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Cloudflare is making the boldest AI pivot of any Tier 1 internet infrastructure provider. On the Q1 2026 earnings call, CEO Matthew Prince told investors that "AI is driving a fundamental re-platforming of the Internet and a paradigm shift in how software is created and consumed; it's shaping up to be the biggest tailwind we've ever seen in Cloudflare's history."

The Numbers Behind the AI Thesis Cloudflare (NYSE:NET | NET Price Prediction) posted Q1 revenue of $639.75 million, up 33.54% year-over-year, with non-GAAP EPS of $0.25 exceeding estimates. Current RPO grew 34% year-over-year, and free cash flow reached $84.07 million, or 13% of revenue. Prince disclosed that $5M+ annual customer additions in Q1 matched the entire haul from all of 2025, and Cloudflare added 1 million new developers in Q1 alone, versus 1.5 million in all of 2025.

Reorganizing Around Agents Cloudflare announced a workforce reduction of approximately 1,100 employees, roughly 20% of headcount, with restructuring charges of $140 million to $150 million concentrated in Q2. Prince said: "This is not a cost-cutting exercise or an assessment of the individuals' performance. It is about defining how a world-class, high-growth company operates and creates value in the agentic AI era."

Internal proof points are striking. Prince noted Cloudflare's usage of AI has increased more than 600% in the last three months, 97% of engineering uses AI coding tools, and 100% of production code contributions are reviewed by autonomous AI agents. On Workers, one large AI studio went from zero Dynamic Workers to over 1 million running on the platform in 15 days.

Peer Contrast: Fastly and Akamai Fastly (NYSE:FSLY) is pursuing bot-management tools like Content Guard and the Fastly Agent Toolkit. The security segment grew 47% year-over-year to $38.8 million. Akamai (NASDAQ:AKAM) is chasing scale deals: CEO Tom Leighton highlighted a $1.8 billion, seven-year commitment from a leading frontier model provider for Cloud Infrastructure Services, which grew 40% year-over-year to $94.6 million, even as total company growth registered just 5.76%.

Valuation and Market Response Cloudflare shares trade at $242.41, up 22.96% year-to-date, against a forward P/E of 204 and price-to-sales of 37. The analyst consensus price target sits at $243.65, with 22 buy or strong-buy ratings against two sell ratings. Eric Bleeker holds Cloudflare as an active recommendation in The AI Investor Portfolio.

The bull case: if agents become the dominant internet users, Cloudflare’s Workers platform sits at the center of that traffic. The bear case is valuation and GAAP gross margin compression from 75.9% to 71.2%. Watch Q2 execution against $664-$665 million revenue guidance and restructuring rollout pace.

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

Contact [email protected] for any questions or corrections.

It has been about a month since the last earnings report for Veeva Systems (VEEV - Free Report) . Shares have added about 7.9% in that time frame, outperforming the S&P 500.

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

Veeva Systems Q1 Earnings & Revenues Beat, Operating Margin RiseVeeva Systems reported adjusted earnings per share of $2.24 for the first quarter of fiscal 2027, which increased 13.7% from the year-ago figure of $1.74. Adjusted earnings per share beat the Zacks Consensus Estimate by 5.2%.

GAAP earnings per share in the fiscal first quarter was $1.57, up 14.6% from the year-ago period’s $1.37.

VEEV’s Q1 Revenue DetailsIn the quarter under review, the company’s revenues totaled $882.9 million, beating the Zacks Consensus Estimate by 2.9%. On a year-over-year basis, the top line improved 16.3%.

The fiscal first-quarter top line was driven by Veeva Systems’ robust segmental performance.

Segmental Analysis of VEEVVeeva Systems derives revenues from two operating segments: Subscription services and Professional services and other.

In the fiscal first quarter, Subscription services revenues improved 15% from the year-ago quarter to $730.2 million. Per management, this uptick was driven by both its established and newer solutions.

Professional services and other revenues increased 22.9% year over year to $152.8 million.

Q1 Margin Performance by VEEVIn the quarter under review, Veeva Systems’ gross profit improved 13.1% year over year to $662 million. However, the gross margin contracted 220 basis points (bps) to 74.9%.

Sales and marketing expenses increased 12.7% year over year to $111.1 million. Research and development (R&D) expenses rose 13.2% year over year to $208.3 million, while general and administrative expenses increased 0.9% year over year to $69.5 million. Total operating expenses of $388.9 million increased 10.6% year over year.

Operating profit totaled $273.1 million, which increased 16.8% from the prior-year quarter. The operating margin in the fiscal first quarter expanded 20 bps to 30.9%.

VEEV’s Financial PositionThe company exited first-quarter fiscal 2027 with cash and cash equivalents and short-term investments of $7.31 billion compared with $6.56 billion at the fiscal fourth quarter of 2026-end.

Net cash provided by operating activities at the end of the quarter was $1.13 billion compared with $877.2 million a year ago.

Q2 & FY27 Guidance Provided by VEEVVeeva Systems has issued its financial outlook for the fiscal second quarter and fiscal 2027.

For the fiscal second quarter, the company expects total revenues between $902 million and $905 million. The Zacks Consensus Estimate is currently pegged at $886.8 million.

Subscription revenues are estimated to be approximately $754 million, and revenues for Professional services and other are expected to be in the range of $148-$151 million for the fiscal second quarter.

For the fiscal second quarter, adjusted earnings per share is anticipated to be between $2.21 and $2.22. The Zacks Consensus Estimate is pegged at $2.19.

Veeva Systems now expects revenues for fiscal 2027 between $3,635 million and $3,645 million. The Zacks Consensus Estimate is currently pegged at $3.59 billion.

For fiscal 2027, Subscription revenues are now expected to be approximately $3,060 million. This consists of Commercial Solutions’ subscription revenues of around $1,395 million and R&D Solutions’ subscription revenues of approximately $1,665 million.

Professional services and other revenues for fiscal 2027 are now expected to be between $575 million and $580 million.

Adjusted earnings per share for fiscal 2027 is now expected to be approximately $9.05. The Zacks Consensus Estimate is pegged at $8.86.

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

VGM ScoresAt this time, Veeva has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.

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

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

Key Takeaways United Rentals raised 2026 guidance after record first-quarter revenues, adjusted EBITDA and EPS.URI grew rental revenues 8.7% as fleet productivity improved and specialty rental demand remained strong.United Rentals is expanding fleet investment while pursuing cost controls, buybacks and dividends. United Rentals, Inc. (URI - Free Report) appears well-positioned to protect profitability through higher fleet efficiency and disciplined execution despite lingering cost pressures across the equipment rental industry. It kicked off 2026 with record first-quarter revenues, adjusted EBITDA and earnings per share, while raising its full-year guidance, reflecting confidence in demand across large construction, infrastructure, power and industrial projects.

A key driver behind the strong performance was improved fleet productivity, which increased 2.3% year over year and helped owned equipment rental revenues grow 6.5%. Rental revenues climbed 8.7% to a record $3.4 billion, supported by fleet expansion, healthy pricing and robust specialty demand. The specialty business continued to shine with 13.8% rental revenue growth, fueled by strength across all product categories and continued investments in new locations.

Cost inflation, however, remains an overhang. Higher depreciation, delivery expenses and ancillary revenue mix weighed on specialty margins, while tariffs, labor costs and equipment replacement expenses continue to pose risks. To counter these pressures, United Rentals has intensified cost-control efforts through branch consolidation, workforce optimization and tighter management of variable expenses. These initiatives contributed to underlying EBITDA margin expansion despite restructuring charges during the first quarter of 2026.

URI is also investing aggressively where returns appear strongest. It raised its 2026 gross rental CapEx outlook to support fleet growth in high-demand markets while maintaining a healthy 1.9x leverage ratio and generating more than $1 billion in quarterly free cash flow. Combined with ongoing share repurchases and dividend payments, United Rentals' capital allocation strategy reinforces shareholder value.

If fleet productivity continues improving alongside healthy project activity, United Rentals appears well-equipped to offset cost headwinds and sustain profitable growth through 2026.

United Rentals, EMCOR & Argan: Rental Race OnUnited Rentals operates at the center of North America's equipment rental market, benefiting from sustained demand across non-residential construction, infrastructure, manufacturing and power projects. Unlike EMCOR Group, Inc. (EME - Free Report) , which generates revenues by designing, installing and maintaining complex building systems, URI profits from rising equipment utilization and fleet productivity as contractors increasingly prefer to rent rather than own equipment.

Meanwhile, Argan, Inc. (AGX - Free Report) remains more dependent on large EPC contracts, particularly in power generation, making its revenues more project-driven and less diversified than United Rentals'. While EMCOR gains from expanding MEP services and Argan capitalizes on utility-scale energy investments, URI enjoys broader exposure across multiple end markets through its extensive fleet and specialty rental offerings.

URI’s scale, pricing power and recurring rental demand provide greater resilience to construction cycles than those of EMCOR and Argan, strengthening its long-term competitive positioning.

URI Stock’s Price Performance & Valuation TrendShares of this Connecticut-based equipment rental company climbed 35.8% year to date, outperforming the Zacks Building Products - Miscellaneous industry, the broader Zacks Construction sector and the S&P 500 Index.

Image Source: Zacks Investment Research

URI stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 21.9, as the trend lines suggest below.

Image Source: Zacks Investment Research

Earnings Estimate Trend of URIURI’s earnings estimates for 2026 and 2027 have moved downward over the past seven days to $46.76 and $52.75 per share, respectively. However, the revised estimates for 2026 and 2027 imply year-over-year improvement of 11.2% and 12.8%, respectively.

Image Source: Zacks Investment Research

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

Key Takeaways Valero Energy's complex refinery network boosts flexibility to maximize refining margins across markets.VLO may benefit from lower feedstock costs as energy prices ease amid U.S.-Iran peace talks progress.Valero Energy is expanding renewable fuels exposure through Diamond Green Diesel and a new SAF project. Valero Energy’s (VLO - Free Report) investment appeal is supported by its highly complex coastal refinery network, which can process a wide range of feedstocks into higher-value refined fuels. The flexibility of Valero’s refinery systems allows it to shift product yields between light products and distillates based on market signals, enabling more margin capture during periods of high volatility. Moreover, the Gulf Coast concentration enables VLO to optimize feedstock sourcing and export its products to high-demand markets, helping it capture better margins.

At present, energy prices have dropped significantly, reflecting progress in the United States-Iran peace talks. This could prove to be beneficial for Valero, as it implies cheaper feedstock costs for its refining operations, supporting refining gains. The company's operational flexibility, low-cost structure and advanced refining and logistics assets are expected to enhance its competitive position by maximizing margin capture across varying market conditions.

Further, Valero has gained meaningful exposure to renewable fuels, providing an additional revenue stream. Its ownership in the Diamond Green Diesel joint venture provides VLO with approximately 1.2 billion gallons of renewable fuels production capacity per year. Also, the recently completed Port Arthur sustainable aviation fuel (SAF) project can upgrade up to 50% of its current renewable diesel production capacity to SAF. Meanwhile, its low-cost ethanol operations are expected to benefit from global renewable fuel mandates driving exports. These initiatives position Valero to capitalize on the long-term growth of cleaner transportation fuels.

PARR & PBF Are Two Other Leading Downstream PlayersPar Pacific Holdings (PARR - Free Report) is a Houston-based refining player with a combined refining capacity of 219,000 barrels per day and operations across Hawaii and the Pacific Northwest. The company also operates 76 branded retail locations, along with a logistics business segment. It owns extensive energy infrastructure, which includes storage and transportation assets. PARR currently carries a Zacks Rank #2 (Buy).

PBF Energy (PBF - Free Report) has a geographically diverse refining network with large-scale processing capacity and a highly complex refining system. It operates six refineries - Delaware City Refinery, Paulsboro Refinery, Toledo Refinery, Chalmette Refinery, Torrance Refinery and Martinez Refinery— with a combined throughput capacity of 1 million barrels per day and the ability to process a wide range of feedstocks. PBF carries a Zacks Rank #3 (Hold) at present.

VLO’s Price Performance, Valuation & EstimatesValero Energy’s shares have jumped 85.2% over the past year compared with the 35.8% 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 8.16X. This is above the broader industry average of 5.49X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for VLO’s 2026 earnings has been revised upward over the past seven days.

Image Source: Zacks Investment Research

VLO currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A month has gone by since the last earnings report for PVH (PVH - Free Report) . Shares have lost about 3.8% in that time frame, underperforming the S&P 500.

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

PVH Q1 Earnings Top Estimates, FY26 Sales Outlook CutPVH Corporation posted first-quarter fiscal 2026 results, wherein both earnings and revenues topped the Zacks Consensus Estimate. However, the bottom line fell year over year while the top line increased.

PVH’s first-quarter 2026 results reflected continued momentum in Calvin Klein and TOMMY HILFIGER, supported by growth in direct-to-consumer sales across both stores and e-commerce, along with ongoing product innovation and stepped-up marketing.

Delving Deeper Into PVH’s Q1 PerformancePVH Corp. reported adjusted earnings of $2.01 per share, down 12.6% from the year-ago quarter's $2.30. However, the bottom line surpassed the Zacks Consensus Estimate of earnings of $1.80 per share and the company’s guidance of $1.65-$1.80

The EPS figure included the positive effect of 21 cents per share associated with the foreign currency translations.
Revenues increased 2% year over year (flat at constant currency) to $2.025 billion and beat the consensus mark of $1.997 billion.

Direct-to-consumer revenues inched up 6% compared with the prior-year period’s figure (up 3% on a constant-currency basis), buoyed by growth in the Americas and APAC, partly offset by decreases in EMEA. Revenues in PVH Corp.’s owned and operated stores were up 5%, and revenues also rose 2% in constant currency. Meanwhile, owned and operated digital commerce grew 11%, while decreasing 6% in constant currency, with declines in all the regions.

Wholesale revenues were flat from the prior-year period (down 6% on a constant-currency basis), with declines in all the regions.

PVH Corp.’s Costs & Margin DetailsThe company’s gross profit of $1.19 billion grew 2.1% year over year. However, the gross margin remained flat at 58.6% due to the higher U.S. tariffs, elevated promotional backdrop and margin differential owing to the transition of earlier-licensed women’s product categories to an in-house wholesale business. Decline was partly offset by tariff-mitigation efforts and lower product costs, comprising foreign exchange gains.

Adjusted selling, general and administrative expenses were $1.07 billion, up 5.6% year over year. The company’s adjusted earnings before interest and taxes totaled $131.2 million, down 18.3% from the prior-year quarter. It reported an adjusted operating margin of 6.5% in line e with guidance of 6.0% to 6.5%.

PVH’s Segmental AnalysisEMEA revenues increased 2% year over year to $946.1 million. However, on a constant-currency basis, revenues declined 5% due to softness in both the direct-to-consumer and wholesale businesses. The consensus estimate for EMEA revenues was pegged at $940 million.

Americas revenues declined 1% year over year to 602.9 million (down 2% on a constant-currency basis). Growth in the direct-to-consumer business was not enough to offset weaker wholesale sales. The decline in wholesale revenues was primarily due to a shift in the timing of shipments, with more wholesale deliveries expected in the second half of 2026 compared with the prior year. This was partially offset by higher sales resulting from bringing previously licensed women’s product categories in-house.

APAC revenues grew 10% year over year to 387 million, or 6% on a constant-currency basis. The constant-currency growth benefited from an approximately 4% boost related to the timing of the Lunar New Year, which fell in the first quarter of 2026 but not in the same period of 2025. Revenue growth was primarily driven by strength in the direct-to-consumer business, though this was partly offset by lower wholesale sales.

Licensing revenues fell 7% year over year to $89.1 million, mainly due to license transitions in North America.

PVH Corp.’s Brand PerformanceRevenues for the Calvin Klein segment increased 1% year over year (down 3% on a constant-currency basis).
Revenues for the Tommy Hilfiger brand rose 3% year over year (down 2% on a constant-currency basis).

Closer Look at PVH's Financial PerformancePVH Corp. ended the fiscal year with cash and cash equivalents of $592.5 million, long-term debt of $2.27 billion and stockholders’ equity of $4.89 billion. Inventories were down 5% year over year to $1.51 billion.

What to Expect From PVH in Q2 and FY26?PVH expects full-year fiscal 2026 revenues to be approximately flat on a reported basis, a step down from its prior view calling for a slight increase. On a constant-currency basis, the company now projects revenues to decrease slightly, compared with its earlier expectation of flat to slightly up.

On profitability, PVH reaffirmed its non-GAAP operating margin outlook of approximately 8.8%, flat with the non-GAAP margin delivered in fiscal 2025. The full-year margin view reflects an estimated net negative impact from U.S. tariffs, including a gross impact of about 215 basis points with a partial offset from mitigation actions, alongside an estimated positive impact of roughly 100 bps tied to tariff refunds.

 PVH also reiterated its full-year fiscal 2026 non-GAAP earnings outlook of $11.80-$12.10 per share versus non-GAAP earnings of $11.40 in fiscal 2025. Management expects the fiscal 2026 earnings outlook to include an estimated gross tariff headwind of about $3.30 per share with partial mitigation, an estimated benefit of about $1.70 per share from tariff refunds and an estimated $0.40 per-share benefit from foreign currency translation. Net interest expense is projected at approximately $75 million, with the effective tax rate expected in the 22%-23% range.

PVH expects second-quarter fiscal 2026 revenues to decline 3% to 4% from the second quarter of fiscal 2025, with revenues projected to decrease 4% to 5% on a constant-currency basis.

On profitability, PVH sees a non-GAAP operating margin of about 9.5%, up from 8.2% in the year-ago period, reflecting an estimated positive impact of roughly 470 bps tied to tariff refunds. Non-GAAP earnings are projected at $3.00-$3.10 per share versus $2.52 a year ago, including an estimated $0.05 per-share benefit from foreign currency translation. Net interest expense is expected to be approximately $18 million, and the effective tax rate is projected at about 22%.

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

The consensus estimate has shifted 20.34% due to these changes.

VGM ScoresCurrently, PVH has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of A on the value side, putting it in the top 20% for value investors.

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

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

Performance of an Industry PlayerPVH is part of the Zacks Textile - Apparel industry. Over the past month, Ralph Lauren (RL - Free Report) , a stock from the same industry, has gained 8.6%. The company reported its results for the quarter ended March 2026 more than a month ago.

Ralph Lauren reported revenues of $1.98 billion in the last reported quarter, representing a year-over-year change of +16.6%. EPS of $2.80 for the same period compares with $2.27 a year ago.

For the current quarter, Ralph Lauren is expected to post earnings of $4.26 per share, indicating a change of +13% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

Ralph Lauren has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.

HomeStock IdeasLong IdeasHealthcare 

SummaryCrispr Therapeutics secured FDA pediatric approval for Casgevy, expanding its addressable market and reinforcing its leadership in CRISPR/Cas9 gene editing.Casgevy’s robust clinical efficacy, global approvals, and strong safety profile support its multibillion-dollar potential, despite initial slow commercial uptake due to complex treatment and high cost.CRSP’s pipeline includes innovative in-vivo and allogeneic programs targeting cardiovascular and autoimmune diseases, aiming to further simplify and expand gene therapy applications.With pediatric approval, CRSP is positioned for accelerated revenue growth; patient pool expansion and technical advances could drive significant upside toward historic share price highs.Haggerston BioHealth members get exclusive access to our real-world portfolio. See all our investments here » wildpixel/iStock via Getty Images

Investment Overview - Casgevy Secures Pediatric Approval Crispr Therapeutics (CRSP) stock jumped >8% in trading yesterday, reaching a four-month high value of $60 per share and a market cap valuation of $5.79bn, after the company and partner Vertex Pharmaceuticals (

15.01K Followers

Analyst’s Disclosure: I/we have a beneficial long position in the shares of CRSP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Key Takeaways Helen of Troy is expected to report Q1 fiscal 2027 revenue growth of 0.9% to $375.1 million.HELE's earnings estimate sits at 2 cents a share, implying a 95.1% drop from the prior year.Tariff costs, weak discretionary demand and retailer caution may weigh on HELE's profitability. Helen of Troy Limited (HELE - Free Report) is likely to witness top-line growth when it reports first-quarter fiscal 2027 earnings on July 8. The Zacks Consensus Estimate for revenues is pegged at $375.1 million, indicating an increase of 0.9% from the prior-year quarter’s reported figure.

The consensus mark for earnings has remained unchanged over the past 30 days at 2 cents a share, which suggests a decline of 95.1% from the figure reported in the year-ago period. HELE has a trailing four-quarter negative surprise of around 5%, on average.

Factors Likely to Influence HELE’s Upcoming ResultsHelen of Troy’s first-quarter fiscal 2027 results are likely to reflect continued progress in its brand revitalization strategy. The company entered the year with a greater focus on innovation, marketing and consumer engagement, supported by new product launches across several key brands, including Hydro Flask, OXO, Revlon, Osprey and Olive & June. Continued investments in digital capabilities, social commerce and international expansion may also have supported consumer engagement and sales execution during the quarter.

Operational initiatives are also expected to have remained supportive. Helen of Troy continued to diversify its manufacturing footprint, strengthen dual sourcing and enhance supply-chain capabilities to mitigate tariff exposure and improve operational resilience. The company also maintained its focus on working-capital efficiency, inventory optimization and technology investments, including advanced planning and AI-enabled capabilities, which could have aided execution during the quarter.

Our model suggests organic volumes to dip 0.5% in the first quarter, indicating an improvement from a 6.1% decline witnessed in the fourth quarter of fiscal 2026.

However, the first-quarter performance may have been constrained by a difficult operating backdrop. On its fourth-quarter fiscal 2026 earnings call, management continued to anticipate inflationary pressures, cautious discretionary spending, conservative retailer inventory management and a highly competitive promotional environment. These factors may have weighed on demand across discretionary categories and kept retailer ordering patterns measured, limiting the pace of top-line recovery.

First-quarter profitability may have been hurt by higher tariff-related costs, as the company expected them to weigh more heavily in the first half of fiscal 2027. Continued spending on marketing, innovation and talent to rebuild brand momentum is also likely to have limited margin gains. Our model suggests an adjusted operating margin contraction of 130 basis points to 3% for the first quarter.

Q1 Earnings Whispers for HELEOur proven model doesn’t conclusively predict an earnings beat for Helen of Troy 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, which is not the case here.

 Helen of Troy currently carries a Zacks Rank #2 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re 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.

Kimberly-Clark Corporation (KMB - Free Report) currently has an Earnings ESP of +0.39% and a Zacks Rank of 3. The Zacks Consensus Estimate for Kimberly-Clark’s upcoming quarterly revenues is pegged at $4.23 billion. The figure implies a 1.7% increase from the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Kimberly-Clark’s quarterly earnings per share is pegged at $1.99, indicating a 3.7% gain from the year-ago period figure. KMB delivered a trailing four-quarter earnings surprise of 19.1%, on average.

Celsius Holdings, Inc. (CELH - Free Report) currently has an Earnings ESP of +1.30% and a Zacks Rank of 3. The consensus estimate for CELH’s quarterly revenues is pinned at $891.5 million, which calls for 20.6% growth from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Celsius Holdings’ upcoming quarter’s EPS is pegged at 42 cents, which implies a 10.6% decrease year over year. CELH delivered a trailing four-quarter earnings surprise of 58.1%, on average.

Tyson Foods, Inc. (TSN - Free Report) currently has an Earnings ESP of +2.17% and a Zacks Rank of 3. The consensus estimate for Tyson Foods’ quarterly revenues is pinned at $14.29 billion, which suggests 2.9% growth from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for the upcoming quarter’s EPS is pegged at $1.04, which implies a 14.3% increase year over year. TSN delivered a trailing four-quarter earnings surprise of nearly 18.1%, on average.

The roller coaster ride continues for AST SpaceMobile NASDAQ: ASTS shareholders.

After space stocks were battered in the wake of the SpaceX NASDAQ: SPCX IPO in June, AST SpaceMobile rewarded patient investors with its best daily performance in two years.

Shares of the Midland, Texas-based space-based direct-to-device (D2D) cellular broadband provider surged 21% on Monday, June 29, to close out the second quarter on a strong note. This was a welcome reprieve after a month in which the market punished ASTS despite the successful launch of its low Earth orbit (LEO) BlueBird satellites 8, 9, and 10.

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AST SpaceMobile, Inc. (ASTS) Price Chart for Friday, July, 3, 2026

The catalyst for this week’s big jump was Japan’s plan to grant up to 148 billion yen (approximately $912 million) to a satellite communications project led by Rakuten OTCMKTS: RKUNY. That put AST SpaceMobile’s Rakuten partnership back into the spotlight while raising hopes for a major D2D rollout in Japan.

Japan Announces Massive Space-Based Telecom SubsidyAST SpaceMobile Today

$85.13 0.00 (0.00%)

As of 07/2/2026 04:00 PM Eastern

52-Week Range$36.08▼

$133.86Price Target$85.09

Motivated by concerns that critical communications infrastructure has become too dependent on foreign satellite networks such as SpaceX’s Starlink, Japan is using the Japan Low Earth Orbit Satellite Communications Project (J-LEO) to support a more resilient domestic alternative.

The program is expected to focus on satellite connectivity for remote areas, disaster response, and emergency communications, giving the Rakuten-led effort strategic value beyond a standard commercial telecom rollout.

According to the Japan Times, Japan's Ministry of Internal Affairs and Communications secured funding for the J-LEO in 2025, but the tender process didn’t conclude until last month. The plan calls for massive investment in the build-out of a homegrown D2D satellite network over the next three years.

Beyond the subsidy news, Rakuten announced plans for a joint venture with AST SpaceMobile that will secure full regulatory approval for D2D operations in Japan. Initial commercial services are expected to begin later in 2026, with a full rollout slated for 2027.

The move could become a boon for AST SpaceMobile. Having narly $1 billion in sovereign-backed capital would give the company a clearer template for monetizing its technology through carrier- and government-backed international networks.

Launch Window Set for BlueBirds 11, 12, and 13After the successful June launch of its latest three satellites, AST SpaceMobile says it intends to launch BlueBirds 11, 12, and 13 from Cape Canaveral, Florida, in the first half of August. That will go a long way in keeping the company on track to meet its goal of putting 45 LEO satellites in orbit by the end of 2026.

“These next-generation satellites are expected to deliver nearly double the peak data speeds of AST SpaceMobile's initial Block 1 BlueBird satellites, which recently achieved peak download speeds of 98.9 Mbps directly to standard smartphones," according to a recent company press release.

Beyond 2026, the company is scaling towards a constellation of 45 to 60 satellites, which it will require to provide initial continuous coverage in the United States and Japan. That number will need to increase to provide continuous global coverage, with approximately 90 BlueBirds required.

Ultimately, AST SpaceMobile could have as many as 248 satellites deployed to expand its network, increase its data capacity, and support a massive global clientele. However, the company has discussed a long-term plan that could involve up to 540 dual-use satellites over the next decade.

Despite Catalysts, Wall Street Remains TepidDespite the news and subsequently bullish price action, the jury is still out on AST SpaceMobile.

AST SpaceMobile Stock Forecast Today12-Month Stock Price Forecast:
$85.09
-0.05% Downside

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Based on 10 Analyst Ratings

Current Price$85.13High Forecast$108.00Average Forecast$85.09Low Forecast$45.60AST SpaceMobile Stock Forecast Details

In Q2, the stock saw a series of less-than-inspiring ratings. On May 29, William Blair reissued a Market Perform rating on ASTS, while Wall Street Zen lowered its rating from a Sell to a Strong Sell on April 15.

On May 12, B. Riley Financial increased its ASTS price target from $75 to $85; however, the firm assigned the stock a Neutral rating. Also on May 12, UBS Group lowered its price target from $85 to $80, while in a research note dated June 24, Weiss Ratings reiterated its Sell rating.

Based on the 10 analysts currently covering ASTS, the stock receives a consensus Reduce rating, with a 12-month price target implying around 4% upside from current levels. Meanwhile, current short interest stands at a worrisome 20.35% of the float, or nearly 62.5 million shares valued at $5.47 billion.

However, AST SpaceMobile has agreements with nearly 60 global mobile network providers, totaling more than 3 billion subscribers, and strategic partnerships in place with AT&T NYSE: T, Verizon NYSE: VZ, Vodafone NASDAQ: VOD, Rakuten, Alphabet NASDAQ: GOOGL, and real estate investment trust American Tower NYSE: AMT, among others.

Long-term, the company should continue to enjoy top-line growth that translates into strong earnings for patient investors.

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Nuclear energy is entering a new growth cycle as rising power demand, expanding data centers, and renewed policy support bring the sector back into focus. After strong gains in recent years, the most impactful phase of nuclear investment may still be ahead. This report highlights seven nuclear energy stocks positioned across the value chain—combining near-term revenue with long-term upside as next-generation technologies scale. Click the link below to unlock the full list.

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Shares of Astera Labs, Inc. (ALAB) up 27.5% since first outlier inflow signal in late May.

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ALAB provides AI infrastructure connectivity, offering a range of semiconductor-based solutions for bandwidth, latency, and reliability in AI and cloud data centers. Its first-quarter fiscal 2026 report showed $308.4 million in quarterly revenue (a 93% year-over-year rise), non-GAAP per-share earnings of $0.61, and Q2 revenue guidance of up to $365 million (an 18% gain) on the back of further AI-related product adoption.

No wonder ALAB shares are up 159% so far this year – and they could rise more. MoneyFlows data shows how Big Money investors are again betting heavily on the stock.

Big Money Buys Astera Labs Institutional volumes reveal plenty. In the last year, ALAB has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in ALAB shares. They reflect our proprietary inflow signal, pushing the stock higher:

Source: www.moneyflows.com Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Astera Labs.

Astera Labs Fundamental Analysis Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, ALAB has had strong sales growth:

1-year sales growth rate (+115.1%) 3-year sales growth rate (+134.1%) Source: FactSet

Also, EPS is estimated to ramp higher this year by +47.8%.

Now it makes sense why the stock has been generating Big Money interest. ALAB has a track record of strong financial performance.

Marrying great fundamentals with MoneyFlows software has found some big winning stocks over the long term.

Astera Labs recently became a top-rated stock at MoneyFlows. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s had three Big Money outlier inflow signals in total, all of them this year. The blue bars below shows when ALAB was a top pick…Big Money is building its position:

Source: www.moneyflows.com Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Astera Labs Price Prediction The ALAB action isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in ALAB at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level and follow our free weekly MoneyFlows insights.

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Incyte Shares Rise on EPS Growth, Lifted Guidance, ExpansionForex Forecasts – US Holiday Liquidity Caps Asian Currency RecoveriesUS Indices Forecasts – Nasdaq 100 Targets Breakout While S&P 500 Eyes 7550About the Author

Lucas is a well-versed equity investor and educator. He currently is co-founder of research and analytics firm, MAPsignals.com, which focuses on finding outlier stocks by following the Big Money.

Editors’ Picks

A Tesla Robotaxi vehicle with a safety monitor employee in the passenger seat drives through traffic in Austin, Texas, U.S., February 13, 2026. REUTERS/Evan Garcia/File Photo Purchase Licensing Rights, opens new tab

CompaniesJuly 3 (Reuters) - Tesla (TSLA.O), opens new tab said on Friday its robotaxi was available in Miami, as ​the electric vehicle maker looks to ‌expand its autonomous ride-hailing operations.

The expansion highlights Tesla's efforts to increase adoption of its ​self-driving software, a version of which ​it uses in the robotaxis and ⁠a key part of CEO Elon ​Musk's shift from EVs to AI and ​robotics.

Stay up to date with the latest news, trends and innovations that are driving the global automotive industry with the Reuters Auto File newsletter. Sign up here.

"Robotaxi now available in Miami," Tesla's official robotaxi account said in a post on X.

Tesla's ​move comes as the robotaxi sector ​gains momentum, with competitors such as Alphabet's (GOOGL.O), opens new tab Waymo ‌and ⁠Amazon's (AMZN.O), opens new tab Zoox accelerating their expansion efforts.

Tesla launched its unsupervised robotaxi service in Austin, Texas, in June, after announcing in April ​plans to ​expand the ⁠offering to Dallas and Houston.

Musk said in May he expects fully ​self-driving cars without human safety monitors ​to ⁠become more widespread in the U.S. later this year.

On Thursday, Tesla posted record-setting second-quarter ⁠deliveries ​that beat Wall Street ​estimates, led by a rebound in Europe.

Reporting by ​Koyena Das in Bengaluru Editing by Rod Nickel

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

“When we lead with sport, we win,” Nike CEO Elliott Hill said. SANTA MONICA, CALIFORNIA - JUNE 10: A pedestrian walks by a display of international soccer player photos outside of a Nike store on June 10, 2026 in Santa Monica, California. Retailers and restaurants are getting ready for the World Cup, which begins on June 11 and runs through July 19. (Photo by Justin Sullivan/Getty Images)

Getty Images

Nike just delivered a sobering fiscal 2026 earnings report, underscoring how difficult it is for a market leader to play catch-up in a category it once defined. While the company still expects headwinds through the first two quarters of fiscal 2027, it sees momentum building—led by outstanding performance around the World Cup, including over 1.5 billion views of the “Rip the Script” video during the first week of play. World Cup tailwinds haven’t yet shown up in the latest quarter, which ended May 31.

Now with a challenging fourth quarter and full year behind it, Nike is going on offense. “We’re not building this business for the next quarter or the next year. We’re building it for the decade to come,” CEO Elliott Hill said in the earnings call.

Nike will realize that goal through the Sport Offense strategy: a new corporate structure built around cross-functional teams organized by sport. Essentially, Sport Offense puts sports culture—the distinct identity, passion and performance expectations of each sport—back to the center of everything “Nike,” reversing its product-centric approach of recent years. Sport Offense marks a return to the sport-led model that originally made Nike great. “When we lead with sport, we win,” Hill said.

Early Innings Of Nike’s TurnaroundWhile the full year revenues beat Wall Street expectations—coming in flat at $46.4 billion (down 2% constant currency)—the fourth quarter was down 1% reported (-4% currency neutral) to $11 billion. A 3% uptick in North America to $4.8 billion couldn’t overcome a staggering 17% constant-currency decline in China to $1.3 billion and a 6% drop to $3 billion in EMEA.

A similar mixed picture runs throughout the latest earnings report. Quarterly net income jumped from $211 million last year to $1.1 billion this year, thanks to a one-time $986 million tariff refund. For the full year, net income fell 3% to $3.1 billion, and earnings per share were down 3%.

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Year-end Nike Brand revenues increased 1% to $45.2 billion (-1% constant-currency), Converse brand continued to be a drag, down 31% to $1.2 billion. Hill said the Converse brand strategy was being “sharpened” around the Chuck Taylor and Jack Purcell lines. Basketball star Shai Gilgeous-Alexander, previously with Converse, has now moved over to the Nike Basketball lineup.

Distribution was uneven too. Wholesale, accounting for nearly 60% of revenues in 2025, rose 6% for the year (+4% constant currency), while Nike Direct revenues dropped 6% (-8% constant currency) with digital sales down 12% and Nike-owned stores off 4%.

A return to growth at Foot Locker was the quarter’s wholesale highlight. For the first time in four years, Foot Locker posted positive revenue growth and retail sales comps.

On the plus side, Nike is mending fences with independent retail partners, key influencers in the sporting goods sector. But the shortfall in Nike Direct indicates some brand weakness. It is taking steps to correct that by elevating the customer experience in-store with a focus on “celebrating sports moments.”

Some 150 stores have gotten the “sports-led experience” makeover to date and Nike plans to elevate 50% of its owned store fleet by the end of fiscal 2027. Last year, the company operated 85 in-line Nike stores in the U.S. and 61 internationally. Factory stores make up the bulk of Nike brand’s retail footprint, over 200 in the U.S. and nearly 550 internationally.

Coming up short this quarter was Nike Sportswear, down double-digits, and Jordan Streetwear. Acknowledging the critical need to get both back on track—together they represent about half of company revenues—Hill said, “Our point of differentiation—what creates authenticity for Nike—is our sport business. That creates the halo over both of those brands and what differentiates us from fashion brands.”

During his remarks, Hill pointed to Serena Williams wearing the Radical Air sneaker on the Wimbledon court. The innovation in that sneaker will start to show up in Sportswear soon.

That’s the halo the Sport Offense is designed to create: sport-born authenticity that lifts every brand across the portfolio and every customer touchpoint.

On OffenseAgainst a backdrop where its more lifestyle-oriented sportswear and streetwear ranges flagged, sports performance offerings got a lift. “Our renewed obsession with sport and the success of our athletes is fueling energy for our brands and building momentum in our performance business, which grew mid-single digits this fiscal year,” Hill reported.

Running was the first sport to get the Sport Offense makeover and the results are showing: Nike running delivered five consecutive quarters of double-digit growth and added about $1 billion to its running business. Hill also added that across Europe and North America, Nike footwear gained 5 points of running market share— more than any other top-five brand. He didn’t name names, but Adidas, Asics, New Balance and Puma are chief competitors in the category.

Training, basketball, all-conditions gear are also being realigned around the Sport Offense strategy, but key at the moment is global football, where Adidas is giving it a run for its money. Brand Adidas sales were up 13% constant currency in fiscal 2025 and advanced 14% through first quarter ending March 31. Adidas is also the only sportswear global partner with FIFA, and is dressing 14 teams in the World Cup, compared to Nike’s 12.

World Cup Forward MomentumHill pointed to global football as the best example of how the Sport Offense is playing out. “We’re not treating the tournament as a single moment. We’re using it to reshape our business, telling a connected story over time, engaging different communities in relevant ways and building momentum that carries well beyond the tournament.”

Pivotal to its World Cup moment—and long-term global football strategy—is the storytelling embedded in the six-minute “Rip the Script” long-form video and its numerous short-segment spin-offs.

In a Business of Fashion podcast, Helena Thornton, vice president of Nike brand management, shared, “We live in an attention-deficit culture, don’t we? You’ve got three seconds to catch somebody’s attention, and we said, as a team, if the story is good enough, people will want to watch it.”

With over 1.5 billion views, “Rip the Script” has massively broken through, with Thornton noting that many people are staying around for the whole thing—not to mention those who come back to catch the Easter eggs liberally stashed along the way. “It’s so easy in today’s world to get lost in all of the data and all of the analytics, but if your story is good enough, people are captivated,” she continued.

Nike is counting on World Cup fever to carry on, even if the company hasn’t factored it into its muted guidance for the first half of fiscal 2027. To date, it’s racked up a number of wins:

Nike has sold 2.5 times as many national team kits as in the same period before the 2022 World Cup. The Aero-Fit sports apparel line, designed to help athletes compete in extreme conditions, has accelerated demand. The Mercurial boot became Nike’s fastest-selling cleated footwear launch in the history of Nike Direct.More than 5,000 football retail doors globally have been elevated around the World Cup. The World Cup “halo” is expected to drive high-single-digit demand growth in the first quarter, a company spokesperson shared with me.Significantly, Nike is replacing Adidas as Germany’s national team kit partner next year—a real blow for Adidas on its home turf.

Sport Offense Puts The Swoosh Back In NikeJefferies analyst Randal Konik believes that Nike bottomed out in the fourth quarter and is stabilizing. Yet he asserted, “Nike’s fiscal fourth quarter results confrm that the right strategies are in place under CEO Hill and are proving themselves out,” pointing to improved margins, disciplined cost management in place, stable inventories and performance growing mid-single-digits.

“The real signal for us is North America—that geography grew 3% and wholesale was up 10%,” he continued. “Getting wholesale back was a central piece of our upgrade thesis, and now it’s actually happening.”

While Konik offers a largely positive read of the latest results, GlobalData’s Neil Saunders is more measured. “There is no doubt that Nike has been trying to aim higher and run faster. Despite these efforts, it has still ended its fiscal year with a whimper rather than going out with a bang,” and he added, “Full recovery remains elusive and a long way off.”

CEO Hill shares Saunder’s frustration. “Overall, the results aren’t there yet. We know we are not living up to our full potential.” However, he feels the renewed energy among his team and momentum growing underneath the latest numbers—and those still to come.

“I see the progress. I see the structural change. I see the foundation getting stronger. I see the Sport Offense taking hold. I see a team that’s been tested and is ready for what’s in front of us,” he concluded. “The goal isn’t one championship. It’s to build a team that can do it again and again.”

See Also:

ForbesAdidas Leans Into Soccer While Nike Chases Culture In World Cup Marketing ShowdownBy Pamela N. Danziger

The upcoming report from PepsiCo (PEP - Free Report) is expected to reveal quarterly earnings of $2.19 per share, indicating an increase of 3.3% compared to the year-ago period. Analysts forecast revenues of $23.85 billion, representing an increase of 4.9% year over year.

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 0.1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.

Given this perspective, it's time to examine the average forecasts of specific PepsiCo metrics that are routinely monitored and predicted by Wall Street analysts.

The consensus among analysts is that 'Reported Net Revenue, GAAP measure- IB Franchise (International Beverages Franchise)' will reach $1.46 billion. The estimate indicates a year-over-year change of +6.6%.

It is projected by analysts that the 'Reported Net Revenue, GAAP measure- EMEA (Europe, Middle East and Africa)' will reach $4.85 billion. The estimate points to a change of +7% from the year-ago quarter.

Based on the collective assessment of analysts, 'Reported Net Revenue, GAAP measure- PBNA (PepsiCo Beverages North America)' should arrive at $7.16 billion. The estimate suggests a change of +5.3% year over year.

The consensus estimate for 'Reported Net Revenue, GAAP measure- PFNA (PepsiCo Foods North America)' stands at $6.54 billion. The estimate indicates a year-over-year change of +1%.

Analysts expect 'Reported Net Revenue, GAAP measure- LatAm Foods' to come in at $2.83 billion. The estimate indicates a change of +11.1% from the prior-year quarter.

The combined assessment of analysts suggests that 'Reported Net Revenue, GAAP measure- Asia Pacific Foods' will likely reach $1.07 billion. The estimate points to a change of +7.2% from the year-ago quarter.

Analysts' assessment points toward 'Core Operating Profit, non-GAAP measure- PFNA (PepsiCo Foods North America)' reaching $1.57 billion. Compared to the present estimate, the company reported $1.49 billion in the same quarter last year.

According to the collective judgment of analysts, 'Core Operating Profit, non-GAAP measure- PBNA (PepsiCo Beverages North America)' should come in at $1.07 billion. The estimate compares to the year-ago value of $994.00 million.

Analysts forecast 'Core Operating Profit, non-GAAP measure- IB Franchise (International Beverages Franchise)' to reach $587.22 million. Compared to the current estimate, the company reported $538.00 million in the same quarter of the previous year.

The average prediction of analysts places 'Core Operating Profit, non-GAAP measure- LatAm Foods' at $512.03 million. Compared to the present estimate, the company reported $545.00 million in the same quarter last year.

Analysts predict that the 'Core Operating Profit, non-GAAP measure- Asia Pacific Foods' will reach $110.28 million. The estimate is in contrast to the year-ago figure of $93.00 million.

The collective assessment of analysts points to an estimated 'Core Operating Profit, non-GAAP measure- EMEA (Europe, Middle East and Africa)' of $722.01 million. The estimate compares to the year-ago value of $657.00 million.

View all Key Company Metrics for PepsiCo here>>>

Shares of PepsiCo have experienced a change of +1.5% in the past month compared to the -1.7% move of the Zacks S&P 500 composite. With a Zacks Rank #4 (Sell), PEP is expected to underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Key Takeaways Moderna outlined a strategy to expand its mRNA platform beyond vaccines into multiple therapies.Shares of the company rallied as Science Day spotlighted oncology, autoimmune and cell therapy programs.MRNA expects early-stage programs, including in vivo CAR-T and CAR-M therapies, to enter the clinic by 2027. Shares of Moderna (MRNA - Free Report) have surged 33.5% over the past week, adding nearly $8 billion to the company's market value.

The rally was sparked by Moderna's Science Day, where management outlined its vision to evolve beyond vaccines into a diversified biotechnology company. The event showcased how the company plans to leverage its messenger RNA (mRNA) platform across multiple therapeutic areas, including oncology, autoimmune diseases and cell therapy, while unveiling a new research and early development framework to accelerate pipeline innovation.

Moderna Leverages Its mRNA Platform Beyond VaccinesAs part of its long-term strategy, the company has grouped its business into three development horizons. Moderna emphasized that its commercial products, late-stage pipeline assets — including respiratory vaccine programs and its Merck (MRK - Free Report) -partnered personalized cancer therapy — as well as investigational rare disease therapies, represent Horizon 1, the foundation of its current business.

Beyond these established programs, Moderna introduced Horizon 2 and Horizon 3, underscoring its ambition to expand the application of its mRNA platform well beyond vaccines. Horizon 2 comprises emerging therapeutic modalities already in clinical development, including cancer antigen therapies, T-cell engagers, cell therapy enhancers and an investigational therapy for multiple sclerosis.

Horizon 3 comprises earlier-stage research programs that have not yet entered the clinic but are expected to advance into first-in-human studies before the end of 2027. These include in vivo CAR-T and CAR-M cell therapies, which could become the company's next-generation growth platforms.

Moderna is not alone in broadening the application of mRNA technology. The company’s rival BioNTech (BNTX - Free Report) is also leveraging its mRNA platform beyond vaccines and building an extensive pipeline across oncology and other disease areas to diversify its long-term growth prospects.

Why Investors Are Paying Attention to MRNA StockInvestors appear to have welcomed Moderna's efforts to expand the use of its mRNA platform beyond vaccines. Among the highlights was mRNA-6007, the company's first investigational in vivo CAR-T candidate for autoimmune diseases such as systemic lupus erythematosus (SLE), representing Moderna's entry into cell therapies. The program is part of the company's Horizon 3 pipeline, which management expects to advance into clinical studies by the end of 2027.

More broadly, the event underscored Moderna's strategy to use its mRNA platform to develop multiple classes of medicines spanning oncology, rare diseases, autoimmune disorders and cell therapies. By broadening the application of its mRNA platform across diverse therapeutic areas, the company aims to diversify future revenue streams beyond respiratory vaccines. The strategy appears to have resonated with investors, helping lift the stock to a 52-week high of $81.40.

MRNA’s Price Performance, Valuation & EstimatesShares of Moderna have skyrocketed more than 170% year today, significantly outperforming the industry’s 5.5% growth.

Image Source: Zacks Investment Research

From a valuation standpoint, the company is currently trading at a premium to the industry. Based on the price-to-sales (P/S) ratio, the stock trades at 13.16 times forward 12-month sales, higher than the industry average of 1.91 times.

Image Source: Zacks Investment Research

Estimates for Moderna’s 2026 and 2027 bottom line have declined over the past 60 days.

Image Source: Zacks Investment Research

Moderna currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways KMB could face higher input costs if oil averages about $100 per barrel in the second half of fiscal 2026.KMB targets 6% gross productivity again, backed by efficiency initiatives and supply chain investments.KMB said about 80% of its cost basket is covered through contracts, hedging and cost management. Kimberly-Clark Corporation (KMB - Free Report) faces near-term challenges related to increased input costs. At its first-quarter fiscal 2026 earnings call, the company indicated that if oil prices average around $100 per barrel in the second half of fiscal 2026, the company could face incremental gross input costs of approximately $150-$170 million. However, this potential impact has not been incorporated into its outlook due to ongoing uncertainty and multiple evolving factors.

KMB is focused on managing rising input costs through strengthened cost management capabilities, pricing discipline and continued industry-leading productivity. The company has also enhanced its Revenue Growth Management discipline, reinforcing its ability to manage pricing effectively. It remains committed to a disciplined approach centered on maintaining pricing net of commodity input cost neutrality over time, while leveraging all available tools to uphold this pricing and cost management framework.

Kimberly-Clark continues to execute a strong pipeline of productivity initiatives, consistently delivering 6% gross productivity for two consecutive years. It has already achieved 6% gross productivity in the first quarter of fiscal 2026, and remains on track to deliver the same level for the full year. 
Management highlighted a robust pipeline of efficiency initiatives while continuing to make significant investments in its North America supply chain. The previously announced $2 billion supply chain investment is progressing as planned, supporting its long-term operational priorities.

Additionally, the company noted that approximately 80% of its overall cost basket is covered through contractual arrangements, programmatic hedging and other cost management measures, providing greater visibility into input costs while supporting a disciplined approach to managing cost exposure. Overall, Kimberly-Clark believes its disciplined execution, productivity initiatives and integrated margin management framework support its ability to recover input cost inflation over time while remaining aligned with its long-term margin expansion plans.

The Zacks Rundown for KMBShares of this Zacks Rank #3 (Hold) company have gained 17% in the past six months compared with the industry’s growth of 4.8%.

Image Source: Zacks Investment Research

From a valuation standpoint, KMB trades at a forward price-to-earnings ratio of 15.29, lower than the industry’s average of 17.96.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for KMB’s current fiscal year earnings implies a year-over-year decline of 0.7%, while the consensus mark for next fiscal year earnings implies year-over-year growth of 0.5%.

Image Source: Zacks Investment Research

Stocks to ConsiderSome better-ranked stocks have been discussed below:

ARKO Corp. (ARKO - Free Report) operates a chain of convenience stores in the United States. ARKO currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for ARKO's current fiscal-year sales implies a decline of 2.8%, while the same for current fiscal-year earnings implies growth of 93.3% from the year-ago reported figures. ARKO delivered a trailing four-quarter earnings surprise of 43.2%, on average.

Church & Dwight Co., Inc. (CHD - Free Report) develops, manufactures and markets household, personal care and specialty products. At present, CHD carries a Zacks Rank of 2 (Buy).

The Zacks Consensus Estimate for CHD’s current fiscal-year sales implies a decline of nearly 1%, and the same for current fiscal-year earnings implies growth of 6.2% from the year-ago reported figures. CHD reported a trailing four-quarter average earnings surprise of 6.5%.

Ollie’s Bargain Outlet Holdings Inc. (OLLI - Free Report) is a retailer of closeout merchandise and excess inventory in the United States. It holds a Zacks Rank #2.

The Zacks Consensus Estimate for Ollie Bargain’s current financial-year sales and earnings indicates 12.7% and 17.1% growth from the last year, respectively. OLLI reported a trailing four-quarter average earnings surprise of 4.9%.

Last week, the artificial intelligence (AI) community held its breath ahead of Micron Technology's (MU 5.68%) fiscal third-quarter earnings call. Both revenue and earnings per share (EPS) absolutely blew Wall Street's expectations out of the water. But interestingly enough, sales and profits weren't the most important takeaway from the report.

What most investors are overlooking is how Micron is reshaping its customer relationships. The company has implemented strategic customer agreements (SCAs) at a time when AI is driving unprecedented demand for memory and storage. These multiyear contracts provide committed volumes of DRAM and NAND while bringing higher revenue visibility and margin stability than traditional arrangements during prior boom cycles.

By shifting from transactional sales to long-term partnerships, Micron is quietly addressing the core bottleneck of matching the explosive demand for AI-driven infrastructure with reliable supply -- positioning the company for more durable financial performance in the years ahead.

Image source: Micron Technology.

Breaking down the scope of Micron's SCAs According to management, Micron has 16 SCAs across the data center, consumer, and automotive segments. To me, this is the most important figure from Micron's entire earnings report.

These agreements include four "very large customers" and three medium-sized businesses. The balance consists of smaller automotive companies. Management expects that once all the SCAs are completed, approximately half or more of the company's total revenue will stem from these agreements.

The breadth across end markets -- from AI accelerators to smartphones, PCs, and vehicles -- demonstrates that the business model applies broadly rather than being limited to a few hyperscalers.

How are Micron's SCAs structured? Micron's SCAs are structured as take-or-pay contracts with binding commitments to purchase specific volumes over multiyear terms. Most agreements last for five years, spanning calendar 2026 through the end of 2030. The smaller automotive agreements generally cover three years, however.

Management pointed out that the pricing framework includes a floor price that ensures robust gross margins well above Micron's historical peak levels, paired with a ceiling at or near current market prices for existing products. A smaller portion of the SCAs feature fixed pricing, while the rest remain subject to market conditions. Among the SCAs, 14 carry a cumulative minimum revenue commitment of approximately $100 billion over the remaining term.

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Why do Micron's SCAs matter for long-term value? Micron's SCAs fundamentally transform the company's business model by replacing cyclical spot pricing with contracted supply assurance and technology collaboration. In an environment where DRAM and NAND demand is expected to remain tight well beyond calendar year 2027, customers gain visibility into future memory availability while Micron secures predictable volumes and a floor on profit margins.

The result is significantly improved visibility into revenue, gross margins, and free cash flow -- all of which mitigate earnings volatility. The goal of the SCAs is to lock in a baseline of revenue and high-margin business through 2030, ultimately supporting higher, more predictable earnings per share, as floor pricing insulates profitability even if spot prices moderate.

This newfound predictability reduces the historical cyclical discount applied to memory stocks, supporting a more premium valuation profile for Micron over the multiyear horizon of these agreements. The combination of volume commitments and margin floors creates a more resilient earnings stream that aligns with accelerating AI infrastructure build-outs.

While smart investors understand that Micron's execution on new fab capacity and next-generation architectures remains essential, the SCAs meaningfully de-risk the company's financial outlook and reinforce its position as a transformational supplier in the AI chip value chain. In my eyes, this makes investing in Micron stock more compelling as a core position rather than a purely cyclical play to trade.

Taiwan Semiconductor Manufacturing (TSM 2.15%) is one of the most important semiconductor companies in the world, as it manufactures chips for almost all the leading companies that design chips for data centers, gaming consoles, smartphones, personal computers (PCs), cars, and factories, among other things.

It controls nearly three-fourths of the global foundry market, according to Counterpoint Research. Its nearest competitor has a market share of just 7%. Not surprisingly, TSMC exercises phenomenal pricing power in the foundry market, and that's the reason why this semiconductor stock is poised to skyrocket following the latest move it may make.

Image source: TSMC.

TSMC is reportedly raising the price of all its advanced manufacturing nodes As reported by Tom's Hardware, TSMC is likely to increase the prices of its advanced chipmaking nodes by 5% to 10%. Several customers use these advanced nodes to produce chips deployed in artificial intelligence (AI) data centers, smartphones, PCs, and other applications. TSMC gets 74% of its total revenue from selling chips made using advanced process nodes, which are classified as 7-nanometer (nm) or smaller.

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As advanced nodes account for a significant share of TSMC's revenue, the purported price hikes will eventually lead to stronger profitability. The Taiwan-based company's net profit margin increased by 7.4 percentage points year over year in Q1 to 50.5%. Given that the reported price increases are already being rolled out, TSMC's margins could get fatter as the year progresses.

What's worth noting is that analysts are projecting a 48% increase in the company's earnings per share in 2026 to $15.80. However, TSMC reported a 65% increase in earnings per share in Q1 to $3.49. So, the higher pricing reportedly set to take effect is likely to help TSMC deliver stronger earnings growth than the market expects.

A stronger-than-expected earnings jump could help the stock deliver more gains this year TSMC stock has gained 39% in 2026, as of this writing. Given that the company seems well-placed to beat analysts' earnings expectations this year due to its strong pricing power and the rapid growth of the AI chip market, further upside in the stock price cannot be ruled out.

Let's assume TSMC's earnings per share jump by 60% this year (almost in line with its Q1 year-over-year earnings growth) to $17.04, from $10.65 per share in 2025, and it trades at 30 times earnings (a discount to the tech-laden Nasdaq Composite index's average earnings multiple of 39), its stock price could reach $511. That implies a potential jump of 15% in this AI stock in the second half of 2026.

However, TSMC's ability to deliver above-average earnings growth could be rewarded with a premium valuation, suggesting it could deliver much stronger gains than anticipated.

Key Takeaways SLB became KOC's first technology partner under the Ahmadi Innovation Valley initiative.SLB will deploy AI, IIoT, reservoir and production technologies under the seven-year agreement.SLB plans to open an innovation center in Kuwait, with operations targeted to begin in 2028. SLB N.V. (SLB - Free Report) has secured a seven-year contract from Kuwait Oil Company (KOC) under the Ahmadi Innovation Valley (AIV) initiative, strengthening its long-term growth prospects in the Middle East. The agreement makes SLB the first contracted technology partner under KOC's flagship innovation program, reinforcing the company's leadership in digital energy technologies and advanced oilfield services.

Under the contract, SLB will collaborate with KOC to develop, evaluate and deploy technologies across artificial intelligence (AI), Industrial Internet of Things (IIoT), reservoir technologies, production optimization, water management and energy transition initiatives.

The award expands a relationship spanning more than 85 years and provides SLB with a long-duration revenue opportunity while strengthening its presence in one of the world's largest oil-producing regions. Beyond technology deployment, SLB plans to establish a dedicated Ahmadi Innovation Valley facility in Kuwait, with construction beginning in 2026 and operations expected to commence in 2028. The new center will support applied research, pilot projects, technology management and knowledge transfer, creating opportunities for future service contracts and strengthening customer relationships.

The contract reflects SLB's focus on growing advanced digital and technology solutions, which generate higher profit margins than standard oilfield services. The agreement also positions the company to benefit from the growing demand for AI-enabled field optimization and automation as energy companies modernize their operations. By becoming KOC's inaugural innovation partner, SLB enhances its Middle East footprint while generating additional cash flow, strengthening its business model and increasing investor appeal.

SLB currently carries a Zacks Rank #3 (Hold).

The business models of players providing equipment and services to energy companies including SLB are dependent on capital spending by the upstream players. Therefore, Weatherford International plc (WFRD - Free Report) , which provides equipment and services to energy companies is benefiting from energy players such as Vista Energy, S.A.B. de C.V. (VIST - Free Report) and Aker BP ASA (AKRBY - Free Report) . Both these companies have upstream operations and are enjoying a favorable pricing environment, with Brent crude oil prices trading above the $70-per-barrel mark, according to oilprice.com.

WFRD, VIST and AKRBY carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Weatherford leverages its equipment and digital solutions to support oil and gas wells across 75 countries throughout their lifecycles. In the first quarter of 2026, WFRD achieved a major milestone in the U.K. sector by completing the initial deployment of its AlphaV casing system in Liverpool Bay. This historic whipstock installation in the Irish Sea lowered operational costs and delivered significant time savings for the project.

Vista operates 257,000 net acres in Argentina’s prolific Vaca Muerta basin, achieving a 67% year-over-year production growth to 134,741 barrels of oil equivalent per day (Boe/d) in the first quarter of 2026. Supported by this strong performance, VIST increased its full-year production guidance to 143,000 Boe/d.

Aker BP operates key Norwegian Continental Shelf (NCS) hubs like Alvheim, Edvard Grieg/Ivar Aasen, Valhall, Skarv and Ula, and holds a stake in Johan Sverdrup. AKRBY has strengthened its NCS portfolio by securing a 19% interest in high-potential exploration licenses, including Grosbeak, Swisher, Toppand and Rover.

Key Takeaways Elevance sued CMS over a Medicare Advantage Star Ratings change it says favored a competitor.ELV says the disputed ratings decision cost about $115 million in Medicare Advantage bonus payments.A ruling could reshape CMS' ratings process and affect insurer payments and competitive positioning. Elevance Health, Inc. (ELV - Free Report) recently filed a lawsuit against the Centers for Medicare & Medicaid Services (CMS), arguing that the agency unfairly changed the Medicare Advantage Star Ratings of one of its competitors after the ratings had already been finalized. Per reports, Elevance claims CMS gave the rival special treatment by recalculating its scores under a different standard while denying similar relief to other insurers.

The company indicates the move created an uneven competitive landscape. Through the lawsuit, Elevance is asking the court to overturn CMS' decision and restore a consistent ratings process for all Medicare Advantage insurers, according to reports.

The dispute centers on Medicare Advantage Star Ratings, which measure plan quality and directly affect bonus payments, marketing strength and member enrollment. According to the lawsuit, CMS revised a competitor's (Clover Health) ratings after identifying an error in its calculations but refused to apply the same approach across the broader industry. ELV estimates the disputed decision cost it about $115 million in Medicare Advantage quality bonus payments.

Elevance argues that once ratings are released, all insurers should be treated under the same rules instead of making company-specific adjustments. The outcome could have meaningful financial consequences for Elevance and other Medicare Advantage insurers.

Higher Star Ratings unlock quality bonus payments from CMS, improve rebate funding and make health plans more attractive during enrollment. Federal spending on Medicare Advantage quality bonuses is expected to top $13 billion this year, rising from 2025 even as the percentage of members in high-performing plans declines, per KFF.

If the court sides with Elevance, CMS could be forced to revisit its ratings process, potentially affecting payments and competitive positioning across the industry. If CMS prevails, the disputed ratings would remain in place, leaving Elevance at a competitive disadvantage against the benefited rival. The case also adds regulatory uncertainty for insurers that rely heavily on Medicare Advantage for future earnings growth.

ELV’s Price PerformanceElevance Health shares have gained 19.2% in the past year compared with the 1.4% rise of the industry.

Image Source: Zacks Investment Research

Zacks Rank & Other Key PicksElevance Health currently has a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader Medical space are CVS Health Corporation (CVS - Free Report) , Pediatrix Medical Group, Inc. (MD - Free Report) and Biodesix, Inc. (BDSX - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for CVS Health’s 2026 bottom line suggests 10.2% year-over-year growth. CVS has witnessed 12 upward estimate revisions over the past 60 days against no movement in the opposite direction. It beat earnings estimates in all the last four quarters, with an average surprise of 16.8%.

The Zacks Consensus Estimate for Pediatrix Medical’s full-year 2026 earnings indicates a 9.3% year-over-year increase. MD beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 21.3%. The consensus mark for revenues suggests 1.3% growth from the year-ago period.

The Zacks Consensus Estimate for Biodesix’s 2026 full-year earnings implies a 37.7% improvement from the year-ago reported figure. BDSX beat earnings estimates in three of the last four quarters and missed once, with an average surprise of 25.6%. The consensus mark for its current-year revenues is pegged at $110.95 million, which indicates a 25.4% year-over-year increase.

Key Takeaways Carvana raised advertising expenses by $92 per retail unit sold in first-quarter 2026.Carvana sees advertising as a key growth pillar alongside referrals, repeat business and customer experience.CVNA says online used-car retail is still early, supporting continued broad-based marketing investment. Carvana Co. , a leading e-commerce platform for buying and selling used cars, isn't just selling more used cars—it's spending aggressively to ensure more consumers know, trust and choose its online car-buying platform.

Carvana increased its advertising expense by $92 per retail unit sold in the first quarter of 2026 as it continued investing in building customer awareness, understanding and trust in its online car-buying platform. The company currently holds nearly 2% of the U.S. used-vehicle retail market, while e-commerce adoption across other retail categories is around 20%, suggesting that online used-car retail remains in the early stages of adoption.

As Carvana scales, it expects to achieve meaningful SG&A leverage through continued operational efficiencies and greater absorption of fixed costs. Increasing awareness, understanding and trust is one of the company's three key growth pillars.

Carvana believes it is still in the early stages of telling its story to consumers and therefore sees ample opportunity to continue investing in advertising. The company expects its marketing efforts to remain broad-based across multiple channels to reach diverse customer segments. Although Carvana did not provide specific guidance on future advertising spending, its advertising expense per retail unit has remained relatively consistent over the past two to three quarters, which it considers a reasonable baseline going forward.

While Carvana is focusing on advertising to expand awareness of its online marketplace, other automotive retailers are pursuing digital strategies of their own to improve customer experience, increase efficiency and support profitability. CVNA currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Lithia Motors, Inc.’s digital platforms, Driveway and GreenCars, are helping boost profitability and expand its market presence. These e-commerce platforms let customers buy, sell and service vehicles online. Early results from Lithia’s investment in Wheels, a top fleet management company, are also strong. Its minority stake in Wheels creates powerful synergies between retail and fleet operations. Together, these moves strengthen Lithia’s mobility ecosystem and support customer retention and long-term profitability.

Group 1 Automotive, Inc. is steadily improving its sales process through digital tools, moving beyond just generating online leads to closing deals faster and at lower cost. Virtual finance and insurance are now available in about one-third of Group 1’s U.S. stores and handle roughly 20% of deals there, with positive customer feedback and lower compensation costs. At the same time, tools like AcceleRide, along with AI-based scheduling and CRM platforms, are helping Group 1 work more efficiently, improve deal conversions and deliver more consistent performance across its dealerships over time.

Carvana’s Price Performance, Valuation and EstimatesCarvana has underperformed the Zacks Internet – Commerce industry in the last six months. CVNA shares have plunged 20.2% compared with the industry’s decline of 4.8%.

Image Source: Zacks Investment Research

 
From a valuation perspective, Carvana appears overvalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 2.37, higher than its industry’s 1.99.

Image Source: Zacks Investment Research

 
The Zacks Consensus Estimate for Carvana’s 2026 and 2027 EPS has moved up 6 cents each in the past 60 days. 

Image Source: Zacks Investment Research

Three outlier inflow signals push biopharmaceutical firm Incyte Corporation (INCY) up 71% in a year.

INCY discovers, develops, and sells proprietary therapeutics focused on hematology, oncology, inflammation, and autoimmunity. The company’s first-quarter fiscal 2026 earnings report, INCY showed $1.27 billion in quarterly revenue (a 21% year-over-year gain) led by Jakafi ($758 million) and Opzelura ($143 million), net sales of $1.1 billion (a 20% rise), and offered annual net sales guidance of up to $4.94 billion, representing a 13% jump from the prior year. To expand its hematology business, the company also recently acquired a therapeutics firm focused on bleeding disorders.

It’s no wonder INCY shares are up 15% this year, and they could rise more. MoneyFlows data shows how Big Money investors are again betting heavily on the stock.

Institutions Buying Incyte Institutional volumes reveal plenty. In the last year, INCY has endured some choppiness. But it’s once again enjoying strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in INCY shares. They reflect our proprietary inflow signal, pushing the stock higher:

Source: www.moneyflows.com Plenty of health care names are under accumulation right now. But there’s a powerful fundamental story happening with Incyte.

Incyte Fundamental Analysis Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, INCY has had strong sales and earnings growth:

3-year sales growth rate (+15%) 3-year EPS growth rate (+1,355%) Source: FactSet

Also, EPS is estimated to ramp higher this year by +16.3%.

Now it makes sense why the stock has been generating Big Money interest. INCY has a track record of strong financial performance.

Marrying great fundamentals with MoneyFlows software has found some big winning stocks over the long term.

Incyte has been a top-rated stock at MoneyFlows for years. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

In the last year, INCY has drawn three outlier inflow signals and is up 70.7%. The blue bars below show when INCY was a top pick on the Outlier 20 report…Big Money support matters:

Source: www.moneyflows.com Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Incyte Price Prediction The INCY action isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in INCY at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level and follow our free weekly MoneyFlows insights.

Warren Buffett is a tough act to follow. He is arguably the greatest investor of his time, transforming Berkshire Hathaway (BRKA +1.41%)(BRKB +1.40%) into a massive holding company with almost 200 subsidiaries and a $330 billion equity portfolio, and he has trounced the S&P 500 over time.

However, Greg Abel, Buffett's handpicked successor, made his mark on the company in the first quarter of 2026, his first as CEO. Here's what it looks like, and how it could change the company's trajectory.

Image source: Getty Images.

Out with the old In his first annual shareholder letter as CEO, Abel committed to upholding the values that shaped Berkshire Hathaway over the 60 years Buffett ran it. He said that "Berkshire's culture and values remain unchanged and will continue into perpetuity," and he specified the commitment to allocating capital efficiently with a business underpinned by a robust insurance operation. He echoed Buffett's maxim that the company's job is to be "exceptional stewards of our shareholders' capital."

He laid out the principles behind his investing strategy, which include:

Investing in companies that Berkshire understands and that have durable, long-term economic moats. Choosing partners with integrity who understand their own customers. Avoiding companies that could tarnish Berkshire's reputation and aren't good for society. Acting quickly and concentrating the portfolio in a few, high-conviction stocks. Staying disciplined. In the company's equity positions, Abel followed these principles when he made his moves. Most noticeable was the immediate termination of most of its smaller positions, followed by a dive straight into the fourth principle to consolidate the portfolio into fewer high-conviction positions. The equity portfolio went from 42 to 29 positions, the lowest number in more than a decade.

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In with the new Abel also expanded the company's position in Alphabet, which is a rare tech stock in the portfolio. One of the stocks closed out was Amazon, so Berkshire remains with two artificial intelligence (AI) stocks, the other being perennial Buffett favorite Apple. Apple can be viewed as a consumer goods company, but Alphabet is more of a pure-play tech stock.

While the portfolio is still highly invested in consumer goods and financial stocks, and the new positions in Macy's and Delta Air Lines are classic Buffett-style stocks, it could signal that Abel feels more comfortable understanding Alphabet and its role in the economy. As the shift to digital and AI continues at a rapid pace, it appears that Abel is willing to invest in it.

Jennifer Saibil has positions in Apple. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, and Berkshire Hathaway. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.

Key Takeaways EMCOR's electrical construction revenues rose 33.1% to a record $1.45B in first-quarter 2026.Network and communications revenues surged nearly 50% on AI infrastructure and data-center demand.EMCOR's remaining performance obligations reached a record $15.62B on strong market bookings. EMCOR Group's (EME - Free Report) electrical construction business continues to build strong momentum, supported by robust demand for mission-critical infrastructure and the company's ability to execute complex projects at scale. In the first quarter of 2026, the segment delivered record revenues of $1.45 billion, up 33.1% year over year, while maintaining an industry-leading operating margin of 12.1%. Although margins eased slightly due to acquisition-related amortization, profitability remained strong, highlighting the resilience of EMCOR's operating model.

The biggest growth driver remains network and communications, where revenues surged nearly 50% as hyperscalers and enterprises accelerated investments in AI infrastructure and data centers. Beyond this, EMCOR benefited from healthy demand across institutional projects, hospitality and entertainment, including stadium construction, as well as higher volumes of short-duration projects and service work. This broad-based demand reduces reliance on any single end market and supports sustainable long-term growth.

Looking ahead, management expects the momentum to continue. Remaining performance obligations climbed to a record $15.62 billion, driven by strong bookings across data centers, healthcare, institutional, water and wastewater and manufacturing markets. The company also continues expanding its geographic footprint while leveraging prefabrication, virtual design, workforce training and disciplined contract management to improve execution on increasingly complex projects.

With AI-driven data center construction showing no signs of slowing and diversified demand across multiple infrastructure markets, EMCOR's electrical construction segment appears well-positioned to remain a key contributor to the company's growth throughout 2026 and beyond.

How Do EMCOR's Peers Compare in Electrical Construction?Two of EMCOR's closest competitors in electrical and mechanical contracting are Quanta Services (PWR - Free Report) and Comfort Systems USA (FIX - Free Report) . Both companies are benefiting from the same secular drivers, including AI data center construction, grid modernization and expanding infrastructure investment.

Quanta continues to strengthen its electrical construction business through large-scale transmission, substation and renewable energy projects, while also increasing its exposure to data centers and communications infrastructure. Quanta has leveraged its engineering expertise and nationwide workforce to secure long-duration projects, giving it strong revenue visibility. As AI-related power demand rises, Quanta is expected to remain a key beneficiary of utility and hyperscaler spending.

Comfort Systems is also expanding its presence in mission-critical facilities through electrical, mechanical and building automation services. Comfort Systems has steadily increased its exposure to data centers, semiconductor manufacturing and advanced industrial facilities, supported by strategic acquisitions. Comfort Systems further benefits from higher-margin service work and prefabrication capabilities that improve execution and profitability.

While both Quanta and Comfort Systems are well-positioned, EMCOR's diversified project portfolio, disciplined contract management and broad geographic reach provide it with a strong competitive position in the rapidly growing electrical construction market.

EME’s Price Performance, Valuation & EstimatesShares of EMCOR have gained 26.6% year to date (YTD), underperforming the Zacks Building Products - Heavy Construction industry, as shown below.

EME YTD Price Performance

Image Source: Zacks Investment Research

From a valuation standpoint, EME stock trades at a forward 12-month price-to-earnings ratio of 24.9, below the industry’s average.

EME Valuation - P/E (F12M)

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for EME’s 2026 sales and earnings implies year-over-year growth of 12% and 13.5%, respectively. Earnings per share estimates for 2026 have increased to $29.37 in the past 30 days, as shown below.
 

Image Source: Zacks Investment Research

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

Key Takeaways ILMN is focused on core sequencing, multiomics, and software after the GRAIL spin-off.ILMN raised 2026 guidance as Q1 revenues, margins, EPS and NovaSeq X placements topped expectations.ILMN faces China weakness, tariffs and higher input costs that may pressure growth and margins. Illumina Inc. (ILMN - Free Report) is well-poised to grow in the coming quarters owing to its strategic execution against growing the core sequencing business, expanding multiomics and developing services, data and software capabilities. Ongoing momentum in clinical end markets is boosting sequencing consumables demand. Higher-than-expected NovaSeq X placements and continued transition to the platform further strengthen the outlook. Yet, China remains a drag on Illumina’s growth, while input-cost volatility can limit incremental margin upside over the next several quarters.

Over the past year, this Zacks Rank #3 (Hold) stock has surged 87%, well ahead of the industry’s 23.8% growth and the S&P 500 composite’s rise of 22.8%.

The renowned biotechnology company has a market capitalization of $27.82 billion. ILMN’s earnings yield of 2.8% is well ahead of the industry’s -14.9% yield. In the trailing four quarters, it surpassed estimates on all occasions, delivering an average surprise of 12.2%. 

Let’s delve deeper.

Tailwinds Behind ILMN StockSharpened Focus on Core Genomics: Following the spin-off of GRAIL in June 2024, Illumina has continued to center its strategy on the core sequencing franchise while scaling into adjacent multiomics and data offerings. The company remains focused on returning to durable growth and higher profitability, aiming for high-single-digit revenue growth by 2027, along with double-digits to teens annual earnings per share (EPS) growth, anchored by its roadmap of growing the core sequencing business, expanding multiomics and building services, data and software capabilities.

Image Source: Zacks Investment Research

First-quarter 2026 results reinforced that direction, with revenues, margins and non-GAAP EPS exceeding guidance. Management also raised full-year 2026 guidance, now expecting revenues in the range of $4.52-$4.62 billion and non-GAAP diluted EPS in the range of $5.15-$5.30, alongside a modest step-up in the non-GAAP operating margin outlook between 23.4% and 23.6%.

NovaSeq X Placements and Transition Progress: Illumina’s core sequencing business remains anchored by NovaSeq X. First-quarter 2026 placements exceeded 80 units, around 20 more than the prior-year quarter and above the company’s targeted quarterly range. Demand remains strong for the platform, especially with clinical. Management noted supply constraints in meeting first-quarter placement demand while exiting the quarter with a backlog that supported a higher full-year instrument outlook.

Transition progress also continued, with approximately 82% of volumes and 55% of revenues transitioned to NovaSeq X in the first quarter, and roughly 90% of research and applied volume now on the platform. Management continues to plan for average quarterly NovaSeq X placements of 50 to 60 through 2026 while investing to scale supply given the current pipeline.

Clinical Demand Remains the Key Driver: Illumina continues to benefit from the broader adoption of NGS-based testing, with clinical markets now representing the majority of sequencing consumables revenues in first-quarter 2026. Management cited continued adoption of sequencing-based diagnostics and growing use of sequencing-intensive tests, including comprehensive genomic profiling and whole genome sequencing, as drivers of higher sequencing intensity.

Clinical sequencing consumables demand grew 20%, excluding China, for the second consecutive quarter, and management continues to expect most clinical volumes to transition to NovaSeq X by the end of 2026. Over time, the mix shift toward higher-throughput clinical workflows should remain supportive for consumables growth even as research demand stays uneven.

What Ails ILMN?Setbacks in China Market: Illumina continues to face constrained demand in Greater China amid ongoing regulatory and geopolitical uncertainty, keeping the region out of step with the rest of the business. In first-quarter 2026, Greater China revenues were $52 million, down 27.8% year over year. With Illumina still operating under uncertainty tied to its status with Chinese authorities and the resulting friction on commercial activity, visibility on a sustained recovery in China remains limited and can weigh on overall growth and operating leverage.

Macroeconomic Pressures Remain a Concern: Illumina continues to operate in a higher-cost environment shaped by tariffs and supply-chain inflation, which can affect both demand and margins. In the first quarter of 2026, tariffs were a partial offset to underlying cost efficiencies and revenue leverage.

Second-quarter guidance calls for an operating margin of around 22%, reflecting a higher instrument mix, near-term inflationary impacts tied to freight and higher electronic component costs, and incremental costs from a full quarter of SomaLogic. Management expects mitigation actions to offset these cost items over the balance of the year, but ongoing volatility in trade policy and input costs can still create uneven quarterly performance and limit visibility for customers facing tighter budgets.

ILMN Stock Estimate TrendThe Zacks Consensus Estimate for ILMN’s 2026 EPS has increased 0.4% to $5.19 in the past 30 days.

The Zacks Consensus Estimate for the company’s 2026 revenues is pegged at $4.56 billion. This suggests a 5.1% rise from the year-ago reported number.

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

Globus Medical has an earnings yield of 6.2% compared to the industry’s negative 3% yield. Its earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 26.3%. GMED shares have rallied 35.4% against the industry’s 10.6% decline over the past year.

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

Align Technology, sporting a Zacks Rank #1, has an estimated long-term earnings growth rate of 10.3% compared with the industry’s 5.5% growth. Shares of the company have dipped 6.3% against the industry’s 9.6% growth. ALGN’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 7.8%.

Integra LifeSciences, carrying a Zacks Rank #2, has an earnings yield of 13.7% against the industry’s negative 3% yield. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 16.7%. IART shares have rallied 33.8% against the industry’s 10.5% decline over the past year.

Key Takeaways Wendy's China deal provides a long-term unit growth runway, targeting up to 1,000 restaurants over 10 years.The China push builds on 6% international sales growth and unit gains in the Philippines and Mexico.Wendy's China strategy combines its hamburger platform with localized menu innovation to drive adoption. The Wendy’s Company (WEN - Free Report) is sharpening its focus on international expansion as it works through a challenging U.S. turnaround. The company recently signed a franchise agreement to build up to 1,000 restaurants across China over the next 10 years, marking the largest development agreement in Wendy’s history. The deal gives the company a meaningful growth catalyst in one of the world’s most important restaurant markets.

The timing is important, as Wendy’s international business is showing relative strength. In the first quarter of 2026, international system-wide sales increased 6%, driven by net unit growth in key markets such as the Philippines and Mexico. The China agreement further advances the company’s “globally great, locally loved” strategy by pairing its core hamburger platform with locally inspired menu innovation for Chinese consumers.

The expansion also gives Wendy’s a potential counterbalance to ongoing domestic pressure. During the quarter, U.S. same-restaurant sales declined 7.8%, weighed down by lower traffic, severe weather and restaurant-hour optimization. The company expects sequential quarterly improvement through 2026 and maintains its outlook for approximately flat global system-wide sales, reflecting expectations that Project Fresh initiatives can gradually support better U.S. trends.

With relative strength in international markets, a major new China opportunity and early Project Fresh execution underway, Wendy’s appears better positioned to build a more balanced growth profile. While U.S. traffic remains a near-term overhang, successful execution in China could strengthen the company’s long-term expansion story and provide a broader growth platform.

How Does Wendy’s China Plan Stack Up Against MCD and SBUX?McDonald’s Corporation (MCD - Free Report) continues to benefit from its global scale, disciplined value strategy and strong menu-marketing execution. In the first quarter of 2026, the company grew global system-wide sales 6% in constant currency and global comparable sales 3.8%, while gaining market share in nearly all of its top 10 markets. In China, McDonald’s maintained its share and remains on track to open approximately 1,000 new restaurants this year, underscoring the scale Wendy’s will face as it builds its own China platform.

Meanwhile, Starbucks Corporation (SBUX - Free Report) continues to deepen its China strategy through a more localized partnership model. Starbucks China delivered transaction-led comparable sales growth for the fourth consecutive quarter, while the company completed its transaction with Boyu Capital after quarter-end. The partnership combines Starbucks’ global brand strength with Boyu’s local market expertise and is expected to support long-term growth. Starbucks also plans to expand from more than 1,000 county-level cities today to more than 1,500 over the next three years.

However, unlike McDonald’s and Starbucks, Wendy’s is still in the early stages of building scale in China. Its agreement to develop up to 1,000 restaurants over the next 10 years gives the company a sizable growth runway, but execution will be critical. Wendy’s fresh-beef positioning, locally inspired menu innovation and franchise-led expansion model could help the brand carve out a differentiated presence in the region.

WEN’s Price Performance, Valuation & EstimatesShares of Wendy’s have gained 21.1% in the past three months against the industry’s 1.7% drop.

WEN Three-Month Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, WEN trades at a forward price-to-sales (P/S) multiple of 0.73, below the industry’s average of 3.34.

WEN’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for WEN’s 2026 earnings per share (EPS) implies a year-over-year decline of 34.1%. The EPS estimates for 2026 have remained unchanged in the past 30 days.

EPS Trend of WEN Stock
Image Source: Zacks Investment Research

WEN’s Zacks RankWEN stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Credo expects AECs to remain a key growth driver as AI clusters demand reliable, power-efficient connectivity.CRDO says ZeroFlap AECs offer up to 1,000x greater reliability while using significantly less power.Credo expects over 80% fiscal 2027 revenue growth, with AECs supporting its copper portfolio expansion. Credo Technology Group Holding Ltd (CRDO - Free Report) continues to see Active Electrical Cables (AECs) as one of its primary growth drivers, supported by increasing demand for reliable and power-efficient connectivity in AI infrastructure. The company highlighted that as AI clusters expand, reliability and power efficiency have become major design considerations. As a result, AECs have become the preferred choice for in-rack connectivity and many multi-rack deployments extending up to seven meters.

Credo also stated that its ZeroFlap AECs deliver up to 1,000 times greater reliability than conventional laser-based optical modules while consuming significantly less power. In environments where network downtime can delay AI deployments and increase costs, the company believes network reliability has become increasingly important.

Credo reported continued customer adoption of its AEC portfolio across hyperscale and Neo cloud operators for both 100-gigabit-per-lane deployments and emerging 200-gigabit-per-lane applications. The company’s vertically integrated approach, spanning core SerDes technology, silicon, system-level solutions, firmware and telemetry software, supports its position as connectivity speeds and AI cluster complexity continue to increase. It also remains on track with its PCIe Gen 6 AEC family, where customer engagement and design activity continue to strengthen.

On the last earnings call, management highlighted that growth in its existing copper portfolio, led primarily by AECs along with retimers, is expected to support first-half fiscal 2027 performance. The company also stated that approximately half of its projected fiscal 2027 revenue growth is expected to come from its optical portfolio, while the remaining half is anticipated to be driven by its existing copper portfolio, predominantly AECs. Management further stated that AEC adoption is expanding across both hyperscalers and Neo cloud customers, with additional opportunities to deepen deployments across customer networks. Credo expects AECs to remain an important long-term contributor to the company's growth.

For fiscal 2027, management expects more than 80% year-over-year revenue growth. Management anticipates more than $600 million in optical revenues, with ZeroFlap optics, silicon photonics PICs and optical DSPs each contributing more than $100 million.

Taking a Look at CRDO’s CompetitorsBroadcom Corporation (AVGO - Free Report) is benefiting from rising AI semiconductor demand, led by custom XPUs and AI networking, while VMware continues to support infrastructure software growth. AI semiconductor revenues reached a record level in the fiscal second quarter, and management expects further growth in the fiscal third quarter, supported by multi-year commitments with core customers. Broadcom’s networking leadership, expanded XPU relationships and healthy free cash flow provide long-term growth support. Non-AI semiconductors are also showing signs of cyclical recovery. For the third quarter of fiscal 2026, Broadcom expects revenues of approximately $29.4 billion, indicating 84% year-over-year growth.

Marvell Technology (MRVL - Free Report) is benefiting from AI-led demand across the data center end market, with custom silicon, interconnect, switching and optics driving record revenues and a higher multi-year outlook. Management now expects about 40% revenue growth for fiscal 2027. The expanded NVIDIA partnership, including NVLink Fusion and optics collaboration, embeds Marvell deeper in hyperscaler roadmaps and supports program ramp. Recent acquisitions broaden scale-up capabilities. Communications and other areas are recovering as inventories normalize. Marvell expects fiscal 2027 revenues to grow about 40% year over year to nearly $11.5 billion and sees fiscal 2028 revenues rising about 45% to roughly $16.5 billion.

CRDO Price Performance, Valuation and EstimatesShares of CRDO are up 136.1% in the past three months compared with the Electronics-Semiconductors industry’s growth of 40.5%.

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Regarding the forward 12-month price/sales ratio, CRDO is trading at 17.75, higher than the industry’s multiple of 8.99.

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The Zacks Consensus Estimate for CRDO earnings for fiscal 2026 has been revised up over the past 60 days.

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