming into the stock. He noted that Mubadala recently sold shares and said the activity reflects investor appetite for GlobalFoundries’ strategy. He described Mubadala as a “thoughtful and patient” majority shareholder and said the company continues to view its support positively.
About GlobalFoundries NASDAQ: GFSGlobalFoundries, Inc NASDAQ: GFS is a leading contract semiconductor manufacturer that provides wafer fabrication and related services to semiconductor companies and systems manufacturers. The company operates as a pure-play foundry, producing integrated circuits across a range of process technologies for customers in markets such as automotive, communications, consumer electronics, industrial, and aerospace. Its service offering spans process development, manufacturing, test and packaging support, and design enablement including process design kits (PDKs) and intellectual property (IP) libraries to help customers bring designs to production.
GlobalFoundries focuses on a portfolio of differentiated and specialty process nodes, offering technologies for radio-frequency (RF) and wireless, analog and mixed-signal, power management, embedded non-volatile memory, and silicon-on-insulator (SOI) process families.
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The artificial intelligence (AI) playbook is familiar by now: Build a bigger GPU cluster. Add more Blackwell chips. Throw more electricity at the problem. If the chips get hot, build the data center next to a river. If the bandwidth runs out, lay more copper.
That is how Amazon, Alphabet, Microsoft, and Meta Platforms are solving AI in 2026. And it works -- until it runs into physics.
One company looked at that same problem and arrived at a different answer. GlobalFoundries (GFS +1.99%) is betting that the real bottleneck in AI infrastructure is not compute power. It is the wire connecting the chips and replacing that wire with light.
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The copper wall nobody talks about Inside every AI data center, thousands of chips must share information at enormous speeds. Right now, most of that communication travels through copper, which is running out of room. It generates heat, loses signal over distance, and consumes power in ways that become painful at scale. Every time an AI model gets bigger, the copper problem gets worse.
The industry has known this for years. The solution has a name: co-packaged optics (CPO). The idea is to move optical transceivers, components that transmit data through light rather than electricity, directly alongside the chip, shrinking the distance data has to travel through copper to almost nothing. The result is faster, cooler, more power-efficient AI infrastructure.
In May 2026, GlobalFoundries announced SCALE -- Silicon photonics Co-packaged Advanced Light Engine solution -- the industry's first platform to meet the Optical Compute Interconnect Multi-Source Agreement specifications for AI scale-up architectures. The platform uses both coarse and dense wavelength-division multiplexing (DWDM) over each optical fiber to push bandwidth density and scalability past what copper can do, and GlobalFoundries has already demonstrated 8λ and 16λ bi-directional DWDM natively on its platform -- a milestone the company describes as fundamental to everything that follows.
Image source: Getty Images.
The part of the stack everyone is chasing Here's the thing about silicon photonics that gets lost in the GPU coverage: It is a manufacturing problem as much as a physics problem. Designing a silicon photonic chip is hard. Building it at scale, with the precision required for optical fiber alignment, in volume, for hyperscale data centers is harder.
GlobalFoundries has spent years developing the process technology to do exactly that. Its silicon photonics platform supports 50 Gbps and 100 Gbps micro-ring modulators, broadband detachable fiber interfaces, and flat insertion loss characteristics that future-proof the platform as wavelength counts scale. In November 2025, the company acquired Advanced Micro Foundry in Singapore, a specialized silicon photonics manufacturer, adding manufacturing assets, intellectual property, and engineering depth that would take years to build from scratch.
That acquisition gave GlobalFoundries production capacity for silicon photonics in Singapore, a geography that matters for supply chain diversification amid elevated U.S.-China semiconductor tensions. The company is building a platform that the hyperscalers need and very few manufacturers can actually deliver.
GlobalFoundries dropped 10% in one day, but I'm not worried GlobalFoundries fell nearly 10% on May 27, dragged down by Mubadala's alleged stock sale. Mubadala is Abu Dhabi's sovereign wealth fund and was formerly the controlling shareholder of GlobalFoundries. Despite the stock drop, the long-term Motley Fool framing wins here.
GlobalFoundries' story is intact. The SCALE announcement sent the stock up 12% in a single session just weeks ago. A Q1 2026 earnings beat followed. Silicon photonics revenue is expected to nearly double again in 2026, with over 500 design wins logged in 2025 and momentum building. A sell-off does not change those facts.
Also, the U.S. government is backing GlobalFoundries with a proposed $375 million award to help build out domestic quantum manufacturing infrastructure.
Every major hyperscaler is asking how to train bigger models faster. GlobalFoundries is asking a different question: How do you move data between chips without the infrastructure melting?
Co-packaged optics is the answer. The company building the manufacturing platform to deliver it at scale is still, on most days, filed under "semiconductor foundry." On days it drops 10% for reasons unrelated to its most important business, that drop becomes an opportunity.
Sivers' laser arrays to support GlobalFoundries' silicon photonics platform and SCALE™ optical engine solutions targeting a $25B Pluggable Optics market by 2030
, /PRNewswire/ -- Sivers Semiconductors AB (STO: SIVE), a global leader in photonics and wireless technologies, today announced a strategic collaboration with GlobalFoundries (NASDAQ: GFS) (GF), to develop advanced silicon photonics solutions for the high-growth AI infrastructure market.
Sivers Semiconductors' laser arrays will be integrated into reference designs built on GF's silicon photonics platform. The collaboration supports a range of optical connectivity architectures, including co-packaged optics (CPO), linear pluggable optics (LPO), and other emerging data center interconnect solutions. Sivers' laser arrays will also be available in GF's Silicon Photonics Co-packaged Advanced Light Engine (SCALE™) platform for next-generation optical sub-assemblies and light engine architectures. GF's SCALE CPO solution combines integrated photonic devices, coarse and dense wavelength-division multiplexing (CWDM, DWDM) and advanced packaging enablement to improve bandwidth density and system scalability.
"The rapid expansion of AI workloads and hyperscale data center architectures demand advanced photonics technologies that deliver higher bandwidth, improved energy efficiency, and scalable optical connectivity," said Raymond Biagan, CRO at Sivers Semiconductors. "Our collaboration with GlobalFoundries positions both companies at the leading edge of silicon photonics innovation."
"GlobalFoundries continues to see strong momentum for silicon photonics solutions as AI data center architectures evolve toward higher bandwidth density and improved power efficiency," said Vikas Gupta, Senior Fellow, Silicon Photonics Product Line at GlobalFoundries. "Pairing Sivers Semiconductors' laser array technology with our silicon photonics and SCALE CPO platforms provides our customers with advanced, scalable optical engine solutions for high-bandwidth co-packaged optics and optical interconnects."
For more information, please visit https://www.sivers-semiconductors.com/.
About Sivers Semiconductors
Sivers Semiconductors is a critical enabler of a greener data economy with energy-efficient photonics & wireless solutions. Our differentiated high-precision laser and RF beamformer technologies help our customers in key markets such as AI Datacenters, SATCOM, Defense and Telecom solve essential performance challenges while enabling a much greener footprint. For additional information, please visit us at: www.sivers-semiconductors.com. (SIVE.ST)
About GF
GlobalFoundries (GF) is a leading manufacturer of essential semiconductors, enabling AI at scale from the cloud to the physical world. Through deep partnerships with customers, GF delivers differentiated, power-efficient and high-performance solutions for automotive, aerospace and defense, data center, smart mobile devices, internet of things and other high-growth markets. With global manufacturing operations across the U.S., Europe and Asia, GF is a trusted and holistic technology partner for customers around the world. GF's talented, global team remains focused every day on security, longevity and sustainability. For more information, visit www.gf.com.
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Northern Trust (Nasdaq: NTRS) today announced changes within its Asset Servicing business, effective 1 June 2026, aligning leadership across the business and positioning it for long-term growth.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260602949046/en/
Nick Gilbert has been appointed head of Asset Servicing, Europe, Middle East and Africa (EMEA), a newly expanded role with responsibility for both asset owners and asset managers, aligning the EMEA region’s structure with Northern Trust’s model in North America and Asia-Pacific.
Nick Gilbert has been appointed head of Asset Servicing, Europe, Middle East and Africa (EMEA), a newly expanded role with responsibility for both asset owners and asset managers, aligning the EMEA region’s structure with Northern Trust’s model in North America and Asia-Pacific. Gilbert brings more than 20 years of experience across operations, strategy and transformation, and most recently led Global Fund Services (GFS) in the region.
As part of these changes and following the planned retirement of James Wright, head of Asset Owners, EMEA at the end of 2026, Wright’s responsibilities will transition to two senior leaders. Kimberly Evans has been appointed to the newly created role of head of Enterprise Strategic Relationships where she will focus on bringing together Northern Trust’s full capabilities to deliver integrated solutions for sophisticated, high-value prospect, client, and vendor relationships globally. Evans most recently served as Northern Trust’s head of Corporate Sustainability, Inclusion and Social Impact and previously led our Private Capital (Trades, Portfolio) Fund Services and Governmental & Sovereign Wealth Pension and Treasury Fund businesses in North America.
Ian Hamilton has been appointed head of Asset Owners, EMEA, in an expanded role. Hamilton brings nearly a decade of experience at Northern Trust servicing asset owners and most recently led Asset Owners Europe, where he contributed to growth across pensions, fiduciary managers and sovereign entities. With experience spanning over 25 years, he also brings institutional client experience from previous roles in the industry.
“These appointments build on our strong leadership while enhancing alignment across the organisation,” said Clive Bellows, co-president, Asset Servicing and president for Europe, the Middle East and Africa (EMEA) at Northern Trust. “By bringing together deep expertise, we are strengthening how we serve clients and helping them navigate an increasingly complex market environment.”
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking services to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 24 U.S. states and Washington, D.C., and across 22 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of March 31, 2026, Northern Trust had assets under custody/administration of US$18.6 trillion, and assets under management of US$1.8 trillion. For more than 135 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit us on northerntrust.com. Follow us on Instagram @northerntrustcompany or Northern Trust on LinkedIn.
Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Global legal and regulatory information can be found at https://www.northerntrust.com/terms-and-conditions.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260602949046/en/
Combines GF's Physical AI portfolio with MIPS' RISC-V and software-to-silicon expertise to accelerate custom, software-first products for automotive, industrial and agentic edge platforms June 02, 2026 08:30 ET | Source: GlobalFoundries Inc.
MALTA, N.Y., June 02, 2026 (GLOBE NEWSWIRE) -- GlobalFoundries (Nasdaq: GFS) (GF) today announced the completion of its previously-announced acquisition of Synopsys’ ARC Processor IP Solutions business. Combined with MIPS, by GF, the acquisition establishes GF as a technology partner offering customers a software-to-silicon capability purpose built for Physical AI. Synopsys retains and continues to expand its broad portfolio of interface and foundation IP, while GF assumes ownership and stewardship of the ARC processor IP business. MIPS combined with ARC brings together RISC-V processor IP, software tools, custom design and advanced manufacturing into a single offering, while also expanding GF’s engineering depth with world-class processor and AI talent to accelerate innovation.
“Physical AI is driving tighter integration of compute, software and process technology and customers need a partner who can support them across all three together,” said Sameer Wasson, CEO of MIPS, by GF. “With MIPS and ARC united, GF delivers the software, IP and custom silicon capabilities our customers need to build differentiated, application-specific solutions across automotive, industrial robotics and embedded systems, enabling us to operate as a holistic technology partner and engage throughout the design cycle.”
Agentic AI is rapidly extending beyond the data center into the physical world, driving new physical AI and autonomous platforms across automotive radar and advanced driver-assistance systems to industrial robotics, smart factories and the next generation of IoT devices. These systems must now sense, think, act and communicate in real time under tight power and latency constraints, making differentiated silicon spanning compute, AI acceleration, sensing and connectivity, critical to performance and adoption.
“As automotive and industrial systems become increasingly real-time and AI-driven, we need a technology partner that can bring together standards-based IP and optimized silicon design at scale, with the supply resilience our industry now requires,” said Thomas Schneid, VP of Automotive Software and Ecosystem, Infineon. “GlobalFoundries' combination of MIPS and ARC processor IP with its manufacturing scale provides companies strong end-to-end foundation to build differentiated, power-efficient solutions for next-generation intelligent systems.”
With the transaction complete, the ARC processor IP business becomes part of GF's expanding Physical AI portfolio within MIPS. Together, MIPS and ARC form a world-class RISC-V processor IP suite spanning high-performance, mid-range and ultra-low-power compute and AI cores, backed by more than 150 patents and a global ecosystem of over 300 IP customers. The acquired portfolio also includes the application-specific instruction set (ASIP) processor tools, ASIP Designer and ASIP Programmer, empowering customers to design and program custom processors tailored to their specific workloads. Paired with GF's design enablement, custom silicon capabilities, advanced software tools and global manufacturing footprint, customers gain a single partner from architecture to silicon, enabling early engagement, differentiated product development and faster time-to-market.
GF is working closely with Synopsys to ensure a smooth transition for employees, customers and partners. For more information about MIPS ARC processor solutions, visit mips.com/arc.
About GF
GlobalFoundries (GF) is a leading manufacturer of essential semiconductors, enabling AI at scale from the cloud to the physical world. Through deep partnerships with customers, GF delivers differentiated, power-efficient and high-performance solutions for automotive, aerospace and defense, data center, smart mobile devices, internet of things and other high-growth markets. With global manufacturing operations across the U.S., Europe and Asia, GF is a trusted and holistic technology partner for customers around the world. GF’s talented, global team remains focused every day on security, longevity and sustainability. For more information, visit gf.com.
About MIPS
MIPS, by GlobalFoundries, is a leading provider of RISC-V IP, software and custom ASSP for physical AI platforms. With over 40 years of history in computing innovation and mission critical platforms, MIPS is uniquely positioned to advance the adoption of Physical AI in transportation, robotics, and other embedded markets. MIPS technology is based on the open RISC-V instruction set architecture and uses virtual platforms to enable a modular, standards-based approach to workload-focused solutions. For more information visit mips.com.
Forward-looking information
This news release may contain forward-looking statements, which involve risks and uncertainties. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. GF undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless required by law.
Partnership paves the way to pair AI-enabled semiconductor design with GF's U.S. manufacturing platform to bridge the gap from research to prototype for next-generation computing initiatives June 03, 2026 08:30 ET | Source: GlobalFoundries Inc.
MALTA, N.Y., June 03, 2026 (GLOBE NEWSWIRE) -- GlobalFoundries (Nasdaq: GFS) today announced a strategic partnership with the U.S. Department of Energy's Genesis Mission, the department's initiative to accelerate scientific discovery through artificial intelligence and advanced computing.
Through the agreement, GF will open its U.S. manufacturing platform and design enablement resources to Genesis Mission researchers — giving the nation's National Laboratories, universities, industry partners and startups a direct path from AI-enabled chip design to working prototype silicon. GF Labs, the company's frontier research and development organization, will lead collaboration with the Genesis Mission.
Progress in AI and advanced computing depends on more than algorithms and ideas; it depends on the ability to turn them into devices. As a semiconductor manufacturing engine accelerating America's technology leadership, GF brings the manufacturing capacity and design enablement that connect three communities — the National Labs, universities and industry — around a shared path from concept to silicon.
"American science is generating extraordinary ideas in AI and advanced computing. What's been missing is the bridge from lab to fab," said Tom Caulfield, executive chairman of GlobalFoundries. "By bringing our U.S. manufacturing platform, our PDKs and our multi-project wafer program to the Genesis Mission, we can give researchers a real path from concept to working silicon — and help the National Labs, universities and industry pull in the same direction."
Areas of collaboration
Working through GF Labs, the partnership contemplates cooperation in several areas of mutual interest, including:
AI-enabled semiconductor designAccess to GF technology platforms, including process design kits, device models and design enablement resources for Genesis Mission-supported research teams.Prototype fabrication through GF's multi-project wafer program, giving researchers a manufacturable route from design to silicon.Support for the translation of research outputs into functional prototypes and pre-commercial designs.Advancement of next-generation technologies, including silicon photonics for data centers and quantum computing for quantum-systems discovery.
About the Genesis Mission
The Genesis Mission is a U.S. Department of Energy initiative, led by the Under Secretary for Science, to accelerate scientific discovery through artificial intelligence and advanced computing. Industry partners contribute technical expertise, capabilities and infrastructure to advance the mission's objectives in partnership with the national laboratories and the academic research community.
Key Takeaways GFS completed Synopsys' ARC Processor IP acquisition, expanding its Physical AI portfolio.GFS combines ARC and MIPS to broaden RISC-V IP across performance and power needs.GlobalFoundries adds design tools, patents and AI talent to support custom intelligent systems. GLOBALFOUNDRIES Inc. (GFS - Free Report) has completed the acquisition of Synopsys’ ARC Processor IP Solutions business, a move that expands its presence in the growing Physical AI market. The transaction combines ARC’s processor intellectual property portfolio with MIPS, GlobalFoundries’ recently acquired processor IP business, creating a broader platform that spans processor design, software tools, custom bb development and manufacturing.
The deal comes as artificial intelligence workloads increasingly move beyond data centers into real-world applications such as advanced driver-assistance systems, industrial robotics, smart factories and connected devices. These applications require chips that can process data in real time while operating within strict power and latency limits, increasing the need for specialized semiconductor solutions.
By bringing together MIPS and ARC, GlobalFoundries gains a wider range of RISC-V processor IP covering high-performance, mid-range and ultra-low-power computing applications. The acquisition also adds application-specific instruction set processor tools, enabling customers to develop processors tailored to specific workloads and use cases. The combined portfolio includes more than 150 patents and serves a global ecosystem of over 300 IP customers, strengthening GlobalFoundries’ position in processor IP.
The transaction strengthens GlobalFoundries’ ability to participate earlier in the semiconductor design cycle rather than serving solely as a manufacturing partner. The company can now offer processor IP, software development tools, custom chip design support and manufacturing services through a more integrated software-to-silicon model. The acquisition also expands the company’s engineering capabilities with additional processor and AI talent.
The expanded portfolio is particularly relevant for automotive and industrial markets, where demand is rising for AI-enabled systems that require greater computing efficiency and reliability. As Physical AI adoption grows, the acquisition positions GlobalFoundries to address a broader portion of the semiconductor value chain while supporting customers developing application-specific intelligent systems.
GlobalFoundries’ Competitive LandscapeGlobalFoundries competes with KLA Corporation (KLAC - Free Report) and United Microelectronics Corporation (UMC - Free Report) across different segments of the semiconductor industry.
KLA benefits from rising demand for process control, inspection and metrology solutions as chip designs become more complex. Growing investments in advanced packaging, high-bandwidth memory and leading-edge semiconductor manufacturing continue to support demand for KLA’s portfolio. Increasing process control intensity across semiconductor production also remains a key growth driver.
UMC focuses primarily on mature-node semiconductor manufacturing and serves customers across automotive, industrial and communications markets. The company benefits from demand for specialty technologies and long-standing relationships with customers seeking cost-effective manufacturing solutions.
GlobalFoundries differentiates itself through its focus on essential semiconductor technologies, including RF, connectivity, power management and silicon photonics solutions. The addition of ARC processor IP capabilities further expands the company’s ability to support Physical AI applications through a combination of processor technology, custom silicon development and manufacturing expertise.
Overall, GlobalFoundries, KLA and UMC are positioned to benefit from growing semiconductor demand, though each company participates in different parts of the semiconductor value chain, creating distinct growth opportunities across manufacturing, process control and specialty technologies.
GFS’s Stock Price Performance & Valuation TrendShares of GlobalFoundries have increased 125.1% in the past six months, outperforming the Zacks Electronics - Semiconductors’ 46.6% rise.
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GFS stock is currently trading at a discount compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 38.44, as evidenced by the chart below.
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Earnings Estimate Revision of GFSGFS’ earnings estimates for 2026 and 2027 have trended upward in the past 30 days to $1.89 and $2.62 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 9.9% and 38.6%, respectively.
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GFS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GLOBALFOUNDRIES jumps 59% in three months as AI, automotive and silicon photonics demand accelerate, but valuation and market risks may warrant patience.
First end-to-end European chip manufacturing flow proven for aerospace, defense, IoT, consumer electronics and critical infrastructure
DRESDEN, Germany & DELFT, Netherlands--(BUSINESS WIRE)--GlobalFoundries (GF) and Qualinx today announced the successful completion of the first fully European-based, end-to-end semiconductor manufacturing flow at GlobalFoundries’ Dresden fab on its FDX technology. The milestone demonstrates that security-critical chips for aerospace, defense and critical infrastructure can be designed, manufactured and delivered entirely within Europe.
"This first secure product demonstrates that a fully European manufacturing path – from mask services to wafer production – is already a reality today,” said Qualinx CEO Tom Trill.
Share In this partnership, Qualinx served as the launch customer with a sophisticated GNSS SoC design for secure Positioning, Navigation and Timing (PNT) applications. The QLX3xx design targets sovereign GNSS-based PNT solutions for aerospace, defense and critical infrastructures—such as resilient timing and synchronization networks and highly integrated, ultra-low-power GNSS receivers at the connected edge.
GF and Qualinx Set a Benchmark for GF’s European Sovereign Manufacturing co-funded by the European Chips Act, GF’s Dresden fab is establishing its European sovereign manufacturing flow, consolidating every step of the production process — from design intake and mask services to wafer manufacturing — within the European Union. No sensitive design data or physical materials leave Europe, meeting the strict regulatory and security requirements of European governments, defense agencies, system integrators and critical infrastructure operators.
“We are demonstrating that Europe can rely on a secure, end-to-end semiconductor manufacturing flow that meets the highest requirements of aerospace and defense,” said Dr. Manfred Horstmann, Senior Vice President and General Manager at GlobalFoundries. “Our partnership with Qualinx marks the first operational milestone: it shows that complex, security-relevant ASIC designs for aerospace, defense, and critical infrastructure can already be industrialized today using a fully European, trusted manufacturing path.”
“This first secure product demonstrates that a fully European manufacturing path – from mask services to wafer production – is already a reality today,” said Tom Trill, CEO of Qualinx. “Together with GlobalFoundries, we’ve optimized our Digital RF technology on GF’s FDX with a secure end-to-end flow, culminating in the launch of our ultra-low-power reconfigurable GNSS SoC and Analog Front End. This milestone underscores our ability to deliver trusted, energy-efficient solutions while maintaining full control over IP, data and the supply chain within Europe.”
Roadmap: Scaling European Sovereign Manufacturing. The tape‑out realized with Qualinx represents the first operational milestone on the path toward a fully automated trusted European flow, which GF aims to establish in Dresden by the end of 2026. Starting in 2027, aerospace and defense, as well as critical infrastructure customers, will be able to use this automated flow as part of regular foundry engagements, including the integration of European IP partners, mask houses and OSAT service providers to ensure a consistent, European-anchored value chain.
Already today, a number of European system and module manufacturers from aerospace and defense, as well as operators of critical infrastructure, are in discussions with GF to map upcoming product generations onto GF’s sovereign manufacturing flow. The successful start with Qualinx serves as a strong proof point and reduces both technical and regulatory risks for subsequent programs.
To further strengthen its European sovereign manufacturing flow, GF is also working with leading European connectivity and cloud providers to secure data flows across the entire semiconductor value chain. In a joint project with Deutsche Telekom, GF is assessing how production-related data from design and tape-out through manufacturing, test and quality can be processed, transported and stored entirely within Europe on European networks, cloud infrastructures and data centers. The resulting practices in secure data routing, encryption and access management for highly sensitive A&D and critical infrastructure workloads will feed directly into the scaling of GF’s European sovereign manufacturing model.
About GlobalFoundries
GlobalFoundries (GF) is a leading manufacturer of essential semiconductors, enabling AI at scale from the cloud to the physical world. Through deep partnerships with customers, GF delivers differentiated, power-efficient and high-performance solutions for automotive, aerospace and defense, data centers, smart mobile devices, the Internet of Things and other high-growth markets. With global manufacturing operations across the U.S., Europe and Asia, GF is a trusted and holistic technology partner for customers around the world. GF’s talented, global team remains focused every day on security, longevity and sustainability. For more information, visit www.gf.com.
About Qualinx
Qualinx is a European deep-tech semiconductor company redefining ultra-low-power connectivity for the connected edge. Its proprietary Digital Radio Frequency technology implements traditional analog receive-chain functions in digital hardware building blocks, powering GNSS, PNT and PVT chipsets and modules that deliver secure, scalable and reconfigurable tracking solutions for wearables, consumer electronics, automotive, fleet, pet, and asset tracking applications.
Founded in 2015 and headquartered in Delft, the Netherlands, Qualinx delivers next-generation Digital RF semiconductors designed for real-world deployment and long device lifecycles. Follow Qualinx on LinkedIn or learn more at https://www.qualinx.io.
For reasons of readability, the masculine form is used in this press release. Corresponding terms are intended to apply equally to all genders.
Key Takeaways GFS is expanding higher-margin businesses, including silicon photonics, SiGe and technology services.Communications Infrastructure & Data Center revenues rose 32% year over year in the first quarter.GFS posted a record first-quarter gross margin of 29%, up 510 basis points year over year. GLOBALFOUNDRIES Inc. (GFS - Free Report) is increasingly shifting its business toward higher-margin segments, a strategy that appears poised to support further earnings growth in the coming years. During the first-quarter 2026 earnings call, management highlighted strong momentum in silicon photonics, high-performance silicon germanium (SiGe), and technology services, all of which carry margins above the company average.
A key growth driver is the Communications Infrastructure & Data Center business, which posted 32% year-over-year revenue growth in the first quarter. Demand for silicon photonics solutions used in AI data centers and optical networking remains robust, while GF’s SiGe capacity is already oversubscribed through 2027. Management noted that these offerings are meaningfully margin accretive and are expected to contribute substantially to long-term revenue and profit expansion.
Another emerging earnings lever is Technology Services, which includes intellectual property, software, licensing and engineering services. This segment represented 13% of first-quarter revenues, exceeding expectations. The integration of MIPS and the pending acquisition of Synopsys’ ARC IP business are expected to increase the contribution from software and licensing revenues, which typically generate higher margins than traditional wafer manufacturing. Management expects Technology Services to become a larger share of revenue over time and views it as a durable source of high-quality growth.
The benefits of this mix shift are already visible. GFS delivered a first-quarter gross margin of 29%, up 510 basis points year over year, marking its strongest first-quarter margin performance on record. Management attributed much of the improvement to growth in higher-value businesses and expects continued profitability gains as these segments expand.
Given the accelerating demand for AI-related networking solutions and the growing contribution from technology services, higher-margin businesses appear well-positioned to fuel GFS’ next phase of earnings growth.
How Do Competitors Compare in High-Margin Growth Markets?GLOBALFOUNDRIES is not alone in pursuing higher-margin opportunities tied to AI infrastructure and advanced connectivity. A notable competitor is United Microelectronics Corporation (UMC - Free Report) , which operates in the mature-node foundry market and serves customers across communications, automotive and industrial applications. While UMC benefits from a diversified customer base, GFS has been more aggressive in expanding into silicon photonics, high-performance SiGe and AI-driven networking solutions, areas that offer stronger long-term margin potential.
Another relevant competitor is Semtech Corporation (SMTC - Free Report) . Semtech has significant exposure to high-speed optical connectivity and data-center infrastructure through its networking and signal-integrity products. However, GFS participates earlier in the semiconductor value chain by manufacturing key silicon photonics and optical-networking components. As AI data-center investments accelerate, GFS’ growing mix of silicon photonics, technology services and licensing revenues could support stronger margin expansion and earnings growth relative to many industry peers.
GFS’ Stock Price Performance & Valuation TrendShares of GlobalFoundries have surged 88.2% in the past six months, outperforming the Zacks Electronics - Semiconductors’ 30.3% growth.
Price Performance
Image Source: Zacks Investment Research
GFS stock is currently trading at a premium to its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 43.61, as shown in the chart below.
P/E (F12M)
Image Source: Zacks Investment Research
Earnings Estimate Revision of GFSGFS’ earnings estimates for 2026 and 2027 have trended upward in the past 60 days to $1.89 and $2.62 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 9.9% and 38.6%, respectively.
Image Source: Zacks Investment Research
GFS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
April 15, 2026 16:05 ET | Source: Clearway Energy, Inc
PRINCETON, N.J., April 15, 2026 (GLOBE NEWSWIRE) -- Clearway Energy, Inc. (NYSE: CWEN, CWEN.A) plans to report First Quarter 2026 financial results on Thursday, May 7th, 2026. Management will present the results during a conference call and webcast at 5:00 p.m. Eastern.
A live webcast of the conference call, including presentation materials, can be accessed through the Company’s website at http://www.clearwayenergy.com and clicking on “Presentations & Webcasts” under the Investor Relations section. The webcast will be archived on the site for those unable to listen in real time.
About Clearway Energy
About Clearway Energy, Inc.
Clearway Energy, Inc. is one of the largest owners of clean energy generation assets in the U.S. Our portfolio comprises approximately 12.9 GW of gross capacity in 27 states, including approximately 10.1 GW of wind, solar and battery energy storage systems and approximately 2.8 GW of conventional dispatchable power capacity that provide critical grid reliability services. Through our diversified and primarily contracted clean energy portfolio, Clearway Energy endeavors to provide its investors with stable and growing dividend income. Clearway Energy, Inc.’s Class C and Class A common stock are traded on the New York Stock Exchange under the symbols CWEN and CWEN.A, respectively. Clearway Energy, Inc. is sponsored by its controlling investor, Clearway Energy Group LLC. For more information, visit investor.clearwayenergy.com .
April 16, 2026 16:05 ET | Source: Clearway Energy, Inc
PRINCETON, N.J., April 16, 2026 (GLOBE NEWSWIRE) -- Clearway Energy, Inc. (NYSE: CWEN, CWEN.A) (the “Company”) today reminds all stockholders to vote “FOR” the proposal to amend and restate the Company’s certificate of incorporation (the “Charter Amendment Proposal”), as recommended by the Board of Directors of the Company (the “Board”), to simplify the Company’s public share class structure into a single share class at this year’s Annual Meeting of Stockholders (the “Annual Meeting”) scheduled to take place on April 29, 2026. Stockholders are encouraged to visit www.votefor.clearwayenergy.com for more information on the Charter Amendment Proposal and how to vote.
If approved, the Charter Amendment Proposal is expected to benefit stockholders by enhancing the appeal of the Company’s stock and increasing stockholder value.
Leading independent proxy advisory firm Institutional Shareholder Services (“ISS”) has recognized the benefits of the proposal and has recommended stockholders vote “FOR” the proposal. In its April 9, 2026 report, ISS highlighted1:
“A vote FOR the proposal is warranted. The proposed conversion [of the Company’s Class A common stock into Class C common stock] would eliminate the disparity in voting rights between the two classes of public shares.”“The board has disclosed a compelling reason for the conversion, which is expected to benefit stockholders by eliminating the complexity of the public trading structure, addressing the persistent valuation discount of the Class A common stock, improving trading liquidity, and potentially enhancing the appeal to a broader investor base.” “…the board states that the conversion is responsive to suggestions from stockholders.”
The deadline to vote by proxy is 11:59 p.m. Eastern Time on April 28, 2026. Stockholders of record at the close of business on March 19, 2026 are entitled to vote at the Annual Meeting. Every vote counts and stockholders are urged to vote regardless of the amount of shares they hold. Stockholders can vote “FOR” the Company’s proposal by:
Voting online by accessing the website address indicated on their proxy card or voting instruction formAttending the Annual Meeting virtually on April 29, 2026 at 9:00 a.m., Eastern Time, and using the 16-digit control number provided on their proxy cardIf within the United States, using a touch-tone telephone to vote by calling the telephone number printed on their proxy card or voting instruction cardCompleting, signing, dating, and returning a proxy card to the mailing address provided VOTE TODAY
For more information and additional materials visit www.votefor.clearwayenergy.com.
If you have any questions or need assistance in voting your shares, please call or email our proxy solicitor:
(800) 322-2885 or (212) 929-5500 [email protected]
Notice: Although MacKenzie Partners may answer questions and assist you in voting your shares, MacKenzie Partners is not authorized to make, and will not make, any recommendation to our stockholders to either approve or disapprove the Charter Amendment Proposal or otherwise express any opinion or judgment concerning the Charter Amendment Proposal. No fees will be paid to MacKenzie Partners for the solicitation of any stockholder to submit proxies or vote in favor of the Charter Amendment Proposal.
About Clearway Energy, Inc.
Clearway Energy, Inc. is one of the largest owners of clean energy generation assets in the U.S. Our portfolio comprises approximately 12.9 GW of gross capacity in 27 states, including approximately 10.1 GW of wind, solar and battery energy storage systems and approximately 2.8 GW of conventional dispatchable power capacity that provide critical grid reliability services. Through our diversified and primarily contracted clean energy portfolio, Clearway Energy endeavors to provide its investors with stable and growing dividend income. Clearway Energy, Inc.’s Class C and Class A common stock are traded on the New York Stock Exchange under the symbols CWEN and CWEN.A, respectively. Clearway Energy, Inc. is sponsored by its controlling investor, Clearway Energy Group LLC. For more information, visit investor.clearwayenergy.com.
Safe Harbor Disclosure
This communication contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are subject to certain risks, uncertainties and assumptions, and typically can be identified by the use of words such as “expect,” “estimate,” “target,” “anticipate,” “forecast,” “plan,” “outlook,” “believe” and similar terms. Such forward-looking statements include, but are not limited to, statements regarding the potential or anticipated benefits or effects of the proposed amendment and restatement of the Company’s certificate of incorporation or the conversion of shares of the Company’s Class A common stock into shares of the Company’s Class C common stock (the “Class A Conversion”), the tax consequences of the Class A Conversion and other statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions and future performance and condition.
Although the Company believes that the expectations are reasonable, it can give no assurance that these expectations will prove to be correct, and actual results may vary materially. Factors that could cause actual results to differ materially from those contemplated above include, among others, risks and uncertainties related to: the ability of the Company to obtain the requisite stockholder approvals for the Charter Amendment Proposal; the timing of the Class A Conversion; unforeseen or adverse changes in the capital markets generally or in trading conditions applicable to the Company’s securities; the impact of the Class A Conversion on the Company’s ability to execute its capital allocation strategy; unanticipated costs or expenses in connection with the Charter Amendment Proposal or the Class A Conversion; potential litigation or other proceedings challenging the Charter Amendment Proposal or the Class A Conversion; the effect of the announcement of the Charter Amendment Proposal on the trading prices of the Class A common stock and Class C common stock; and risks related to the Company’s business, operations, financial condition and prospects.
The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. The foregoing review of factors that could cause the Company’s actual results to differ materially from those contemplated in the forward-looking statements included in this communication should be considered in connection with information regarding risks and uncertainties that may affect the Company’s future results included in its filings with the Securities and Exchange Commission (the “SEC”) at www.sec.gov. In addition, the Company makes available free of charge at www.clearwayenergy.com, copies of materials it files with, or furnishes to, the SEC.
# # #
Contacts:
Additional Information
This communication may be deemed to be solicitation material in respect of the Charter Amendment Proposal. The Charter Amendment Proposal is described in full in the Company’s definitive proxy statement relating to the Annual Meeting (including any amendments and supplements thereto, the “Proxy Statement”), which has been filed with the SEC. The Company may also file other relevant documents with the SEC regarding its solicitation of proxies for the Annual Meeting. This communication is not a substitute for the Proxy Statement, any amendments or supplements thereto or any other document that may be filed by the Company with the SEC. STOCKHOLDERS ARE STRONGLY ENCOURAGED TO READ THE PROXY STATEMENT (INCLUDING ANY AMENDMENTS AND SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT SOLICITATION MATERIALS AND DOCUMENTS THAT THE COMPANY HAS FILED OR WILL FILE WITH THE SEC AS THEY WILL CONTAIN IMPORTANT INFORMATION. Stockholders can obtain copies of the Proxy Statement, and any amendments or supplements thereto and other documents as and when filed by the Company with the SEC, without charge, at the SEC’s website at www.sec.gov and on the Investor Relations page of the Company’s website at www.clearwayenergy.com. Copies of the Proxy Statement, any amendments and supplements thereto and any filings with the SEC that will be incorporated by reference in the Proxy Statement can also be obtained, without charge, by directing a request to the Company’s Investor Relations department by email at [email protected].
Governance Protections Through Voting Trust Agreement
If the Charter Amendment Proposal is approved by stockholders, Clearway Energy Group LLC (“CEG”), the owner of all of the Company’s outstanding Class B common stock and Class D common stock, would enter into a Voting Trust Agreement (the “Voting Trust Agreement”) designed to preserve the total relative voting power of the Company’s public stockholders following the Class A Conversion. Under the Voting Trust Agreement, CEG would deposit into a voting trust a number of shares of its Class B common stock (the “Voting Trust Shares”) necessary to maintain the same total relative voting power that the public stockholders held in the Company as of immediately prior to the Class A Conversion. The voting trustee under the Voting Trust Agreement would be required to vote the Voting Trust Shares in the same proportion as the votes cast by all stockholders of the Company. For additional information regarding the Voting Trust Agreement, please refer to the Proxy Statement, including any amendments and supplements thereto.
Certain Information Regarding Participants in the Solicitation
The Company, its directors and certain of its executive officers, as well as certain employees of CEG in accordance with the services such employees perform for and on behalf of the Company pursuant to an Amended and Restated Master Services Agreement and Payroll Sharing Agreement between the Company and CEG (the “CEG Master Services Agreement”), may be deemed to be participants in connection with the solicitation of proxies from Company stockholders in respect of the matters to be considered at the Annual Meeting. Information regarding the names of such directors and executive officers and their respective interests in the Company, by securities holdings or otherwise, is available in the Proxy Statement. To the extent the Company’s directors and executive officers have acquired or disposed of securities holdings since the applicable “as of” date discussed in the Proxy Statement, such transactions have been or will be reflected on Statements of Change in Ownership on Form 4, Initial Statements of Beneficial Ownership on Form 3 or amendments to beneficial ownership reports on Schedules 13D or 13G filed with the SEC. Additional information regarding the interests of participants in the solicitation of proxies in respect of the Annual Meeting are included in the Proxy Statement and other relevant materials to be filed with the SEC as and when they become available.
The Company has no contract, arrangement or understanding relating to the payment of, and will not, directly or indirectly, pay any commission or other remuneration to any broker, dealer, salesperson, agent or any other person in connection with the Class A Conversion or the solicitation of proxies or votes in favor of the Charter Amendment Proposal. In addition, neither our proxy solicitor, MacKenzie Partners, Inc., nor any broker, dealer, salesperson, agent or any other person is engaged or authorized to express any opinion, recommendation or judgment with respect to the relative merits and risks of the Class A Conversion or the Charter Amendment Proposal. The Board and officers of the Company, as well as employees of CEG in accordance with the services such employees perform for and on behalf of the Company pursuant to the CEG Master Services Agreement, may solicit proxies or votes in favor of the Charter Amendment Proposal and will answer inquiries concerning the Charter Amendment Proposal and the Class A Conversion. However, no such employees will receive additional compensation for, and no such employees have been hired or appointed for the purpose of, soliciting proxies or votes in favor of the Charter Amendment Proposal or answering any such inquiries. In addition, the fees payable by us to CEG under the CEG Master Services Agreement are not contingent upon the number of proxies or votes in favor of the Charter Amendment Proposal.
1 Permission to use quotes neither sought nor obtained
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Columbia Sportswear (COLM - Free Report) is a stock many investors are watching right now. COLM is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 16.16. This compares to its industry's average Forward P/E of 17.88. Over the last 12 months, COLM's Forward P/E has been as high as 21.93 and as low as 13.73, with a median of 18.25.
Finally, investors should note that COLM has a P/CF ratio of 10.46. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 27.51. Within the past 12 months, COLM's P/CF has been as high as 18.79 and as low as 9.66, with a median of 15.21.
Value investors will likely look at more than just these metrics, but the above data helps show that Columbia Sportswear is likely undervalued currently. And when considering the strength of its earnings outlook, COLM sticks out as one of the market's strongest value stocks.
PORTLAND, Ore.--(BUSINESS WIRE)--Columbia Sportswear Company (Nasdaq: COLM) plans to release first quarter 2026 financial results at approximately 4:05 p.m. ET on Thursday, April 30, 2026.
At approximately 4:15 p.m. ET, a commentary by Jim Swanson, Executive Vice President and Chief Financial Officer, reviewing the company's first quarter 2026 financial results will be furnished to the SEC on Form 8-K and published to the company's website at https://investor.columbia.com/financial-results. Analysts and investors are encouraged to review this commentary prior to participating in a conference call hosted by senior management at 5:00 p.m. ET.
To listen to the conference call, please dial 888-506-0062. The call will also be webcast live on the Investor Relations section of the Company’s website at http://investor.columbia.com where it will remain available until approximately April 30, 2027.
Columbia Sportswear Company connects active people with their passions and is a global multi-brand leading innovator in outdoor, active and lifestyle products including apparel, footwear, accessories, and equipment. Founded in 1938 in Portland, Oregon, the company's brands are today sold in more than 100 countries. In addition to the Columbia® brand, Columbia Sportswear Company also owns the Mountain Hard Wear®, SOREL®, and prAna® brands. To learn more, please visit the company's websites at www.columbia.com, www.mountainhardwear.com, www.sorel.com, and www.prana.com.
On April 20, 2026, Columbia Sportswear Co COLM shares rose 5.3% today, bringing the current price to $64.03. The stock has fluctuated between a 52-week high of $71.68 and a low of $47.47. The recent uptick in share price reflects a recovery trend, with a year-to-date gain of 16.8% and a notable 15.9% increase over the past month.
GF Value™ verdict: Current price at $64.03 versus GF Value™ at $84.93 indicates a 24.6% upside.GF Score™ of 82/100 suggests a strong overall performance, positioning COLM favorably against its peers.Notable signal: No insider transactions were reported in the last three months, indicating potential stability in management's view of the stock. Is COLM Overvalued or Undervalued? With a current price of $64.03, Columbia Sportswear Co COLM is assessed as undervalued according to the GF Value™, which estimates fair value at $84.93. This results in a margin of safety of approximately 24.6%, offering investors a potentially lucrative opportunity. The GF Valuation label categorizes COLM as "Modestly Undervalued," which suggests that the stock price may not fully reflect the company's intrinsic value at this time.
This undervaluation presents an opportunity for potential growth, but investors should remain cautious. Market conditions, competitive pressures, and broader economic factors can influence stock performance. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
How Does COLM's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 19.8x 17.5x Forward P/E 18.8x N/A The current P/E (TTM) for COLM is 19.8x, which is 13% above its 5-year median P/E of 17.5x. The forward P/E stands at 18.8x. This analysis indicates that the stock is trading above its historical valuation, which somewhat contrasts with the GF Value™ verdict of being undervalued. Therefore, while the P/E suggests a premium over historical averages, the overall intrinsic value assessment still points towards an opportunity.
What Does COLM's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested 2006-2021).
Metric Rating GF Score™ 82 Financial Strength 7/10 Profitability 8/10 Growth 5/10 Valuation 8/10 Momentum 5/10 The strong GF Score™ of 82/100 indicates a solid overall performance for COLM, particularly highlighted by its Profitability rank of 8/10 and Valuation rank of 8/10. However, the Growth rank at 5/10 suggests that there may be room for improvement in this area, indicating a somewhat mixed growth trajectory compared to its peers.
What Are Insiders Doing with COLM Stock? In the past three months, there have been no reported insider transactions for Columbia Sportswear Co COLM . This lack of insider activity may suggest a stable outlook from the company's management regarding its current market performance and future prospects. Typically, significant insider buying or selling can provide insights into management's confidence in the company's direction.
What This Means for Investors Based on the GF Value™ assessment, Columbia Sportswear Co COLM is currently undervalued with a notable margin of safety. While the stock is trading above its historical P/E averages, the overall valuation suggests there is potential for growth. Investors may find COLM an attractive option, but should remain mindful of market dynamics that could affect performance.
For the complete analysis, visit the Columbia Sportswear Co COLM 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 COLM's GF Score™?
COLM's GF Score™ is 82/100, indicating a strong overall performance compared to its peers and suggesting potential for higher long-term returns.
Is COLM overvalued or undervalued?
According to GF Value™, COLM is undervalued with a current price of $64.03 compared to a fair value estimate of $84.93, indicating a 24.6% upside.
What is COLM's P/E ratio?
COLM's P/E (TTM) is 19.8x, which is above its historical 5-year median of 17.5x, suggesting it is trading at a premium compared to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Shares of Columbia Sportswear Company (NASDAQ:COLM – Get Free Report) have been given an average rating of “Hold” by the nine brokerages that are currently covering the company, Marketbeat reports. One investment analyst has rated the stock with a sell recommendation, six have issued a hold recommendation and two have assigned a buy recommendation to the company. The average 12-month price objective among brokers that have issued a report on the stock in the last year is $60.50.
A number of research firms recently commented on COLM. Robert W. Baird set a $63.00 price objective on Columbia Sportswear in a research note on Wednesday, February 4th. Stifel Nicolaus increased their price objective on Columbia Sportswear from $60.00 to $68.00 and gave the company a “buy” rating in a research note on Wednesday, February 4th. Citigroup reaffirmed a “neutral” rating and set a $62.00 price objective (up from $55.00) on shares of Columbia Sportswear in a research note on Wednesday, February 4th. Wall Street Zen raised Columbia Sportswear from a “sell” rating to a “hold” rating in a research note on Saturday, January 17th. Finally, BTIG Research reaffirmed a “buy” rating and set a $75.00 price objective on shares of Columbia Sportswear in a research note on Friday, January 30th.
Read Our Latest Stock Analysis on Columbia Sportswear
Institutional Trading of Columbia Sportswear A number of hedge funds have recently added to or reduced their stakes in COLM. Millennium Management LLC boosted its stake in Columbia Sportswear by 24.6% in the 1st quarter. Millennium Management LLC now owns 142,956 shares of the textile maker’s stock worth $10,820,000 after buying an additional 28,269 shares during the last quarter. Jones Financial Companies Lllp boosted its stake in Columbia Sportswear by 208.3% in the 1st quarter. Jones Financial Companies Lllp now owns 555 shares of the textile maker’s stock worth $42,000 after buying an additional 375 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Columbia Sportswear by 2.4% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 114,611 shares of the textile maker’s stock worth $8,675,000 after buying an additional 2,680 shares during the last quarter. Jane Street Group LLC boosted its stake in Columbia Sportswear by 125.0% in the 1st quarter. Jane Street Group LLC now owns 115,294 shares of the textile maker’s stock worth $8,727,000 after buying an additional 64,046 shares during the last quarter. Finally, Prudential Financial Inc. boosted its stake in Columbia Sportswear by 11.7% in the 2nd quarter. Prudential Financial Inc. now owns 3,333 shares of the textile maker’s stock worth $204,000 after buying an additional 350 shares during the last quarter. 47.76% of the stock is owned by institutional investors and hedge funds.
Columbia Sportswear Stock Down 0.7% COLM opened at $62.22 on Friday. The firm has a market cap of $3.26 billion, a P/E ratio of 19.20 and a beta of 0.89. Columbia Sportswear has a 52 week low of $47.47 and a 52 week high of $71.68. The business’s fifty day simple moving average is $58.40 and its 200 day simple moving average is $55.85.
Columbia Sportswear (NASDAQ:COLM – Get Free Report) last posted its quarterly earnings data on Tuesday, February 3rd. The textile maker reported $1.73 EPS for the quarter, beating analysts’ consensus estimates of $1.22 by $0.51. The business had revenue of $1.07 billion for the quarter, compared to analyst estimates of $1.03 billion. Columbia Sportswear had a return on equity of 12.03% and a net margin of 5.22%.The business’s revenue for the quarter was down 2.4% compared to the same quarter last year. During the same quarter last year, the company earned $1.80 earnings per share. Columbia Sportswear has set its FY 2026 guidance at 3.200-3.650 EPS and its Q1 2026 guidance at 0.290-0.370 EPS. As a group, equities analysts expect that Columbia Sportswear will post 3.46 EPS for the current fiscal year.
About Columbia Sportswear (Get Free Report)
Columbia Sportswear Company develops, sources, markets and distributes a wide range of outdoor apparel, footwear and accessories designed for activities such as hiking, skiing, snowboarding and trail running. Its product portfolio includes weatherproof jackets and pants featuring proprietary technologies like Omni-Tech® waterproofing and Omni-Heat® thermal reflective lining, as well as activewear, footwear, hats, gloves and accessories under the Columbia® brand and complementary brands.
Founded in 1938 as the Columbia Hat Company in Portland, Oregon, the company initially focused on headwear before expanding into outerwear in the 1970s with the introduction of the Bugaboo® interchange jacket.
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Key Takeaways Columbia Sportswear is expected to post y/y revenue and EPS declines in Q1.COLM faces tariff pressures, soft U.S. demand and cautious retailer orders weighing on margins.Inventory constraints and higher costs from ACCELERATE investments may pressure profits. Columbia Sportswear Company (COLM - Free Report) is likely to register declines in the top and bottom lines when it reports first-quarter 2026 earnings on Apr. 30, after market close. The Zacks Consensus Estimate for first-quarter revenues is pegged at $755.6 million, which indicates a 2.9% decrease from the year-ago period’s actual. This is in sync with the company’s guidance, which indicates a net sales decline of 2.5-4% to $747-$759 million.
The Zacks Consensus Estimate for first-quarter earnings per share has been unchanged at 35 cents over the past 30 days, which implies a decline of 53.3% from the year-ago period’s actual. Management guided earnings between 29 cents and 37 cents per share.
COLM delivered a trailing four-quarter earnings surprise of 25.2%, on average.
Factors Likely to Influence COLM’s Q1 ResultsColumbia Sportswear’s first-quarter results are likely to reflect demand softness, tariff-related pressures and cautious channel behavior. At its fourth-quarter 2025 earnings call, the company had pointed to overall softness year to date, with the U.S. business continuing to lag due to soft consumer demand and reduced retail traffic. At the same time, retailers remained cautious in their ordering patterns, creating a tough sales environment.
Tariff headwinds are likely to have put pressure on first-quarter profitability. The impact of unmitigated tariffs was expected to be more pronounced in the early part of the year, as price increases had not yet fully offset higher costs on existing inventory. This timing dynamic is expected to create pressure on product margins in the first quarter.
Inventory-related dynamics are also likely to have influenced the quarterly performance. The company curtailed inventory purchases earlier as a precautionary measure following U.S. tariff announcements, which left it light on inventory and unable to fulfill some demand. Management also noted that in certain cases, demand exceeded supply, reflecting the impact of these inventory actions. Additionally, earlier-than-planned shipments of wholesale orders shifted some sales into prior periods, affecting year-over-year comparisons.
Weather remains an important external factor. Management highlighted that weather can significantly influence demand patterns across periods. Operating expenses are expected to have increased as the company continues investing in marketing and brand-building initiatives under its ACCELERATE growth strategy. With sales expected to have declined and margins under pressure, this dynamic is expected to have led to SG&A deleverage in the first quarter.
Despite near-term pressures, Columbia Sportswear noted continued strength in international markets and early signs of brand momentum from its ACCELERATE growth strategy. New product collections and differentiated marketing have helped drive consumer engagement, which could provide some support to first-quarter demand trends.
What the Zacks Model Predicts for COLMOur proven model does not conclusively predict an earnings beat for Columbia Sportswear this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here.
Columbia Sportswear has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks With the Favorable CombinationHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
AMC Entertainment Holdings, Inc. (AMC - Free Report) currently has an Earnings ESP of +5.82% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for first-quarter 2026 revenues is pegged at $997.7 million, indicating 15.7% growth from the figure reported in the year-ago quarter. The consensus estimate for AMC Entertainment’s earnings is pegged at a loss of 32 cents per share, implying an 44.8% improvement from the year-ago quarter’s actual. AMC delivered an earnings surprise of 10% in the last quarter.
Marriott International Inc. (MAR - Free Report) currently has an Earnings ESP of +0.44% and a Zacks Rank of 3. MAR is likely to register a top-line increase when it reports first-quarter 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $6.59 billion, indicating a 5.3% rise from the figure reported in the prior-year quarter.
The consensus estimate for Marriott International’s earnings is pegged at $2.60 per share, implying 12.1% growth from the year-ago quarter’s actual. MAR delivered a negative earnings surprise of 2.3% in the last quarter.
Cintas Corporation (CTAS - Free Report) currently has an Earnings ESP of +1.14% and a Zacks Rank of 3. CTAS is likely to register a top-line increase when it reports fourth-quarter fiscal 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.88 billion, indicating a 7.8% rise from the figure reported in the prior-year quarter.
The consensus estimate for Cintas’s earnings is pegged at $1.24 per share, implying 13.8% growth from the year-ago quarter’s actual. CTAS delivered an earnings surprise of 0.8% in the fiscal third quarter.
PORTLAND, Ore.--(BUSINESS WIRE)--Columbia Sportswear Company (NASDAQ: COLM, the "Company"), a multi-brand global leading innovator in outdoor, active and lifestyle products including apparel, footwear, accessories, and equipment, today announced first quarter 2026 financial results for the period ended March 31, 2026. Chairman and Chief Executive Officer Tim Boyle commented, “We're pleased to have delivered net sales and profitability exceeding our guidance for the first quarter, driven by earl.
Columbia Sportswear (COLM - Free Report) came out with quarterly earnings of $0.65 per share, beating the Zacks Consensus Estimate of $0.35 per share. This compares to earnings of $0.75 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +84.40%. A quarter ago, it was expected that this maker of outdoor gear would post earnings of $1.22 per share when it actually produced earnings of $1.73, delivering a surprise of +41.8%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Columbia Sportswear, which belongs to the Zacks Textile - Apparel industry, posted revenues of $779.01 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 3.10%. This compares to year-ago revenues of $778.45 million. 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.
Columbia Sportswear shares have added about 8.9% since the beginning of the year versus the S&P 500's gain of 4.2%.
What's Next for Columbia Sportswear?While Columbia Sportswear 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 Columbia Sportswear was unfavorable. 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 #4 (Sell) for the stock. So, the shares are expected to underperform 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 -$0.39 on $607 million in revenues for the coming quarter and $3.46 on $3.47 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, Textile - Apparel is currently in the bottom 40% 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.
One other stock from the same industry, Under Armour (UAA - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 12.
This sports apparel company is expected to post quarterly loss of $0.03 per share in its upcoming report, which represents a year-over-year change of +62.5%. The consensus EPS estimate for the quarter has been revised 25% lower over the last 30 days to the current level.
Under Armour's revenues are expected to be $1.17 billion, down 0.9% from the year-ago quarter.
For the quarter ended March 2026, Columbia Sportswear (COLM - Free Report) reported revenue of $779.01 million, up 0.1% over the same period last year. EPS came in at $0.65, compared to $0.75 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $755.56 million, representing a surprise of +3.1%. The company delivered an EPS surprise of +84.4%, with the consensus EPS estimate being $0.35.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
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 Columbia Sportswear performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Geographic Net sales to unrelated entities- United States: $422.45 million versus $436.64 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -10.3% change.Geographic Net sales to unrelated entities- Canada: $50.97 million compared to the $50.63 million average estimate based on three analysts. The reported number represents a change of +7.1% year over year.Geographic Net sales to unrelated entities- Europe, Middle East and Africa (EMEA): $145.35 million versus $111.46 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +35.2% change.Geographic Net sales to unrelated entities- Latin America and Asia Pacific (LAAP): $160.24 million versus the three-analyst average estimate of $155.77 million. The reported number represents a year-over-year change of +5.3%.Net sales- Channel- Direct-to-consumer: $377.94 million versus the two-analyst average estimate of $373.68 million. The reported number represents a year-over-year change of -0.2%.Net sales- Channel- Wholesale: $401.07 million versus the two-analyst average estimate of $380.39 million. The reported number represents a year-over-year change of +0.3%.View all Key Company Metrics for Columbia Sportswear here>>>
Shares of Columbia Sportswear have returned +9.9% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
Key Takeaways COLM beat Q1 estimates with EPS of 65 cents and $779M sales, though profit fell year over year.Columbia Sportswear saw strong international growth, offsetting a 10% U.S. sales decline.COLM expects 2026 sales growth of 1-3% and raised EPS outlook to $3.55-$4.00. Columbia Sportswear Company (COLM - Free Report) reported first-quarter 2026 results, with the top line remaining relatively flat compared with the prior year and the bottom line decreasing year over year. However, both revenues and earnings beat the Zacks Consensus Estimate.
COLM’s Quarterly Performance: Key Metrics & InsightsThis designer, marketer and distributor of outdoor and active lifestyle apparel, footwear and accessories reported earnings of 65 cents per share, surpassing the Zacks Consensus Estimate of 35 cents. However, the bottom line decreased 13.3% from 75 cents reported in the prior-year period.
The company generated net sales of $779 million, which beat the Zacks Consensus Estimate of $756 million. The metric is relatively flat from $778.5 million in the year-ago period. The growth across most international markets was offset by a decline in the United States, caused by a lower Spring 2026 wholesale order book and constrained inventory. The inventory shortfall stemmed from a prior-year decision to reduce the supply of certain winter products in response to anticipated U.S. tariff changes. Net sales decreased 3% at constant currency.
Gross profit decreased 0.3% year over year to $395 million. The gross margin decreased 20 basis points (bps) to 50.7%, mainly due to a 310-basis-point impact from unmitigated incremental U.S. tariffs. This pressure was partially offset by mitigation efforts, including targeted price increases.
SG&A expenses were up 0.8% to $357.1 million from $354.5 million reported in the year-ago quarter. As a percentage of sales, the same increased 30 bps to 45.8%. The increase was mainly caused by higher direct-to-consumer (“DTC”) expenses, partly offset by reduced enterprise technology and supply-chain costs following actions under the company’s Profit Improvement Program. SG&A also included a $6.7 million unfavorable impact from foreign currency translation.
This Zacks Rank #4 (Sell) company reported an operating income of $42 million, down 10% from the year-ago quarter. Operating margin decreased 60 bps to 5.4%.
COLM’s Sales by Channels & Regional SegmentsIn the United States, net sales declined 10% year over year to $422.5 million, which missed our estimate of $450.1 million. Net sales surged 35% to $145.3 million in Europe, the Middle East and Africa, missing our estimate of $148.4 million. Latin America and Asia Pacific net sales grew 5% year over year to $160.2 million, beating our estimate of $103.3 million. In Canada, net sales increased 7% to $51 million, which lagged our estimate of $52.2 million.
During the quarter, Wholesale channel sales increased 0.3% year over year to $401.1 million, which beat our estimate of $388.9 million. DTC sales went down 0.2% to $377.9 million. Our model expected total DTC sales of $365.4 million for the quarter.
COLM’s Sales by Product Category & BrandNet sales in the Apparel, Accessories and Equipment category inched down 1% year over year to $623.1 million, which beat our estimate of $607.8 million. Footwear's net sales increased 4% to $155.9 million, which beat our estimate of $146.4 million.
SOREL and prAna brands registered sales declines of 12% and 5% year over year, respectively. Sales for the Columbia brand increased 1% year over year. The Mountain Hardwear brand is relatively flat from the year-ago period.
Other Financial Updates of COLMThe company ended the quarter with cash and cash equivalents of $319.3 million, short-term investments of $216 million and shareholders’ equity of almost $1,582 million. COLM had no debt on its balance sheet as of March 31, 2026. Inventories remained broadly stable at $624 million compared with $623.7 million reported in the year-ago quarter.
For the three months ended March 31, 2026, Columbia Sportswear’s cash used in operating activities was $77.5 million and capital expenditures were $12.4 million.
For the three months ended March 31, 2026, the company repurchased 2,498,685 shares of common stock for a total of $150 million. As of March 31, 2026, $276.5 million remained available under its stock repurchase authorization.
Management announced a regular quarterly cash dividend of 30 cents per share, payable on June 4, 2026, to its shareholders of record as of May 21.
What to Expect From COLM AheadFor 2026, the company still expects net sales to grow 1% to 3%, implying revenues of $3.43 billion to $3.50 billion, up from $3.40 billion in 2025. Favorable foreign exchange movements are anticipated to contribute roughly 50-100 bps to reported sales growth.
Gross margin is now projected to a range of 50.3% to 50.5% compared with 50.5% in 2025, indicating a contraction of 20 bps. This represents an improvement from the prior outlook of 49.8% to 50%. This outlook incorporates an estimated 200 bps headwind from incremental tariffs before any mitigating actions, reduced from the previous estimate of 300 bps.
Operating margin is now expected to improve modestly between 6.7% and 7.5%, compared with 6.1% in the prior year, implying incremental operating leverage despite margin pressures at the gross profit level. This is an increase from the prior outlook of 6.2% to 6.9%.
Earnings per share are forecasted to range from $3.55 to $4.00, compared with the $3.23 reported in 2025, representing an upward revision from the prior outlook of $3.20 to $3.65.
The company expects second-quarter 2026 net sales of $600 million to $610 million, implying a decrease of 1% to an increase of 1% from $605 million in the prior-year period. Operating margin is projected to be a loss of 4.5% to 5.5% of net sales, compared with an operating loss of 3.9% in the prior-year period.
Loss per share for the second quarter is expected to be in the range of 37 cents to 46 cents, compared with a loss of 19 cents in the comparable period of 2025.
Shares of the company have gained 10.1% in the past three months against the industry’s 7.3% decline.
Image Source: Zacks Investment Research
Key PicksVince Holding Corp. (VNCE - Free Report) provides luxury apparel and accessories in the United States and internationally. At present, the company flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Vince Holding’s current fiscal-year sales growth of 4.5%, from the year-ago figures. VNCE delivered a trailing four-quarter earnings surprise of 647.2%, on average.
V.F. Corporation (VFC - Free Report) engages in the design, procurement, marketing and distribution of branded lifestyle apparel, footwear and accessories for men, women and children in the Americas, Europe and the Asia-Pacific. It sports a Zacks Rank #1 at present. VFC delivered a trailing four-quarter earnings surprise of 25.9%, on average.
The consensus estimate for V.F. Corp’s current-quarter EPS indicates growth of 12.2% from the year-ago levels.
Kontoor Brands, Inc. (KTB - Free Report) , a lifestyle apparel company, designs, manufactures, procures, sells and licenses apparel, footwear and accessories, primarily under the Wrangler, Lee and Helly Hansen brands. It currently carries a Zacks Rank of 2 (Buy). KTB delivered a trailing four-quarter earnings surprise of 13.9%, on average.
The Zacks Consensus Estimate for Kontoor Brands’ current financial-year sales and EPS is expected to rise 9.2% and 15.6%, respectively, from the corresponding year-ago reported figures.
Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. Has Columbia Sportswear (COLM - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Consumer Discretionary peers, we might be able to answer that question.
Columbia Sportswear is one of 244 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Columbia Sportswear is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for COLM's full-year earnings has moved 8.2% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that COLM has returned about 7.9% since the start of the calendar year. At the same time, Consumer Discretionary stocks have lost an average of 8.8%. This means that Columbia Sportswear is performing better than its sector in terms of year-to-date returns.
Hilton Grand Vacations (HGV - Free Report) is another Consumer Discretionary stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 1.3%.
The consensus estimate for Hilton Grand Vacations' current year EPS has increased 6.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Columbia Sportswear belongs to the Textile - Apparel industry, a group that includes 22 individual stocks and currently sits at #64 in the Zacks Industry Rank. Stocks in this group have lost about 9.4% so far this year, so COLM is performing better this group in terms of year-to-date returns.
In contrast, Hilton Grand Vacations falls under the Hotels and Motels industry. Currently, this industry has 13 stocks and is ranked #149. Since the beginning of the year, the industry has moved +6.9%.
Columbia Sportswear and Hilton Grand Vacations could continue their solid performance, so investors interested in Consumer Discretionary stocks should continue to pay close attention to these stocks.
Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:
Constellium (CSTM - Free Report) : This company, which develops innovative, value-added aluminium products for aerospace, automotive and packaging markets and applications, has seen the Zacks Consensus Estimate for its current year earnings increasing 39% over the last 60 days.
Centene (CNC - Free Report) : This well-diversified healthcare company, that primarily provides a set of services to the government sponsored healthcare programs, has seen the Zacks Consensus Estimate for its current year earnings increasing 15.5% over the last 60 days.
Atlassian (TEAM - Free Report) : This company, which is a global leader and innovator in the enterprise collaboration and workflow software space, has seen the Zacks Consensus Estimate for its currentyear earnings increasing 5.1% over the last 60 days.
Western Digital (WDC - Free Report) : This company, which is a leading developer and manufacturer of data storage devices and solutions based on NAND flash and hard disk drive technologies, has seen the Zacks Consensus Estimate for its current year earnings increasing 4.7% over the last 60 day.
Columbia Sportswear (COLM - Free Report) : This company, which engages in the sourcing, marketing and distribution of outdoor and active lifestyle apparel, footwear, accessories and equipment in the U.S. and internationally, has seen the Zacks Consensus Estimate for its current year earnings increasing 4.6% over the last 60 days.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Here are two stocks with buy rank and strong income characteristics for investors to consider today, May 7th:
Columbia Sportswear (COLM - Free Report) : This company, which engages in the sourcing, marketing and distribution of outdoor and active lifestyle apparel, footwear, accessories and equipment in the U.S. and internationally, has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.6% over the last 60 days.
This Zacks Rank #1 (Strong Buy) company has a dividend yield of 2%, compared with the industry average of 0.0%.
Kinder Morgan (KMI - Free Report) : This company, is a leading midstream energy infrastructure provider in North America, has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.3% over the last 60 days.
This Zacks Rank #1 company has a dividend yield of 3.7%, compared with the industry average of 3.6%.
See the full list of top ranked stocks here.
Find more top income stocks with some of our great premium screens
Columbia Sportswear (COLM - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
As such, the Zacks rating upgrade for Columbia Sportswear is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Columbia Sportswear imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Columbia SportswearThis maker of outdoor gear is expected to earn $3.72 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Columbia Sportswear. Over the past three months, the Zacks Consensus Estimate for the company has increased 7.1%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Columbia Sportswear to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Key Takeaways Columbia Sportswear gains from ACCELERATE strategy, product innovation and strong digital marketing.Polaris posted Q1 2026 adjusted EPS of $0.13, beating estimates and topping revenue expectations.VFC advances Reinvent program with growth in The North Face and Timberland outdoor brands. The outdoor industry spans recreation, wellness, and lifestyle experiences centered around nature and activity away from home. This theme includes brands involved in outdoor gear, apparel, recreational vehicles, and equipment and services that support activities such as hiking, camping, boating, and off-roading.
Driven by shifting consumer values toward health, sustainability, and experience-driven living, the industry benefits from steady demand across various age groups and regions. Many companies in this space leverage brand loyalty, product innovation, and direct-to-consumer strategies to drive recurring sales and maintain premium positioning.
Here, we recommend three mid-cap outdoor industry stocks with a Zacks top rank to strengthen your portfolio. These are: Columbia Sportswear Co. (COLM - Free Report) , Polaris Inc. (PII - Free Report) and V.F. Corp. (VFC - Free Report) . Each of our picks currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our three picks year to date.
Image Source: Zacks Investment Research
Columbia Sportswear Co.Columbia Sportswear shows momentum driven by its ACCELERATE strategy, which targets younger consumers through refreshed branding and strong digital marketing. COLM’s product innovation and brand elevation, alongside contributions from the prAna brand support healthier demand and long-term growth potential.
COLM’s Profit Improvement Program is focused on improving operational efficiency and cost discipline while sustaining investment in brand building. COLM’s financial health remains solid with no debt, strong cash levels, share repurchases and dividends.
Columbia Sportswear has an expected revenue and earnings growth rate of 2.4% and 0.8%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 7.5% over the last 30 days.
Polaris Inc.Polaris designs, engineers, manufactures, and markets powersports vehicles in the United States, Canada, and internationally. PII operates through three segments: Off Road, On Road, and Marine.
PII offers off-road vehicles (ORVs), including all-terrain vehicles and side-by-side vehicles, military and commercial ORVs, snowmobiles, motorcycles, moto-roadsters, quadricycles, and pontoon and deck boats. PII sells its products through dealers and distributors as well as online.
PII came up with first-quarter 2026 adjusted earnings of $0.13 per share, beating the Zacks Consensus Estimate of a loss of $0.43 per share. This compares to a loss of $0.9 per share a year ago. Quarterly revenues of $1.66 billion surpassed the Zacks Consensus Estimate by 0.38%. This compares to year-ago revenues of $1.54 billion.
Polaris has an expected revenue and earnings growth rate of 2.3% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 3.6% over the last 30 days.
V.F. Corp.V.F. has been progressing under its Reinvent transformation program. VFC is driving growth through disciplined cost management, balance sheet improvements, and strategic brand focus. Strength in the Outdoor segment, led by The North Face and Timberland, positions VFC well against durable consumer trends.
The North Face is seeing broad-based growth across categories. All product categories of VFC rose with strength in performance apparel and footwear. Ongoing investments in digital and supply-chain capabilities further enhance efficiency, supporting long-term growth, margins and improved VFC’s shareholder confidence.
V.F. has an expected revenue and earnings growth rate of 2.3% and 39.8%, respectively, for the current year (ending March 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 4.6% over the last 30 days.
Columbia Sportswear CEO Tim Boyle discusses tariffs, including $90 million paid and uncertainty about refunds, on 'The Claman Countdown.' #fox #media #us #usa #new #news #foxbusiness #columbiasportswear #business #economy #trade #tariffs #manufacturing #retail #global #markets #finance #supplychain #uncertainty #corporate #leadership #economicnews
Key Takeaways Columbia Sportswear's international sales rose 16% in Q1 2026 and topped 40% of revenues.COLM saw strong European growth from winter demand, wholesale gains and improved inventories.China and Korea's growth benefited from marketing campaigns and stronger consumer engagement. Columbia Sportswear Company (COLM - Free Report) is increasingly benefiting from the expanding international presence, with overseas markets emerging as its primary growth driver in first-quarter 2026. While total quarterly sales remained relatively flat at $779 million, the company’s international business advanced 16% year over year and now contributes more than 40% of overall revenues.
Europe stood out as a major contributor to growth during the quarter. The Europe, Middle East and Africa region delivered strong gains, supported by healthy winter demand, improving wholesale trends and better inventory availability. Europe’s direct sales benefited from robust consumer demand for winter products, while distributor markets in the region also saw healthy momentum driven by strong spring order books and earlier shipments. Management additionally indicated confidence that business momentum in Europe would remain healthy through the remainder of 2026.
Asia continued to add momentum to Columbia Sportswear’s global business. China delivered mid-single-digit growth, aided by successful marketing campaigns around the Titanium Dry technology and Tellurix hiking footwear. The company also highlighted rising engagement among younger shoppers and women in China through localized activations and membership growth initiatives. Korea generated high-single-digit growth across all channels, benefiting from improved marketplace execution and stronger consumer visibility campaigns.
Distributor markets across Latin America and Asia Pacific added another layer of strength with low double-digit growth, particularly in apparel, sportswear and footwear categories.
The quarter reinforced how Columbia Sportswear’s diversified geographic footprint is helping offset ongoing softness in the U.S. market. The company’s ability to deepen brand engagement internationally while expanding product traction across multiple regions is becoming an increasingly important part of its operating performance.
Columbia Sportswear’s Zacks Rank & Share Price PerformanceThis Zacks Rank #1 (Strong Buy) stock has gained 2.1% in the past three months against the broader Consumer Discretionary sector and the industry’s decline of 6.2% and 12.4%, respectively.
COLM Stock's Past 3 Months' Performance
Image Source: Zacks Investment Research
Is COLM a Value Play Stock?Columbia Sportswear currently trades at a forward 12-month P/E ratio of 16.15, below the industry and the sector’s average of 17.31 and 16.77, respectively. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer discretionary sector.
COLM P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Other Key PicksVince Holding Corp. (VNCE - Free Report) provides luxury apparel and accessories in the United States and internationally. At present, the company flaunts a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VNCE’s current fiscal-year sales implies growth of 4.5%, and the same for earnings implies a decline of 15.9% from the year-ago figures. VNCE has delivered a trailing four-quarter earnings surprise of 647.2%, on average.
PVH Corp. (PVH - Free Report) operates as an apparel company in the United States and internationally. At present, PVH carries a Zacks Rank of 1. PVH delivered a trailing four-quarter earnings surprise of 14.2%, on average.
The Zacks Consensus Estimate for PVH’s current fiscal-year sales and earnings implies growth of 1.2% and 5.4%, respectively, from the year-ago figures.
Superior Group of Companies, Inc. (SGC - Free Report) produces, manufactures and sells promotional products and branded uniforms, and healthcare apparel and accessories in the United States and internationally. At present, SGC carries a Zacks Rank of 2 (Buy). SGC delivered a trailing four-quarter earnings surprise of 81.9%, on average.
The Zacks Consensus Estimate for Superior Group of Companies’ current fiscal-year sales and earnings implies growth of 2% and 28.3%, respectively, from the year-ago figures.
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The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
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.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Valero Energy (VLO - Free Report) San Antonio, TX-based Valero Energy Corporation is the largest independent refiner and marketer of petroleum products in the United States. The company was founded in 1980. It has a refining capacity of 3 million barrels per day across 14 refineries located throughout the United States, Canada and the United Kingdom.
VLO is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. VLO has a Growth Style Score of B, forecasting year-over-year earnings growth of 149.9% for the current fiscal year.
For fiscal 2026, nine analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $10.98 to $26.51 per share. VLO boasts an average earnings surprise of +28%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, VLO should be on investors' short list.
Despite recurring headlines suggesting the United States and Iran are nearing a peace agreement, negotiations have repeatedly broken down, often abruptly. Today was no exception. The fragile ceasefire has once again come under strain, with Iranian state media reporting that the regime has suspended talks and renewed threats to close the Strait of Hormuz. Officials have also suggested the possibility of opening "other fronts," including disruptions around the Bab el-Mandeb Strait.
Iran now maintains that no meaningful negotiations can occur until Israel fully withdraws from contested areas in Lebanon and Gaza, where several Iranian-backed proxy groups remain active. While the Strait of Hormuz receives most of the attention due to its critical role in global oil shipments, the Bab el-Mandeb Strait is another major trade chokepoint connecting the Red Sea to the Indian Ocean. Any escalation in either region could further disrupt global trade flows, tighten energy markets, and put additional upward pressure on commodity prices.
Image Source: EIA
Since the conflict began, crude oil initially surged before settling into a wide but gradually tightening trading range. Last week, as hopes for a diplomatic resolution improved, oil prices drifted toward the lower end of that range. However, price has rebounded sharply following today’s escalation. Notably, this support area has held multiple times since the conflict started, reinforcing its importance to traders.
As long as crude remains elevated within this range, oil and gas producers should continue to benefit from strong profit margins. A breakout above the current range would provide an additional tailwind, potentially driving earnings expectations and investor sentiment even higher across the sector.
Image Source: TradingView
The Energy Select Sector SPDR ETF ((XLE - Free Report) ) has mirrored the commodity's pattern, consolidating in a tightening range of its own. Meanwhile, several industry leaders, including Valero Energy ((VLO - Free Report) ), Marathon Petroleum ((MPC - Free Report) ) and Phillips 66 ((PSX - Free Report) ), continue to exhibit relative strength and carry favorable Zacks Ranks, suggesting the sector may be setting up for another leg higher. We'll take a closer look at each setup below.
Image Source: TradingView
Valero Energy: Estimates Surge as Shares Near BreakoutValero Energy is one of the world's largest independent petroleum refiners, operating a network of refineries across the United States, Canada, and the United Kingdom. The company benefits from strong refining margins, access to discounted feedstocks, and significant exposure to global demand for gasoline, diesel, and jet fuel.
Analysts have become dramatically more bullish on the company's outlook in recent months. Current year earnings estimates have surged 71% over the last 60 days, while next year's forecasts have climbed 42%, earning the stock a Zacks Rank #1 (Strong Buy) rating. Shares trade at just 9.2x forward earnings, while analysts project long-term EPS growth of 25.6% annually.
Technically, the stock has been consolidating in a tightening range following its recent advance. With earnings estimates moving sharply higher and energy prices remaining elevated, Valero appears to be on the verge of a breakout that could mark the start of another leg higher.
Image Source: TradingView
Marathon Petroleum: Earnings Estimates and Stock Price GainMarathon Petroleum is one of the largest downstream energy companies in North America, operating an extensive network of refineries, fuel distribution assets, pipelines, and midstream infrastructure. Through its refining operations and majority ownership stake in MPLX, the company is positioned to benefit from both strong refining margins and steady fee-based energy infrastructure revenue.
Analysts have become even more optimistic on Marathon than Valero. Current year earnings estimates have surged 75% over the last 60 days, while next year's forecasts have jumped 67%, giving the stock a Zacks Rank #1 (Strong Buy). Shares trade at just 8.3x forward earnings, while analysts project long-term EPS growth of 20.8% annually.
The technical setup is equally compelling. Shares have displayed stronger relative strength than many of their peers and are currently consolidating in a tidy high-and-tight bull flag near their recent highs. This pattern often precedes powerful continuation moves, and a breakout above the upper end of the range could signal the start of another leg higher.
Image Source: TradingView
Phillips 66: Another Refiner Stock Showing StrengthPhillips 66 is a diversified energy company with operations spanning refining, midstream infrastructure, chemicals, and fuel marketing. This diversified model provides exposure to strong refining margins while also benefiting from more stable cash flows generated by pipelines, terminals, and other energy infrastructure assets.
Fundamentally, the story continues to improve. Analysts have raised current year earnings estimates by 27% over the last 60 days, while next year's forecasts have climbed 25.5%, supporting a Zacks Rank #1 (Strong Buy) rating. Shares trade at 10x forward earnings, while analysts project long-term EPS growth of 38.5% annually.
Technically, the stock has spent the past several weeks consolidating its prior advance and building a constructive base near recent highs. Combined with improving earnings expectations and a supportive backdrop for energy prices, Phillips 66 appears well-positioned for a potential breakout and continuation of its longer-term uptrend.
Image Source: TradingView
Should Investors Buy Shares in PSX, MPC and VLO?While headlines remain focused on geopolitics, the real story for investors is the dramatic improvement in earnings expectations across the refining sector. All three companies enjoy Zacks Rank #1 (Strong Buy) ratings, have seen substantial upward earnings revisions, trade at reasonable valuations and are displaying constructive technical patterns.
If crude oil remains elevated or breaks out to new highs, these refiners could continue to benefit from strong margins and rising profit expectations. For investors looking to gain exposure to the energy trade, Valero, Marathon Petroleum, and Phillips 66 appear well-positioned for another leg higher.
SAN ANTONIO--(BUSINESS WIRE)--Valero Energy Corporation (NYSE: VLO) announced today that it will host a conference call on Thursday, July 30, 2026, at 10:00 a.m. ET to discuss its financial and operational results for the second quarter of 2026. The earnings release will be issued earlier that morning.
A live webcast of the conference call will be available on Valero’s Investor Relations website at investorvalero.com.
About Valero
Valero Energy Corporation, through its subsidiaries (collectively, Valero), is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, and sells its products primarily in the United States (U.S.), Canada, the United Kingdom (U.K.), Ireland, and Latin America. Valero operates 14 petroleum refineries located in the U.S., Canada, and the U.K. with a combined throughput capacity of approximately 3.0 million barrels per day. Valero is a joint venture member in Diamond Green Diesel Holdings LLC, which produces low-carbon fuels including renewable diesel and sustainable aviation fuel (SAF), with a production capacity of approximately 1.2 billion gallons per year in the U.S. Gulf Coast region. See the annual report on Form 10-K for more information on SAF. Valero also owns 12 ethanol plants located in the U.S. Mid-Continent region with a combined production capacity of approximately 1.7 billion gallons per year. Valero manages its operations through its Refining, Renewable Diesel, and Ethanol segments. Please visit investorvalero.com for more information.
Valero Energy Corporation to Announce Second Quarter 2026 Earnings Results on July 30, 2026 Valero Energy Corporation (NYSE: VLO) announced today that it will host a conference call on Thursday, July 30, 2026, at 10:00 a.m. ET to discuss its financial and operational results for the second quarter of 2026. The earnings release will be issued earlier that morning.
A live webcast of the conference call will be available on Valero’s Investor Relations website at investorvalero.com.
About Valero
Valero Energy Corporation, through its subsidiaries (collectively, Valero), is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, and sells its products primarily in the United States (U.S.), Canada, the United Kingdom (U.K.), Ireland, and Latin America. Valero operates 14 petroleum refineries located in the U.S., Canada, and the U.K. with a combined throughput capacity of approximately 3.0 million barrels per day. Valero is a joint venture member in Diamond Green Diesel Holdings LLC, which produces low-carbon fuels including renewable diesel and sustainable aviation fuel (SAF), with a production capacity of approximately 1.2 billion gallons per year in the U.S. Gulf Coast region. See the annual report on Form 10-K for more information on SAF. Valero also owns 12 ethanol plants located in the U.S. Mid-Continent region with a combined production capacity of approximately 1.7 billion gallons per year. Valero manages its operations through its Refining, Renewable Diesel, and Ethanol segments. Please visit investorvalero.com for more information.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260601844201/en/
Valero Energy (VLO - Free Report) closed at $258.26 in the latest trading session, marking a +2.27% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.13%. Elsewhere, the Dow gained 0.45%, while the tech-heavy Nasdaq added 0.03%.
Shares of the oil refiner have appreciated by 0.35% over the course of the past month, outperforming the Oils-Energy sector's loss of 3.92%, and lagging the S&P 500's gain of 5.25%.
Market participants will be closely following the financial results of Valero Energy in its upcoming release. The company is predicted to post an EPS of $7.09, indicating a 210.96% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $35.73 billion, up 19.54% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $26.51 per share and revenue of $133.18 billion, which would represent changes of +149.86% and +8.56%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Valero Energy. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.3% upward. Currently, Valero Energy is carrying a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Valero Energy is currently trading at a Forward P/E ratio of 9.52. This signifies a premium in comparison to the average Forward P/E of 9.4 for its industry.
Also, we should mention that VLO has a PEG ratio of 0.37. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Oil and Gas - Refining and Marketing industry was having an average PEG ratio of 0.37.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 6, placing it within the top 3% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Building a successful investment portfolio takes skill and hard work, no matter if you're a growth, value, income, or momentum-focused investor.
But how do you find the right combination of stocks? Funding your retirement, your kids' college tuition, or your short- and long-term savings goals certainly requires significant returns.
Enter the Zacks Rank.
What is the Zacks Rank?The Zacks Rank is a unique, proprietary stock-rating model that utilizes earnings estimate revisions to help investors build a winning portfolio.
There are four main factors behind the Zacks Rank: Agreement, Magnitude, Upside, and Surprise.
Agreement is the extent to which all brokerage analysts are revising their earnings estimates in the same direction. The greater the percentage of analysts revising their estimates higher, the better chance the stock will outperform.
Magnitude is the size of the recent change in the consensus estimate for the current and next fiscal years.
Upside is the difference between the most accurate estimate, which is calculated by Zacks, and the consensus estimate.
Surprise is made up of a company's last few quarters' earnings per share surprises; companies with a positive earnings surprise are more likely to beat expectations in the future.
These four factors are assigned a raw score that's recalculated every night, which is then compiled into the ranking system. Stocks are classified into five groups using this data, ranging from "Strong Buy" to "Strong Sell."
The Power of Institutional InvestorsThe Zacks Rank also allows individual investors, or retail investors, to benefit from the power of institutional investors.
Institutional investors are responsible for managing the trillions of dollars invested in mutual funds, hedge funds, and investment banks. Research has shown that these investors can and do move the market due to the large amount of money they deal with, and thus, the market tends to move in the same direction as them.
In order to determine the fair value of a company and its shares, institutional investors design valuation models that focus on earnings and earnings estimates. Because if you raise earnings estimates, it then creates a higher fair value for a company and its stock price.
Institutional investors then act on these changes in earnings estimates, typically buying stocks with rising estimates and selling those with falling estimates; an increase in earnings estimates can translate into higher stock prices and bigger gains for the investor.
Because it can take a long time for an institutional investor to build a position--sometimes weeks, if not months--retail investors who get in at the first sign of upward revisions have a distinct advantage over these larger investors, and can benefit from the expected institutional buying that will follow.
Not only can the Zacks Rank help you take advantage of trends in earnings estimate revisions, but it can also provide a way to get into stocks that are highly sought after by professionals.
How to Invest with the Zacks RankThe Zacks Rank is known for transforming investment portfolios. In fact, a portfolio of Zacks Rank #1 (Strong Buy) stocks has beaten the market in 26 of the last 32 years, with an average annual return of +23.7%.
Moreover, stocks with a new #1 (Strong Buy) ranking have some of the biggest profit potential, while those that fell to a #4 (Sell) or #5 (Strong Sell) have some of the worst.
Let's take a look at Valero Energy (VLO - Free Report) , which was added to the Zacks Rank #1 list on April 22, 2026. San Antonio, TX-based Valero Energy Corporation is the largest independent refiner and marketer of petroleum products in the United States. The company was founded in 1980. It has a refining capacity of 3 million barrels per day across 14 refineries located throughout the United States, Canada and the United Kingdom.
Nine analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $10.65 to $26.51 per share. VLO also boasts an average earnings surprise of 28%.
Analysts are expecting earnings to grow 149.9% for the current fiscal year, with revenue forecasted to rise 8.6%.
Additionally, VLO has climbed higher over the past four weeks, gaining 10.5%. The S&P 500 is up 4.6% in comparison.
Bottom LineWith a #1 (Strong Buy) ranking, positive trend in earnings estimate revisions, and strong market momentum, Valero Energy should be on investors' shortlist.
If you want even more information on the Zacks Ranks, or one of our many other investing strategies, check out the Zacks Education home page.
Discover Today's Top StocksOur private Zacks #1 Rank List, based on our quantitative Zacks Rank stock-rating system, has more than doubled the S&P 500 since 1988. Applying the Zacks Rank in your own trading can boost your investing returns on your very next trade. See Today's Zacks #1 Rank List >>
A strong stock as of late has been Valero Energy (VLO - Free Report) . Shares have been marching higher, with the stock up 10.5% over the past month. The stock hit a new 52-week high of $265.61 in the previous session. Valero Energy has gained 60.6% since the start of the year compared to the 28% gain for the Zacks Oils-Energy sector and the 48.2% return for the Zacks Oil and Gas - Refining and Marketing industry.
What's Driving the Outperformance?The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on April 30, 2026, Valero Energy reported EPS of $4.22 versus consensus estimate of $3.07.
For the current fiscal year, Valero Energy is expected to post earnings of $26.51 per share on $133.18 in revenues. This represents a 149.86% change in EPS on a 8.56% change in revenues. For the next fiscal year, the company is expected to earn $21.35 per share on $128.93 in revenues. This represents a year-over-year change of -19.49% and -3.19%, respectively.
Valuation MetricsThough Valero Energy has recently hit a 52-week high, what is next for Valero Energy? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Valero Energy has a Value Score of B. The stock's Growth and Momentum Scores are B and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 9.9X current fiscal year EPS estimates, which is a premium to the peer industry average of 9.7X. On a trailing cash flow basis, the stock currently trades at 12.1X versus its peer group's average of 9.3X. Additionally, the stock has a PEG ratio of 0.39. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks RankWe also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Valero Energy currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Valero Energy meets the list of requirements. Thus, it seems as though Valero Energy shares could have potential in the weeks and months to come.
How Does VLO Stack Up to the Competition?Shares of VLO have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Marathon Petroleum Corporation (MPC - Free Report) . MPC has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of C.
Earnings were strong last quarter. Marathon Petroleum Corporation beat our consensus estimate by 129.17%, and for the current fiscal year, MPC is expected to post earnings of $30.05 per share on revenue of $138.49 billion.
Shares of Marathon Petroleum Corporation have gained 8.7% over the past month, and currently trade at a forward P/E of 8.89X and a P/CF of 12.23X.
The Oil and Gas - Refining and Marketing industry is in the top 3% of all the industries we have in our universe, so it looks like there are some nice tailwinds for VLO and MPC, even beyond their own solid fundamental situation.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many 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 also includes the Zacks Style Scores.
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, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
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.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Valero Energy (VLO - Free Report) San Antonio, TX-based Valero Energy Corporation is the largest independent refiner and marketer of petroleum products in the United States. The company was founded in 1980. It has a refining capacity of 3 million barrels per day across 14 refineries located throughout the United States, Canada and the United Kingdom.
VLO is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 9.86; value investors should take notice.
Nine analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $10.65 to $26.51 per share. VLO also boasts an average earnings surprise of +28%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, VLO should be on investors' short list.
Key Takeaways Valero Energy could face high crude costs, but tight capacity keeps refining margins strong.Gasoline, diesel and jet fuel demand stays resilient, supporting busy refineries and VLO's strength.Marathon Petroleum and Phillips 66 may gain from tight global refining capacity and high utilization. The Iran-war shock is driving the high crude oil prices, with the price of West Texas Intermediate (“WTI”) crude currently trading at more than the $90-per-barrel mark. The U.S. Energy Information Administration (“EIA”) in its latest short-term energy outlook projected WTI at $85.68 per barrel this year, higher than $65.40 last year. Thus, with oil prices likely to remain elevated, refiners like Valero Energy Corporation (VLO - Free Report) could see pressure on their overall business. However, that does not appear to be the case. Let’s delve deeper.
The global refining capacity is constrained, and fuel inventories are low. On the demand side, gasoline, diesel and jet fuel remain resilient. This means people are still driving and flying quite often, while diesel demand suggests transportation, freight, agriculture and industrial activity are still holding up. As a result, with busy refineries and fuel not in abundant supply, refining margins for refiners like VLO are quite strong.
Thus, surprisingly, with crude prices likely to remain high, investors shouldn’t allocate their money only to exploration and production companies but also to refining players like VLO, even though high crude prices have been increasing refiners’ input costs.
Will MPC & PSX Also Gain?Marathon Petroleum Corp. (MPC - Free Report) and Phillips 66 (PSX - Free Report) are two other leading refining companies that are well poised to gain from the tight refining capacities across the globe.
MPC runs refining systems that are the largest in the United States. With high utilization of refineries, Marathon Petroleum is well-positioned to capture almost all of the available profitable opportunities.
Phillips 66’s refineries have excellent processing capacity and can handle different grades of crude, and hence can earn a handsome margin after processing low-cost heavy crude. Importantly, PSX expects its refining operations to be responsible for contributing almost 33% of its total adjusted EBITDA by 2027.
VLO’s Price Performance, Valuation & EstimatesShares of VLO have gained 106.1% over the past year compared with the 61.5% improvement of the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, VLO trades at a trailing 12-month enterprise value to EBITDA of 7.95X. This is above the broader industry average of 5.95X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for VLO’s 2026 earnings has seen upward revisions over the past 30 days.
Image Source: Zacks Investment Research
VLO currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways VLO's Diamond Green Diesel venture has expanded renewable fuel capacity to about 1.2 billion gallons annually.Valero's Port Arthur project can convert up to 235 million gallons of renewable diesel into SAF each year.Valero operates 12 ethanol plants with annual production capacity of 1.7 billion gallons. As governments and consumers place greater emphasis on reducing emissions and improving air quality, demand for cleaner transportation fuels is expected to grow. To address the growing demand for cleaner fuels and meet low-carbon fuel standards, Valero Energy Corporation (VLO - Free Report) is expanding its low-carbon fuels business through renewable diesel, sustainable aviation fuel (SAF) and ethanol, creating a diversified platform beyond traditional refining.
Valero's low-carbon fuels portfolio is anchored by its Diamond Green Diesel (DGD) joint venture, which has increased renewable fuel production capacity from 160 million gallons per year in 2013 to approximately 1.2 billion gallons per year in first-quarter 2026. Since its inception, DGD has generated more than $3 billion in cumulative EBITDA. Renewable diesel is particularly attractive because it can reduce greenhouse gas emissions by up to 80% while remaining compatible with existing fuel infrastructure.
Valero strengthened its sustainable aviation fuel (SAF) capacity through the Port Arthur project, which can convert up to 235 million gallons of renewable diesel into SAF annually. The project enables airlines to meet strict emission requirements while providing an attractive return that surpasses the company's 25% after-tax internal rate of return threshold.
The refiner operates 12 ethanol plants producing 1.7 billion gallons of ethanol annually, benefiting from low-cost operations, export opportunities and lower-carbon incentives. Together, renewable diesel, SAF and ethanol support long-term cash flow growth and enhance VLO’s ability to capitalize on the growing demand for cleaner transportation fuels.
Are BP & CVX Focused on Reducing Emissions?BP plc (BP - Free Report) and Chevron Corporation (CVX - Free Report) are actively implementing strategies aimed at minimizing emissions and improving overall air quality.
BP has developed a diversified renewable energy portfolio across solar, wind and bioenergy through strategic partnerships that enhance growth while limiting capital requirements. BP has also strengthened its presence in renewable natural gas through Archaea Energy, positioning it to benefit from rising demand for lower-carbon fuels.
Chevron is actively cutting emissions by scaling up the production of renewable fuels such as biodiesel, hydrogen and renewable natural gas. To further minimize its carbon footprint, CVX is simultaneously advancing carbon capture, utilization and storage technologies to safely trap carbon dioxide underground.
VLO’s Price Performance, Valuation & EstimatesValero shares have gained 101.6% over the past year compared with the 60.1% improvement of the composite stocks belonging to the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, VLO trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 7.87X. This is above the broader industry average of 5.95X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for VLO’s 2026 earnings has remained unchanged over the past seven days.
Image Source: Zacks Investment Research
Valero currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways Fragile Iran war ceasefire keeps markets volatile; low-beta stocks stand out: LQDA, CVX, OXY, VLO.LQDA sees rapid YUTREPIA adoption, rising referrals and prescribers, and positive cash flow.VLO runs 3MM bpd capacity and has lower-carbon fuels exposure: SAF, renewable diesel and ethanol. Escalating tensions in the Middle East, as reflected in the Iran war, are now in a fragile ceasefire, creating significant uncertainty and making the U.S. stock market highly volatile. With fears dominating the market, it is ideal for investors to increase their allocation to low-beta stocks. Stocks that may attract investors' attention are Liquidia Corporation (LQDA - Free Report) , Chevron Corporation (CVX - Free Report) , Occidental (OXY - Free Report) and Valero Energy Corporation (VLO - Free Report) .
What Does Beta of a Stock Measure?Beta measures the volatility or risk of a particular asset compared to the market. In other words, beta measures the extent of a security’s price movement relative to the market. In this article, we are considering the S&P 500 as the market.
If a stock has a beta of 1, then the price of the stock will move with the market. So, the stock is more volatile than the market if its beta is more than 1. In the same way, the stock is not as volatile as the market if its beta is less than 1.
For example, if the market offers a return of 20%, a stock with a beta of 3 will return 60%, which is overwhelming. Similarly, when the market slips 20%, the stock will sink 60%, which is devastating.
Screening Criteria Using Research Wizard:We have taken a beta between 0 and 0.6 as our prime criterion for screening stocks that are less volatile than the market. However, this should not be the only factor to be considered while selecting a winning strategy. We need to take into account other parameters that can add value to the portfolio.
Percentage Change in Price in the Last 4 Weeks Greater Than Zero: This ensures that the stocks saw positive price movement over the last month.
Average 20-Day Volume Greater Than 50,000: A substantial trading volume ensures that the stocks are easily tradable.
Price Greater Than or Equal to $5: They must all be trading at a minimum of $5 or higher.
Zacks Rank Equal to 1 (Strong Buy): Zacks Rank #1 stocks indicate that they will significantly outperform the broader U.S. equity market over the next one to three months. You can see the complete list of today’s Zacks #1 Rank stocks here.
Here are four of the 19 stocks that qualified for the screening:
Liquidia
Liquidia is experiencing rapid growth in YUTREPIA adoption, with increasing patient referrals, expanding prescriber base and rising market share. The company has achieved profitability and is generating positive cash flow, supported by a strong cash position. It is also pursuing expansion into additional indications and larger market opportunities through ongoing and planned clinical developments.
Chevron
Chevron has a strong footprint in the Permian basin. CVX mentioned that it has an interest in one of every five wells in the most prolific basin. Over the years, while growing its operations in Permian, Chevron has been able to generate more production while employing lower capital spending, thanks to advanced drilling techniques. Being a producer of both oil and natural gas, the company is well-positioned to gain.
Occidental
In the United States, Occidental is a major producer of oil and natural gas. In the domestic market, OXY has been experiencing efficiency improvements, including higher production volumes, while reducing capital spending and lowering operating costs. For creating long-term value for shareholders, Occidental has a strong focus on redirecting capital toward higher-return oil and gas projects.
Valero Energy
Valero Energy is among the world's leading low-cost fuel producers, with a combined throughput capacity of 3 million barrels per day. In addition to its presence in traditional refining, the company has exposure to lower-carbon fuels, comprising sustainable aviation fuel, renewable diesel and ethanol.
Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, June 10:
Valero Energy Corporation (VLO - Free Report) : This energy company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 49.6% over the last 60 days.
Valero has a PEG ratio of 0.38 compared with 0.49 for the industry. The company possesses a Growth Score of B.
Dycom Industries, Inc. (DY - Free Report) : This infrastructure services company carriesa Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 39.8% over the last 60 days.
Dycom has a PEG ratio of 0.80 compared with 1.26 for the industry. The company possesses a Growth Score of A.
Marathon Petroleum Corporation (MPC - Free Report) : This integrated downstream energy company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 39.8% over the last 60 days.
Marathon Petroleum has a PEG ratio of 0.43 compared with 0.49 for the industry. The company possesses a Growth Score of B.
See the full list of top-ranked stocks here.
Learn more about the Growth score and how it is calculated here.
Key Takeaways WTI is above $85 and EIA sees $88.32 this year, yet top refiners gained 35% in six months.Valero Energy rose 47.6% as low fuel inventories and little spare capacity support strong refining margins.MPC climbed 38%; it says roughly 6% of global finished-fuel capacity went offline amid Middle East conflicts. The Iran war shock is driving high crude oil prices, with West Texas Intermediate (“WTI”) crude currently trading at more than $85 per barrel. The U.S. Energy Information Administration (“EIA”) in its latest short-term energy outlook projected WTI at $88.32 per barrel this year, higher than $65.40 last year.
Thus, with oil prices likely to remain elevated, refiners could see pressure on their overall business. However, that does not appear to be the case. Notably, over the past six months, leading refiners such as Valero Energy Corporation (VLO - Free Report) and Marathon Petroleum Corp. (MPC - Free Report) have each witnessed more than 35% gains despite a highly favorable crude pricing environment. Let’s delve deeper.
Six-Month Price Chart
Image Source: Zacks Investment Research
Constrained Global Refining CapacityThe global refining capacity is constrained, and fuel inventories are low. On the demand side, gasoline, diesel and jet fuel remain resilient. This means people are still driving and flying quite often, while diesel demand suggests transportation, freight, agriculture and industrial activity are still holding up. As a result, with busy refineries and fuel not in abundant supply, refining margins for refiners are quite strong.
Thus, surprisingly, with crude prices likely to remain high, investors shouldn’t allocate their money only to exploration and production companies but also to refining players like Valero Energyand Marathon Petroleum, even though high crude prices have been increasing refiners’ input costs.
Time to Bet on 2 Refiners: VLO, MPCValero Energy expects to generate strong refining margins as the world has very little spare refining capacity, while inventories of refined products such as gasoline, jet fuel, and diesel are low. VLO will likely benefit from strong demand and tight supply, given its large, complex refineries with the capacity to process discounted heavy sour crude oil.
Over the past six months, Valero Energy, sporting a Zacks Rank #1 (Strong Buy), jumped 47.6%, outpacing the energy sector’s 22.2% gain.
Marathon Petroleum runs refining systems that are the largest in the United States. With high utilization of refineries, Marathon Petroleum is well-positioned to capture almost all of the available profitable opportunities. In its first-quarter earnings transcript, the leading refining player mentioned that roughly 6% of the world’s ability to produce finished fuels went offline due to the conflicts in the Middle East.
Investors should note that the company has the capability of processing cheaper crude from the United States and Canada to produce diesel and jet fuels that are in high demand. The stock surged 38% over the past six months and currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
@ProsperTradingAcademy's Scott Bauer walks us through today's top three trades. He likes to Valero (VLO) for its respectable trading range, Micron (MU) for a short-term bullish trade, and Boost Run (BRUN) for its steady stock movement.
Key Takeaways VLO gained 53.3% in six months, outpacing industry growth and key refining peers.VLO benefits from Gulf Coast access to discounted heavy sour crude and flexible refinery operations.VLO returned $938M in Q1 2026, raised its dividend 6%, and ended the quarter with about $11B total liquidity. Valero Energy (VLO - Free Report) is a leading refining player with a robust network of 14 refineries located across the United States, Canada and Peru. The company has a combined high-complexity throughput capacity of 3 million barrels per day, which distinguishes it from other independent refiners. Valero Energy’s refineries have a combined Nelson Complexity Index of 11.5, implying that they can process a wide variety of feedstock and convert it into higher-value products.
Over the past six months, VLO stock has gained 53.3%, outperforming the industry’s 38.8% growth. Its peers, Phillips 66 (PSX - Free Report) and PBF Energy (PBF - Free Report) , have grown 28.5% and 40.2%, respectively. While price performance indicates a stock's attractiveness to some extent, it would be wiser to closely examine the company’s current business environment before offering any investment advice.
Image Source: Zacks Investment Research
VLO’s Complex Coastal Refinery Network & Operational Flexibility AidsValero Energy presents a favorable investment case, particularly due to its high-complexity coastal refinery network and the operational flexibility of its refineries. Notably, its advantaged Gulf Coast refining footprint benefits from crude availability and exposure to export markets.
Management stated that during the first quarter, VLO’s Gulf Coast presence enabled it to take advantage of discounted heavy sour crude feedstocks, particularly following increased Venezuelan supply. With the onset of the conflict in the Middle East, these market dynamics became even more pronounced, as certain heavy crude grades, including Canadian heavy crude, began trading at deeper discounts. The company also added that it continues to optimize its crude slate at the Gulf Coast, enabling it to improve refining economics and support better margins.
The heavy sour discounts act as a tailwind for Valero’s business, particularly in the second quarter. Its highly complex refining system is capable of processing heavy sour grades into high-value refined products efficiently. Additionally, the flexibility of Valero’s refinery systems allows it to shift product yields between light products and distillates based on market signals to capture higher margins during volatile times. These factors enable the company to lower its input costs while capturing better refining margins by adjusting its refining mix.
Image Source: Valero Energy Corporation
Valero’s Shareholder Returns Framework and Balance Sheet StrengthValero combines strong free cash flow generation with a disciplined capital allocation approach. The refining player returned $938 million to shareholders in the first quarter of 2026, implying a 59% payout ratio. Additionally, the company announced a 6% increase in its quarterly cash dividend to reward shareholders. Over the longer term, management has consistently delivered on its commitment to return cash to investors, achieving an average payout ratio of roughly 70% between 2015 and 2025. VLO also highlighted that its outstanding shares have declined by nearly 42% since 2014 through opportunistic share repurchases.
Valero’s capital return program is supported by its strong balance sheet. The company’s debt-to-capitalization ratio, net of cash, stood at 18% at the end of the first quarter. Furthermore, its cash and cash equivalents, combined with the liquidity available under its bank facilities, totaled approximately $11 billion at the end of the March quarter. VLO’s healthy financial position also allows it to return excess cash to investors through share buybacks. The company’s financial strength supports dividend growth and opportunistic buybacks, allowing it to deliver long-term shareholder value.
Valuation SnapshotThe valuation snapshot indicates that investors are now willing to pay a premium for Valero Energy due to the company’s strong fundamentals. This is reflected in VLO’s trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 7.84x compared with the broader industry average of 5.87x. However, it is currently trading cheaper compared to its peers, PSX and PBF, which are trading at 12.93x and 9.88x trailing 12-month EV/EBITDA, respectively.
Image Source: Zacks Investment Research
Time to Bet on the Stock or Wait?Valero Energy is expected to benefit from its Gulf Coast refinery network that allows it to take advantage of discounted heavy sour barrels. Further, the operational flexibility of its refineries enables it to convert cheaper feedstock into high-value products, thereby supporting profitability.
Given the current business environment and its disciplined shareholder return framework, investors should consider buying the VLO stock, sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Valero Energy (VLO - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this oil refiner have returned +4.4%, compared to the Zacks S&P 500 composite's -0.2% change. During this period, the Zacks Oil and Gas - Refining and Marketing industry, which Valero Energy falls in, has lost 1.1%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Valero Energy is expected to post earnings of $7.34 per share for the current quarter, representing a year-over-year change of +221.9%. Over the last 30 days, the Zacks Consensus Estimate has changed +7.5%.
The consensus earnings estimate of $26.83 for the current fiscal year indicates a year-over-year change of +152.9%. This estimate has changed -4.3% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $21.64 indicates a change of -19.3% from what Valero Energy is expected to report a year ago. Over the past month, the estimate has changed +2.3%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Valero Energy.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Valero Energy, the consensus sales estimate of $35.82 billion for the current quarter points to a year-over-year change of +19.8%. The $133.37 billion and $128.96 billion estimates for the current and next fiscal years indicate changes of +8.7% and -3.3%, respectively.
Last Reported Results and Surprise HistoryValero Energy reported revenues of $32.38 billion in the last reported quarter, representing a year-over-year change of +7%. EPS of $4.22 for the same period compares with $0.89 a year ago.
Compared to the Zacks Consensus Estimate of $30.88 billion, the reported revenues represent a surprise of +4.86%. The EPS surprise was +37.46%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Valero Energy is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Valero Energy. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
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.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Valero Energy (VLO - Free Report) San Antonio, TX-based Valero Energy Corporation is the largest independent refiner and marketer of petroleum products in the United States. The company was founded in 1980. It has a refining capacity of 3 million barrels per day across 14 refineries located throughout the United States, Canada and the United Kingdom.
VLO is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Oils-Energy stock. VLO has a Momentum Style Score of B, and shares are up 4.4% over the past four weeks.
Nine analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $9.11 to $26.83 per share. VLO boasts an average earnings surprise of +28%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, VLO should be on investors' short list.
Five Below (FIVE - Free Report) came out with quarterly earnings of $2.22 per share, beating the Zacks Consensus Estimate of $1.7 per share. This compares to earnings of $0.86 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +30.92%. A quarter ago, it was expected that this discount retailer would post earnings of $3.99 per share when it actually produced earnings of $4.31, delivering a surprise of +8.02%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Five Below, which belongs to the Zacks Retail - Miscellaneous industry, posted revenues of $1.29 billion for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 6.70%. This compares to year-ago revenues of $970.53 million. 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.
Five Below shares have added about 17% since the beginning of the year versus the S&P 500's gain of 11.2%.
What's Next for Five Below?While Five Below 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 Five Below 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 #2 (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 $1.06 on $1.13 billion in revenues for the coming quarter and $8.05 on $5.31 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, Retail - Miscellaneous is currently in the top 44% 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.
Torrid Holdings (CURV - Free Report) , another stock in the broader Zacks Retail-Wholesale sector, has yet to report results for the quarter ended April 2026. The results are expected to be released on June 4.
This women's apparel retailer is expected to post quarterly loss of $0.02 per share in its upcoming report, which represents a year-over-year change of -133.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Torrid Holdings' revenues are expected to be $240.35 million, down 9.6% from the year-ago quarter.
Five Below (NASDAQ:FIVE) shares fell about 11% at Thursday's market open, as investors looked past a stronger-than-expected first quarter earnings report and instead focused on the assumptions underlying the company's raised full-year guidance.
Five Below raised its full-year fiscal 2026 guidance, projecting net sales of $5.40 billion to $5.48 billion and adjusted diluted earnings per share of $8.65 to $9.05.
The discount retailer said its fiscal 2026 outlook reflects tariff rates currently in place through July 24 and assumes they will revert to levels that existed at the start of the fiscal year for the remainder of the year. The guidance also excludes any potential benefit from tariff refunds or share repurchases.
For the first quarter ended May 2, Five Below reported adjusted diluted earnings per share of $2.22, exceeding the Wall Street consensus estimate of $1.69.
Revenue increased 32.5% year over year to $1.29 billion, above analysts' expectations of approximately $1.20 billion.
Comparable sales rose 22.7% during the quarter, while operating income climbed to $154.2 million from $50.8 million a year earlier. Operating margin expanded to 12% from 5.2% in the prior-year period.
Net income totaled $123.1 million, or $2.21 per diluted share, compared with $41.1 million, or $0.75 per diluted share, in the first quarter of fiscal 2025.
The company opened 49 net new stores during the quarter, ending the period with 1,970 locations across 46 states.
Five Below CEO Winnie Park credited the results to the company's merchandising strategy and focus on value.
"We are thrilled with our outstanding first quarter performance, which is a testament to the team's execution of our customer-centric strategy," Park said in the earnings release. “The result was broad-based growth across our merchandising worlds, new and existing customers, and all demographic and geographic segments.”
“The S&P 500 was up more than 16% over April and May, a magnitude that’s only happened in four other instances since World War II, Deutsche Bank Research found,” as noted by CNBC. “The last time the S&P 500 rose like it is now outside of a recession period was the few months before the 1987 crash.”
There are also other signs of a potential crash.
For example, if we look at the Case Shiller P/E ratio, it currently stands at 42.53 – its second-highest point since its 1999 high of 43.21. That was also right before the dot-com crash. You can see that chart here.
Markets are wildly mixed this morning.
The S&P 500 is down by 0.36%, or by 27 points. The SPDR S&P 500 ETF (SPY) is down by 0.3%, or by $2.25. The Dow is up by 0.89%, or by 460 points. The Nasdaq is down by 1.15%, or by 353 points. Oil is down by $3.19 at $92.83. Bitcoin is down by $527 at $63,512.
Let’s start with the Dow.
A day after slipping on higher oil prices and yields, the Dow is climbing as investors shift away from the tech sector and instead jump into blue-chip and defensive stocks. Plus, new news of a ceasefire and cooling energy prices are pumping the index.
Meanwhile, the tech-heavy Nasdaq is sinking following an underwhelming report from Broadcom (NASDAQ: AVGO | AVGO Price Prediction), which is down 13% in premarket. Fueling a good deal of downside in the name, CEO Hock Tan did not raise the company’s full-year target of $100 billion in AI chips. For its most recent quarter, the company did post adjusted EPS of $2.44, as compared to estimates of $2.40. Revenue of $22.19 billion was below estimates of $22.27 billion.
Not helping, HSBC analysts flagged a slide in chip prices, coupled with a slowdown in AI spending and rollout, as among their “biggest worries,” as noted by CNBC.
Market Movers: Five Below Plunges $23 Shares of Five Below (NASDAQ: FIVE) are down 10%, or by $23 a share, after solid earnings.
The company’s EPS of $2.22 beat by 43 cents, and revenue of $1.28 billion (up 31.9% year over year) beat by $50 million. It also delivered a significant improvement in profitability. Operating income climbed to $154.2 million from $50.8 million in the same period last year. It even raised its full-year forecast. Unfortunately, some analysts are questioning its valuation.
For example, as noted by Investing.com, “Mizuho noted that investors may question the size of the fiscal 2026 guidance increase, with second-half estimates unchanged. Current sales trends appear strong in the second quarter to date, though management expressed caution about the consumer spending environment.”
Analysts at Mizuho also reiterated an outperform rating on Nvidia (NASDAQ: NVDA), noting that they remain bullish on the optical/networking market.
Citi analysts reiterated a buy rating on Oracle (NYSE: ORCL), raising their price target to $330 from $320. The firm noted, “While investor concerns linger on financing/execution of capacity buildouts, we believe ORCL remains on track to deliver one of the strongest revenue/EPS accelerations in tech as large AI contracts ramp,” as quoted by CNBC.
