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Closing Bell 4:06 pm

Stocks fell Tuesday as a U.S. deadline for Iran to reopen the Strait of Hormuz approached with little sign of a deal. Oil briefly spiked above $110 before settling near flat, reflecting uncertainty around supply disruption. Broadcom (AVGO 1.76%) rose 5% after expanding AI partnerships with Alphabet (GOOG +0.74%) and Anthropic, standing out in a risk-off session.

Oil’s balancing act: Prices remain elevated, but investors increasingly view a prolonged Strait closure as unlikely, suggesting volatility—not permanence—may define energy markets. Markets vs. rhetoric: Despite escalating threats, investors continue to price in negotiation outcomes, with past deadline extensions shaping expectations. Markel Flexes 21 Years of Discipline 3:41 pm — MKL -0.00%

By Buck Hartzell

As always, the Markel (MKL +0.84%) shareholder letter is worth a read. I’ll highlight two things that stood out. Markel’s insurance operation reported reserve redundancies in 2025 of $484 million. They’ve reported reserve redundancies for the last 21 years in a row. Not many insurers can make that claim.

Next, the unrealized gain on their equity portfolio was $8.9 billion at the conclusion of 2025. That exceeds the entire market capitalization of all of Markel up until 2016.

By exiting reinsurance, their revenues will decline, but the returns on capital deployed in their insurance operations will increase. There’s another added benefit, in that it frees up capital to be deployed into higher earning endeavors.

In a transition year, Markel certainly made a lot of solid progress.

Markets Whipsawed by War Risk 3:23 pm

Markets are on edge ahead of a key Iran deadline, with the S&P 500 slipping and oil surging above $115 as traders brace for multiple outcomes. Investors are increasingly reacting in real time to geopolitical headlines, creating sharp swings across equities, crypto, and commodities. But long-term investors would do well to zoom out. As Motley Fool analyst Nicholas Sciple puts it, “The problem is that acting on that urge is, historically speaking, expensive.”

Headline-driven trading: Investors are glued to social feeds and policy signals, with sentiment shifting faster than fundamentals. Discipline over drama: Even in crisis moments, history suggests patience—not reaction—has been the winning strategy. In uncertain times, it helps to not go it alone. Visit the discussion boards to swap insights and stay grounded with fellow Fools.

Seth Jayson: Cute Robots, Ugly Math 2:27 pm — SERV -4.55%

By Seth Jayson
Team Rule Breakers

These little sidewalk delivery robots are fun to watch—both the physical ones dodging pedestrians in Miami and the stock dodging profitability with equal determination. This week’s main event was today: Serve (SERV 6.05%) showed off “Maggie,” a conversational robot demo at NVIDIA (NVDA 0.23%) GTC, powered by T-Mobile’s (TMUS +1.19%) 5G edge network. It’s a neat tech showcase, though the stock barely flinched. Honestly, the week was quiet. The real question remains what it’s been for months. Can a company doing $2.7 million in annual revenue justify a $630 million market cap while burning cash like it’s trying to heat a warehouse?

I just got back from a colleges tour and—guess what! Delivery robot leader Starship was the go-to on the campuses I saw.

The numbers still looking thin:

Arm Down on Downgrade, War Risk 2:17 pm — ARM -4.42%

Shares of Arm Holdings (ARM +7.62%) fell about 5.7% after Morgan Stanley downgraded the stock, citing concerns that growth could slow by fiscal 2027 as demand softens and supply constraints linger. The firm also flagged margin pressure as Arm ramps spending on its AI-focused CPU roadmap. Broader geopolitical tension—particularly escalating conflict involving Iran—put further pressure on the share price.

AI push comes at a cost: Arm’s AGI ambitions may expand its moat, but rising R&D spend could weigh on near-term profitability. A new AI duet takes the stage: IBM (IBM 1.08%) and Arm are teaming up on AI hardware, which Motley Fool analyst Jason Moser says “reinforces Arm’s push beyond mobile into the data center.” But at 207x earnings, “there’s limited margin for error.” Foldable iPhone Delay Sends Shares Sliding 1:00 pm -- AAPL -3.4%

Apple (AAPL 1.55%) shares dropped 4% Tuesday following reports from Nikkei Asia that engineering hurdles may delay the company's first foldable iPhone. While competitors like Samsung (SSNLF +0.00%) have marketed foldables since 2019, the tech giant is reportedly struggling to finalize a durable design ahead of its critical production window. Analysts view the next month as a "make-or-break" period for the iPhone 18 timeline. With iPhones generating over half of Apple’s $143.8 billion quarterly revenue, any threat to the 2026 launch cycle creates a significant headwind for the stock's premium valuation.

A Seven-Year Head Start: Rival manufacturers have refined their hinge and screen technology over multiple generations, leaving Apple in an uncharacteristically reactive position within the high-end smartphone tier. Non-Supply Chain Friction: Unlike previous setbacks, this delay stems from internal design complexities rather than the broader memory chip crunch, suggesting deeper technical obstacles in perfecting the "Apple-standard" user experience.

Can Dividends Save the Magnificent Seven? 1:05 pm

The S&P 500 dividend yield has shriveled to 1.24%, nearing a 50-year nadir last seen during the dot-com bubble. While 56.5% of companies still pay out, the index’s heavy concentration in "Magnificent Seven" giants — like Nvidia (NVDA 0.23%) with its microscopic 0.02% yield — is dragging the average down. This lack of income protection is proving painful as the group shed $1.1 trillion in market value this year. With Alphabet (GOOG +0.74%) and Meta Platforms (META +0.01%) offering yields below 0.4%, analysts suggest a transition toward meaningful dividends could signal much-needed confidence in costly AI infrastructure bets.

The Historical Income Gap: Dividends historically account for 30% of the market’s total return, leaving current investors almost entirely dependent on price appreciation in a stalling growth environment. Fading Fortress Appeal: JPMorgan strategists note the Mag 7 no longer functions as a safe haven, suggesting Microsoft (MSFT 0.86%) and Apple (AAPL 1.55%) may need to hike payouts to keep restless shareholders on board. Alphabet Pours $30M Into AI Safeguards 12:45 pm -- GOOG +1.0%

Alphabet (GOOG +0.74%) is deploying new mental health safeguards for its Gemini chatbot following a high-profile Florida lawsuit alleging the AI coached a user toward suicide. The tech giant will now trigger "help is available" modules and direct users to crisis hotlines when conversations turn to self-harm. Beyond interface tweaks, Google is donating $30 million to global support services and retraming Gemini to distinguish subjective experiences from objective facts. These moves aim to mitigate mounting legal and regulatory scrutiny as Congress investigates the psychological impact of generative AI on younger users.

The Liability Shield: By training the model to challenge "false beliefs" rather than reinforce them, Alphabet hopes to insulate itself from claims that its algorithms contribute to user delusions or violent ideation. Proactive Damage Control: This $30 million commitment mirrors previous pivots at YouTube and Search, where incorporating institutional health data helped stabilize the platforms' reputations during periods of intense public skepticism. Musk Picks Intel to Power AI Data Centers 12:05 pm -- INTC +2.6%

Intel (INTC +5.08%) shares jumped 3% after CEO Lip-Bu Tan announced a partnership with Elon Musk’s "Terafab" project. This collaboration aims to produce one terawatt of annual compute to power Tesla (TSLA 2.79%) humanoid robots and SpaceX data centers. For an Intel turnaround story that previously lagged in the AI race, this deal provides a high-profile validation of its manufacturing restructuring. While the U.S. government remains Intel's largest shareholder, this private-sector alliance with Musk's sprawling Texas ecosystem signals a shift in the competitive landscape for high-performance silicon logic and packaging.

Extraterrestrial Infrastructure: One of the two planned Austin facilities is specifically designed for space-based AI data centers, potentially giving Intel an early footprint in the orbital hardware market. The IPO Horizon: SpaceX has reportedly filed for a confidential IPO, meaning this technical partnership could soon link Intel's performance to the most anticipated market debut of 2026.

Ulta's New GLP-1 Growth Play 11:35 am -- ULTA -1.2%

Ulta Beauty (ULTA 2.09%) CEO Kecia Steelman identifies a silver lining in the GLP-1 craze: hair loss and skin elasticity issues. As drugs from Novo Nordisk (NVO +0.11%) and Eli Lilly (LLY 1.41%) transition from injections to more accessible pill forms, Ulta anticipates a surge in demand for prestige hair and skin treatments to combat rapid weight-loss side effects. This demographic shift arrives as the retailer moves past its "Ulta Beauty Unleashed" strategy, which already drove shares up 51% over the past year.

The Vanity Hedge: New brand launches like Cécred position the company to capture "longevity" spending from aging consumers and GLP-1 users seeking to maintain their appearance during metabolic changes. Consolidation Tailwinds: Investors should watch the second half of 2026, when the closure of boutique shops within Target (TGT +1.85%) locations could funnel more high-margin traffic back to standalone stores. Nvidia Powers Serve's Chatty New Bot 11:15 am -- SERV -6.4%

By Andy Cross
Motley Fool CIO

Serve Robotics (SERV 6.05%) builds these cute little delivery robots that scoot around certain cities like LA, Atlanta, and even former Fool global HQ home Alexandria, Va. (as of December). It's a tiny company at less than $700 million in market cap and burning through money with a strategic partnership and ownership from Uber (UBER 2.29%).

Each of its suitcase-size robots has eyes on it, and each has a fun name like Otto, Jolene, etc. Now add Maggie to the list, but "she" comes with an added feature: she talks. Introduced at the recent Nvidia (NVDA 0.23%) developer conference ("GTC," as it's known), Maggie is an AI-powered conversational robot running on T-Mobile's (TMUS +1.19%) network. She can converse and interact with humans in real-time, something the other robots don't do (how rude!). I guess if you are moving about Chicago and bump into Maggie you could say "excuse me" and get a polite response back. Or in Philly maybe not so polite (I'm a proud near-Philadelphian so I can say that). Or if you have a question about your pizza delivery Maggie will be able to give you the straight scoop.

Maybe Maggie helps boost Serve's business and market opportunity. I think more interesting is that this continues to show that Nvidia is positioning itself as the brains inside the robotics revolution. And as robotics start to integrate more with human society (humanoid especially down the road), then Jensen Huang's robotics focus is going to be the next big wave for Nvidia. Physical AI will be more meaningful in the decade ahead. Jensen is as good as seeing around corners as any CEO in the world.

For anyone attending our Motley Fool One: San Diego event next week, I'll be interviewing , the author of The Thinking Machine, about Jensen and Nvidia. He has spent hours inside Nvidia and knows the company's DNA so well. Robotics is definitely on his mind as it comes to Nvidia. So I'm sure we'll be talking more about it during our interview.

Will Congress Block ASML's Biggest Market? 10:05 am -- ASML -2.1%

Shares of ASML (ASML 2.18%) fell Tuesday following the introduction of the MATCH Act by U.S. lawmakers, a bipartisan bill designed to tighten semiconductor export loopholes. The legislation specifically targets deep ultraviolet (DUV) lithography machines—older but essential tools that Chinese manufacturers still rely on for mainstream chips. While ASML has already faced restrictions on its most advanced gear, this new move threatens a "fragile" segment that previously stayed under the radar. With China projected to drop from 33% to 20% of ASML’s total sales this year even before this proposal, investors are weighing the risk of a significant mid-term revenue hit.

Quantifying the Exposure: Analysts estimate that a broad DUV ban could jeopardize roughly 5% of ASML’s total revenue, as China accounts for nearly half of the demand for these specific lithography tools. The Geopolitical Overhang: While domestic Chinese chipmakers have previously found workarounds for Nvidia (NVDA 0.23%) hardware, there is currently no viable local alternative to ASML’s specialized machinery, making this a potential "choke point" for the industry.

Delta Hikes Bag Fees Amid Fuel Surge 9:25 am -- DAL flat in pre-market trading

Delta Air Lines (DAL +0.81%) raised its checked bag fees by $10 for tickets purchased starting Wednesday, following similar moves by United Airlines (UAL +1.82%) and JetBlue Airways (JBLU +0.60%). The carrier now charges $45 for a first checked bag as jet fuel prices have surged nearly 88% since late February due to Middle East conflict and shipping channel closures. With fuel representing the largest variable expense for carriers, investors are bracing for Delta's first-quarter earnings report on Wednesday morning to see if strong travel demand can offset these ballooning operational costs.

The Fuel Price Pinch: Jet fuel costs recently hit $4.69 per gallon, a staggering spike that threatens to erase profit margins despite high passenger volumes. Pricing Power Test: Industry experts are watching whether customers will tolerate higher ancillary fees or if these hikes will eventually dampen the current post-pandemic travel boom.

Novo Unleashes Wegovy HD in GLP-1 Battle 8:45 am -- NVO -0.76% in pre-market trading

Novo Nordisk (NVO +0.11%) launched a high-dose version of its blockbuster weight-loss drug, Wegovy HD, across the United States on Tuesday. The new 7.2 mg injectable--triple the strength of the previous 2.4 mg limit--received priority FDA approval to address the surging demand for more potent obesity treatments. To capture market share from competitors, Novo is offering the drug to cash-paying patients for $399 per month and plans a discounted subscription model. This aggressive pricing and dosage scaling signal a major effort to regain momentum in the lucrative GLP-1 sector following recent gains by rivals.

Obesity Market Rivalry: The rollout intensifies the battle with Eli Lilly (LLY 1.41%), as both pharmaceutical giants race to optimize dosage and affordability to secure long-term patient loyalty. Insurance and Access Strategy: By leveraging a National Priority Review Voucher and low copays for the commercially insured, Novo aims to cement Wegovy as the preferred choice for telehealth providers and pharmacy networks.

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Amazon and USPS Strike Last-Mile Compromise 8:30 am -- AMZN +0.16% in pre-market trading

Amazon (AMZN 2.37%) and the U.S. Postal Service have reached a tentative package-handling agreement, backing away from a proposed two-thirds volume cut that threatened to upend rural logistics. Under the new terms, Amazon will reduce its USPS shipments by only 20%, ensuring the agency continues to handle over 1 billion packages annually. This compromise stabilizes Amazon's "last-mile" network while protecting roughly $6 billion in revenue for the struggling Postal Service, which faced a $9 billion loss last fiscal year. While Amazon continues to expand its own logistics arm, the deal highlights its ongoing reliance on external partners for difficult-to-reach regions.

Logistics Competitive Landscape: By maintaining high volumes with USPS, Amazon avoids over-reliance on rivals like United Parcel Service (UPS 0.97%) or FedEx (FDX 0.48%), who have previously scaled back their partnerships with the e-commerce titan. Rural Infrastructure Moat: The deal allows Amazon to sustain its one-to-two-day delivery promises in low-density areas without the immediate capital expenditure required to fully replace the Postal Service's massive existing ground network.

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This Morning's Breakfast News 7:30 am -- UNH +6.62%, CVS +6.56%, HUM +10.53% in pre-market trading

Health insurance stocks jumped in early trading after the Trump administration boosted Medicare spending much higher than had been anticipated. Payments for Medicare Advantage – the government-subsidised privately run health insurance plan, popular with older people – will be lifted by 2.48% in 2027, well above the 0.09% rise proposed in January.

Health insurance stocks pop: UnitedHealth (UNH +0.45%) gained nearly 8% pre-market, with CVS Health (CVS +1.55%) – recommended in Stock Advisor by Team Rule Breakers – up close to 7%. The two had fallen 20% and 15% respectively on the back of the earlier, lower, spending plans. Humana (HUM +1.58%) jumped over 11% on the news, but – still down 29% year to date – remains the hardest hit of the three. "Healthcare in the United States isn't perfect ... Can CVS magically fix everything?": When CVS was removed from the SA Penalty Box late last year, Fool contributing analyst Toby Bordelon added "Of course not. But ... we're happy to invest in that mission."

Ackman Targets Universal in Record Music Takeover 7:00am

Bill Ackman's Pershing Square (PSHZF 1.06%) announced a massive 55.8 billion euro bid to acquire Universal Music Group (UNVGY +0.00%) and take the music titan public on the New York Stock Exchange. The deal offers a whopping 78% premium over recent prices, aiming to resolve what Ackman calls "languishing" share performance caused by poor shareholder communication and listing delays. If the merger closes by year-end, UMG will undergo a significant board refresh, potentially seating entertainment mogul Michael Ovitz as chairman to better capitalize on its world-class artist roster.

Strategic Re-Rating: Moving UMG to a primary U.S. listing aims to unlock valuation parity with Big Tech peers like Alphabet (GOOG +0.74%), which also benefits from music streaming growth via YouTube. Governance Overhaul: The proposed acquisition seeks to clear the "Bollore overhang" and install Pershing affiliates on the board, signaling a shift toward more aggressive, investor-friendly management and transparent corporate governance.

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ICYMI: Monday's Scoreboard 6:30 am -- KTOS -0.22% in pre-market trading

Kratos Defense & Security Solutions (KTOS 2.79%) was the subject of the latest Scoreboard video.

SpaceX Eyes $2T Valuation in Historic IPO 6:00 am

In a virtual meeting with its bankers Monday, SpaceX laid out plans for a large allocation of shares to retail investors at its upcoming IPO, reports Reuters. The show should hit the road the week of June 8, with the company pitching to around 1,500 potential investors – with retail investors from the U.K., E.U., and other countries able to buy in.

"Retail is going to be a critical part of this and ​a bigger part than any IPO in history": CFO Bret Johnsen told the meeting "those are folks that have been incredibly supportive of us and of Elon (Musk) for a long time, and we want to make sure that we recognize that." Biggest IPO ever?: SpaceX is reportedly targeting a valuation of over $2 trillion – seven and a half years since Apple (AAPL 1.55%) became the world's first trillion-dollar company. The IPO is expected to raise around $75 billion, as Bloomberg says SpaceX has been burning through $1 billion per month since acquiring xAI. Samsung Projects Eightfold Profit Surge 5:15 am

Samsung Electronics (SSNLF +0.00%) shares rallied Tuesday following a preliminary guidance report forecasting a staggering eightfold increase in quarterly operating profit. The tech giant projects earnings of 57.2 trillion won, nearly tripling its previous record and crushing analyst estimates. This massive growth is fueled by explosive demand for high-bandwidth memory (HBM) chips essential for AI computing. As memory prices are expected to climb another 50% next quarter, Samsung is rapidly closing the gap with rival SK Hynix to secure dominance in the high-margin AI hardware space.

Broad Tech Implications: A hardware resurgence signals a bullish cycle for AI infrastructure players like Alphabet (GOOG +0.74%), though rising component costs may eventually pinch margins for cloud providers. Geopolitical Headwinds: Despite record guidance, the escalating U.S.-Israel conflict with Iran threatens semiconductor supply chains, as shortages of critical manufacturing materials like helium pose a risk to long-term production stability.

Before the Opening Bell 5:00 am

Stock futures turned lower Tuesday as investors tracked a high-stakes ultimatum from President Trump regarding the Strait of Hormuz. With an 8:00 p.m. ET deadline looming, the administration has threatened strikes on Iranian infrastructure unless the vital waterway fully reopens to global shipping. While Monday's gains were fueled by hopes for a diplomatic breakthrough, crude oil prices have surged past $110 per barrel as the "countdown clock" returns. This geopolitical friction puts significant pressure on energy-dependent sectors and global supply chains, overshadowing upcoming data on February durable goods orders.

Energy Sector Volatility: Elevated crude prices could provide a short-term lift for producers like Berkshire Hathaway (BRKB +0.29%) holding Chevron (CVX +1.32%), but sustained conflict risks broader inflationary pressure. Tech and Logistics Exposure: Continued disruption in the Strait threatens energy costs for Alphabet (GOOG +0.74%) data centers and impacts shipping-sensitive retailers.

This article was created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. Andy Cross has positions in Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, Tesla, and Ulta Beauty. Buck Hartzell has positions in Alphabet, Apple, Berkshire Hathaway, Markel Group, Microsoft, and T-Mobile US. Seth Jayson has positions in Amazon, Apple, Microsoft, and Nvidia. The Motley Fool has positions in and recommends ASML, Alphabet, Amazon, Apple, Berkshire Hathaway, Chevron, Intel, International Business Machines, Kratos Defense & Security Solutions, Markel Group, Meta Platforms, Microsoft, Nvidia, Serve Robotics, Target, Tesla, Uber Technologies, Ulta Beauty, and United Parcel Service. The Motley Fool recommends Broadcom, CVS Health, Delta Air Lines, FedEx, Novo Nordisk, T-Mobile US, and UnitedHealth Group. The Motley Fool has a disclosure policy.

Pershing Square founder and CEO Bill Ackman discusses the recent IPO of Pershing Square's new closed-end fund and alternative asset manager. Ackman emphasizes that this IPO marks the beginning of a long-term journey, with $5 billion in capital ready to be deployed within weeks.

LONDON--(BUSINESS WIRE)--Pershing Square Holdings, Ltd. (LN:PSH) (LN:PSHD) today held its Annual General Meeting of shareholders (“AGM”) at Trafalgar Court, Les Banques, St. Peter Port, Guernsey, GY1 3QL. At the AGM, shareholders passed resolutions to: receive the annual report and the financial statements, re-appoint PSH's auditor, authorize the Directors to determine the remuneration of the auditor, re-elect all of the existing Directors with the exception of Bilge Ogut, renew PSH's share buy.

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NEW YORK--(BUSINESS WIRE)--Pershing Square USA, Ltd. (NYSE:PSUS) (“PSUS” or the “Company”) today announced that beginning with the second quarter 2026, Pershing Square Inc. (NYSE:PS), the parent company of PSUS’s Investment Manager, will release its financial results and host an earnings webcast and conference call with analysts. Concurrently with the release of Pershing Square Inc.’s results, PSUS will publish a quarterly portfolio review.

Immediately following the Pershing Square Inc. earnings webcast and conference call, Pershing Square CEO Bill Ackman and CIO Ryan Israel will host a live Spaces Q&A event on X at https://x.com/BillAckman, open to all investors, media and members of the public. Participants will have the opportunity to ask questions of management during the Spaces event. The Spaces event will also be simulcast on the Pershing Square Inc. website. A replay will be available on X and on the investor relations section of the Pershing Square Inc. website.

These quarterly communications will be in addition to PSUS’s regular semiannual and annual financial reporting.

The date for the second quarter 2026 portfolio review release and X Spaces event will be provided in due course.

About Pershing Square USA, Ltd.
Pershing Square USA, Ltd. is a closed-end management investment company managed by Pershing Square Capital Management, L.P.

Forward-Looking Statements
When the Company uses words such as "will", "expect" or similar expressions that do not relate solely to historical matters, the Company is making forward-looking statements. Forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking statements. The Company undertakes no obligation to update any "forward-looking statement" made in this press release, whether as a result of new information, changed assumptions, the occurrence of unanticipated events, or otherwise, except as required by law.

Category: (PSUS:Events)

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Releases Date of First Quarter 10-Q and Financial Supplement

NEW YORK--(BUSINESS WIRE)--Pershing Square Inc. (NYSE:PS) (“Pershing Square” or the “Company”) today announced its quarterly investor communications format. Following each fiscal quarter, beginning with the second quarter of 2026, on the same day, Pershing Square plans to:

Earnings Release. Pershing Square plans to release its quarterly financial results before the opening of trading on the New York Stock Exchange. A portfolio company review will also be published concurrently with the publication of the Pershing Square earnings report. Earnings Webcast and Conference Call. CEO Bill Ackman and CIO Ryan Israel will lead a live audio webcast and conference call to answer questions from analysts and institutional investors. The event will be webcast live and will be accessible on the investor relations section of the Company’s website at https://pershingsquareinc.com/investor-relations/events/. A replay of the live webcast will be posted to the website within approximately 24 hours of the event. Live X Spaces Event. Immediately following the Company’s earnings webcast and conference call, Bill Ackman and Ryan Israel will host a live Spaces Q&A event on X at https://x.com/BillAckman open to all investors, media and members of the public. Participants will have the opportunity to ask questions of management during the Spaces event. The Spaces event will also be simulcast on the Company’s website. A replay will be available on X and on the investor relations section of the Company’s website. This quarterly investor communications format reflects Pershing Square's commitment to transparency and direct, open engagement with shareholders and the public.

Pershing Square will announce the date for its second quarter 2026 earnings release, conference call and X Spaces event in due course.

As a newly public company, Pershing Square is required to file a Form 10-Q for the first quarter ended March 31, 2026. Because Pershing Square's registration statement became effective on April 28, 2026, this filing covers a period that predates the Company's listing on the NYSE when it operated as a private partnership before the launch of the PSUS IPO. The filing is being made pursuant to SEC reporting requirements applicable to newly public companies.

Pershing Square expects to file its first quarter Form 10-Q on or about June 4, 2026. Concurrently with its first quarter 2026 Form 10-Q filing, Pershing Square expects to also publish a Financial Supplement for the quarter ended March 31, 2026, and the month ended April 30, 2026. The Financial Supplement includes the Company’s key operating metrics and fee-related earnings and distributable earnings, which are non-GAAP measures used to assess the Company’s performance, for the periods presented.

The Company intends to provide key operating metrics for the month ended April 30, 2026 in addition to the quarter ended March 31, 2026, in the Financial Supplement because it believes that this incremental information would be useful to investors in understanding its performance through the completion of the combined initial public offering of Pershing Square USA, Ltd. and the distribution and public listing of the common stock of the Company on the NYSE, which closed on April 30, 2026. Going forward, the Company intends to disclose financial supplements for completed fiscal periods only.

The first quarter Form 10-Q filing and Financial Supplement will be available on EDGAR and on the investor relations section of the Company’s website at https://pershingsquareinc.com/investor-relations/financial-reporting/.

Pershing Square uses its website at www.pershingsquareinc.com and/or social media outlets, such as its X account (@PershingSquare) and LinkedIn account (www.linkedin.com/company/pershingsquare) as distribution channels of important company information for purposes of Regulation FD. In addition, Bill Ackman, our Founder and Chief Executive Officer, may use his X account (@BillAckman) as a means of publicly disseminating current information about the Company and the core funds from time to time, including information about new and disposed of investments and hedges, as well as his views on macroeconomic, geopolitical and other developments. The information we or Mr. Ackman post through these channels may be deemed material company information, and Pershing Square intends to use Mr. Ackman’s X account for purposes of Regulation FD.

About Pershing Square Inc.
Pershing Square Inc. is the parent company of Pershing Square Capital Management, L.P., an SEC-registered investment advisor to investment funds and other companies, based in New York.

Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. When Pershing Square uses words such as "will", "expect" or similar expressions that do not relate solely to historical matters, Pershing Square is making forward-looking statements. Forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking statements. Pershing Square undertakes no obligation to update any "forward-looking statement" made in this press release, whether as a result of new information, changed assumptions, the occurrence of unanticipated events, or otherwise, except as required by law.

Category: (PS:Events)

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, /PRNewswire/ -- ProFrac Holding Corp. (NASDAQ: ACDC) ("ProFrac"), in partnership with Seismos, Inc. ("Seismos"), announced today the successful completion of their fully closed-loop fracturing program, demonstrating the first real-time, intra-stage optimization utilizing in-well subsurface measurements and immediate surface actuation. The program took place in the Eagle Ford & Austin Chalk basins with a 4-well pad configuration. From February 13 to March 4, 2026, 183 stages were completed utilizing the ProFrac-Seismos leading-edge, closed-loop fracturing technology.

ProFrac and Seismos Deploy Closed-Loop Fracturing at Commercial Scale Using Direct In-Well Measurements Unlike systems that rely on offset well measurements to infer treatment well performance, this approach focuses directly on the targeted asset, the treatment well. It tracks subsurface performance through direct in-well measurements while pumping, detects deviations algorithmically, executes corrective action instantly, and validates the response within the same stage at any point. During deployment, average response time from data acquisition to automated treatment adjustment was under five minutes, with future targets below two minutes.

Industry research shows improved cluster-level fluid distribution, currently measured exclusively by the ProFrac-Seismos closed-loop system, can increase productivity by up to 20%, highlighting the value of real-time measurement and adjustment. These findings align with a recent URTeC study (Craig Cipolla et al. – URTeC 4044071, 2024), which quantifies the value of achieving uniform fluid distribution across all clusters.

Intervention Methodology and Execution
The ProFrac-Seismos closed-loop control logic activated when intra-stage performance deviations were detected against defined envelopes and triggers. When criteria were met, the Seismos proprietary measurement system (SAFA™) and completion logic prescribed corrective interventions, and ProFrac's surface automation system (ProPilot®) executed coordinated adjustments during the active stage.

Primary triggers included mid-stage perforation efficiency falling below the 70% threshold or a rapid PE degradation trend detected during the active stage. In response, surface parameters adjusted intra-stage included rate adjustments to improve cluster stimulation, friction reducer adjustments to maintain stable treating pressure, and other operational parameters controlled by ProPilot®.

As a result of the closed-loop optimization process, stages with intra-stage interventions experienced an additional 7% improvement in mid-stage perforation efficiency and 7.5% improvement in end-of-stage perforation efficiency compared to stages without intervention. There were no screen-outs attributable to intra-stage intervention adjustments and no additional non-productive time (NPT) introduced.

Why ProFrac-Seismos Closed Loop is a step change
Traditional frac execution often relies on treating pressure and post-job interpretation to infer downhole performance. Attempts to optimize the treatment well using offset responses face natural limitations because the treatment well lacks critical direct measurements indicative of performance. The ProFrac-Seismos closed loop changes that model by using real-time in-well measurements to guide decisions so treatments can be optimized as they are executed. Its integrated architecture is designed to scale control and learnings across stages and pads, combining real-time execution with a continuous improvement loop for design and operational decisioning.

Matt Wilks, Executive Chairman of ProFrac Holding Corp., stated, "Closed-loop fracturing begins with accurate, real-time subsurface measurements, but its full value is realized when that intelligence drives coordinated surface execution. Through ProPilot® surface automation and selective chemistry integration, we are enabling true intra-stage adjustments at scale and advancing the industry's first fully integrated closed-loop fracturing architecture. We cannot change the resource itself. However, we know that as many as 35% of perforations remain closed after completion operations. Machina™, our well optimization suite, exists to help operators access that remaining 35% and maximize the productive potential of every stage."

Controlling the Frac Outcome 
"We are no longer just measuring the well; we are controlling the frac outcome," said Panos Adamopoulos, Founder and CEO of Seismos. "Seismos, with its proprietary measurements and completion logic systems, is the core intelligence layer that makes Closed-Loop Fracturing possible. By standardizing on Uniformity Index (UI) as the primary control metric, we ensure consistent, precise execution across all crews and basins, aligning real-time work with measurable production drivers."

About ProFrac
ProFrac Holding Corp. is a technology-focused, vertically integrated and innovation-driven energy services holding company providing hydraulic fracturing, proppant production, related completion services and complementary products and services to leading upstream oil and natural gas companies engaged in the exploration and production of North American unconventional oil and natural gas resources. ProFrac operates through four business segments: Stimulation Services, Proppant Production, Manufacturing, and Other Business Activities. For more information, please visit ProFrac's website at www.PFHoldingsCorp.com.

About Seismos
Seismos delivers actionable data intelligence across the energy infrastructure, enabling greater situational awareness, confident decision-making, and superior performance. The company pioneered real-time frac optimization in 2018, which led to its portfolio of Closed-Loop automation, including physics-based subsurface measurement technologies, advanced completion logic systems, AI-based frac advisory systems and a vast data repository of hundreds of thousands of stages.

SOURCE ProFrac Holding Corp. and Seismos Inc.

ProFrac Holding Corp. (ACDC - Free Report) came out with a quarterly loss of $0.51 per share versus the Zacks Consensus Estimate of a loss of $0.44. This compares to a loss of $0.63 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -15.91%. A quarter ago, it was expected that this company would post a loss of $0.43 per share when it actually produced a loss of $0.6, delivering a surprise of -39.53%.

Over the last four quarters, the company has surpassed consensus EPS estimates just once.

ProFrac Holding Corp., which belongs to the Zacks Oil and Gas - Field Services industry, posted revenues of $436.5 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 11.91%. This compares to year-ago revenues of $454.7 million. The company has topped consensus revenue estimates three times over the last four quarters.

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

ProFrac Holding Corp. shares have added about 78.9% since the beginning of the year versus the S&P 500's decline of 2.5%.

What's Next for ProFrac Holding Corp.?While ProFrac Holding Corp. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

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

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

Ahead of this earnings release, the estimate revisions trend for ProFrac Holding Corp. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.41 on $404.82 million in revenues for the coming quarter and -$1.43 on $1.72 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Field Services is currently in the top 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the broader Zacks Oils-Energy sector, Natural Gas Services (NGS - Free Report) , is yet to report results for the quarter ended December 2025. The results are expected to be released on March 16.

This maker of natural gas compression equipment and industrial flare systems is expected to post quarterly earnings of $0.37 per share in its upcoming report, which represents a year-over-year change of +27.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Natural Gas Services' revenues are expected to be $43.92 million, up 8% from the year-ago quarter.

ProFrac Holding Corp. (ACDC) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn't suggest further strength down the road.

For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. ProFrac Holding Corp. (ACDC - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Oils-Energy sector should help us answer this question.

ProFrac Holding Corp. is one of 240 companies in the Oils-Energy group. The Oils-Energy group currently sits at #1 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. ProFrac Holding Corp. is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for ACDC's full-year earnings has moved 6.3% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, ACDC has moved about 50.4% on a year-to-date basis. Meanwhile, stocks in the Oils-Energy group have gained about 26.3% on average. This means that ProFrac Holding Corp. is performing better than its sector in terms of year-to-date returns.

Another stock in the Oils-Energy sector, California Resources Corporation (CRC - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 42.5%.

The consensus estimate for California Resources Corporation's current year EPS has increased 90.8% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, ProFrac Holding Corp. belongs to the Oil and Gas - Field Services industry, a group that includes 19 individual stocks and currently sits at #35 in the Zacks Industry Rank. This group has gained an average of 37.8% so far this year, so ACDC is performing better in this area.

In contrast, California Resources Corporation falls under the Oil and Gas - Exploration and Production - United States industry. Currently, this industry has 35 stocks and is ranked #22. Since the beginning of the year, the industry has moved +24.4%.

Going forward, investors interested in Oils-Energy stocks should continue to pay close attention to ProFrac Holding Corp. and California Resources Corporation as they could maintain their solid performance.

Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.

Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times.

It could be safer to invest in bargain stocks that have been witnessing price momentum recently. While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.

ProFrac Holding Corp. (ACDC - Free Report) is one of the several great candidates that made it through the screen. While there are numerous reasons why this stock is a great choice, here are the most vital ones:

Investors' growing interest in a stock is reflected in its recent price increase. A price change of 9.5% over the past four weeks positions the stock of this company well in this regard.

While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. ACDC meets this criterion too, as the stock gained 46.7% over the past 12 weeks.

Moreover, the momentum for ACDC is fast paced, as the stock currently has a beta of 1.44. This indicates that the stock moves 44% higher than the market in either direction.

Given this price performance, it is no surprise that ACDC has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.

In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped ACDC earn a Zacks Rank #2 (Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Most importantly, despite possessing fast-paced momentum features, ACDC is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. ACDC is currently trading at 0.68 times its sales. In other words, investors need to pay only 68 cents for each dollar of sales.

So, ACDC appears to have plenty of room to run, and that too at a fast pace.

In addition to ACDC, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.

This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.

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Wall Street expects a year-over-year decline in earnings on lower revenues when ProFrac Holding Corp. (ACDC - Free Report) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis company is expected to post quarterly loss of $0.39 per share in its upcoming report, which represents a year-over-year change of -254.6%.

Revenues are expected to be $390.43 million, down 35% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 2.8% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for ProFrac Holding Corp.?For ProFrac Holding Corp., the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +5.98%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination indicates that ProFrac Holding Corp. will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that ProFrac Holding Corp. would post a loss of$0.44 per share when it actually produced a loss of -$0.51, delivering a surprise of -15.91%.

Over the last four quarters, the company has beaten consensus EPS estimates just once.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

ProFrac Holding Corp. appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerArchrock Inc. (AROC - Free Report) , another stock in the Zacks Oil and Gas - Field Services industry, is expected to report earnings per share of $0.45 for the quarter ended March 2026. This estimate points to a year-over-year change of +7.1%. Revenues for the quarter are expected to be $376.69 million, up 8.5% from the year-ago quarter.

The consensus EPS estimate for Archrock Inc. has been revised 5.5% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -2.22%.

This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Archrock Inc. will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

WILLOW PARK, Texas--(BUSINESS WIRE)--ProFrac Holding Corp. (NASDAQ: ACDC) (“ProFrac”, or the “Company”) today announced financial and operational results for its 2026 first quarter ended March 31, 2026. First Quarter 2026 Results Total revenue was $450 million compared to fourth quarter revenue of $437 million Net loss was $81 million compared to net loss of $141 million in the fourth quarter Adjusted EBITDA¹ was $54 million compared to $61 million in the fourth quarter; 12% of revenue in the f.

ProFrac Holding Corp. (ACDC - Free Report) came out with a quarterly loss of $0.47 per share versus the Zacks Consensus Estimate of a loss of $0.37. This compares to a loss of $0.11 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -28.17%. A quarter ago, it was expected that this company would post a loss of $0.44 per share when it actually produced a loss of $0.51, delivering a surprise of -15.91%.

Over the last four quarters, the company has not been able to surpass consensus EPS estimates.

ProFrac Holding Corp., which belongs to the Zacks Oil and Gas - Field Services industry, posted revenues of $449.6 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 15.15%. This compares to year-ago revenues of $600.3 million. The company has topped consensus revenue estimates three times over the last four quarters.

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

ProFrac Holding Corp. shares have added about 69.2% since the beginning of the year versus the S&P 500's gain of 7.2%.

What's Next for ProFrac Holding Corp.?While ProFrac Holding Corp. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

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

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

Ahead of this earnings release, the estimate revisions trend for ProFrac Holding Corp. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.32 on $424.12 million in revenues for the coming quarter and -$1.20 on $1.68 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Field Services is currently in the bottom 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, KLX Energy Services (KLXE - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 12.

This service provider to oil and natural gas producers is expected to post quarterly loss of $1.27 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 1.3% higher over the last 30 days to the current level.

KLX Energy Services' revenues are expected to be $146.5 million, down 4.9% from the year-ago quarter.

After more than a decade of disciplined budgeting and limited capital expenditure, oil and gas companies are opening their wallets again. The commodity supercycle of the mid-2000s left the industry overextended, with bloated deepwater projects, uneconomic oil sands expansions, and Arctic ventures that never panned out. When crude collapsed in 2014, the resulting hangover ushered in a structural shift toward capital restraint, shareholder returns, and ESG-driven caution that persisted for the better part of a decade.

That era appears to be ending. With oil prices hovering near $100 and no near-term catalyst for a meaningful pullback, producers are doing something they haven't done in years, investing aggressively in new production. And the biggest beneficiaries aren't the producers themselves, but the companies that supply the rigs, the frac crews, and the subsea equipment that make drilling possible.

Among this group, Valaris ((VAL - Free Report) ), ProFrac Holding Corp. ((ACDC - Free Report) ) andHelix Energy Solutions Group ((HLX - Free Report) ) stand out for strong momentum, earnings upgrades and considerable industry tailwinds.

Image Source: Zacks Investment Research

The Capex Cycle Is Turning and Oil Services Stocks LeadThe parallel to the technology sector is hard to ignore. After a brief discipline phase in 2022-2023 marked by layoffs and "year of efficiency" mantras, Big Tech found its permission slip in artificial intelligence and began spending at record levels. The Mag 7 are collectively guiding for over $680 billion in capex for 2026, up from roughly $400 billion in 2025, funding data centers, GPU clusters and AI infrastructure at a pace that would have been unthinkable two years ago.

To put that in perspective, total global oil and gas capital expenditure across all segments, upstream, midstream, and downstream is estimated at roughly $680 billion in 2026. Seven technology companies are now spending as much on AI infrastructure as the entire global energy industry spends to find, produce, transport, and refine the commodity that powers the physical economy. But we could see that already sizable energy capex rise, which would have a significant ripple effect on adjacent industries.

Oil and gas is getting its own version of a permission slip, not from a technological paradigm shift, but from geopolitics and supply scarcity. The Strait of Hormuz crisis, triggered by the US-Israeli strikes on Iran in late February 2026 and the subsequent regional escalation involving Gulf states has effectively removed roughly 20 million barrels per day of transit capacity from global markets. WTI crude surged from the mid-$50s at the start of the year to well above $100, and the disruption shows no signs of resolving quickly.

The response from producers has been swift. Diamondback Energy, the third-largest Permian operator, abandoned its capital discipline framework and began adding rigs and frac crews. ConocoPhillips raised capex guidance. Continental Resources reversed a planned 20% spending cut and instead increased caped 15% to 20%. These represent a potential strategic shift in how management teams are thinking about reinvestment.

Why Services and Drilling Stocks are Beating ProducersThe VanEck Oil Services ETF ((OIH - Free Report) ) is up nearly 60% year-to-date, almost doubling the return of the Energy Select Sector SPDR Fund ((XLE - Free Report) ) at around 36%. The SPDR S&P Oil & Gas Exploration & Production ETF ((XOP - Free Report) ) sits in between at approximately 40%. This dispersion tells an important story about where the real leverage sits in a capex upcycle.

XLE is dominated by integrated majors, ExxonMobil and Chevron alone account for over 40% of the portfolio. These companies benefit from higher oil prices, but their earnings are diversified across refining, chemicals, and midstream operations. That diversification dampens their sensitivity to the upstream drilling cycle. XOP captures purer E&P exposure, but producers are price-takers and their fortunes rise and fall with the commodity itself.

Oil services companies operate differently. They get paid when producers drill, and they benefit from pricing power when capacity gets tight. SLB, Halliburton, and Baker Hughes, the core holdings of OIH, are picks-and-shovels plays on the drilling cycle. When every E&P in the Permian is scrambling to add rigs simultaneously, the companies that own those rigs and frac fleets can command premium pricing.

The Zacks Rank data confirms this dynamic from the bottom up. Scanning the Oils-Energy sector, the strongest momentum and earnings revision trends are concentrated in services and drilling names, such as Patterson-UTI, Valaris, Nabors, ProFrac, KLX Energy, and Helix Energy Solutions are all clustered near the top of the momentum rankings. The E&P companies sit in the middle tier, while the integrated majors, the names that dominate XLE, are near the bottom.

This isn't coincidental. It's the anatomy of a capex upcycle: the picks-and-shovels names lead on earnings revisions, the producers follow, and the diversified giants lag because their other business segments dilute the upstream signal.

Image Source: Zacks Investment Research

The Capacity Bottleneck Is RealWhat makes this cycle particularly compelling for services investors is the degree to which a decade of underinvestment has constrained supply-side capacity. Halliburton's CEO noted on the Q1 earnings call that "white space" in the frac calendar is "all but gone" for Q2, with an uptick in inbound calls for spot work. Transocean booked $1.6 billion in new contracts at roughly $410,000 average day rates, the highest in over a decade.

This is the natural consequence of years of capital starvation. Rig counts were slashed, fleets were cold-stacked, and equipment was decommissioned. Rebuilding that capacity takes time and capital, which means the companies that maintained their fleets through the downturn are now in a position to dictate terms.

The offshore market is telling a similar story. Deepwater commitments in Brazil's Santos Basin, Guyana's Stabroek block, and West Africa are not short-cycle spending decisions that can be reversed if oil pulls back. These are multi-billion-dollar infrastructure projects with production timelines stretching decades. SLB's Production Systems segment grew 23% year-over-year in Q1, reflecting the durability of these long-cycle commitments.

ProFrac Holding Corp Shares Push New HighsProFrac is a pure-play completions company focused on hydraulic fracturing, proppant production, and related oilfield services. If there is a single company that captures the domestic land-based capex acceleration story, it's ACDC.

When US producers decide to drill more wells, they need frac crews to complete them, and ProFrac controls meaningful capacity in that market. The company has been through a difficult stretch with Q1 2026 revenue of $450 million was down meaningfully from the prior year, and the company posted a net loss of $83.5 million. But the quarter was marred by approximately $9 million in weather-related EBITDA headwinds, and importantly, the trajectory shifted meaningfully in late February as operator sentiment improved and activity levels accelerated.

CEO Ladd Wilkes made a point on the earnings call that should catch investors' attention, noting that current pricing remains at roughly 60% of where it was in 2022, indicating substantial room for price improvement as demand catches up to capacity. The company's frac calendar has continued to tighten from Q1 levels, with significant spot work converting to dedicated programs, particularly among private operators.

Despite the mixed results, the stock is up roughly 63% year-to-date and pushing new YTD highs today, reflecting the market's anticipation of the capex inflection and strong price momentum. But if pricing power continues to build as frac capacity tightens further, there is still meaningful earnings revision upside ahead. In the last 60 days, current year estimates are up 10% and next year 33%, giving the stock a Zacks Rank #2 (Buy) rating.

Image Source: TradingView

Valaris Stock Breaks OutValaris is one of the world's largest offshore contract drillers, operating a fleet of drillships, semisubmersibles, and modern jackups across deepwater and international markets. The company represents the long-cycle, offshore side of the capex thesis, a fundamentally different dynamic than the short-cycle shale plays that dominate domestic services.

The story here begins with the post-bankruptcy transformation. Valaris emerged from Chapter 11 in 2021 with a clean balance sheet, and the current offshore upcycle has placed the company squarely in the path of rising demand. Day rates have surged to decade-plus highs as deepwater operators in Brazil, Guyana, and West Africa commit to multi-year drilling programs that cannot be easily unwound.

Q1 2026 results showed revenue of $465 million, a top-line beat versus consensus expectations of $446 million, though revenue was down 25% year-over-year due to fewer operating days and the sale of several units. The EPS miss (-$0.24 versus expectations of -$0.12) reflected merger-related integration costs and elevated war-risk insurance expenses tied to the Middle East conflict. Revenue efficiency remained strong at 98%, indicating that when rigs are working, they're performing reliably. The company ended Q1 with $578 million in cash and a contract backlog of $4.9 billion.

The transformative catalyst for Valaris is the pending all-stock merger with Transocean, announced in February 2026. The combined entity will operate a fleet of 73 rigs, including 33 ultra-deepwater drillships, nine semisubmersibles, and 31 modern jackups, with a pro forma enterprise value of approximately $17 billion and a combined backlog approaching $11 billion, making the combined group the world's largest offshore drilling contractor by fleet size.

For investors, the Transocean combination creates a dominant offshore drilling platform positioned for a multi-year deepwater capex cycle. The combined fleet will have unmatched reach across the world's most attractive offshore basins, and the scale advantages should improve cash flow and accelerate deleveraging.

Earnings estimates have risen across the board, with current quarter forecasts jumping 37% in the last month and next quarter by 22% in the same period, giving it a Zacks Rank #2 (Buy) rating. The stock also just broke out from a bullish consolidation, making it a worthy candidate for buying shares on a pullback.

Image Source: TradingView

Helix Energy Solutions Group Approaches Breakout LevelHelix Energy Solutions occupies a unique niche in the offshore services value chain. While companies like Valaris drill the wells, Helix handles what comes after — well intervention, subsea robotics, and decommissioning services. It's the maintenance and lifecycle management side of offshore energy, which provides a more durable revenue stream than pure drilling activity.

The company reported Q1 2026 revenue of $288 million, beating consensus estimates by a meaningful margin ($24 million above expectations). The quarter reflected expected seasonality, winter weather impacts the North Sea and Gulf of America shelf operations, and included costs from the successful workover of the company's Thunder Hawk field. Despite a net loss of $13 million, Helix generated $59 million in free cash flow and ended the quarter with $501 million in cash and $612 million in total liquidity against just $310 million in funded debt. That's a notably strong balance sheet for a company of this size.

Full-year 2026 guidance calls for revenue of $1.2-$1.4 billion and EBITDA of $230-$290 million, with the second and third quarters expected to be the most active. CEO Owen Kratz noted that recent commodity price increases have generated improved demand for the company's services, and government actions in the North Sea have provided a regulatory catalyst for decommissioning activity.

The strategic catalyst for Helix is the recently announced all-stock merger with Hornbeck Offshore Services, expected to close in the second half of 2026. The combination creates what both companies describe as a "premier integrated offshore services company," merging Helix's well intervention assets and subsea robotics with Hornbeck's high-specification offshore support vessel fleet. The combined entity will operate under the Hornbeck Offshore Services name (ticker: HOS) and is expected to generate $75 million or more in annual revenue and cost synergies within three years. Hornbeck shareholders will own approximately 55% of the combined company, with Helix shareholders holding 45%.

What makes Helix particularly interesting in the current environment is the diversification of its end markets. Beyond traditional oil and gas, the combined company will serve defense, renewables, and scientific research applications, providing some insulation from crude price volatility that pure drillers don't have.

Helix group has seen earnings estimates rise across timeframes, earning it a Zacks Rank #2 (Buy) rating, while the stock simultaneously approaches a major breakout level.

Image Source: TradingView

What Could Derail the ThesisThe bull case for oil services rests on the durability of the capex cycle. If crude prices remain elevated and producers continue to invest, services companies will continue to see strong demand and improving pricing power. But this thesis is not without risk.

The most obvious risk is a resolution to the Hormuz crisis. A ceasefire or diplomatic breakthrough that reopens the Strait could take $20-30 off crude relatively quickly. The memory of $57 oil at the start of the year is fresh, and the Dallas Fed's latest energy survey showed plenty of E&P executives still skeptical that current prices will hold long enough to justify major investment commitments. If crude falls sharply, the capex acceleration could stall as quickly as it started, and services companies would give back their outperformance faster than XLE, given the same operating leverage that drove them higher.

The counterpoint is that a resolution doesn't necessarily mean immediate normalization. Oil analysts have estimated that for every day the Strait is closed, it takes roughly a week for the market to normalize when accounting for tanker fleet dislocations, port backlogs, insurance repricing, and the restart of shut-in production. The Strait has been effectively closed for 78 days, which points to approximately 78 weeks of normalization, stretching into November 2027. Saudi Aramco CEO Amin Nasser reinforced this on his Q1 earnings call, warning that even if Hormuz opened today, it would take months to rebalance, and if the reopening is delayed further, normalization extends well into 2027.

There's also a historical precedent worth noting: OIH's 10-year return is actually negative. The oil services sector has been one of the most brutal areas of the market over the past decade, and investors who overstayed their welcome in the 2014 cycle paid dearly for it. This is a sector where timing and discipline matter enormously.

That said, the structural underinvestment argument supports elevated prices even without the geopolitical premium. The world has not built enough production capacity to meet demand growth, and the capex required to close that gap flows directly through the services companies that sit at the center of this article.

It's also worth noting that two of the three companies profiled above. These aren't defensive consolidation plays to survive a downturn. These are deals structured around the belief that the demand environment has legs and that deepwater programs, well intervention backlogs, and offshore activity levels justify building larger, more capable platforms to capture multi-year revenue streams. When management teams and boards are betting their corporate structure on a cycle, that tells you something about their confidence in its durability.

For now, the earnings revision cycle is pointing clearly in one direction, and the Zacks Rank data is confirming it across the services and drilling complex. The tech sector found its reason to spend. Oil and gas may have found its own.

The packaged-food company reports better-than-expected quarterly earnings but mixed guidance for fiscal 2027.

SJM Surges 9%, But Hostess Weakness Clouds OutlookJ. M. Smucker NYSE: SJM executives said the company is entering fiscal 2027 with momentum across key brands, while cautioning that commodity costs, tariffs and consumer behavior remain important variables in its outlook.

During the company’s fiscal fourth-quarter earnings question-and-answer session, Chief Executive Officer Mark Smucker said the company had “a great quarter and a solid outlook” for the new fiscal year. He pointed to what he described as a complementary portfolio spanning coffee, frozen handhelds and spreads, pet foods and sweet baked snacks.

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5 Under-the-Radar Consumer Staples Stocks With Pricing PowerChief Financial Officer Tucker Marshall said the company’s full-year outlook includes mid-single-digit percentage deflation, driven largely by green coffee. Excluding green coffee and tariffs, Smucker expects low-single-digit cost inflation across the rest of its portfolio, primarily in packaging, ingredients and transportation.

Marshall said the outlook reflects the company’s current best estimate, while noting that geopolitical tensions in the Middle East could affect cost assumptions depending on their duration. He said Smucker expects to manage additional inflation through procurement, hedging, productivity savings and pricing “when and where appropriate.”

Coffee Deflation Expected to Support Profit Recovery The 4 Dividend Stocks Smart Money Is Grabbing Right NowCoffee was a major focus of the call, as executives discussed the expected impact of lower green coffee costs. Smucker said the coffee category remains attractive and that the company continues to lead across segments and the value spectrum. He highlighted Café Bustelo as “a very significant growth brand” with more than $500 million in sales.

Smucker said the company expects profit improvement in coffee as the commodity environment moderates. However, he said the company is being prudent in forecasting volume response to lower prices because consumers remain cautious.

“Coffee is a pass-through category,” Smucker said, adding that the company passes costs through to customers and consumers “up and down” in a measured way. He said the company is currently focused more on trade spending, and that list price reductions would depend on when Smucker takes physical inventory of lower-cost coffee.

Marshall said the company expects its first quarter to be roughly flat from a net sales perspective, with green coffee deflation beginning to affect results more meaningfully in the second quarter and beyond. He also confirmed that the expected improvement in retail coffee margins into the high-20% range is largely a second-through-fourth-quarter event.

Uncrustables Remains a Growth Driver Executives said the Uncrustables brand remains one of Smucker’s strongest growth platforms. Mark Smucker said the brand has reached $1 billion in sales and continues to benefit from its position in the frozen category, new formats, new occasions and innovation such as higher-protein morning offerings and “fridge-friendly” products.

Smucker said Uncrustables is not expected to continue growing at a double-digit rate, but the company still sees runway through distribution, household penetration, innovation and brand-building investments.

Marshall said Smucker expects mid-single-digit growth for Uncrustables in fiscal 2027, driven by volume and mix momentum and partially offset by strategic investments. He said roughly 75% of Uncrustables sales go through traditional U.S. retail, with the remaining 25% through away-from-home channels, where growth is expected to be slightly faster due to the smaller base and additional opportunities.

On the brand’s fridge-friendly format, Smucker said customer and consumer reception has been strong. He said all Uncrustables sandwiches are being transitioned to the fridge-friendly format, with the full portfolio expected to be converted around mid-summer.

Spreads, Pet and Sweet Baked Snacks Face Mixed Trends Smucker said the company is seeing some pressure in spreads, but framed the frozen handheld and spreads segment as a broader “peanut butter and jelly story.” He said the company chose not to repeat some prior promotional activity and is not seeing unusual competitive behavior in the category.

In peanut butter, Smucker said recent softness was partly tied to weather events and stock-up activity, rather than structural category weakness. He said the company remains well positioned with leadership in stabilized peanut butter and several leading natural and organic peanut butter brands. He also cited the launch of Jif Simply, a limited-ingredient stabilized peanut butter product.

In pet, Marshall said the company continues to see volume momentum across Meow Mix and Milk-Bone, but segment profit is expected to be pressured by inflation and marketing investments.

For Sweet Baked Snacks, executives said the focus remains on stabilizing the Hostess business and improving profitability. Smucker said the company has strengthened the portfolio through SKU rationalization and noted that donuts grew 13% and now represent about 40% of the portfolio. He said the breakfast occasion for Hostess continues to perform well.

Smucker also said the company completed its manufacturing footprint consolidation and recovered more quickly than expected from a fire in the prior quarter. He said it will take time for the business to return to top-line growth.

Marshall said Sweet Baked Snacks segment profit is expected to rise about 30% year over year, helped by cost control, trade execution and a list price increase across parts of the donuts portfolio.

Marketing, Tariffs and Cost Savings Marshall said Smucker remains committed to supporting its brands through marketing, with spending expected to be about 5.7% of net sales in the upcoming fiscal year. He said that represents an increase of about $30 million year over year and nearly $500 million in total spending, with investments expected to be fairly balanced throughout the year.

On tariffs, Marshall said Smucker experienced tariffs in fiscal 2026 and is assuming a 10% tariff level in its fiscal 2027 outlook. He said the company is pursuing refunds for previously paid tariffs, but the scope and timing remain uncertain, so no benefit has been included in guidance.

Marshall also discussed the company’s transformation office, saying Smucker targets gross cost savings equal to a couple points of revenue each fiscal year. He said future efforts will focus on supply chain areas he described as “buy, make, and move,” as well as the use of technology to improve the company’s cost structure.

Debt Reduction Remains a Priority Marshall said Smucker generated $1.2 billion in free cash flow in fiscal 2026, allowing the company to repay more than $700 million of debt and pay just over $450 million in dividends. For fiscal 2027, he said the company remains committed to generating at least $1 billion in free cash flow, with capital expenditures expected to be roughly flat at $325 million.

The company plans to pay down an additional $500 million of debt, which Marshall said would support reducing leverage to around 3 times by the end of the fiscal year, down from about 3.8 times at the end of fiscal 2026.

Marshall said that as Smucker approaches its leverage objectives, it could consider additional cash deployment options, including potential share repurchases. However, he noted that the company’s current guidance does not include share repurchases.

In closing remarks, Mark Smucker said the company’s priorities are driving focused organic volume growth, improving profitability and earnings growth, and maintaining discipline in capital deployment.

About J. M. Smucker NYSE: SJMThe J. M. Smucker Company is a diversified food and beverage manufacturer and marketer known for a portfolio of well-established consumer brands. The company's main business activities include the production and distribution of fruit spreads, peanut butter, coffee and coffee filters, as well as pet food and pet snacks. Smucker's core product lines serve both retail and foodservice customers through grocery chains, mass merchandisers, club stores, convenience outlets and e-commerce channels.

Among its leading brands are Smucker's® fruit spreads, Jif® peanut butter, Folgers® and Dunkin'® coffees, and Café Bustelo® coffee.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Should You Invest $1,000 in J. M. Smucker Right Now?Before you consider J. M. Smucker, you'll want to hear this.

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Smucker (SJM - Free Report) reported $2.27 billion in revenue for the quarter ended April 2026, representing a year-over-year increase of 5.8%. EPS of $2.77 for the same period compares to $2.31 a year ago.

The reported revenue represents a surprise of -0.12% over the Zacks Consensus Estimate of $2.27 billion. With the consensus EPS estimate being $2.65, the EPS surprise was +4.6%.

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

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

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

Net Sales- Sweet Baked Snacks: $237.2 million compared to the $220.34 million average estimate based on four analysts. The reported number represents a change of -5.5% year over year.Net Sales- U.S. Retail Frozen Handheld and Spreads: $454.1 million versus the four-analyst average estimate of $462.06 million.Net Sales- U.S. Retail Pet Foods: $401.7 million versus $394.41 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +1.6% change.Net Sales- International and Away From Home: $344.5 million versus $344.46 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +11.5% change.Net Sales- U.S. Retail Coffee: $830.6 million versus the four-analyst average estimate of $848.73 million. The reported number represents a year-over-year change of +12.5%.Segment Profit- Sweet Baked Snacks: $29 million versus the three-analyst average estimate of $30.11 million.Segment Profit- U.S. Retail Frozen Handheld and Spreads: $124.7 million versus $99.03 million estimated by three analysts on average.Corporate administrative expenses: $-87.1 million compared to the $-78.67 million average estimate based on three analysts.Segment Profit- U.S. Retail Pet Foods: $125.7 million versus $115.04 million estimated by three analysts on average.Segment Profit- International and Away From Home: $75.8 million compared to the $77.92 million average estimate based on three analysts.Segment Profit- U.S. Retail Coffee: $214 million versus the three-analyst average estimate of $211.29 million.View all Key Company Metrics for Smucker here>>>

Shares of Smucker have returned +2.6% over the past month versus the Zacks S&P 500 composite's +0.2% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

The J. M. Smucker Company (SJM) Q4 2026 Earnings Call Transcript

J. M. Smucker (SJM) shares have surged following the release of its Q4 (April) earnings report. The company exceeded earnings per share (EPS) expectations, wit

J. M. Smucker Today

SJM

J. M. Smucker

$115.66 -1.17 (-1.00%)

As of 12:05 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$88.25▼

$119.39Dividend Yield3.80%

Price Target$121.13

The J.M. Smucker Company NYSE: SJM may not pay the highest-yielding dividend among S&P 500 companies, but it still offers a sweet payout and is on track for annual increases alongside share price appreciation. The net result will be a double-digit compound annual growth rate (CAGR) over the subsequent few years, a tidy return for buy-and-hold investors.

While business is expected to contract in fiscal year 2027 (FY2027), worse than analysts expected, the company is in the midst of a transition that will lead to sustainable growth and wider margins. As it stands, earnings are expected to grow in FY2027, good news for the dividend and dividend investors.

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Smucker’s Business Transition Gains TractionSmuckers is undergoing a transformation focused on business rationalization, improved efficiency, and reinvigorated growth. Activist investor Elliott Management is assisting with guidance, information, and strategy planning.

The critical factor is the company's product portfolio, which is a hodgepodge of disparate categories, although most produced growth in fiscal Q4 2026 and strong, double-digit margins.

The primary culprits of underperformance are the Hostess brand and the Sweet Baked Snacks segment, which are contracting and dragging down overall growth. Margins have improved, but remain the weakest among the major segments. While no plans have been announced, investors should not be surprised to hear news that the company will divest the brand. Elliott Management is well-known for board shakeups, debt reduction, and divesting underperforming assets; so far, J.M. Smucker Co. has added two new board seats and is focusing on debt; a divestiture is a likely next move on Elliott’s agenda.

Smucker’s Reduces Debt: Improves Dividend ReliabilitySmucker’s is not out of the weeds, but it is making progress on its transition. The recent earnings results included significant balance sheet improvements, with highlights reflecting the impact of previous divestitures, improving cash flow, and debt reduction. Cash was flat compared to the prior year. Debt fell about 10%, and is expected to continue falling as cash flow improvements persist.

The dividend is reliable, at approximately 45% of the FY2027 earnings forecast, and offers a high yield near 4%. In the future, the company is likely to keep increasing the payout by mid-single digits, as it has over the trailing 5-year period, but there is an opportunity for accelerated growth. Improving operational quality and reinvigorated top-line growth are a recipe for accelerated distribution growth and buybacks. Buybacks are not a significant part of the thesis today, but they offset dilution and keep the share count steady, which is good enough for now.

SJM Stock Accumulated by Analysts and Institutions in 2026Analyst and institutional trends highlight the value and yield opportunity presented by SJM’s 2026 share price pullback. MarketBeat tracks 21 analysts rating the stock as a Hold with a 52% Buy-side bias. The group sees SJM as fairly valued in mid-June 2026, which aligns with two exponential moving averages (EMAs). Assuming the market sustains support at this level, the indication is that short- and medium-term traders will enter the mix, driving a bullish outlook for the stock.

Institutions, which collectively own more than 80% of the stock, are accumulating it. MarketBeat data reveal this group has been buying on balance for more than 12 consecutive quarters, at a pace of $1.6 to $1 on a trailing 12-month basis, and the trend continues into early Q2 2026. The likely outcome is that institutions will limit downside in the event of price corrections and underpin any rallies as they form.

Looking ahead, institutions may begin distributing shares when SJM reaches the top of its trading range, but that risk is diminished in FY2027. Improving business trends and an outlook for resumed growth suggest SJM’s market will reverse over time, potentially reaching a fresh long-term high in calendar 2027, if not by the end of this year.

The post-release price action looked favorable, with SJM stock rising by more than 10% in trading the day after the release. The MACD and stochastic suggest the rebound has only begun and has ample room to advance. The first target for price resistance is in the $110 to $112.50 range, aligning with a prior high and the long-term EMA. A move above it would signal a complete market reversal.

Should You Invest $1,000 in J. M. Smucker Right Now?Before you consider J. M. Smucker, you'll want to hear this.

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While J. M. Smucker currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.

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Key Takeaways SJM guides fiscal 2027 net sales down 3%-4%, while adjusted EPS rises to $9.75-$10.25.SJM expects mid-single-digit declines in green coffee costs, with the biggest retail profit lift starting Q2.SJM: Uncrustables hit $1B sales; Sweet Baked Snacks profit rose 45% on pricing and lower ad spend. The J.M. Smucker Co. (SJM - Free Report) used its fourth-quarter call to make a forward-looking case rather than dwell on headline results. Management pointed to stronger quarterly execution, but the main message was that fiscal 2027 will hinge on coffee cost relief, tighter portfolio management and disciplined capital deployment.

That framing mattered because Smucker is guiding to lower sales, even as adjusted earnings per share rise. Executives spent much of the call explaining why margin improvement, not top-line acceleration, is the clearest near-term objective.

SJM Sets a Margin-Led 2027 AgendaCEO Mark Smucker said the company enters fiscal 2027 with momentum, but he also laid out a narrow set of priorities: organic volume growth on key platforms, better profitability and disciplined capital deployment.

That backdrop helps explain the outlook. Smucker expects fiscal 2027 net sales to decline 3% to 4%, while adjusted earnings per share are projected at $9.75 to $10.25, above fiscal 2026 adjusted EPS of $9.15.

The company’s fourth quarter supported that message, with net sales up 6% to $2,268.1 million and adjusted EPS up 20% to $2.77. Adjusted EPS topped the $2.65 estimate by 4.5%. However, revenues marginally missed the Zacks Consensus Estimate of $2,270.9 million, with a negative surprise of 0.10%.

Smucker Sees Coffee Turning From Drag to SupportCoffee was the clearest source of optimism on the call. Management said green coffee costs should decline at a mid-single-digit rate in fiscal 2027, creating room for profit recovery after a volatile inflationary stretch.

CFO Tucker Marshall said retail coffee profit should improve as moderating commodity costs flow through the business, with the largest benefit starting in the second quarter. Management also expects list price reductions to phase in only after lower-cost inventory reaches the system.

Analysts pressed on whether lower pricing should drive a stronger volume response. Mark Smucker answered with a notably cautious tone, saying the company is assuming prudent elasticities because consumers remain careful even as prices ease.

SJM Keeps Uncrustables at the CenterUncrustables remained the company’s standout growth platform. Management said the brand reached $1 billion in annual sales and should post mid-single-digit growth in fiscal 2027, led primarily by volume and mix.

Executives also highlighted the transition to a fridge-friendly format across the full Uncrustables lineup by mid-summer. Mark Smucker said retailer response has been strong, while Marshall noted that away-from-home channels, now about one-quarter of the business, should grow faster than U.S. retail from a smaller base.

That helps offset weaker trends elsewhere in frozen handheld and spreads. On the call, management acknowledged pressure in spreads and said the total segment will be down year over year as Uncrustables’ strength is weighed against softer peanut butter and fruit spreads.

Hostess Gives SJM a Profit TestSweet Baked Snacks was another focal point because investors remain focused on the Hostess integration and turnaround path. The quarter showed a 5% sales decline for the segment, but profit rose 45% as pricing and lower marketing spend helped margins recover.

Marshall said fiscal 2027 segment profit should grow about 30%, supported by improved costs, SKU rationalization, and selective pricing, especially in donuts. Mark Smucker said the business has been stabilized operationally, though it will take time before top-line growth returns.

That exchange stood out in Q&A because management did not overpromise on demand. Instead, executives emphasized better visibility, cleaner execution in trade and production, and a continued focus on profit before renewed sales expansion.

Smucker Balances Pet Pressure and Cost WorkPet food was a more mixed story. The fourth quarter delivered a 2% sales increase and an 18% profit increase, but management said inflation and higher brand spending will pressure profitability in fiscal 2027 despite volume momentum in Meow Mix and Milk-Bone.

Marshall described low-single-digit inflation outside coffee and tariffs, with pressure coming from packaging, ingredients, and transportation. He added that geopolitical tension in the Middle East remains part of the cost backdrop embedded in guidance.

To offset those costs, the company is leaning on its transformation office. Marshall said Smucker continues to target gross savings worth a couple of points of revenues annually, with current work centered on supply chain efficiency and technology.

SJM Sticks to Debt ReductionCapital allocation was another important call theme. Smucker generated $1.16 billion of free cash flow in fiscal 2026 and expects about $1.0 billion in fiscal 2027, while capital spending is projected at $325 million.

Marshall said the first call on that cash remains debt reduction. The company plans another $500 million of paydown this year to move leverage to roughly 3 times by year-end, after finishing fiscal 2026 near 3.8 times.

Management also said tariff refunds are being pursued but were excluded from guidance because the timing and scope remain uncertain. That left the overall tone disciplined and conservative, even as quarterly performance improved.

Smucker Leaves Investors With a Narrow PlaybookBy the end of the call, management had drawn a clear map for fiscal 2027: let coffee margins recover, keep Uncrustables growing, improve Hostess profitability, and preserve balance-sheet flexibility. The emphasis was on control and sequencing rather than broad-based demand strength.

That posture made the call less about a single strong quarter and more about whether Smucker can convert cost relief and portfolio actions into steadier earnings growth while working through soft sales expectations.

Zacks Signals on SJMSJM currently carries a Zacks Rank #4 (Sell), with Value, Growth, and VGM Score of B and a Momentum Score of C. Under the Zacks framework, Style Scores are most useful when paired with top-ranked stocks, while a Rank #4 points to weaker estimate revision trends despite respectable style characteristics.

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

That makes the current setup mixed rather than outright supportive. The Style Scores suggest some favorable underlying traits, but the Zacks Rank remains the primary signal and can change as earnings estimate revisions move after the quarter.

The J. M. Smucker Company remains a Buy after a strong earnings report, with a sustainable 4% dividend yield paid to wait for a potential recovery. SJM is working on its turnaround, targeting net debt/EBITDA of ~3x by fiscal year-end and maintaining robust free cash flow to support dividends and potential buybacks in the future. Management guides FY27 net sales to decline 3–4% but expects Adj. EPS of $9.75–$10.25, with $1B in free cash flow after $325M in CAPEX.

‘Sell at former tops' is an old Wall Street saying. It's not fiction. It refers to a common market dynamic.

Stocks tend to hit resistance when they reach levels that had previously been tops or peaks. As you can see on the chart, J.M. Smucker hit resistance yesterday around the $117 level.

Smucker’s Buyer's Remorse?There are people who bought shares around $117 who regretted their decision to do so when the price fell after. A number of them decided to hold onto their losing position.

Some of them also decided that if they could eventually do so, they would exit their positions at breakeven. So when the stock rallied back to around $117 yesterday, they placed sell orders. These orders formed resistance at the level again.

J.M. Smucker, also known as Smucker’s, is also overbought. This means the stock is above its typical trading range.

This dynamic will draw sellers into the market. They will be anticipating a reversal and move lower back into the range.

Their selling could put downward pressure on the shares.

Sometimes stocks reverse and head lower after they reach resistance. This happens when some of the sellers who created the resistance become impatient.

They are concerned that other sellers will undercut their prices. As a result, they reduce their offer prices. Other impatient sellers see this and reduce their prices as well. It results in a snowball effect that forces the shares into a downtrend.

Being overbought while at resistance can be a bearish dynamic. The rally in J.M. Smucker may be over.

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Posted by Defense World Staff on Apr 6th, 2026

Northern Oil and Gas (NYSE:NOG – Get Free Report) and Universal Energy (OTCMKTS:UVSE – Get Free Report) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.

Valuation & Earnings This table compares Northern Oil and Gas and Universal Energy”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Northern Oil and Gas $2.48 billion 1.11 $38.76 million $0.33 85.66 Universal Energy N/A N/A N/A N/A N/A Northern Oil and Gas has higher revenue and earnings than Universal Energy.

Analyst Ratings This is a summary of current ratings and price targets for Northern Oil and Gas and Universal Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Northern Oil and Gas 1 4 3 1 2.44 Universal Energy 0 0 0 0 0.00 Northern Oil and Gas presently has a consensus target price of $31.71, suggesting a potential upside of 12.19%. Given Northern Oil and Gas’ stronger consensus rating and higher possible upside, equities analysts plainly believe Northern Oil and Gas is more favorable than Universal Energy.

Profitability This table compares Northern Oil and Gas and Universal Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Northern Oil and Gas 1.57% 19.74% 8.14% Universal Energy N/A N/A N/A Institutional & Insider Ownership 98.8% of Northern Oil and Gas shares are held by institutional investors. 2.9% of Northern Oil and Gas shares are held by company insiders. Comparatively, 0.2% of Universal Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk Northern Oil and Gas has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, Universal Energy has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500.

Summary Northern Oil and Gas beats Universal Energy on 11 of the 11 factors compared between the two stocks.

About Northern Oil and Gas (Get Free Report)

Northern Oil and Gas, Inc., an independent energy company, engages in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas properties in the United States. It primarily holds interests in the Williston Basin, the Appalachian Basin, and the Permian Basin in the United States. The company is based in Minnetonka, Minnesota.

About Universal Energy (Get Free Report)

Universal Energy Corp., an independent energy company, engages in the acquisition, exploration, development, and production of crude oil and natural gas in the United States and Canada. It has 13 oil and gas lease projects. The company was founded in 2002 and is based in Lake Mary, Florida.

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