The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Murphy Oil (MUR - Free Report) . MUR is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MUR has a P/S ratio of 1.94. This compares to its industry's average P/S of 1.95.
Finally, investors should note that MUR has a P/CF ratio of 3.21. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 4.90. MUR's P/CF has been as high as 4.03 and as low as 2.28, with a median of 3.13, all within the past year.
Ring Energy (REI - Free Report) may be another strong Oil and Gas - Exploration and Production - United States stock to add to your shortlist. REI is a Zacks Rank of #2 (Buy) stock with a Value grade of A.
Ring Energy also has a P/B ratio of 0.23 compared to its industry's price-to-book ratio of 2.98. Over the past year, its P/B ratio has been as high as 0.42, as low as 0.17, with a median of 0.27.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Murphy Oil and Ring Energy are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MUR and REI feels like a great value stock at the moment.
Investors might want to bet on Murphy Oil (MUR - Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.
The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this oil and gas producer, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Murphy Oil, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate RevisionsFor the current quarter, the company is expected to earn $1.03 per share, which is a change of +281.5% from the year-ago reported number.
Over the last 30 days, the Zacks Consensus Estimate for Murphy Oil has increased 6.31% because two estimates have moved higher while two have gone lower.
Current-Year Estimate RevisionsFor the full year, the company is expected to earn $3.38 per share, representing a year-over-year change of +146.7%.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for Murphy Oil. Over the past month, two estimates have moved higher compared to three negative revisions, helping the consensus estimate increase 29.56%.
Favorable Zacks RankOur research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom LineWhile strong estimate revisions for Murphy Oil have attracted decent investments and pushed the stock 10.2% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Murphy Oil (MUR - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Murphy Oil currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if MUR is a promising momentum pick, let's examine some Momentum Style elements to see if this oil and gas producer holds up.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For MUR, shares are up 9.9% over the past week while the Zacks Oil and Gas - Exploration and Production - United States industry is up 2.68% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 9% compares favorably with the industry's 2.63% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of Murphy Oil have increased 22.62% over the past quarter, and have gained 87.05% in the last year. In comparison, the S&P 500 has only moved 7.88% and 25.61%, respectively.
Investors should also pay attention to MUR's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. MUR is currently averaging 1,658,432 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with MUR.
Over the past two months, 7 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost MUR's consensus estimate, increasing from $0.62 to $3.38 in the past 60 days. Looking at the next fiscal year, 7 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineGiven these factors, it shouldn't be surprising that MUR is a #2 (Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Murphy Oil on your short list.
On May 20, 2026, Murphy Oil Corp MUR shares fell 3.4% today to a current price of $38.98. Over the past 52 weeks, the stock has fluctuated between a low of $20.31 and a high of $43.34, showcasing significant volatility.
GF Value™ verdict: Current price is $38.98, compared to a GF Value™ of $32.41, indicating the stock is 20.3% overvalued.GF Score™ of 62/100 suggests an above-average potential for long-term returns.Notable signal: Insiders sold $1.9 million in the last three months, with no buying activity reported. Is MUR Overvalued or Undervalued? Murphy Oil Corp is currently trading at $38.98, which is significantly above its GF Value™ of $32.41. This indicates that the stock is overvalued by approximately 20.3%. The GF Valuation label classifies the stock as modestly overvalued, reflecting a potential risk for investors. A margin of safety is crucial when considering investments, and the current overvaluation suggests that investors may not find adequate risk-adjusted returns at this price point.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given the current market conditions and the company's performance, investors may want to exercise caution and closely monitor market developments before making investment decisions.
How Does MUR's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 66.1x 9.9x Forward P/E 11.3x N/A The current P/E (TTM) of 66.1x is considerably higher than its 5-year median P/E of 9.9x, indicating the stock is trading at a premium compared to its historical valuation. This analysis agrees with the GF Value™ verdict, reinforcing the view that Murphy Oil Corp is overvalued at its current price.
What Does MUR's GF Score™ Tell Us? Metric Rating GF Score™ 62 Financial Strength 5/10 Profitability 6/10 Growth 5/10 Valuation 5/10 Momentum 1/10 The GF Score™ of 62/100 reflects an above-average potential for long-term returns. However, the mixed ratings across different categories show areas of concern. The strongest aspect is profitability, rated 6/10, indicating reasonable returns. Conversely, the momentum rank of 1/10 suggests a lack of upward price movement, which might deter potential investors.
What Are Insiders Doing with MUR Stock? In the last three months, insiders at Murphy Oil Corp have sold $1.9 million worth of shares, with no purchasing activity reported. This trend of selling may indicate a lack of confidence among insiders in the company's future performance or valuation. The absence of insider buying could be a red flag for potential investors looking for signals of management confidence in the stock's outlook.
What This Means for Investors Based on the GF Value™ assessment, Murphy Oil Corp is currently overvalued. With a significant premium over its intrinsic value and concerning insider activity, potential investors may want to carefully consider their positions in the stock.
For the complete analysis, visit the Murphy Oil Corp MUR stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is MUR's GF Score™?
MUR has a GF Score™ of 62/100, indicating an above-average potential for long-term returns based on various fundamental metrics.
Is MUR overvalued or undervalued?
MUR is considered overvalued, with its current price of $38.98 exceeding its GF Value™ of $32.41 by 20.3%.
What is MUR's P/E ratio?
MUR's P/E (TTM) ratio is 66.1x, which is 565% above its 5-year median P/E of 9.9x, indicating it is trading at a significant premium compared to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Murphy Oil Corporation is entering a phase of heightened Wall Street interest due to its Vietnam exploration program and upcoming production catalysts. The first Vietnam production, Lac Da Vang, is expected online in Q4, initially adding 10,000 BOED with the potential to scale to 30,000 BOED. MUR maintains a 100% exploration success rate in Vietnam, supporting a Strong Buy thesis with significant upside potential from ongoing discoveries.
On June 08, 2026, Murphy Oil Corp MUR shares rose 3.5% today, closing at $40.01. This increase comes after a positive trend, with the stock experiencing a 30.5% rise year-to-date and an impressive 85.8% increase over the past year. The shares have fluctuated between a 52-week high of $43.34 and a low of $21.86.
GF Value™ verdict indicates the stock is priced at $40.01, which is 21.3% above its fair value estimate of $32.98.GF Score™ of 63/100 suggests that Murphy Oil Corp is rated as Above Average based on key financial metrics.Notable insider activity shows that insiders have sold $1.6 million worth of stock in the last three months, indicating a lack of buying interest. Is MUR Overvalued or Undervalued? According to the GF Value™, Murphy Oil Corp is considered modestly overvalued, with a current price of $40.01 sitting 21.3% above its estimated fair value of $32.98. This suggests a significant margin of safety for potential investors, as the stock is not trading at a discount. The overvaluation carries a risk, particularly in a fluctuating market where energy prices can be volatile. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
The current valuation implies that investors may face challenges in realizing favorable returns if the stock returns to its fair value estimate. Moreover, with a GF Valuation label indicating modest overvaluation, caution is warranted for those considering entering a position at this price point.
How Does MUR's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 67.8x 9.9x Forward P/E 10.1x N/A The current P/E ratio of 67.8x is significantly above its 5-year median P/E of 9.9x, reflecting a 582% increase. The forward P/E of 10.1x indicates expectations for improved earnings in the future. This P/E analysis aligns with the GF Value™ verdict of overvaluation, suggesting that the stock is trading at a premium compared to its historical valuation metrics.
What Does MUR's GF Score™ Tell Us? Metric Rating GF Score™ 63/100 Financial Strength 5/10 Profitability 6/10 Growth 5/10 Valuation 6/10 Momentum 1/10 The GF Score™ of 63/100 indicates that Murphy Oil Corp has an Above Average rating. The strongest aspect is its profitability rank of 6/10, suggesting decent profitability relative to other companies. However, the momentum rank is a notable weakness at 1/10, indicating poor recent performance compared to peers. Financial strength is rated 5/10, which reflects moderate stability, while growth and valuation ranks are also at 5/10, suggesting potential for improvement in those areas.
What Are Insiders Doing with MUR Stock? In the past three months, insiders at Murphy Oil Corp have sold a total of $1.6 million worth of shares, with no recorded purchases. This pattern of selling may suggest a lack of confidence in the stock’s future prospects or could be a personal decision unrelated to the company's performance. The absence of insider buying typically raises concerns for potential investors, as it may reflect sentiment about the stock's current valuation and future growth potential.
What This Means for Investors Based on the current analysis, Murphy Oil Corp MUR is deemed overvalued at a price of $40.01, which is significantly above the GF Value™ estimate of $32.98. Potential investors should exercise caution, given the stock's overvaluation and the selling activity among insiders.
For the complete analysis, visit the Murphy Oil Corp MUR stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is MUR's GF Score™?
MUR's GF Score™ is 63/100, indicating an Above Average rating based on key financial metrics. This suggests that the stock has the potential for higher long-term returns compared to lower-scoring stocks.
Is MUR overvalued or undervalued?
MUR is currently overvalued, with a GF Value™ estimate of $32.98 sitting 21.3% below the current price of $40.01. This indicates caution for potential investors.
What is MUR's P/E ratio?
MUR has a P/E (TTM) of 67.8x, which is significantly above its 5-year median P/E of 9.9x. This suggests that the stock is trading at a premium compared to its historical valuation levels.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
The Providence, R.I., company said Thursday it will explore options for the industrial unit, including a potential sale or tax-free spinoff into a publicly traded company.
Textron (TXT - Free Report) came out with quarterly earnings of $1.45 per share, beating the Zacks Consensus Estimate of $1.3 per share. This compares to earnings of $1.28 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +11.32%. A quarter ago, it was expected that this maker of Cessna small planes and Bell helicopters would post earnings of $1.74 per share when it actually produced earnings of $1.73, delivering a surprise of -0.57%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Textron, which belongs to the Zacks Aerospace - Defense industry, posted revenues of $3.7 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 5.36%. This compares to year-ago revenues of $3.31 billion. 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.
Textron shares have added about 3% since the beginning of the year versus the S&P 500's gain of 4.2%.
What's Next for Textron?While Textron has underperformed 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 Textron was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.56 on $3.8 billion in revenues for the coming quarter and $6.55 on $15.49 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, Aerospace - Defense is currently in the top 32% 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.
Firefly Aerospace (FLY - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 4.
This space and defense technology company is expected to post quarterly loss of $0.50 per share in its upcoming report, which represents a year-over-year change of +69.7%. The consensus EPS estimate for the quarter has been revised 1% lower over the last 30 days to the current level.
Firefly Aerospace's revenues are expected to be $73.82 million, up 32.2% from the year-ago quarter.
For the quarter ended March 2026, Textron (TXT - Free Report) reported revenue of $3.7 billion, up 11.8% over the same period last year. EPS came in at $1.45, compared to $1.28 in the year-ago quarter.
The reported revenue represents a surprise of +5.36% over the Zacks Consensus Estimate of $3.51 billion. With the consensus EPS estimate being $1.30, the EPS surprise was +11.32%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Textron performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenues- Manufacturing- Bell: $1.07 billion versus $1.04 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +8.9% change.Revenues- Manufacturing- Textron systems: $338 million compared to the $321.34 million average estimate based on two analysts. The reported number represents a change of +14.2% year over year.Revenues- Manufacturing- Textron Aviation: $1.49 billion versus $1.34 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +22.5% change.Revenues- Finance: $16 million compared to the $11.61 million average estimate based on two analysts. The reported number represents a change of 0% year over year.Revenues- Manufacturing: $3.68 billion versus the two-analyst average estimate of $3.5 billion. The reported number represents a year-over-year change of +11.8%.Revenues- Manufacturing- Industrial: $786 million compared to the $792.09 million average estimate based on two analysts. The reported number represents a change of -0.8% year over year.Segment Profit- Textron Aviation: $154 million versus the two-analyst average estimate of $137.49 million.Segment Profit- Bell: $72 million versus the two-analyst average estimate of $88.71 million.Segment Profit- Industrial: $40 million compared to the $34.85 million average estimate based on two analysts.Segment Profit- Finance: $12 million compared to the $4.65 million average estimate based on two analysts.Segment Profit- Manufacturing: $308 million versus the two-analyst average estimate of $300.82 million.Segment Profit- Textron Systems: $42 million versus $39.77 million estimated by two analysts on average.View all Key Company Metrics for Textron here>>>
Shares of Textron have returned +1% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
Textron (TXT 0.87%) stock jumped 4.9% through 1:20 p.m. ET Thursday after beating on top and bottom lines in its Q1 earnings report.
Analysts had forecast the defense contractor would earn $1.32 per share on quarterly sales of $3.5 billion. Textron actually earned $1.45 per share, pro forma, on $3.7 billion in sales.
And that wasn't even Textron's biggest news.
Image source: Getty Images.
Textron Q1 earnings Textron's sales grew 12% year over year in Q1, while pro forma earnings climbed 13%. (Actual earnings calculated under generally accepted accounting principles (GAAP) were only $1.25 per share, but still up 11%.) The weakest performance in the quarter came from Textron's Industrial business, which builds such things as golf carts and specialized commercial vehicles; there, sales declined 1%.
Which brings us to the big news: Textron is dumping Industrial.
Today's Change
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What's next for Textron stock Compared to strong growth in Textron's Bell Helicopter and Aviation divisions and "excellent execution" at Textron Systems, the $3 billion Industrial unit is looking like a laggard. To focus on its core business, Textron plans to sell or spin off Industrial and become a pure-play aerospace and defense company -- building helicopters at Bell, Beechcraft and Cessnas at Aviation, and military vehicles at Systems.
"New Textron" (I'm assuming that's a working title) will boast a $19 billion backlog of contracts and $12 billion in annual revenue. With Bell growing sales at 9% in Q1, Systems up 13%, and Aviation up a stellar 22%, Textron will likely enjoy a significant growth spurt after unloading Industrial. These three divisions also happen to provide Textron its strongest profit margins on sales.
If all goes as planned, this should be great news for Textron. Investors are right to applaud it today.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Textron. The Motley Fool has a disclosure policy.
Key Takeaways Textron posted Q1 EPS of $1.45, topping estimates and rising 13.3% year over year.TXT revenues climbed 11.8% to $3.7B, driven by higher jet and turboprop volumes.Textron Aviation and Bell saw growth, with strong backlogs of $8B and $7.6B, respectively. Textron Inc. (TXT - Free Report) reported first-quarter 2026 adjusted earnings of $1.45 per share, which surpassed the Zacks Consensus Estimate of $1.30 by 11.3%. The bottom line also rose 13.3% from $1.28 in the year-ago quarter.
The company reported GAAP earnings of $1.25 per share compared with $1.13 a year ago.
TXT’s RevenuesThe company reported total revenues of $3.7 billion, which beat the Zacks Consensus Estimate of $3.51 billion by 5.4%. The top line also increased 11.8% from the year-ago quarter’s level of $3.31 billion.
Segmental Performance of TextronTextron Aviation: Revenues from this segment increased 22% year over year to $1.49 billion. This was primarily due to higher volume and mix, largely reflecting higher Citation jet and commercial turboprop volume.
The segment delivered 37 jets, up from 31 in the year-ago quarter. It also delivered 35 commercial turboprops, up from 30 in the first quarter of 2025.
Order backlog at the end of the quarter totaled $8 billion.
Bell: Revenues from this segment amounted to $1.07 billion, up 9% from the year-ago quarter’s registered number. This was driven by higher military revenues, largely due to higher volume on the MV-75 Cheyenne program, partially offset by lower volume on V-22 production and on military sustainment programs.
Bell delivered 20 commercial helicopters, down from 29 in last year's first quarter.
Its order backlog at the end of the quarter totaled $7.6 billion.
Textron Systems: This segment’s revenues amounted to $338 million, up $39 million from the prior-year level.
Textron Systems’ backlog at the end of the quarter totaled $3.6 billion.
Industrial: Revenues from this segment declined $6 million to $786 million.
Finance: This segment’s revenues amounted to $16 million flat year over year.
Effective Jan. 4, 2026, Textron dissolved its standalone eAviation segment and redistributed its operations across other segments. Most of the business, including Pipistrel, was integrated into Textron Aviation to better leverage its development, manufacturing and sales capabilities. Military-related manned and unmanned products and their R&D were moved to Textron Systems to align with its customer base, while certain R&D activities with broader applications, such as digital flight control and air vehicle management systems, were shifted to corporate expenses.
Textron’s FinancialsAs of April 4, 2026, cash and cash equivalents totaled $1.51 billion compared with $1.94 billion as of Jan. 3, 2026.
Net cash used in operating activities during the first three months of 2026 amounted to $107 million compared with $114 million in the year-ago quarter.
Capital expenditures amounted to $133 million in the first quarter compared with $56 million in the year-ago quarter.
The long-term debt totaled $3.11 billion as of April 4, 2026, compared with $3.53 billion as of Jan. 3, 2026.
TXT’s GuidanceThe company expects 2026 adjusted earnings to be in the range of $6.40-$6.60 per share. The Zacks Consensus Estimate for earnings is pegged at $6.55 per share, which lies above the company’s guided range.
TXT’s Zacks RankTextron currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense ReleaseRTX Corporation’s (RTX - Free Report) first-quarter 2026 adjusted earnings per share (EPS) of $1.78 beat the Zacks Consensus Estimate of $1.52 by 17%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.47.
RTX’s quarterly revenues came in at $22.08 billion, up 8.7% from $20.31 billion in the year-ago period. Sales also beat the consensus mark of $21.56 billion by 2.43%.
The Boeing Company (BA - Free Report) incurred an adjusted loss of 20 cents per share in the first quarter of 2026, narrower than the Zacks Consensus Estimate of a loss of 95 cents. The bottom line improved from the year-ago quarter’s reported loss of 49 cents per share.
BA’s revenues amounted to $22.22 billion, which outpaced the Zacks Consensus Estimate of $21.87 billion by 3.5%. The top line also surged 14% from the year-ago quarter’s reported figure of $19.5 billion.
Northrop Grumman Corporation (NOC - Free Report) reported first-quarter 2026 adjusted earnings of $6.14 per share, which beat the Zacks Consensus Estimate of $6.08 by 1%. The bottom line also improved 1.3% from the year-ago quarter’s level of $6.06.
NOC’s total sales of $9.88 billion in the first quarter beat the Zacks Consensus Estimate of $9.79 billion by 1%. The top line also improved 4.4% from $9.47 billion reported in the year-ago quarter.
WICHITA, Kan.--(BUSINESS WIRE)--Textron Aviation Inc., a Textron Inc. (NYSE:TXT) company, achieved a major milestone as the first three Cessna Citation Ascend business jets were delivered to fleet launch customer NetJets. NetJets, which operates the world's largest, most diverse private jet fleet, is the first private fleet operator to take delivery and begin operations with the Cessna Citation Ascend. Setting new standards in performance, comfort and operational efficiency for the midsize busi.
WICHITA, Kan.--(BUSINESS WIRE)--Textron Aviation Inc. announced its new service facility at Essendon Fields Airport in Melbourne is now open for customers.
Whether you're a value, growth, or momentum investor, finding strong stocks becomes easier with the Zacks Style Scores, a top feature of the Zacks Premium research service.
On May 15, 2026, Textron Inc (TXT) shares fell 3.0% today to a current price of $89.02. The stock has traded between $72.00 and $101.57 over the past 52 weeks,
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
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What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Textron (TXT - Free Report) Textron Inc., incorporated in 1923, is a global multi-industry company that manufactures aircraft, automotive engine components and industrial tools. It also offers solutions and services for aircraft, fastening systems, and industrial products and components. Its products include commercial and military helicopters, light- and mid-size business jets, plastic fuel tanks, automotive trim products, golf carts and utility vehicles, turf-car equipment, industrial pumps and gears. It is a commercial finance company in select markets. Textron is known globally for its most recognizable and valuable brand names, such as Bell Helicopter, Cessna Aircraft Company, Jacobsen, Kautex, E-Z-GO and Greenlee.
TXT is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Aerospace stock. TXT has a Momentum Style Score of B, and shares are up 0.1% over the past four weeks.
Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.07 to $6.60 per share. TXT boasts an average earnings surprise of +5.8%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, TXT should be on investors' short list.
WICHITA, Kan.--(BUSINESS WIRE)--Textron Aviation Inc., a Textron Inc. (NYSE:TXT) company, today announced it has entered into a multi-aircraft fleet purchase agreement with Platoon Aviation that positions the Hamburg-based charter operator to become the largest Cessna Citation Longitude fleet owner in Europe. Platoon Aviation provides on-demand private jet travel, serving business and leisure travelers seeking long-range capability, cabin comfort and operational reliability. Deliveries of the C.
NEW YORK--(BUSINESS WIRE)-- #CessnaLawsuit--Lieff Cabraser and Epps Holloway to Host Virtual Town Hall for Cessna Citation CJ4 Owners Re Window Frame Corrosion & Service Bulletin SB525C-56-01.
Owners and operators of Cessna Citation Model 525C (CJ4) aircraft are invited to a virtual town hall on Tuesday, July 14, 2026. The session will cover the stat
Augusta, Georgia--(Newsfile Corp. - June 10, 2026) - Textron E-Z-GO LLC, a Textron Inc. (NYSE: TXT) company and a leading designer and manufacturer of golf cars and utility vehicles, will celebrate National Golf Cart Day 2026 by offering additional savings on purchases of qualifying E-Z-GO models.
From June 12-14, buyers of model-year 2025 and model-year 2026 E-Z-GO models will receive a $1,000 discount. This discount will stack atop existing discounts for models eligible for E-Z-GO's "Summer of Savings" promotion, which offers discounts ranging from $1,000 to $3,000 on purchases of eight popular E-Z-GO vehicles. To take advantage of these savings, consumers can find their local E-Z-GO Authorized Dealer using the dealer locator at ezgo.txtsv.com/personal/shopping-tools/find-dealer.
E-Z-GO also will offer a 40% discount on parts and accessories orders totaling $75 or more through shopezgo.com. Orders of $150 or more will also receive free shipping.
National Golf Cart Day is observed each year on June 13, which is also the anniversary of E-Z-GO's founding in Augusta, Georgia in 1954. E-Z-GO vehicles are still built in Augusta today, where the company employs more than 1,000 people to design, manufacture, sell, ship, and support tens of thousands of vehicles each year, sold to customers around the globe.
"E-Z-GO has a special legacy in the sport of golf and the world of transportation, and National Golf Cart Day is a fun way to celebrate our history with our customers, our employees, our dealers, and our community," said Adam Harris, E-Z-GO Senior Vice President and General Manager. "We look forward to enjoying a weekend of festivities with E-Z-GO owners at our
E-Z-GO authorized dealerships across the country."
To learn more about National Golf Cart Day, visit ezgo.txtsv.com/nationalgolfcartday. To identify the E-Z-GO model that's right for you and locate your nearest E-Z-GO Authorized Dealer, visit ezgo.com.
###
About E-Z-GO
Founded in Augusta, Ga. in 1954, E-Z-GO is a globally renowned leader in the design and manufacture of golf cars and personal transport vehicles, known for its use of innovative sustainable electric-vehicle and powertrain technology. E-Z-GO models include RXV® fleet golf cars; Freedom® and Valor personal golf cars, and E-Z-GO Express™ personal utility vehicles. Its latest innovation is the Liberty™, the industry's first vehicle to offer four forward-facing seats in a compact, golf-car-sized footprint. E-Z-GO became part of Textron Inc. (NYSE: TXT) in 1960, and today Textron E-Z-GO LLC operates as part of the Textron Specialized Vehicles business of Textron Inc.
About Textron Inc.
Textron Inc. is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for its powerful brands such as Bell, Cessna, Beechcraft, Pipistrel, Jacobsen, Kautex, Lycoming, E-Z-GO, and Textron Systems. For more information, visit: www.textron.com.
Certain statements in this press release may project revenues or describe strategies, goals, outlooks or other non-historical matters; these forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update them. These statements are subject to known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from those expressed or implied by such forward-looking statements.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/300924
Source: E-Z-GO
Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.
Are you hunting for high-growth aerospace parts or a diversified industrial titan? Choosing between HEICO (HEI 1.08%) and Textron (TXT 0.87%) requires balancing an essential aviation parts provider with a premium valuation against a steady, multi-segment industrial performance to determine which is the better buy.
HEICO focuses on replacement aircraft parts and electronic components for the aviation and defense markets. Textron operates a broader portfolio, including Bell helicopters and Cessna jets. While both benefit from aerospace demand, they offer vastly different financial profiles and growth trajectories for your portfolio.
The case for HEICOHEICO provides specialized aircraft parts and electronic technologies for commercial aviation and defense markets. Within the broader landscape of industrial stocks, the company operates through its Flight Support Group and Electronic Technologies Group. It maintains a diversified customer base, as no single client accounted for more than 10% of total revenue in fiscal 2025.
In FY 2025, revenue reached nearly $4.5 billion, which represented an increase of approximately 16.3% over the prior year. The company reported net income of roughly $690.4 million for the same period. This growth followed a steady multi-year trend of rising sales and improved net margin, which hit roughly 15.4%.
As of its October 2025 balance sheet, the debt-to-equity ratio was approximately 0.5x. This metric compares total debt to shareholder equity, indicating that the company uses moderate leverage. The current ratio, which measures the ability to cover short-term liabilities with short-term assets, stood at nearly 2.8x, while free cash flow totaled nearly $861.4 million.
The case for TextronTextron operates as a multi-industry conglomerate serving the aerospace, defense, and specialized vehicle markets. Its business is divided into five segments, including Bell Helicopters and Textron Aviation, which produces Cessna and Beechcraft aircraft. During 2025, the company derived approximately 27% of its revenues from sales to various U.S. Government entities.
In FY 2025, the company generated revenue of nearly $14.8 billion, a growth of approximately 8.0% compared to the previous year. Net income for the period was close to $921.0 million, resulting in a net margin of roughly 6.2%. This performance reflects steady demand across its aviation and industrial segments during the fiscal year.
As of its January 2026 balance sheet, Textron reported a debt-to-equity ratio of approximately 0.5x, calculated as total debt divided by shareholder equity. The company's current ratio was nearly 1.8x, suggesting it maintains enough short-term assets to meet its immediate obligations. Free cash flow, calculated as cash from operations minus capital expenditures, reached roughly $884.0 million in fiscal 2025.
Risk profile comparisonHEICO faces risks from its international operations, which accounted for nearly 38% of fiscal 2025 revenue and expose the company to currency fluctuations. Additionally, roughly 31% of sales come from defense and security markets, making the business sensitive to government budget reductions. The company competes with major aerospace suppliers such as TransDigm Group (TDG +0.37%) and RTX (RTX +0.15%) in a highly regulated environment.
Textron depends heavily on the U.S. Government, which accounted for approximately 27% of its 2025 revenue, creating procurement-related risks. Approximately 29% of its domestic workforce is unionized, which can lead to work stoppages such as the 2024 strike at Textron Aviation. The company must also maintain its competitive edge against large aerospace peers like General Dynamics and The Boeing Company.
Valuation comparisonTextron offers a much lower valuation based on both sales and Forward P/E, which compares the stock price to future earnings estimates. Meanwhile, the P/S ratio for HEICO reflects a premium for its specialized, high-margin revenue.
MetricHEICOTextronSector BenchmarkForward P/E54.4x14.3x29.8xP/S ratio10.1x1.1xn/aSector benchmark uses the SPDR XLI sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Comparing HEICO with Textron immediately makes me think of Warren Buffett’s quote, “It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” Despite the fact that HEICO traded at an average P/E ratio of 55 over the last decade -- whereas Textron traded at just 20 times earnings -- the former compounded its annualized total returns by 25% over that time versus the latter’s 9%.
While Textron remains an intriguing stock -- especially as it plans to spinoff or sell its industrial business -- it hasn’t parlayed its leadership positions in unique niche verticals into outperformance. However, following the separation of its industrial segment, which includes E-Z-Go golf carts, Kautex fuel systems, and Kautex CWC castings, Textron might deserve a fresh look from investors as a more streamlined aerospace and defense company. Trading at just 14 times forward earnings -- and with a $19 billion backlog in just its new-look, standalone aerospace and defense business -- Textron could easily outgrow its valuation, if the separation goes well.
That said, I just refuse to bet against HEICO’s dominance in its aftermarket aviation parts niche and the wide moat it has built through its leadership in the highly regulated industry. HEICO’s ever-growing catalog of aircraft parts and electronics makes it the ultimate picks-and-shovels provider to an aviation industry that often only gets to choose between higher-priced OEM parts and HEICO’s more reasonably-priced (and FAA-certified) replications of those parts. Trading at 54 times forward earnings, HEICO will need to continue delivering extraordinary results to live up to this valuation, but considering it has grown sales and free cash flow by 15% and 20% annually over the last decade, I’m not betting against it.
I’d personally rather own the wonderful company (HEICO) at a fair price than vice versa with Textron, but I’d advise investors not to go all-in at today’s lofty valuation. Rather, investors should buy in small batches over time.
This growth stock is capturing an opening in the market.
*Stock prices used were the afternoon prices of May 11, 2026. The video was published on May 13, 2026.
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Dutch Bros. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The stock market has warmed along with the temperature this year, racing back to hit all-time highs. However, that doesn't mean there aren't still attractively valued growth stocks out there. This is especially true in the consumer space, where investors have been a bit worried about the state of the consumer, given higher gasoline prices and the impact of tariffs.
Still, consumers tend to be resilient over the long term, and high gasoline prices should be temporary and turn lower once the war in Iran is over. Against that backdrop, let's look at three great growth stocks to buy in May.
Image source: Getty Images.
Dutch Bros While it may not look like it at first glance, Dutch Bros (BROS +1.45%) may be one of the best bargain growth stocks in the market today. Why? Because the stock trades at the same forward price-to-sales (P/S) multiple (3.3 times) as rival Starbucks (SBUX +0.48%) based on 2026 analyst estimates, despite having a much longer growth runway.
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The two companies also have similar average unit volumes at present, while Dutch Bros stores have better restaurant-level contribution margins of around 30% versus around 16% last quarter (based on rough calculations) for Starbucks in North America. This means that each individual Dutch Bros shop is actually much more profitable than a Starbucks' North America location, and as Dutch Bros expands and spreads corporate costs over a much larger store base, the company is going to be strongly profitable in the future.
With Dutch Bros hitting on all cylinders with its same-store sales and its huge expansion opportunity, this stock is a buy.
E.l.f. Beauty Another bargain growth stock in the consumer space is e.l.f. Beauty (ELF +1.28%). One of the biggest growth drivers in the consumer space for brands is increasing product distribution, which is simply getting your products into more retail locations and in front of more consumers. E.l.f. did a great job of gaining market, increasing distribution, and taking shelf space with its namesake brand in the mass-market cosmetics space.
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Now, the company is looking to take that formula and apply it to Rhode, its recently acquired premium skincare brand. Founded by celebrity Hailey Bieber, Rhode quickly grew its sales to $200 million in less than three years selling only about 10 products through its website. E.l.f. will now have the opportunity to increase Rhode's distribution in the coming years to really grow the already hot brand. It is already in LVMH's Sephora stores, and e.l.f. will undoubtedly move it into other retail outlets in the coming years. E.l.f. will also get the added benefit of being able to expand Rhode's small product assortment, which should result in strong growth in the coming years.
With the stock trading at a forward P/E of 15.5 times the 2027 consensus (ending March 2027), this is a cheap growth stock to buy.
MercadoLibre Another beaten-up growth stock to buy while it is on sale is MercadoLibre (MELI 1.22%), which is the leading e-commerce and fintech platform in Latin America. The stock trades at a forward P/E of just 24.5 times 2027 estimates, while recently growing its revenue by 49% in Q1.
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The company is currently in investment mode, looking to capture more share in the fragmented Latin American e-commerce market. It's done this by building out its logistics network, lowering the price threshold on free shipping, and reducing take-rates for third-party merchants selling goods at reasonable prices. While the market hasn't liked this approach, it is similar to what Amazon has done to become so successful in the U.S.
At the same time, MercadoLibre is building one of the largest fintech businesses in Latin America. The company is essentially looking to become the main financial institution for the unbanked population in South America. This is another huge market, and the company has no plans of slowing, trying to capture these two huge long-term opportunities.
If you're a long-term investor, this is a great stock to buy while it is on sale.
Geoffrey Seiler has positions in Amazon, Dutch Bros, LVMH Moët Hennessy-Louis Vuitton, MercadoLibre, and e.l.f. Beauty. The Motley Fool has positions in and recommends Amazon, Dutch Bros, MercadoLibre, Starbucks, and e.l.f. Beauty. The Motley Fool recommends Lvmh Moët Hennessy-Louis Vuitton, Société Européenne. The Motley Fool has a disclosure policy.
The stock market has surged to new highs, yet some growth stocks remain well below their peaks and look increasingly attractive. As Wall Street's attention has centered on megacap tech, several consumer-facing companies have been left behind despite strong financial results to start the year.
For investors looking for long-term compounders that could outperform over the next five years, here's why Shopify (SHOP +0.38%) and Dutch Bros (BROS +1.45%) stand out.
Image source: Getty Images.
Shopify Shopify is putting up strong results. Revenue grew 34% year over year in the first quarter, marking the second straight quarter in which Shopify merchants topped $100 billion in total sales.
That's a clear sign of a business with a major advantage. Shopify generates revenue through subscription fees and merchant solutions (shipping, lending, payments, etc.), with merchant solutions making up about three-quarters of the business. This has made Shopify a highly profitable business, generating $2.2 billion in annual free cash flow -- a healthy 17% margin on revenue.
The stock is down 40% this year amid concerns about competitive threats from potential artificial intelligence (AI)-driven disruptors. But that concern overlooks the company's entrenched position at the center of e-commerce.
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A crucial detail Wall Street is overlooking is that Shopify's merchant catalog is searchable through ChatGPT and other top AI models. In Q1, AI-driven traffic rose 8 times year over year, and Shopify says AI-powered searches are converting new buy orders at twice the rate of traditional search channels. In other words, AI is helping people find what they are looking for, ultimately benefiting the many online stores that use Shopify to power their e-commerce businesses.
I think Shopify is just getting started. The emergence of autonomous shopping through AI agents could drive a surge in transaction volume. Shopify's integrations with leading AI models position it well to benefit from that shift. Bain & Company estimates that agentic commerce could be worth at least $300 billion by 2030, growing 15% to 25% annually.
The stock still trades at a high multiple of earnings and free cash flow, but it's easier to justify given Shopify's competitive position and the AI tailwinds that could benefit the company. Analysts expect earnings to rise about 25% annually in the coming years, which could translate into market-beating returns through 2030.
Dutch Bros For decades, investing in emerging restaurant brands expanding nationwide has been a rewarding strategy. Dutch Bros appears to be following the growth path of several successful brands before it, particularly Starbucks. Dutch Bros. stock is down 18% year to date, as a temporary spike in coffee costs could weigh on earnings. But the company continues to resonate with customers, providing a timely buying opportunity for long-term investors.
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With 1,177 locations across just 25 states, many investors may not be familiar with the brand. But it's gaining traction, especially with younger customers. While Starbucks has cycled through CEOs and is working through a turnaround, Dutch Bros has continued to post positive same-store sales in a challenging consumer-spending environment.
In the recent quarter, revenue grew 31% year over year, driven by 41 new shop openings and strong same-store sales growth of 8.3%. The business is building loyal, repeat customers, with 74% of transactions coming through the Dutch Rewards program.
Management sees a path to 2,029 shops by 2029. As it opens more locations, brand awareness should continue to rise, and analysts expect earnings to grow at an annualized rate of 33% in the coming years.
A forward price-to-earnings multiple of 54 looks expensive, but Dutch Bros is still early in its expansion and margin-building phase. Its price-to-sales ratio of about 3.5 is in line with where Starbucks and Chipotle Mexican Grill traded during their early growth years. This coffee stock has the ingredients to beat the market over the next five years.
John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill, Dutch Bros, Shopify, and Starbucks. The Motley Fool recommends the following options: short June 2026 $36 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
In one of the more head-scratching moves this earnings season, Dutch Bros (BROS +1.45%) shares sank despite the coffee shop operator turning in another stellar quarter. As of this writing, the stock is down about 13% year to date.
Let's take a closer look at its results and prospects, and at why I think Dutch Bros could be a great long-term stock buy.
Image source: The Motley Fool.
Same-store sales shine again In what has been a very uneven consumer environment, Dutch Bros once again found a way to shine. Its same-store sales surged by 8.3% in the quarter, as transactions climbed 5.1%. Company-owned stores once again outperformed, with comparable-shop sales climbing 10.6% on a 6.9% increase in transactions.
The company credited drink innovation, as well as limited-time offerings (LTOs) and merchandise drops, for its strong results. It said it saw a 30% increase in LTO unit sales and 50% higher merchandise sales versus last year.
Use of the Order Ahead option (available via mobile app and the website) continues to rise, now accounting for 15% of all Dutch Bros orders, up from 14% at the end of last year. Meanwhile, 74% of all transactions now come through the Dutch Rewards program. Food continues to deliver a 4% lift in comparables, and it is now being offered at 485 shops.
Dutch Bros also continues to aggressively grow its store base. It opened 41 new shops in the quarter, including 33 company-owned locations. It now expects to add at least 185 new shops in 2026, up from prior guidance for at least 181 stores.
Overall revenue climbed 31% to $464.4 million, while earnings per share (EPS) were flat at $0.13. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 26% to $79.4 million.
Looking ahead, the company raised its full-year revenue guidance to $2.05 billion to $2.08 billion, up from a prior outlook of $2 billion to $2.03 billion. It also raised its adjusted EBITDA forecast to $370 million to $380 million, up from $355 million to $365 million. It projected same-store sales growth of 4% to 6% for the year and near 5% for the second quarter.
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Dutch Bros is seeing some of the best same-store growth in the restaurant space and has one of the largest expansion opportunities in the industry as well. The only real knocks on the company are rising rent costs as it shifts to built-to-suit leases and higher coffee bean prices.
However, this is still an efficient model. While rent costs as a percentage of revenue are higher than for Starbucks, this is largely due to its rival having a more mature store base. Meanwhile, Dutch Bros has lower labor expenses, and it hasn't understaffed its stores as Starbucks has done in the past.
Dutch Bros is still in the early phases of its growth, yet it trades at a forward price-to-sales (P/S) multiple of 3.2, versus 3.1 for the much more mature Starbucks. That makes it one of the most intriguing growth stocks in the consumer space to own long-term.
One of my favorite beaten-down growth stocks to buy right now is Dutch Bros (BROS +1.45%). The coffee shop operator has been hitting on all cylinders, but its stock is now about 35% off its highs. I own shares at a cost basis just below where the stock is currently trading and think this is a great entry point for new investors.
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Long runway ahead Dutch Bros is a classic regional-to-national expansion story. Its roots are in the Northwest U.S., but it's been gradually expanding eastward. It recently went further east when it acquired the North and South Carolina chain Clutch Coffee Bar and converted its shops into Dutch Bros locations. The initial response has been positive, with the first seven converted shops seeing average unit volumes (AUVs) triple their pre-conversion volumes and score higher than the company's systemwide AUVs. This is a good indication of the brand momentum that Dutch Bros has, even in markets further away from its base.
Despite a tough consumer environment, Dutch Bros has consistently been seeing strong same-store sales growth. This continued in the first quarter, when the company reported an impressive 8.3% increase in comparable-store sales with a 5.1% increase in transactions. Company-owned stores performed even better, with same-store sales up 10.6% on a 6.9% rise in transactions. The growth was driven by drink innovations, including limited-time offerings (LTOs), and by mobile order-ahead.
The company is also getting a lift from the introduction of hot food items, with the 485 stores offering the new menu items seeing about a 4% same-store sales boost. Dutch Bros thinks that three-quarters of its shops can physically support its hot food offerings, which would be about 880 locations based on its current store count. However, newer stores will be built with food in mind, so this percentage should rise over time.
Image source: Getty Images.
Backed by strong sales momentum, Dutch Bros has a big expansion opportunity in front of it. It thinks it can reach 2,029 locations by 2029, up from 1,177 at the end of Q1, and eventually support 7,000 shops across the U.S. That number seems more than reasonable, considering that rival Starbucks has nearly 17,000 stores in just the U.S. and nearly 18,400 in North America.
Dutch Bros stores have a small footprint, typically with two drive-through lanes and no indoor seating. This makes them cheap to build and operate compared to Starbucks. Despite the small physical size, they have AUVs on par with Starbucks and have higher store-level margins. This sets the company up to be highly profitable down the road, when it can spread corporate costs across a wider store base.
Meanwhile, the stock is reasonably valued, trading at a similar price-to-sales (P/S) multiple as Starbucks despite its much larger growth runway. With the stock trading at a reasonable value and a huge growth runway ahead, I'd be buying this growth stock at these levels.
You might think that Starbucks (SBUX +0.48%) and Dutch Bros (BROS +1.45%) are similar companies, since both operate coffee shop chains. But they differ in important ways, such as the kinds of beverages they serve, and they're at vastly different points on their journeys.
Starbucks is already a global powerhouse, while Dutch Bros is just getting started. Which one is the better buy today?
Image source: Getty Images.
The case for Starbucks: Stability and passive income Starbucks is the largest coffee shop chain in the world and one of the largest restaurant chains in the world, with more than 41,000 stores. It has more than $38 billion in trailing 12-month sales and $1.5 billion in trailing 12-month net income.
Although Starbucks has struggled over the past few years, its turnaround plan is starting to demonstrate results. In the 2026 fiscal second quarter (ended March 29), sales were up 9% year over year, and comparable sales (comps) were up 6.2%. Those numbers tell investors (at least) two important things: The company is still successfully opening new stores, hence the total sales outpacing the comps, and that revenue growth isn't coming only from new stores, but from loyal and frequent customers.
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Even the bottom line is growing again. There had been progress growth in the first quarter, and CEO Brian Niccol explained that after righting the business and getting sales back up, profitability would follow. That's already happening, and earnings per share were up 32% over last year in the quarter.
On top of a chance for a rebound, Starbucks stock pays a growing dividend that yields 2.3% at the current price. However, it trades at a P/E ratio of 81, which prices much of the recovery already into the stock.
The case for Dutch Bros: High growth potential Dutch Bros is a tiny business compared to Starbucks. It has just over 1,000 stores, with $1.8 billion in trailing 12-month sales and $118 million in trailing 12-month income. It's easy to tell right away that Dutch Bros makes much more net income per store than Starbucks right now.
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Dutch Bros is in high-growth mode, opening stores at a fast clip and generating high revenue increases. Revenue was up 31% year over year in the 2026 first quarter, and it makes sense that a smaller company would have an easier time growing its smaller base.
But revenue growth is not a given for any company, and it indicates that Dutch Bros has found a formula that works for its target consumer. It's highly innovative in its beverage creation, and its stores, which are mostly drive-thru-only, are small and fast. Comps were up 8.2% in the quarter.
Dutch Bros management sees an opportunity to reach 7,000 stores over time, which gives the company a long growth runway from where it is today, even though it will remain a much smaller outfit than Starbucks.
Dutch Bros stock trades at a P/E ratio of 80.
Which stock is the better buy? This contest mostly boils down to which kind of stock you're looking for. Starbucks is the value pick, and Dutch Bros is the growth pick. However, because they trade at similar valuations, I see Dutch Bros having an overall edge.
Dutch Bros has delivered impressive growth since its 2021 IPO but remains underappreciated compared to the S&P 500's performance. BROS experienced significant volatility post-IPO, with early excitement followed by periods of investor caution. The company prioritized aggressive expansion, opening 133 new shops in 2022 and growing revenue to $739 million, despite reporting a net loss.
Dutch Bros (BROS) remains a Buy after another strong quarter, with robust revenue growth and improved 2026 guidance. BROS delivered 30.7% YoY revenue growth, 8.3% same-shop sales increase, and raised 2026 targets across revenue, EBITDA, and shop openings. The company's asset-light model and strong balance sheet support aggressive expansion despite macro risks and competitive pressures.
With the S&P 500 reaching all-time highs, you want to make sure you're investing in well-priced stocks that still have room to run. It can be easy to get swept up in bull run mania, especially with the attraction of artificial intelligence (AI) stocks.
Some of the best opportunities are stocks that are down due to short-term headwinds but have solid long-term potential. You should also be sure to have some reliable anchor stocks to balance out high-growth stocks.
If you have $5,000 to invest today (or any other amount, really), I recommend MercadoLibre (MELI 1.22%), Dutch Bros (BROS +1.45%), and Walmart (WMT 0.57%).
Image source: Getty Images.
1. MercadoLibre MercadoLibre is an e-commerce and fintech powerhouse serving 18 Latin American countries and growing by leaps and bounds. It consistently reports high revenue increases, and it has a massive long-term opportunity.
Latin America as a region lags behind other developed regions in both e-commerce and digital financial services, which is why this opportunity looks so compelling. MercadoLibre has identified many ways to improve its value proposition and attract more people to its platforms, and it's working.
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In e-commerce, it recently lowered its shipping threshold in Brazil, leading to multiple positive effects, including a 38% year-over-year increase in gross merchandise volume in the first quarter and a 56% increase in items sold, double the rate before the change. The company is looking to replicate this success in other countries. However, it's coming at a cost, and it's negatively impacting the bottom line.
Similarly, the credit business continues to expand, with assets under management increasing 77% while the total credit portfolio rose 87%. New cohorts typically have lower margins, which is also negatively impacting the bottom line.
The market wasn't thrilled with the profit declines over the past two quarters, and MercadoLibre stock is down 38% over the past year. Management is confident that the investments it's making today to expand the business will set it up for future success, which is why MercadoLibre's stock looks like a bargain today.
2. Dutch Bros Dutch Bros is a small but growing coffee shop chain that has developed a distinctive model and culture, and it's resonating with customers as it expands across the country.
As of the end of the 2026 first quarter, Dutch Bros has 1,177 stores in 25 states. That's up from about 500 stores in 11 states when it went public five years ago.
Dutch Bros has plans to reach 2,029 stores by 2029 and 7,000 long term, and it looks like it can get there. Its stores are being built to meet today's consumer, with most of them offering drive-thru only. It's focused on speed and friendly customer service, and "broistas" go out to take orders from customers in cars to be ready when they get to the window. The company recently rolled out mobile ordering across the enterprise, which accounted for 15% of total sales in the first quarter.
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Dutch Bros is also rolling out a new, expanded menu to boost beverage sales and create its own revenue stream, and it's constantly launching innovative beverages to entice its consumer base, such as the new Myst energy refresher line.
Revenue growth accelerated to 31% year over year in the first quarter, and profits are growing as well. However, the stock is down 27% over the past year. The market is worried about continued consumer spending in the high-inflation environment, but those are short-term concerns, not actualities, which makes Dutch Bros look like a great stock to buy now.
3. Walmart Walmart is the anchor stock here, a solid company that continues to grow and engage its audience, shifting with the times to stay relevant in a changing retail landscape. In fact, its e-commerce business has been thriving, growing from a 6.7% market share in 2024 to 9.2% today, according to Statista. Walmart is now the second-largest e-commerce business behind Amazon. E-commerce sales increased 24% year over year in the 2026 fiscal fourth quarter globally.
The e-commerce business has opened the company up to a much larger market, including an affluent contingent that might not frequent its stores, and these customers have driven much of the company's recent growth. Walmart is also featuring more in-store merchandise to appeal to these customers.
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Walmart is also becoming more Amazon-like with advertising, streaming, and healthcare businesses. All of these create more revenue streams and deepen its moat.
Walmart is a Dividend King, having raised its dividend for more than 50 years straight. This year marked the 53rd consecutive year of increases, and Walmart is a reliable source of passive income. It's also beating the market.
With the S&P 500 already up a blistering 9% this year despite all kinds of economic warnings, it could be time for investors to start becoming fearful.
However, there's no way to know how long the bull market can keep running, and you shouldn't miss out on excellent growth stocks out of fear. Instead, focus on top growth stocks that can withstand short-term pressure and that you could hold forever. I recommend Amazon (AMZN 1.33%), Dutch Bros (BROS +1.45%), and MercadoLibre (MELI 1.22%).
Image source: Amazon.
1. Amazon Amazon has become the largest company in the world by sales, and it's still a growth stock. That's a powerful combination that gives shareholders security and growth opportunities.
The security comes from the company's unparalleled global e-commerce business, which is so far ahead of any competition that it couldn't be replaced in the foreseeable future. It's not counting on that alone, though, and it continues to up its game and provide greater value to its millions of shoppers. It now services 2,300 U.S. metro areas with same-day delivery, and it's piloting global areas with deliveries within hours that it plans to replicate in other regions. In other words, it has many levers to press to maintain its dominant position, generating even greater loyalty and higher volume from Prime members.
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Although the e-commerce business was strong in the first quarter, with a 12% year-over-year sales increase in online store sales and a 14% increase in third-party sales, artificial intelligence (AI) is providing the major growth right now. It's simply exploding left and right, from the Bedrock AI platform spending increasing 170% consecutively in the first quarter, to the number of developers using the Kiro agent platform doubling from the previous quarter, to its chips business alone growing by triple digits and becoming one of the largest chips businesses in the world on a stand-alone basis.
Amazon Web Services (AWS), where the AI business lives, is accelerating as a result, and sales increased 28% over last year in the quarter. Amazon remains the largest cloud company in the world, with 28% of the market, according to Statista.
Yesterday, it was e-commerce, and today it is AI. I don't know what tomorrow will bring, but Amazon should keep creating shareholder value.
2. Dutch Bros Dutch Bros is an up-and-coming coffee shop chain that's already leaving an indelible mark on the coffee scene. It has been at the forefront of beverage innovation, including being the first major chain to offer protein coffee and recently developing its Myst refresher energy drinks. It leaned into the cold beverage trend early, and cold drinks represent 90% of its sales.
It continues to expand in multiple ways, starting with its beverages and food menu. It's rolling out food across its franchise, boosting overall engagement and increasing beverage spend. Management is tracking a 4% comparable sales (comps) lift at stores that are offering food. It also recently launched a mobile ordering program, and advance orders increased to 15% of the total in the first quarter.
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The results are telling. Revenue growth accelerated to 31% year over year in the first quarter, with an 8.3% increase in comps.
Finally, the most exciting way Dutch Bros is expanding is in its footprint. It has 1,177 stores as of the end of the first quarter, but it's aiming for 2,029 stores by 2029 and 7,000 long-term.
Although it's only in 25 states today, it's well on its way toward becoming a national chain that's imprinting its brand on the American landscape.
3. MercadoLibre MercadoLibre is an e-commerce and fintech powerhouse in Latin America, and it has incredible long-term potential. It hasn't stopped growing at a rapid pace, with a 46% year-over-year sales increase (currency neutral) in the first quarter, and its region continues to move toward digital adoption, providing it with years of growth opportunities.
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It's reporting high increases across metrics and across segments. In e-commerce, gross merchandise volume (GMV) increased 35% over last year in the first quarter, with a 47% increase in items sold and a 26% increase in unique active buyers. Same-day and next-day shipments increased by 39%, and this is a positive cycle that leads to more engagement, higher frequency, purchases across more categories, and increased volume. Since Latin America lags behind other global regions in e-commerce, MercadoLibre is leveraging its powerful platform to effect a shift online and boost its business.
It's a similar story in fintech. Monthly active users increased 29% year over year in the first quarter, and total payment was up 55%. The credit portfolio was up 87%, while assets under management were up 77%.
MercadoLibre has a first-mover's edge in all kinds of digital technology in its markets, and it should be able to report strong performance and create shareholder value for years.
Dutch Bros Inc. BROS is accelerating its store expansion efforts, a move that could further strengthen the long-term growth outlook. The company opened 41 system shops in the first quarter of 2026, ahead of schedule, reflecting progress in site selection, market planning and development execution.
Coffee consumption remains a staple of daily life, and to gain exposure to this market, investors can decide between the global dominance of Starbucks (SBUX +0.48%) and the aggressive expansion of Dutch Bros (BROS +1.34%).
Starbucks serves millions of customers across dozens of international markets, relying on its premium brand and massive scale. Dutch Bros focuses on a high-speed, drive-thru experience with a younger, culture-driven vibe. While both operate in the same beverage space, their financial profiles and growth trajectories offer very different opportunities for retail investors.
The case for StarbucksStarbucks operates a global network of company-owned and licensed stores, selling premium coffee and food. Its strategy centers on the "Third Place" experience, though it is increasingly leaning into digital ordering and delivery. The company manages a massive loyalty program that drives repeat business across its 78 international markets, which include a major presence in China.
In its 2025 fiscal year (FY), revenue reached $37.2 billion, representing growth of approximately 2.8% compared to the previous year. Net income for the period was $1.9 billion, yielding a net margin of 5%. This net margin was lower than the nearly 10.4% net margin recorded in its 2024 fiscal year, as the company navigated shifting consumer habits and rising operational costs across its global segments.
As of its September 2025 balance sheet, the debt-to-equity ratio was -3.3x, which indicates that total liabilities exceed shareholder equity. This ratio is often used to assess a company's financial leverage. The current ratio, which measures the ability to cover short-term debts with short-term assets, was approximately 0.7x. For FY 2025, free cash flow was close to $2.4 billion, providing significant capital to reinvest in the business after accounting for capital expenditures.
The case for Dutch BrosDutch Bros operates and franchises drive-thru beverage shops known for speed and a friendly culture among retail stocks. The company relies heavily on its proprietary Rebel energy drinks and hand-crafted cold brews. By focusing on smaller footprints and high-volume drive-thrus, it avoids the high overhead costs associated with large sit-down cafes and expensive urban real estate.
During the 2025 fiscal year, revenue climbed to $1.6 billion, a substantial increase of approximately 28% over the prior year. The company reported net income attributable to Dutch Bros of $79.8 million, resulting in a net margin of 4.9%. This reflects a significant improvement from the 0.2% net margin seen in FY 2023, as the business scales its store count and reaches more customers.
According to its December 2025 balance sheet, the debt-to-equity ratio was nearly 1.6x. This ratio compares a company's total debt to its shareholder equity to assess financial leverage. The current ratio was approximately 1.5x, suggesting a comfortable cushion for meeting near-term obligations by comparing short-term assets to liabilities. Free cash flow for FY 2025 reached close to $54.4 million, representing the cash remaining after paying for operating costs and equipment.
Risk profile comparisonStarbucks faces significant geographic risk, as its North America segment accounted for 74% of total revenue in FY 2025. The company also deals with volatile commodity prices for arabica coffee beans and dairy, which can fluctuate based on weather or climate change. Additionally, rising labor costs and new minimum wage regulations in key markets like California pose a threat to the net margin.
Dutch Bros is highly dependent on a single product line, with Rebel energy drinks making up 22% of systemwide sales in 2025. It also carries geographic risk, as close to 65% of its shops are concentrated in the Western United States. This makes it vulnerable to regional economic downturns or competition from larger rivals like McDonald's, which can leverage greater resources and marketing spend.
Valuation comparisonThe P/S ratio compares market value to revenue, while the Forward P/E tracks future earnings estimates. Starbucks currently looks cheaper on both metrics.
MetricStarbucksDutch BrosSector BenchmarkForward P/E42.7x65.8x31.2xP/S ratio3.0x4.2xSector benchmark uses the SPDR XLY sector ETF. Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Starbucks may be the giant of the consumer coffee industry, but Dutch Bros is giving it a run for its money. Choosing between these two stocks to invest in depends ultimately on individual investor goals.
As the veteran, Starbucks is no longer growing as fast as its younger rival. Yet its stock shot up to a 52-week high of $108.88 after the company released earnings for its fiscal second quarter ended March 29. Revenue rose 9% year over year to $9.5 billion as global comparable store sales increased 6%. This growth was due to more customer transactions as well as increased spending per transaction, indicating customers continue to frequent the coffee chain.
Dutch Bros is the fast-growing up-and-comer. Its Q1 revenue jumped up a whopping 31% year over year to $464.4 million. Sales should see continued growth in 2026 as the company plans to open at least 185 new locations.
If you’re a growth-oriented investor, Dutch Bros is the best stock to buy. Its business is expanding at a far faster pace than its larger competitor. If you’re an income-focused investor, Starbucks is the better choice since it offers a robust dividend yield of 2.5% as of June 1. Dutch Bros does not pay a dividend. Personally, I invested in both because I think each is an excellent company.
Dutch Bros (BROS +1.34%) continued to shrug off a soft economy in the first quarter as drive-thru demand held up remarkably well. Same-shop sales grew by 8.3% across the system, fueled by a 5% rise in the number of transactions. Texas was its busiest market, with the largest number of locations and comps growth of nearly 20%.
While its organic growth is impressive, it's the coffee chain's massive market opportunity that's the real draw for investors. It ended Q1 with 1,177 locations, up 16% year over year, but that leaves Dutch Bros an attractive runway for further growth in the medium term, as management has set a target of having 2,029 stores operating in 2029.
The investment story is fairly simple. Dutch Bros is a scalable concept with compelling unit economics, and it can almost triple its store count before crossing the halfway point toward its long-term target of 7,000 shops.
Image source: Getty Images.
The growth story remains intact The company's customizable energy and coffee drinks continue to win over customers even as broader consumer spending remains weak. Its company-operated shops grew transactions by roughly 7% for the third consecutive quarter. This led to double-digit percentage growth in same-shop sales for the first time since Q1 2024.
Its Dutch Rewards loyalty program now sports a total of 15 million members, and those customers account for 74% of all transactions. The brand continues to strategically push into the eastern U.S.
In January, the company announced the acquisition of 20 Clutch Coffee locations in the Carolinas for $20 million. Dutch Bros converted seven stores during the quarter, and management indicated that their sales volumes were up threefold compared to pre-conversion levels.
The company opened 41 new locations in the quarter, and management is guiding for at least 185 store openings this year.
Rising costs weigh on the stock In the first quarter, higher coffee and occupancy costs, along with the rollout of its hot food offerings, took a bite out of Dutch Bros' profitability. Company-operated gross margin declined by nearly 2 percentage points, and its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin shrank by 60 basis points.
While margin pressure is a near-term concern, new entrants into the fast-growing customized beverage market are a constant threat. Larger rival Starbucks recently entered the fray with its Energy Refreshers, which aim to replicate Dutch Bros' success.
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Trading at 62 times forward earnings, Dutch Bros stock is not cheap. For the company to grow into its current market cap, it will need to continue expanding its store base while preserving its attractive unit economics. The company's drive-thru model is designed for efficiency, with average unit volumes now exceeding $2.1 million, and a build cost of around $1.3 million per shop.
Maintaining that attractive return on investment will be critical as the company pushes into new regions. However, I think the tailwinds are here to stay for Dutch Bros, making it a compelling stock to own.
May was a pretty good month for investors. I still felt that last month offered good entry points for stocks trading well below their highs.
What did I buy? I purchased shares of MercadoLibre (MELI 1.22%), Upbound (UPBD +2.58%), and Dutch Bros (BROS +1.34%) in May.
What attracted me to these three stocks? Let's go over the catalysts of each one. No stock is perfect, so let's also look at some risks.
Image source: Getty Images.
1. MercadoLibre It was bound to happen. I've been following MercadoLibre since it went public 19 summers ago. I naturally wish I could have bought in sooner, but with shares of the Latin American e-commerce and fintech leader trading roughly 40% below last year's all-time highs, it felt like a good opportunity to make up for lost time.
MercadoLibre's stock is going through some near-term margin challenges. With its credit portfolio rising 87% in the latest quarter, there's a short-term pop in initial loan-loss provisions. As competitors try to eat into MercadoLibre's market dominance in Brazil by emphasizing free shipping, MercadoLibre has had to lower its minimum order for free delivery.
The result is that MercadoLibre's net income margin contracted 360 basis points to 4.7%. It's the company's worst net margin since late 2023.
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The good news is that the business itself is booming. Revenue rose 49% -- or 46% on a foreign-exchange neutral basis -- in its latest quarter. This is MercadoLibre's strongest top-line growth since the spring of 2022. Growth is accelerating on the strength of its emerging credit and advertising offerings, but even its two core businesses are picking up the pace.
MercadoLibre's 84.1 million active buyers -- a 26% increase over the past year -- spent 42% more on the platform than they did through the first three months of last year. Its 82.9 million monthly fintech users 29%, but the total payment volume rose 52%. Audience growth is increasing, and so is engagement.
The near-term drags on the bottom line aren't a good look, but MercadoLibre is faring a lot better than its stock chart over the past year suggests. MercadoLibre is now trading at a rich 43 times trailing earnings. This may seem high, but it's surprisingly near a 10-year low for that valuation multiple.
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2. Upbound This company might not seem familiar, but you probably know its flagship retail concept. Upbound's Rent-A-Center is a leader in lease-to-own furniture, consumer electronics, and appliances.
It's not the only thing that Upbound does. It also operates Acima, a software platform that helps other merchants offer Upbound's lease-to-own purchase option. There's also Brigit, a popular, well-rated budgeting smartphone app that has become its fastest-growing business.
Upbound is an old-school retailer with a pair of high-tech growth vehicles. Critics will argue that lease-to-own businesses are predatory, but what is the savory alternative for lower-income renters who can't afford to outfit their homes with furniture, appliances, and computers to help them work or find work?
In the meantime, you have a company with growing revenue, a sustainable 8.6% yield, and a low earnings multiple. Upbound's full-year guidance calls for revenue of $4.7 billion to $4.95 billion and adjusted earnings per share of $4.00 to $4.35. At the midpoint of both ranges, you're talking about 1% to 2% growth on both ends of the income statement.
The stock is trading for just 4 times forward adjusted earnings. It does have a leveraged balance sheet, so there are risks there along with a potential spike in its lease charge-off rate if the economy sours.
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3. Dutch Bros Finally, we have Dutch Bros, a fast-growing player in the retail beverage market resonating with young consumers. Its small-box havens of mixed and blended specialty drinks are popular, even in the current climate where many popular food and beverage chains are struggling.
Revenue rose 31% in its latest quarter, fueled by brisk expansion and an 8.3% uptick in comps. This isn't a fluke. Comps have been positive for 19 years. Dutch Bros has 1,177 locations, and it expects to open at least 185 new units in 2026. The trend is undeniable, and even as fast-food chains and coffee shops embrace handcrafted beverages and dirty sodas, Dutch Bros remains the niche leader.
Dutch Bros is profitable, but with much of the money it's making going toward building out its empire and buying out early franchisees, this isn't a bottom-line story at this point in its growth cycle. It did boost its full-year guidance for revenue, comps, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). Approaching two decades of store-level growth, it's hard to bet against this ascending concept.
Investment firm UBS recently named Dutch Bros (BROS +1.34%) its top pick in the restaurant sector, with analyst Dennis Geiger placing an $85 price target on the stock. That's more than 50% upside based on the stock's price as of June 4.
Geiger highlighted strong and accelerating traffic trends at the coffee shop operator, driven by menu innovation, increasing mobile orders, and the introduction of hot food items. He also noted that new stores are seeing strong growth, helping support mid-teens unit growth. As such, he believes the company could top expectations this year, especially given that Dutch Bros management tends to issue conservative guidance.
Image source: Getty Images.
Why it's time to buy the stock Dutch Bros is one of my favorite growth stocks in the consumer space. The company has been seeing strong same-store sales growth despite the mixed consumer environment. Last quarter, it saw an 8.3% increase in comparable restaurant sales, with a 5.1% increase in traffic. Company-owned locations were even stronger, with a 10.6% jump in same-store sales on a 6.9% increase in traffic.
The company's unique coffee-based beverages and energy drinks are resonating with customers, and it's been investing more in brand awareness. On top of that, it has started introducing hot food items in three-quarters of its stores equipped to serve them. This is a big opportunity, as it has been getting less than 2% of its sales from food, while rival Starbucks (SBUX +0.48%) gets around 20% of its sales from food. Thus far, it's seen a 4% lift in same-store sales from shops that have begun offering its hot food items.
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More than anything, though, Dutch Bros is a great regional-to-national expansion story. The company started in Oregon and has been gradually expanding eastward. Its shops are small, with most having no indoor seating and two drive-thrus, but they still generate an impressive $2 million in average unit volumes. This allows for quick payback periods and for the company to fully fund its expansion with its operating cash flow. The company ended Q1 with under 1,200 locations and plans to grow to 2,029 stores by 2029. It sees the U.S. being able to support 7,000 total locations.
Despite its same-store sales momentum and long runway for growth, Dutch Bros stock still trades at an attractive valuation. It and Starbucks trade at the same one-year forward price-to-sales (P/S) multiple of 2.8 times, even though Starbucks is the much more mature business. And as Dutch Bros expands, its earnings will continue to ramp up as corporate costs are absorbed across a much larger store base. This makes it a stock to buy not just for this year, but for the long haul.
Dimensional Fund Advisors LP raised its position in shares of Exact Sciences Corporation (NASDAQ: EXAS) by 12.3% in the undefined quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 2,188,864 shares of the medical research company's stock after buying an additional 239,313 shares
ArrowMark Colorado Holdings LLC boosted its position in shares of Exact Sciences Corporation (NASDAQ: EXAS) by 23.5% during the undefined quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 597,931 shares of the medical research company's stock after purchasing an additional 113,603 shares during the
Bridgefront Capital LLC bought a new position in Exact Sciences Corporation (NASDAQ: EXAS) in the undefined quarter, according to its most recent filing with the SEC. The institutional investor bought 11,994 shares of the medical research company's stock, valued at approximately $656,000. Several other institutional investors have also recently made changes to their
MADISON, Wis.--(BUSINESS WIRE)--Exact Sciences Corp. (NASDAQ: EXAS), a leading provider of cancer screening and diagnostic tests, today announced four presentations at the 2026 American Association for Cancer Research (AACR) Annual Meeting highlighting new data in molecular residual disease (MRD) testing and multi-cancer early detection (MCED). The meeting will take place from April 17–22, 2026, in San Diego, CA. Exact Sciences will present new findings from the NSABP B-59/GBG-96-GeparDouze tri.
Banque Pictet & Cie SA decreased its stake in Exact Sciences Corporation (NASDAQ:EXAS – Free Report) by 77.0% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 45,415 shares of the medical research company’s stock after selling 151,772 shares during the quarter. Banque Pictet & Cie SA’s holdings in Exact Sciences were worth $4,612,000 as of its most recent SEC filing.
Other institutional investors have also recently made changes to their positions in the company. Ameriprise Financial Inc. grew its stake in shares of Exact Sciences by 105.8% during the 3rd quarter. Ameriprise Financial Inc. now owns 4,493,085 shares of the medical research company’s stock valued at $245,802,000 after acquiring an additional 2,310,139 shares during the period. ARK Investment Management LLC raised its stake in Exact Sciences by 6,072,588.9% during the 3rd quarter. ARK Investment Management LLC now owns 2,186,168 shares of the medical research company’s stock worth $119,605,000 after acquiring an additional 2,186,132 shares during the period. Holocene Advisors LP lifted its holdings in Exact Sciences by 189.5% during the second quarter. Holocene Advisors LP now owns 2,145,181 shares of the medical research company’s stock valued at $113,995,000 after purchasing an additional 1,404,086 shares in the last quarter. Amova Asset Management Americas Inc. lifted its holdings in Exact Sciences by 671.5% during the third quarter. Amova Asset Management Americas Inc. now owns 1,286,595 shares of the medical research company’s stock valued at $70,390,000 after purchasing an additional 1,119,830 shares in the last quarter. Finally, Sumitomo Mitsui Trust Group Inc. boosted its position in shares of Exact Sciences by 643.1% in the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,286,595 shares of the medical research company’s stock worth $70,390,000 after purchasing an additional 1,113,459 shares during the period. Institutional investors own 88.82% of the company’s stock.
Exact Sciences Price Performance NASDAQ:EXAS opened at $104.91 on Friday. The business’s 50-day moving average is $103.52 and its 200 day moving average is $88.83. Exact Sciences Corporation has a 12 month low of $38.81 and a 12 month high of $104.98. The company has a market capitalization of $20.03 billion, a P/E ratio of -95.37, a P/E/G ratio of 2.02 and a beta of 1.41. The company has a current ratio of 2.43, a quick ratio of 2.17 and a debt-to-equity ratio of 0.97.
Exact Sciences (NASDAQ:EXAS – Get Free Report) last released its quarterly earnings results on Friday, February 13th. The medical research company reported ($0.21) earnings per share for the quarter, missing the consensus estimate of $0.08 by ($0.29). The firm had revenue of $878.38 million for the quarter, compared to analysts’ expectations of $860.59 million. Exact Sciences had a negative net margin of 6.40% and a positive return on equity of 0.53%. The business’s quarterly revenue was up 23.1% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.06) EPS. On average, equities research analysts forecast that Exact Sciences Corporation will post -0.58 earnings per share for the current fiscal year.
Analyst Upgrades and Downgrades EXAS has been the topic of several recent analyst reports. BTIG Research restated a “neutral” rating on shares of Exact Sciences in a research report on Tuesday, March 24th. Evercore set a $105.00 target price on shares of Exact Sciences and gave the stock an “in-line” rating in a report on Monday, January 5th. Mizuho reiterated a “neutral” rating and issued a $105.00 price target (up from $85.00) on shares of Exact Sciences in a research note on Tuesday, January 20th. Zacks Research cut Exact Sciences from a “strong-buy” rating to a “hold” rating in a report on Friday, January 30th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Exact Sciences in a research note on Thursday, January 22nd. Twenty-one investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Reduce” and an average price target of $92.13.
View Our Latest Stock Analysis on EXAS
Exact Sciences Profile (Free Report)
Exact Sciences Corporation is a molecular diagnostics company headquartered in Madison, Wisconsin, dedicated to the early detection and prevention of cancer. The company’s flagship product, Cologuard®, is a noninvasive, stool-based DNA screening test for colorectal cancer that was developed in collaboration with the Mayo Clinic. By combining DNA mutation analysis with hemoglobin detection, Cologuard aims to improve screening adherence and identify cancers and precancerous lesions in average-risk adults.
Since its founding in 1995, Exact Sciences has expanded its portfolio through strategic acquisitions and internal research and development.
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