Track market-moving stories before they get noisy

Broadcom Inc. (NASDAQ:AVGO) stock traded nearly flat Wednesday. Investors awaited the company’s fiscal third-quarter 2026 results, due after the closing bell on Sept. 2.

Wall Street expects Broadcom to report adjusted earnings of $3.24 per share on revenue of $29.43 billion.

Meanwhile, BakerAvenue Wealth Management views Broadcom as a leading play on the next phase of artificial intelligence spending. The firm expects demand to shift from training large models to running AI applications at scale.

King Lip Sees Broadcom Winning In AI InferenceKing Lip, chief strategist at BakerAvenue Wealth Management, named Broadcom his top pick for the next evolution in custom AI chips and AI inference.

Lip said NVIDIA Corp. (NASDAQ:NVDA) has performed particularly well in the model-training market, while Broadcom is positioned for large, repetitive AI workloads that increasingly characterize inference.

"NVIDIA has been great for training models, but for huge, repetitive type workloads, Broadcom is our top pick, uh, for the next evolution in custom AI chips and inference play," Lip said.

He added that Broadcom does not need NVIDIA to lose market share for its own AI opportunity to expand, suggesting the two companies can benefit from different parts of growing AI infrastructure demand.

AI Trade Shifts From Spending To ReturnsLip believes investors are becoming more demanding as the AI investment cycle matures. He described the shift as moving away from "show me the model" toward "show me the money."

He expects investors to focus increasingly on returns from massive AI capital expenditures rather than rewarding companies simply for increasing spending.

Lip identified the transition from AI training toward inference as another major theme. Inference involves deploying trained models across specific applications and repetitive workloads, an area where he sees Broadcom’s custom-chip exposure becoming increasingly relevant.

Software Winners Need Data And Critical WorkflowsLip also expects the AI investment opportunity to broaden beyond semiconductor companies.

He said the easiest phase of the AI trade centered on buying chip stocks, while investors now need to identify which software companies can turn AI infrastructure into revenue.

Lip believes software companies with proprietary data and mission-critical workflows have the strongest opportunity to benefit. Companies without meaningful competitive advantages face greater disruption as AI capabilities improve.

Revenue Quality And ROI Remain RisksLip nevertheless identified several risks around the broader AI trade, including revenue quality, interest rates, return on investment and growing competition.

He called questions around AI revenue quality a "yellow flag" rather than a red flag, particularly as financing arrangements between technology suppliers and customers become more complicated.

"When suppliers start to help finance their customers, investors should pay attention," Lip said.

He nevertheless said underlying AI demand remains clearly real, while investors need to distinguish organic customer demand from revenue supported by financing or other stimulus.

Lip also expects higher interest rates to pressure AI companies whose earnings lie further in the future. At the same time, he said investors increasingly want companies to demonstrate actual returns on AI capital spending.

He also flagged emerging competitors such as DeepSeek and Kimi, saying rising costs could encourage customers to seek lower-cost AI alternatives.

Despite those broader risks, Lip sees Broadcom as particularly well positioned as AI workloads move toward inference and demand expands for customized chips designed around specific, high-volume computing tasks.

Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $507.91. Recent analyst moves include:

RBC Capital: Sector Perform (Maintains Forecast to $400.00) (Aug. 26) BMO Capital: Initiated with Outperform (Forecast $455.00) (Aug. 21) Erste Group: Downgraded to Hold (July 7) Top ETF Exposure iShares Semiconductor ETF (NASDAQ:SOXX): 8.12% Weight iShares Expanded Tech Sector ETF (NYSE:IGM): 8.49% Weight Invesco PHLX Semiconductor ETF (NASDAQ:SOXQ): 9.94% Weight Significance: Because AVGO carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

Price ActionAVGO Stock Price Activity: Broadcom shares were down 0.10% at $369.30 at the time of publication on Wednesday, according to Benzinga Pro data.

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© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

American Tower and Crown Castle both raised guidance and cut dividend checks this month, but the coverage math behind those payouts tells a story that should make income investors look twice before treating them as equals.

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Two of the largest cell tower REITs just wrote investors checks, and the payout coverage math tells opposite stories. American Tower (NYSE:AMT | AMT Price Prediction) paid $1.79 per share on July 13, 2026, its second straight quarter at a rate that runs 5.3% above the prior year. Crown Castle (NYSE:CCI) paid $1.0625 per share for the June 30 record period, the sixth consecutive quarter at that reset rate after a 32% cut that took effect with the March 2025 payment.

Both operators raised full-year AFFO guidance in July. Only one has the coverage cushion to back the checks it is writing.

American Tower: Payout Coverage Grade A- American Tower is running an annualized dividend rate of $7.16 per share against a full-year 2026 attributable AFFO outlook of $11.00 to $11.17 per share. At the midpoint, that is roughly a 65% AFFO payout ratio, leaving meaningful headroom for reinvestment, buybacks, and further deleveraging.

The Q2 2026 earnings report reinforced the coverage math. Operating cash flow reached $1.487 billion against a dividend outlay of $834.7 million and capex of $320.9 million. Net leverage finished at 4.9 times, inside management’s target range of three to five times. CFO Rod Smith framed the priority stack plainly: “First and foremost, it’s supporting the dividend and a growing dividend.”

The engine underneath is diversifying. CoreSite delivered double-digit revenue growth for the fifth consecutive quarter, and management raised its 2026 data-center revenue growth outlook to approximately 15% from a prior 13%. Steve Vondran told investors 2026 is the trough for attributable AFFO per share growth, with mid-to-high single-digit growth expected to return in 2027 as DISH churn and refinancing costs ease.

Crown Castle: Payout Coverage Grade C Crown Castle is paying an annualized $4.25 per share against 2026 AFFO guidance of $4.53 to $4.65 per share. That works out to an AFFO payout ratio of roughly 93% at the midpoint. There is no cushion for downside surprises, and management has been explicit about how thin the buffer is. A payout that already absorbed a 32% cut and now runs this close to AFFO is exactly the setup we flagged in a free report on the seven warning signs a big dividend is about to be trimmed.

CEO Chris Hillebrand described the dividend as “sacrosanct” and said any excess cash after funding it goes first to the target investment-grade leverage range of six to six and a half times net debt to EBITDA. Quarter-end leverage sat at 6.3 times, and total net leverage of 6.1x is now within striking distance of the 7.0x covenant ceiling.

Sale proceeds from the $8.4 billion fiber and small cell divestiture funded a $1 billion buyback that retired more than 11 million shares and trimmed the annual dividend obligation by $47 million. Tenant concentration remains the bigger overhang. T-Mobile, AT&T, and Verizon together account for 93% of site rental revenues, and Crown Castle is pursuing a $3.5 billion contractual claim against DISH Wireless in bankruptcy court.

Head to Head on the Numbers Metric American Tower Crown Castle Latest quarterly dividend $1.79 $1.0625 YoY dividend change +5.3% Unchanged (after 32% cut) 2026 AFFO payout ratio (midpoint) ~65% ~93% Net leverage 4.9x 6.3x YTD price change +2.24% -12.59% What to Watch Next For American Tower, the key checkpoint is the pace of CoreSite lease-up and whether 2027 delivers the promised inflection back to mid-to-high single-digit AFFO growth. Management has committed over $700 million in 2026 capital to data-center capacity, and Vondran said the company is still underwriting mid-teens or better stabilized yields on those investments.

For Crown Castle, the near-term catalysts are the DISH bankruptcy proceedings and progress toward the promised couple-hundred-basis-point EBITDA margin expansion. Full-year 2026 organic growth, excluding Sprint cancellations and DISH terminations, guides to 3.4%, with more than 90% of that already contracted. Keep an eye on the stock as the escrow account tied to the AT&T-EchoStar spectrum deal takes shape: a favorable recovery could ease the coverage math that currently separates these two REITs by a full letter grade.

Contact [email protected] for any questions or corrections.

Silver Lake wants Workday, but Workday just fired back with $4 billion and a packed calendar of public commitments. Jim Cramer says the company is fighting its own takeover, and the five-year chart reveals what investors are actually betting on.

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Workday (NASDAQ:WDAY | WDAY Price Prediction) stock still carries a takeover premium from reported Silver Lake acquisition talks, and the company’s own recent moves read like a business arguing it doesn’t need a buyer. Workday authorized a $4 billion open-ended repurchase on August 27, scheduled its annual financial analyst day for October 13, and issued a release claiming it now signs a new state or local government customer nearly every week. All three landed inside two weeks of the deal chatter.

Mad Money host Jim Cramer flagged the tension on air, first the night the Silver Lake report hit and Workday stock jumped 18%, and again in late August after the buyback disclosure. Cramer’s read, paraphrased, is that Workday is fighting a takeover with capital return, and the split between the deal premium and the underlying trajectory is what investors have to price right now.

The scoreboard tells that story starkly. Workday stock is up 24% over the past month, down 13% over one year, and down 26% over five years. Today, Workday stock is up 0.7% to $199.77 midday.

For context, over the past year, Salesforce (NYSE:CRM) stock is up 1.33% and ServiceNow (NYSE:NOW) stock is down 25%, while the iShares Expanded Tech-Software Sector ETF (CBOE:IGV) is down 4%. As for WDAY stock, anyone who bought the takeover pop owns a business worth less than a year ago and considerably less than five years ago, while betting on a transaction the company’s own conduct is arguing against.

Cramer’s Read on the Buyback The new authorization sits on top of a previously announced $5 billion program that Workday completed six months ahead of its target. Management framed buybacks as a permanent part of capital allocation and reported $1.3 billion of repurchases during the quarter alone. Stacking a $4 billion open-ended authorization on top of a program it just retired early is the move of a company positioning to stay independent, not one negotiating its own sale.

The analyst day compounds that signal. Booking a full day of forward strategy discussion signals management expects to be running the business publicly on that date, and the buyback size gives capital-return support to holders who stay independent alongside the company. TD Cowen raised its price target on Workday stock to $220 while maintaining a Hold rating, a combination that itself communicates how far the standalone story stretches.

What the Government Book Really Buys Workday’s public-sector release names concrete wins. New customers include the State of Delaware, the Commonwealth of Massachusetts, New Jersey Transit Authority, Bexar County, the New York State Unified Court System, and the Utah Transit Authority. Recent go-lives include the City of Akron, the State of Georgia, the City of San Mateo, and Sandy City.

Workday says more than 100 state and local government entities have selected the platform in the past two years, and the Georgia deployment covers more than 200 agencies and over 70,000 employees in roughly 30 months. Government contracts are durable and slow, which is a real strength and the reason they won’t reprice a stock quickly. The book strengthens the standalone case without moving the near-term tape, and it also frames what a private-equity owner would inherit if a deal did close.

Standalone Verdict The five-year return is the hardest fact for the standalone case to answer. A window that long isolates execution rather than sentiment, and Workday stock down 27% over five years says the platform hasn’t converted its scale into shareholder returns without help from a deal narrative. The buyback supports the share count, and growth still has to come from the platform itself.

At current levels, the WDAY stock price isn’t fully supportable on the standalone book yet. Workday’s government pipeline and the buyback anchor a floor. However, the takeover premium is what pulled the stock 24% higher in a month, and if the Silver Lake talks go nowhere, exposure here is to a stock that has already given back a year of gains and half a decade of compounding, holding its bounce on deal hope rather than results.

Position sizing should reflect that. Investors treating Workday as a durable enterprise-software holding may want to size it for the underlying business alone and treat any deal-related upside as optionality rather than a plan. Anyone who chased the mid-August pop should cap the position at a size that can survive a headline saying the talks ended, because that outcome is a live risk and the five-year chart is the clearer read on what supports the shares without one.

Contact [email protected] for any questions or corrections.

NNN REIT and Agree Realty sent dividend checks on the same date with nearly identical payout ratios, but one number buried in the balance sheet separates a merely solid income stock from a genuinely fortress-grade one.

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Two of the largest net lease REITs cut checks to shareholders on the same day. NNN REIT (NYSE:NNN | NNN Price Prediction) sent out $0.62 per share on August 14, 2026, its first payment at a raised quarterly rate. Agree Realty (NYSE:ADC) delivered $0.267 per share on August 14, 2026 as part of its monthly payout schedule. Same date, same sector, and remarkably similar payout ratios. The grades diverge on what backs each dollar.

NNN REIT: A 37-Year Streak Built on Self-Funded Growth The August payment marked NNN’s 37th consecutive annual dividend increase, one of the longest streaks in the REIT universe. The 3.3% increase in the quarterly rate lifted the annualized dividend to $2.48 per share.

CFO Vin Chao called the streak “an achievement that we are extremely proud of and one that reflects the sustainability of our growth model.” The numbers support that framing. Second-quarter AFFO was $0.90 per share, up 5.9% year over year, and management flagged a “healthy 69% AFFO payout ratio” at the new rate. Full-year 2026 AFFO guidance sits at $3.55 to $3.59, implying roughly 3.8% growth at the midpoint.

Free cash flow after the dividend ran approximately $56 million in the second quarter, with management expecting $215 million for the full year. Occupancy hit 99.1%, uncollected rent stayed under five basis points, and the balance sheet carries $1.4 billion of available liquidity with only 2.5% of debt tied to floating rates.

The catch here is that NNN’s tenant roster leans heavily toward non-investment-grade credits, and shares have slipped 4.8% over the past month even as the stock holds a 18.92% year-to-date gain.

Agree Realty: Monthly Checks, Investment-Grade Backing Agree’s model looks similar on the surface and different underneath. The $0.267 monthly rate annualizes to $3.204 per share, up 4.3% year over year (Agree is one of a small group that pays every 30 days rather than quarterly, a list we rounded up in a free report on monthly dividend payers). President Peter Coughenour told analysts the payout is “very well covered with a payout ratio of 70% of AFFO per share for the second quarter.”

Second-quarter AFFO landed at $1.14 per share, a 7.4% year-over-year increase, and full-year guidance was raised to $4.57 to $4.59, implying nearly 6% AFFO growth. Free cash flow after the dividend is expected to exceed $140 million this year.

The differentiator is tenant quality. Agree’s 2,825 properties span all 50 states, with nearly two-thirds of the portfolio in investment-grade credits. Occupancy sits at a company-record 99.8%, credit and occupancy loss guidance was cut to 25 basis points, and fixed-charge coverage runs 4.1 times. Pro forma net debt to recurring EBITDA of 3.7 times is materially lower than NNN’s 5.7 times.

Scorecard: Where the Grades Land Metric NNN REIT Agree Realty AFFO payout ratio 69% 70% Dividend growth (YoY) 3.3% 4.3% AFFO/share growth (Q2) 5.9% 7.4% Occupancy 99.1% 99.8% Net debt/EBITDA 5.7x 3.7x (pro forma) Payout frequency Quarterly Monthly Consecutive years of hikes 37 N/A On payout coverage alone, both REITs earn high marks. NNN’s 69% AFFO payout ratio wins by a hair, and the 37-year streak is a track record few peers can match. Agree grades higher on portfolio quality: lower leverage, higher occupancy, faster AFFO growth, and an investment-grade tenant mix that reduces the tail risk in the coverage math.

What to Watch Next NNN’s $750 million acquisition target and the pace of cap-rate compression will drive whether the 3.3% dividend hike becomes a floor or a ceiling for future increases. For Agree, watch the $1.6 to $1.8 billion investment guidance and whether the 7% weighted cap rate on acquisitions holds as spreads tighten. Same payout date, same sector, and two coverage stories worth grading separately.

Contact [email protected] for any questions or corrections.

Key Takeaways Dana faces weaker EV orders, with $59 million in program termination charges through 1H 2026.Lower China JV earnings helped drive Dana's 2026 adjusted EPS guidance down to $1.75-$2.25.Dana's higher capital spending is limiting free cash flow growth despite improving EBITDA. Dana Incorporated (DAN - Free Report) , a leading supplier of power-conveyance and energy-management technologies for the global automotive and commercial-vehicle markets, faces pressure from weak EV demand and lower China JV earnings. Eaton Mobility integration, OEM volume exposure, delayed cost recoveries and higher capital spending also create execution and cash-flow risks.

Let’s dig deeper and see why you should consider offloading this Zacks Rank #5 (Strong Sell) stock from your portfolio.

Lower EV Orders, Integration Complexity of Eaton Ail DANLower electric-vehicle orders remained evident through the first half of 2026 for Dana, particularly in Europe and Asia Pacific. It recorded $59 million of electric-vehicle program termination charges in the first six months of 2026 for programs that were canceled by customers or experienced steep volume declines. If these cancellations and volume reductions continue, Dana’s electrification portfolio could contribute less to future growth even as traditional programs support the segment.

Dana lowered its full-year 2026 adjusted EPS guidance to $1.75 to $2.25, down from the previous expected range of $2 to $3. The decline is mainly due to higher depreciation and amortization from accelerated capital investment, higher interest expense related to refinancing and upfront spending for the Eaton Mobility transaction, and lower equity earnings from its China joint ventures. The company specifically identified lower China JV earnings as the largest contributor to the change, with taxes also creating an additional headwind. This creates a disconnect between improving operating performance and weaker bottom-line earnings, which could limit near-term EPS-driven upside for the stock.

Dana expects the Eaton Mobility transaction to close in the first quarter of 2027 and targets at least $250 million of run-rate cost synergies within 24 months after closing. The plan spans corporate functions, engineering, procurement, manufacturing, footprint rationalization and aftermarket networks, with cash costs expected below $250 million. Delivering those savings while integrating two businesses creates a broader execution burden as Dana finishes its existing cost program. Any delay in integration or synergy realization would reduce the expected financial benefits.

Dana’s awarded multi-year OEM programs do not require customers to purchase committed volumes, leaving revenues exposed to production changes. The second quarter of 2026 benefited from $45 million of pricing and cost recoveries, but material recovery mechanisms typically lag supplier cost changes by about 90 days. Recovery of non-material inflation is not specifically provided for in current customer contracts and can require prolonged negotiations. This structure leaves Dana dependent on customer production schedules and timely commercial recoveries to protect margins.

Dana generated $331 million of adjusted free cash flow in 2025 and now guides to $275-$375 million for 2026, with the $325 million midpoint still roughly flat year over year despite higher EBITDA. The company expects about $325 million of net capital spending in 2026 to support program launches, automation and other operational projects. First-half 2026 capital expenditures from continuing operations reached $204 million versus $104 million a year earlier, partly because Dana purchased three previously leased U.S. manufacturing facilities. While this expansion effort supports long-term operational improvements, it limits near-term free cash flow expansion.

Price Performance, Valuation and Estimates  DAN has underperformed the Zacks Automotive - Original Equipment industry in the last six months. Its shares have lost 12.8% compared with the industry’s decline of 2.3%. 

Image Source: Zacks Investment Research

 
From a valuation perspective, DAN appears undervalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 0.4, lower than the industry’s 2.24. 

Image Source: Zacks Investment Research

 
The Zacks Consensus Estimate for DAN’s 2026 EPS has declined 31 cents in the past 30 days.

Image Source: Zacks Investment Research

Stocks to ConsiderSome better-ranked stocks in the auto space are China Yuchai International Limited (CYD - Free Report) and Garrett Motion Inc. (GTX - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for CYD’s 2026 sales and earnings implies year-over-year growth of 58.6% and 68.6%, respectively.

The Zacks Consensus Estimate for GTX’s 2026 sales and earnings implies year-over-year growth of 7.2% and 25.7%, respectively. The EPS estimate for 2026 and 2027 has improved 5 cents and 4 cents, respectively, over the past 30 days.

Key Takeaways Advance Auto is returning to selective expansion, with 30 to 35 new stores planned for fiscal 2026.Main Street Pro sales are gaining traction, aided by broader assortment, market hubs and faster delivery.Distribution efficiencies and merchandising gains are lifting margins, while DIY weakness remains a concern. Advance Auto Parts, Inc.’s (AAP - Free Report) selective expansion, stronger Main Street Pro sales, distribution efficiencies and improving product margins support profitability. However, weaker DIY demand, inflation, national-account challenges and elevated capital spending could constrain near-term sales growth, margins and cash flow.

Let’s dig deeper and see why this Zacks Rank #3 (Hold) stock is worth retaining in your portfolio.

Selective Expansion, Margin Improvement Aid Advance AutoAfter completing planned location closures in the first quarter of 2025, Advance Auto is returning to selective expansion. It plans 30 to 35 new store openings in fiscal 2026 and uses population, vehicle profiles, competition and real-estate economics in site selection. This supports measured network growth after the footprint reset.

Advance Auto continues to gain traction with Main Street Pro customers, its preferred professional segment. In the second quarter of fiscal 2026, Pro sales grew at a low-single-digit rate, while Main Street Pro comparable sales exceeded total Pro growth by more than 200 basis points. The growth is coming from both existing accounts and customers that previously gave Advance Auto limited business. Broader assortment, market hubs and delivery times below 40 minutes are helping the company compete for first-call status.

Advance Auto completed its distribution-center consolidation in the second quarter of fiscal 2026 and now operates 15 DCs on one warehouse system. The company opened five market hubs in the first half, reaching 38, and raised fiscal 2026 hub-opening plans to 15 to 20 from 10 to 15. It still targets 60 hubs by mid-2027. About 25% of identified DC process changes are complete, with the remainder planned by mid-2027. It also expects to consolidate volume with 70% fewer carriers, generating tens of millions of dollars in transportation savings that support margin expansion in 2027.

Strategic sourcing, better assortment and tighter pricing are improving product economics. Adjusted gross margin rose 240 bps year over year to 46.2% in the second quarter of 2026, including a 130-bps benefit from tariff refunds. Merchandising initiatives added around 100 bps to product margins in the first half, with further gains expected. Full-year adjusted operating margin is expected to expand 130-200 bps, while gross margin is guided near 45%, supporting the medium-term 7% operating margin target.

Reduced Consumer Budget, Higher Capital Requirement Ail AAPTighter household budgets reduced DIY spending in the second quarter of fiscal 2026. DIY sales declined at a low-single-digit rate, with weaker large-ticket projects and discretionary purchases contributing to a 100 to 150 basis-point drag on comparable sales together with milder weather. The company still expects full-year comparable sales growth of 1% to 2%, but that outlook assumes transaction volumes recover from second-quarter levels. If value-focused behavior persists, DIY traffic and mix could continue to constrain sales growth and profitability.

Cost inflation remains another important pressure on AAP’s profitability. Higher oil and commodity prices are pressuring margins, and elevated freight and fuel costs are expected to continue affecting margins during the second half. These costs are particularly challenging because the company is simultaneously trying to maintain competitive pricing. The company expects gross margin of approximately 44-45% in the second half, with freight, fuel and channel mix acting as offsets to merchandising gains.

Although Main Street Pro is performing well, AAP continues to face headwinds from national accounts. The company is transitioning its Pro mix toward Main Street customers, creating some noise in reported results. Main Street is viewed as a larger addressable opportunity, but winning these customers is relationship-driven and can take weeks of repeated interactions before AAP becomes the customer’s first call. This means the benefits from market hubs, better assortment and improved service may take time to fully translate into revenues. While the company remains confident in the strategy, the transition creates near-term uncertainty around Pro growth and the pace at which share gains can offset national-account weakness.

Advance Auto still expects about $300 million of capital expenditures in fiscal 2026. Although free cash flow reached $120 million through the second quarter, the company maintained full-year guidance of about $100 million because of planned operating expenses and timing. Spending on stores, market hubs and infrastructure therefore continues to constrain near-term cash generation.

Price Performance, Valuation and Estimates  AAP has underperformed the Zacks Automotive - Retail and Wholesale – Parts industry in the last six months. Its shares have lost 19.7% compared to the industry’s decline of 9.7%. 

Image Source: Zacks Investment Research

From a valuation perspective, AAP appears undervalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 0.3, lower than the industry’s 3.33. 

Image Source: Zacks Investment Research

 
The Zacks Consensus Estimate for AAP’s 2026 and 2027 EPS has improved 3 cents and fallen 14 cents, respectively, in the past 30 days.

Image Source: Zacks Investment Research

Stocks to ConsiderSome better-ranked stocks in the auto space are China Yuchai International Limited (CYD - Free Report) and Garrett Motion Inc. (GTX - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for CYD’s 2026 sales and earnings implies year-over-year growth of 58.6% and 68.6%, respectively.

The Zacks Consensus Estimate for GTX’s 2026 sales and earnings implies year-over-year growth of 7.2% and 25.7%, respectively. The EPS estimate for 2026 and 2027 has improved 5 cents and 4 cents, respectively, over the past 30 days.

While most software companies were retreating, Paycom made an aggressive and unconventional bet on itself, and the market delivered a verdict that caught even seasoned analysts off guard.

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Paycom Software (NYSE:PAYC | PAYC Price Prediction) spent the first half of 2026 doing what most software companies stopped doing: buying its own stock while everyone else was selling.

Buyback By The Numbers Paycom retired roughly 20% of its shares in eight months. The share count fell from 56.1 million at the end of 2025 to about 45.1 million today, and the company did most of that buying while the stock was near a 52-week low of $104.15. In the first six months of 2026, Paycom repurchased nearly 11 million shares for approximately $1.4 billion. That is a company betting on itself at the low.

What It Means Context matters here. Paycom spent $325.5 million on share repurchases in all of fiscal 2025. The 2026 pace is a different animal. In Q1 alone, the company bought back 8,375,443 shares for $1.060 billion and authorized a new $2.00 billion buyback. Q2 added another 2.6 million shares for $346 million, or about 6% of shares outstanding in a single quarter. Management called the repurchases opportunistic, citing a “valuation disconnect” in the market.

The funding is the part long-term holders need to see clearly. Paycom drew $900 million on its $2.1 billion revolving credit facility to support the year-to-date repurchases. Cash and equivalents ended Q2 at $198 million. This was a leveraged buyback funded partly with credit, and the balance sheet reflects that: stockholders’ equity fell to $571.5 million in Q2, down 68.28% year over year because of treasury stock accumulation.

Underneath the buyback, the operating business gave management cover. Q2 revenue was $531 million, up 10%, with recurring revenue of $505 million, up 11% year-over-year. Non-GAAP EPS came in at $2.78, ahead of the $2.381 consensus. Adjusted EBITDA margin expanded 320 basis points to 44.2%. Management raised full-year revenue guidance to $2.197 billion to $2.212 billion and adjusted EBITDA to $1.007 billion to $1.022 billion, implying a record 46% margin at the midpoint.

Market Reaction Paycom stock rose 98.81% between April 1, 2026 and August 31, 2026, from $120.26 to $239.10, with a 46.07% move in August alone. At the Q1 earnings 8-K filing on May 6, 2026, shares were $126.1438. By the Q2 filing on August 5, 2026, they closed at $175.00. The stock now trades above the $211.56 average analyst target, with 6 buy and 14 hold ratings and no sells. Zoom out and the picture is more sober: the stock is still down 50.07% over the last five years, from $478.83 on September 1, 2021.

Bull Case The buyback is a bet the market already validated. Oakmark Select portfolio manager Robert Bierig named Paycom on CNBC on September 1, 2026, saying: “Another example would be Paycom, which is a payroll software company that is buying back 20% of its shares this year. So we think they’re also very much a durable business that is going to benefit from some of the technology changes that are taking off right now.” Bierig also pushed back on the AI-loser framing: “I think people have wanted to put all of software into like an AI loser bucket. And we are big believers in the power of AI, but we think software companies can succeed at the same time.”

The operating case supports the capital allocation. Paycom cut R&D expense from $74.8M to $51.9M, largely because it moved AI workloads in-house. The company spent over $100 million last year preparing its own data centers, and management expects roughly $100 million in R&D savings this year plus $30 million or more from IWant response fees that would have gone to a third party. CEO Chad Richison said Paycom is “well positioned to exceed our initial 2026 plan on both a revenue and profitability basis.” Free cash flow is expected to exceed $650 million for the year. Retiring 20% of the float against that cash profile compounds every future dollar of earnings across a smaller share base.

Bottom Line Paycom bought its own stock at the bottom of a software panic, funded partly with debt, and the stock nearly doubled. For long-term holders, the forward catalyst is the raised guidance: $1.007 billion to $1.022 billion in adjusted EBITDA against a share count that is roughly 20% smaller than it was on New Year’s Day. The stock now sits above the average analyst target, and the analyst desk skews to hold. The buyback is the reason the story worked. Whether it keeps working depends on how the credit line gets paid back, and how quickly the automation savings show up in the 2027 numbers.

Contact [email protected] for any questions or corrections.

Key Takeaways BROS maintains its 5-6% systemwide comp outlook for 2026, with Q3 growth expected at about 4-5%.BROS posted 5.8% systemwide comps in Q2, extending its positive comparable-sales streak to 13 quarters.BROS faces tougher 2H comparisons as pricing eases below 1% and transaction comparisons become challenging. Dutch Bros Inc. (BROS - Free Report) maintains its 2026 systemwide same-shop sales growth outlook of 5-6%, with performance expected to trend toward the midpoint of the range. The outlook incorporates an anticipated moderation to approximately 4-5% in the third quarter. Second-quarter systemwide comps increased 5.8%, including transaction growth of 1.7%, while company-operated comps advanced 8.3% on a 3.4% increase in transactions.

The second quarter of 2026 extended BROS’ streak to 13 consecutive quarters of positive comparable sales and eight straight quarters of transaction growth. Performance benefited from the continued food rollout, maturation of newer shop vintages, brand-marketing initiatives and customer segmentation within Dutch Rewards. Comparable sales remained positive across all dayparts, with particular strength during the morning.

The second-half outlook reflects a more demanding comparison profile. Approximately one percentage point of pricing rolled off in early July, reducing the expected effective pricing contribution to less than one percentage point during the period. Transaction comparisons are also expected to become progressively more difficult through the remainder of the year.

The anniversary of the food rollout creates an additional comparison. BROS began introducing the program in the third quarter of 2025 and expanded it more meaningfully during the fourth quarter. Consequently, second-half 2026 results will be measured against periods that already included food sales. The company expects this comparison to affect primarily net ticket.

Despite the anticipated moderation in third-quarter comparable-sales growth, BROS has not changed its full-year systemwide comparable-sales outlook. Continued maturation of newer shops and strength in the morning daypart are likely to support comparable-sales performance during the remainder of 2026.

How MCD and SBUX Compare on Comparable-Sales MomentumMcDonald’s Corporation (MCD - Free Report) is pursuing a more measured comparable-sales recovery. McDonald’s reported second-quarter global comp growth of 1.3%, with the United States increasing 0.8%. U.S. comps turned slightly negative in July as execution challenges carried into the third quarter. McDonald’s is focused on placing its U.S. baseline momentum in a stronger position by the end of 2026. International markets present a firmer outlook, with third-quarter comp growth in IOM and IDL expected to accelerate sequentially from second-quarter rates of 1.5% and 1.9%, respectively.

Starbucks Corporation (SBUX - Free Report) enters its fiscal fourth quarter with stronger comparable-sales momentum. The company generated fiscal third-quarter global and U.S. comp growth of 7.9%, while U.S. transactions increased 4.2%. Starbucks expects fiscal fourth-quarter U.S. comps to rise 6.5% or better, implying full-year U.S. growth of slightly more than 6% and global growth approaching 6%. Starbucks acknowledged the tougher year-over-year traffic comparisons and continued variability in the broader consumer environment.

BROS’ Price Performance, Valuation & EstimatesShares of Dutch Bros have declined 12.7% in the past six months compared with the industry’s fall of 10.9%.

BROS’ Stock’s Six-Month Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, Dutch Bros stock trades at a forward price-to-sales ratio of 3.25, below the industry’s average of 3.27.

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

The Zacks Consensus Estimate for BROS’ 2026 earnings per share (EPS) implies a year-over-year uptick of 27.6%. The EPS estimates for 2026 have increased in the past 30 days.

EPS Trend of BROS Stock
Image Source: Zacks Investment Research

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

A month has gone by since the last earnings report for Whirlpool (WHR - Free Report) . Shares have lost about 15% in that time frame, underperforming the S&P 500.

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

Whirlpool's Q2 Earnings Miss on Lower Volume and Cost PressuresWhirlpool reported a wider-than-expected ongoing loss and a sales miss for the second quarter of 2026, with both metrics deteriorating year over year. The company posted an ongoing loss of 21 cents per share for the second quarter of 2026, wider than the Zacks Consensus Estimate of a 20-cent loss. The result compared unfavorably with ongoing earnings of $1.34 per share a year ago.

Net sales declined 6.8% year over year to $3,517 million and missed the consensus mark of $3,602 million by 2.4%. Organic net sales fell 1.7% to $3,437 million, reflecting lower volumes and retailer inventory pressure, partly offset by pricing actions.

WHR's Profitability Faces Cost PressureGross profit fell 27.5% year over year to $442 million. The gross margin contracted about 360 basis points to 12.6% as lower volumes and inflationary pressures weighed on profitability.

Selling, general and administrative (SG&A) expenses declined 6.5% to $371 million. Ongoing EBIT plunged 69.1% to $62 million, while the ongoing EBIT margin narrowed 350 basis points to 1.8%. Tariffs, raw-material inflation and fuel costs remained key headwinds. GAAP net earnings available to common shareholders rose 14.2% to $75 million, aided by a $139 million gain on business disposals.

WHR’s Region-Wise Performance DetailsNet sales for the MDA North America segment declined 1.5% year over year to $2,408 million. Excluding currency effects, sales also fell 1.5% due to lower volumes stemming from an industry decline, partly offset by favorable price/mix. Segment EBIT dropped 55.4% to $64 million from $144 million, while the EBIT margin contracted 320 basis points to 2.7%. The margin decline reflected lower volumes and higher tariff, raw-material and fuel costs, partly offset by favorable price/mix. Sequentially, net sales rose 8% and the EBIT margin improved 240 basis points, aided by previously announced pricing actions.

Net sales from MDA Latin America increased 7.8% year over year to $868 million. Excluding currency impacts, however, sales declined 1.7% due to unfavorable price/mix in Brazil despite higher volumes. Segment EBIT fell 45.7% to $26 million from $48 million, and the EBIT margin contracted 300 basis points to 3%. The margin was pressured by unfavorable price/mix, partly offset by a favorable Brazil tax case-related gain. Whirlpool also announced price increases and structural cost actions aimed at restoring margins in Brazil.

Net sales in SDA Global edged up 0.5% year over year to $202 million. Excluding currency effects, sales decreased 1.2% as lower retailer inventories more than offset strong sell-out trends. Segment EBIT declined 30.8% to $24 million from $35 million, while the EBIT margin narrowed 540 basis points to 11.9%. The margin performance reflected planned marketing investments, partly supported by new product launches and direct-to-consumer expansion. Underlying demand remained positive, supported by strong sell-out and market-share gains globally.

Whirlpool’s Financial Health SnapshotWhirlpool ended the second quarter with cash and cash equivalents of $1,239 million, long-term debt of $6.8 billion and total stockholders’ equity of $3.9 billion. The company completed a $2 billion asset-based lending facility and issued $2 billion of secured bonds, clearing debt maturities until 2028.

For the first six months of 2026, Whirlpool used $947 million in operating cash, compared with $702 million used a year earlier. For the first-half of 2026, free cash flow was a negative $1,108 million from $856 million. Capital expenditures for the period increased to $162 million from $154 million.

Whirlpool Updates 2026 OutlookFor 2026, Whirlpool now expects net sales of approximately $15 billion and an ongoing EBIT margin of about 4% on the largest price increases. Net sales reflect nearly 1.5% growth compared with 2025 on like-for-like net sales of about $14.7 billion. Structural cost-reduction initiatives are expected to generate more than $150 million in savings, equivalent to approximately 100 basis points of margin expansion.

The company lowered its GAAP earnings guidance to $2.25-$2.75 per share from $2.45-$2.95 and reduced ongoing earnings guidance to $2.50-$3.00 from $3.00-$3.50, reflecting a new interest-expense outlook. It expects a GAAP tax rate of about 20% and an adjusted tax rate of approximately 25%. Cash provided by operating activities is projected at roughly $700 million, while free cash flow is expected to exceed $300 million. Whirlpool also targets year-end net debt of less than $5 billion.

How Have Estimates Been Moving Since Then?It turns out, fresh estimates flatlined during the past month.

VGM ScoresAt this time, Whirlpool has a poor Growth Score of F, a score with the same score on the momentum front. However, the stock has a grade of B on the value side, putting it in the second quintile for this investment strategy.

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

Outlook Whirlpool has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

A month has gone by since the last earnings report for Sterling Infrastructure (STRL - Free Report) . Shares have lost about 15.8% in that time frame, underperforming the S&P 500.

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

Sterling Q2 Earnings & Revenues Beat Estimates, Increase Y/YSterling Infrastructure, Inc. delivered a strong second quarter of 2026, with adjusted earnings and revenues topping the Zacks Consensus Estimate and increasing sharply year over year. Results were driven by outsized growth in E-Infrastructure Solutions, supported by strong organic execution and contributions from the CEC and Stone Ridge acquisitions.

Transportation Solutions revenues declined as Sterling accelerated the reallocation of resources toward higher-margin E-Infrastructure opportunities. Meanwhile, Building Solutions remained pressured by relatively flat homebuilder activity and continued housing affordability challenges.

Inside Sterling’s Q2 HeadlinesAdjusted earnings were $5.80 per share, beating the consensus mark of $5.20 by 11.5%. In the year-ago quarter, the company reported adjusted earnings per share (EPS) of $2.69.

Revenues of $1.17 billion surpassed the consensus estimate of $1.07 billion by 9.2% and increased 90.1% from $614.5 million in the year-ago quarter. Acquisitions, including CEC and Stone Ridge, contributed $250.8 million to revenues during the quarter.

Signed backlog ended the quarter at $4.33 billion, up 116% year over year, while combined backlog increased 150% to $5.62 billion. Second-quarter book-to-burn ratios were 1.4x for signed backlog and 1.3x for combined backlog, excluding the impact of the Stone Ridge acquisition.

Beyond signed work, the company’s pipeline of high-probability future-phase opportunities exceeded $1.4 billion. Sterling’s signed backlog, unsigned awards and future-phase opportunities represented a total addressable pool of more than $7 billion, up more than $2.5 billion from the end of 2025.

STRL Posts Record Profitability as Margins ExpandOperating leverage remained a key highlight as profit growth outpaced the top line. Gross profit increased to $290 million from $143.1 million a year ago, while gross margin improved to 24.8% from 23.3%, an expansion of roughly 150 basis points.

Operating income reached $219.3 million compared with $104.6 million in the prior-year quarter. Adjusted EBITDA rose 104% year over year to $256.7 million, while adjusted EBITDA margin improved to 22% from 20.4%.

Q2 Segmental Discussion of SterlingE-Infrastructure Solutions was the primary growth engine, with segment revenues, which accounted for 78% of total revenues, jumping to $905 million from $310.4 million in the year-ago quarter. Management attributed the performance to strong results across organic and acquired operations. The legacy site development business generated 111% revenue growth, reflecting expansion across all regions, while CEC’s electrical services revenues increased 140% from the pre-acquisition second quarter. Profitability in the segment also increased sharply. Adjusted operating income climbed to $217.8 million from $87.7 million. E-Infrastructure signed backlog rose 165% year over year, with mission-critical projects, including data centers, manufacturing and semiconductor facilities, representing 92% of segment backlog.

Transportation Solutions revenues, which represented 13% of total revenues, declined to $156.7 million from $196.8 million. The decrease reflected Sterling’s ongoing shift of resources from transportation projects toward higher-margin E-Infrastructure opportunities. Despite lower revenues, adjusted operating income increased to $30.5 million from $28.3 million, and adjusted operating margin expanded to 19.5% from 14.4%.

Building Solutions remained the softer spot. Revenues, which accounted for 9% of total revenues, slipped to $106.5 million from $107.3 million. Adjusted operating income declined to $10.5 million from $11.8 million as relatively flat homebuilder activity and affordability pressures weighed on performance.

Sterling’s Cash Generation Supports Buybacks & LiquidityCash generation remained a notable support for the balance sheet. Net cash provided by operating activities totaled $328 million during the first six months of 2026, up from $170.3 million in the year-ago period. Cash and cash equivalents ended June at $464.5 million, up from $390.7 million at the end of 2025. Sterling repurchased $35.3 million of common stock during the first half of the year. Long-term debt stood at $268.7 million at quarter-end compared with $275.9 million at the end of 2025, while capital expenditures totaled $69.6 million.

STRL Raises 2026 Guidance on Strong Award ActivityConfidence in its operating momentum translated into higher full-year targets. Sterling raised its 2026 revenue guidance to $4-$4.15 billion from the prior range of $3.70-$3.80 billion, indicating strong execution, expanding backlog and contributions from the Stone Ridge acquisition. Earnings are now expected to be $17.25-$17.85 per share, up from the previous forecast of $16.50-$17.15. Adjusted earnings are projected at $19.70-$20.30 per share compared with the prior outlook of $18.40-$19.05. The company also lifted EBITDA guidance to $829-$854 million from $801-$831 million and adjusted EBITDA guidance to $891-$916 million from the earlier range of $843-$873 million.

How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.

VGM ScoresCurrently, Sterling Infrastructure has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.

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

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

Performance of an Industry PlayerSterling Infrastructure belongs to the Zacks Engineering - R and D Services industry. Another stock from the same industry, Tetra Tech (TTEK - Free Report) , has gained 2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Tetra reported revenues of $1.11 billion in the last reported quarter, representing a year-over-year change of -3.9%. EPS of $0.42 for the same period compares with $0.43 a year ago.

Tetra is expected to post earnings of $0.47 per share for the current quarter, representing a year-over-year change of +4.4%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Tetra. Also, the stock has a VGM Score of D.

Key Takeaways OUTFRONT Media benefits from a broad U.S. footprint spanning about 120 markets and diverse advertisers.Digital revenues rose 23.3% to $193.7 million, boosted by higher-value digital billboard displays.Transit revenues climbed 32.3% to $140.6 million, led by a 48% increase at the New York MTA. OUTFRONT Media’s (OUT - Free Report) diversified portfolio and digital billboard conversions augur well for long-term growth. Additionally, the company's emphasis on transit momentum and permit-based barriers adds further momentum.

Analysts seem bullish on this Zacks Rank #2 (Buy) stock. The estimate revision trend for 2026 adjusted funds from operations (AFFO) per share indicates a favorable outlook, with estimates moving north over the past week.

Over the past six months, shares of OUTFRONT have increased 2.8%, outperforming the industry’s 1.8% growth. Given its solid fundamentals and positive estimate revisions, the stock is likely to maintain its momentum in the quarters ahead.

Image Source: Zacks Investment Research

What Makes OUTFRONT a Solid Choice?Diversified U.S. Footprint: OUTFRONT Media’s advertising sites are geographically diversified, with displays in approximately 120 markets across the United States, including the 25 largest markets. This scale enables clients to reach national audiences while tailoring campaigns to specific regions.

The company also serves diverse advertiser categories across its billboard and transit assets. In the second quarter of 2026, commercial revenues increased 14.7% year over year, while enterprise revenues rose 12.2%. Its broad geographic footprint and mix of advertiser categories continue to reduce dependence on any single market or customer group.

Digital Conversion Benefits: OUTFRONT Media has been investing in digital displays for years, and the conversion strategy continues to expand revenue opportunities. As of June 30, 2026, total digital displays reached 31,632, including 1,983 digital billboard displays and 29,649 digital transit displays.

Digital billboard displays generate approximately four to five times more revenues per display, on average, than comparable static billboards. In the second quarter of 2026, total digital revenues increased 23.3% year over year to $193.7 million, while automated sales represented 19.7% of digital revenues.

OOH and Transit Momentum: OUTFRONT Media’s transit business continues to benefit from higher yield, digital adoption and premium urban inventory. In the second quarter of 2026, transit revenues increased 32.3% year over year to $140.6 million, led by a 48% rise at the New York MTA. Digital transit revenues rose 35.5% to $67.6 million, while static and other transit revenues increased 29.4%.

In August 2026, the company announced an exclusive, multi-year partnership with the New York Jets, supporting additional sports-related advertising opportunities across its OOH network. Management expects third-quarter 2026 transit revenue growth of about 20%, alongside mid-single-digit billboard growth. This outlook points to continued demand across the company’s broader OOH portfolio.

Permit-Based Barriers: OUTFRONT Media operates in an industry characterized by high barriers to entry, as outdoor advertising locations are constrained by permitting requirements. The company typically owns permits that allow OOH advertising at each location, making these permits among its most valuable assets.

Since permitting limits the creation of new inventory and restricts intrusion from local and national competitors, the industry structure can support advertising rates. Physical media is also scarce by law and geography compared with more expandable digital inventory. This scarcity gives OUTFRONT Media a durable asset base and supports its long-term revenue opportunity.

Other Stocks to ConsiderSome other top-ranked stocks from the broader REIT sector are Digital Realty Trust (DLR - Free Report) and American Tower (AMT - Free Report) , carrying a Zacks Rank #2 each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for DLR’s 2026 FFO per share is pinned at $8.40. This indicates year-over-year growth of 13.67%.

The Zacks Consensus Estimate for AMT’s 2026 FFO per share is pegged at $11.07. This calls for a year-over-year increase of 2.88%.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

It has been about a month since the last earnings report for 3D Systems (DDD - Free Report) . Shares have lost about 7.6% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is 3D Systems due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for 3D Systems Corporation before we dive into how investors and analysts have reacted as of late.

DDD Q2 Earnings Beat Estimates, Strong Printer Sales Aid Top Line3D Systems reported a second-quarter 2026 non-GAAP loss of 4 cents per share, narrower than the year-ago loss of 6 cents and beat the Zacks Consensus Estimate by 55.56%.

Revenues slipped 0.3% year over year to $94.6 million but surpassed the consensus mark by 0.48%. Double-digit growth in metal and polymer printer systems, along with strength in key healthcare and industrial markets, supported the quarter.

Adjusted for software divestitures completed in 2025, total revenues increased 1.4% year over year. The improvement reflected accelerating sales of newly launched printers as customers expanded their use of additive manufacturing across production applications.

DDD’s Printer Sales Support Core GrowthProduct revenues rose 1.9% year over year to $54.8 million, while services revenues declined 3.2% to $39.7 million. 3D Systems highlighted double-digit growth in both metal and polymer hardware printer systems, underscoring improving demand for the company’s refreshed equipment portfolio.

Healthcare Solutions revenues increased 6.8% year over year to $48.1 million, making the segment the company’s largest business during the reported quarter. Growth was driven primarily by higher sales of new printer systems in Med Tech and continued expansion in Personalized Healthcare Services.

Med Tech revenues grew more than 20%, while Dental revenues increased 3%. Management said customers in these markets continued adopting 3D printing as a core manufacturing technology and broadening the range of applications deployed.

However, Industrial Solutions revenues declined 6.7% year over year to $46.5 million. Excluding the impact of software divestitures, the segment’s revenues decreased 3.7% year over year, reflecting the exit of a non-core product offering and lower hardware services revenues. Sequentially, Industrial revenues increased 2.4% on higher product sales.

Aerospace & Defense and Data Center Infrastructure each delivered growth of more than 20%, helping offset weakness elsewhere in the portfolio. Aerospace & Defense remained the company’s largest industrial market.

3D Systems’ Margin Pressure Offsets Cost CutsGross profit fell to $34.5 million from $36.2 million reported in the year-ago quarter. Gross margin contracted 170 basis points (bps) to 36.4%, while non-GAAP gross margin excluding software divestitures declined 150 bps to 36.7%.

The margin decline reflected a greater mix of printer sales and certain pricing pressures. These headwinds were partly offset by approximately $2.6 million in tariff refunds recovered during the quarter.

Operating expenses decreased 12.4% year over year to $45.1 million. Research and development expenses dropped to $10 million from $17.4 million, while selling, general and administrative expenses increased to $35.1 million from $34.1 million.

Adjusted EBITDA improved to a loss of $0.8 million from a loss of $4.7 million on a comparable basis. Prior cost-reduction measures and tariff refunds supported the improvement.

3D Systems Strengthens Its Liquidity PositionTotal cash stood at $129 million at June 30, including $128 million in cash and cash equivalents.

The company has $3.9 million of debt principal maturing in the fourth quarter of 2026, with the remaining $92 million due in 2030.

DDD Issues Third-Quarter OutlookFor the third quarter of 2026, 3D Systems expects revenues between $96 million and $99 million. The range is above the second-quarter revenue level and points to continued momentum from new printer introductions and priority end markets.

Adjusted EBITDA is projected between a loss of $3 million and a loss of $1 million. Management remains focused on Med Tech, Dental, Aerospace & Defense and Data Center Infrastructure, all of which recorded growth exceeding 20% during the first half of 2026.

How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.

The consensus estimate has shifted 26.09% due to these changes.

VGM ScoresCurrently, 3D Systems has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.

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

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

Key Takeaways CAVA's 2024 cohort is its strongest-performing vintage, generating double-digit same-store sales.CAVA's new restaurants continue to exceed sales and margin expectations, with productivity above 100%.CAVA targets 75-77 net new restaurants in 2026 as newer vintages strengthen its development outlook. CAVA Group, Inc. (CAVA - Free Report) is seeing strong performance from its newer restaurant vintages as it expands its national footprint. The company’s 2024 restaurant cohort is generating double-digit same-store sales and represents the highest-performing vintage in its portfolio. Based on the performance of that cohort, CAVA expects the 2026 classes to follow a similar maturation pattern.

The strength of newer vintages is important as CAVA increases its restaurant base. The company ended the second quarter of 2026 with 476 restaurants after opening 17 net new locations. New restaurant productivity remained above 100%, while recent openings continued to exceed expectations on both sales and margin performance. Systemwide average unit volumes reached $3.1 million.

New-unit strength has also been broad-based. CAVA reported solid performance across geographies and restaurant formats, including established and emerging markets. The company attributed part of this performance to rising brand awareness and investments aimed at supporting the guest experience and restaurant execution.

The maturation profile of newer restaurants provides additional support to CAVA’s expansion strategy. The company indicated that newer restaurants typically start at high sales levels, moderate during their first year after opening and subsequently rebound toward historical performance.

The 2024 cohort’s double-digit same-store sales performance provides evidence of continued growth as these restaurants mature. CAVA is also incorporating recent performance data into its site-selection models and cash-on-cash return analysis for future openings.

The 2024 cohort therefore provides an important benchmark for CAVA’s future development. Double-digit comps from this vintage, combined with above-100% new restaurant productivity and broad-based market strength, support the company’s current expansion trajectory. CAVA expects to open 75-77 net new restaurants in 2026.

Key Competitors Take Different Paths to Unit GrowthChipotle Mexican Grill, Inc. (CMG - Free Report) is supporting a sizable development pipeline with established new-unit economics. CMG opened 101 restaurants in the second quarter of 2026, including 80 Chipotlanes, and continues to expect approximately 350 openings for the full year. New restaurant productivity has remained near 80%, while second-year cash-on-cash returns are approximately 60%. Despite the higher development pace, the impact of new openings on comparable restaurant sales has remained near 100 basis points, consistent with historical levels. These trends likely support Chipotle’s long-term potential to operate at least 7,000 restaurants across North America.

Sweetgreen, Inc. (SG - Free Report) is taking a more measured approach to restaurant expansion. The company opened four restaurants and closed two in the second quarter, ending the period with 287 locations. Sweetgreen is refining its prototype design, construction costs, market selection and new-unit economics while focusing on rebuilding average unit volumes, restaurant-level cash flow and profitability. SG expects to maintain a conservative development pace in 2027, similar to or slower than 2026, with an emphasis on locations that meet its return thresholds before accelerating growth.

CAVA’s Price Performance, Valuation & EstimatesShares of CAVA have lost 7.4% in the past year compared with the industry’s decline of 8.1%.

CAVA’s Stock’s One-Year Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, CAVA stock trades at a forward price-to-sales ratio of 4.21, above the industry’s average of 3.27.

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

The Zacks Consensus Estimate for CAVA’s 2027 earnings per share (EPS) implies a year-over-year uptick of 34%. The EPS estimates for 2027 have increased in the past 30 days.

EPS Trend of CAVA Stock
Image Source: Zacks Investment Research

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

Key Takeaways Celestica sees strong AI infrastructure demand, with Enterprise revenue rising 167% in Q2 2026.CLS expects 1.6T programs with two hyperscalers to enter mass production in Q3 2026.Celestica's operating cash flow rose to $410.9 million, while free cash flow climbed 22.7%. Earnings estimates for Celestica Inc. (CLS - Free Report) for fiscal 2026 and fiscal 2027 have moved up 11.42% to $11.32 and 30.21% to $19.01, respectively, over the past 60 days. The positive estimate revision depicts bullish sentiments about the stock’s growth potential.

Image Source: Zacks Investment Research

CLS Gains from AI Infrastructure Demand, Portfolio StrengthThe proliferation of AI-based applications is expanding demand for Celestica's data communications and information processing infrastructure. In the second quarter of 2026, Enterprise revenues rose 167%, driven by the accelerated ramp of a hyperscaler AI/ML compute program, while 800G switching continued to scale. The company expects mass production of 1.6T programs with two hyperscalers to begin in the third quarter of 2026, with 10 active programs expected to ramp through 2027.

The company will manufacture advanced AI racks developed in collaboration with Broadcom to support OpenAI's custom accelerator roadmap. Initial deliveries are expected later in 2026, with mass production scheduled for 2027.

AMD is broadening its AI infrastructure offerings with the planned Helios platform. Celestica is playing an important role as a design and manufacturing partner for the platform.

Celestica’s comprehensive portfolio spanning communications, cloud, aerospace and defense, industrial and healthcare markets strengthens its business model by making it less vulnerable to downturn in any single market. Its strong focus on product diversification and high-value markets is supported by R&D, engineering and advanced manufacturing capabilities. This allows the company to maintain its competitive edge in a highly competitive electronics manufacturing services industry where it faces competition from major players such as Jabil, Inc. (JBL - Free Report) , Sanmina Corporation (SANM - Free Report) and Flex.

Healthy Cash Flow and Strong Balance Sheet are PositivesCash provided by operating activities increased to $410.9 million from $152.4 million in the year-ago quarter, supported by stronger earnings despite higher working capital requirements tied to rapid growth. Free cash flow was $147.1 million, up 22.7% year over year.

As of the second quarter of 2026, Celestica’s current ratio stands at 1.23. A current ratio more than 1 implies that the company is well positioned to pay off its short-term debt obligations.

Price PerformanceCelestica shares have declined 1% in the past year against the Electronics - Manufacturing Services industry’s growth of 20.3%. The stock has underperformed the Zacks Computer & Technology sector and the S&P 500 during the same time frame.

Image Source: Zacks Investment Research

The company has underperformed its peers like Jabil and Sanmina. Shares of Jabil have jumped 31.2%, and shares of Sanmina have risen 24.9%.

Key Valuation Metric of CLSFrom a valuation standpoint, CLS is currently trading at a discount compared to the industry. Going by the price/earnings ratio, the company’s shares currently trade at 17.75 forward 12-month earnings, lower than 18.08 for the industry.

Image Source: Zacks Investment Research

End NoteCLS is witnessing solid momentum across several end markets backed by its robust portfolio. Growing investments in AI infrastructure are driving expansion of Celestica's AI compute business. CLS expects AI-related demand to remain a significant contributor to growth in the coming quarter. The company’s strong liquidity better positions it to navigate economic downturns and capitalize on emerging growth opportunities. Celestica’s expanding client base and growing collaboration with tech giants such as Broadcom, AMD and OpenAI bring a multi-billion-dollar revenue-generating opportunity in the next several years. Hence, with a Zacks Rank #1 (Strong Buy), Celestica appears to be a good investment option at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The September 9 launch must defend a franchise supplying nearly half of Apple's quarterly revenue. Summary

Apple needs product excitement that converts into premium pricing.

Apple AAPL, the consumer-technology and digital-services powerhouse, slipped roughly 0.4% to $323.91 Wednesday as the clock ticks toward its September 9 product event. New iPhones will grab the headlines. But speculation around Apple's first foldable model could be the catalyst investors really care about.

Apple is not walking into this launch cold. Its third-quarter results packed real firepower: revenue soared 16% to $109.42 billion, while earnings per share surged 29% to $2.02. The company's financial statements showed iPhone revenue reaching $54.25 billion. That is nearly half of Apple's entire quarterly revenue machine.

Now the pressure is on. A foldable iPhone could crack open a lucrative premium market and spark a fresh upgrade wave—but Apple must nail the hardware, software and supply chain. The valuation snapshot shows the stock trading at $323.91, a hefty 13.91% above its $284.36 GF Value. Investors are already paying for excitement. Apple now needs to deliver it.

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

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Uber drivers have launched a landmark legal action against the ride-hailing company claiming they live in “constant fear” of a “soulless” algorithm it uses to set pay and allocate jobs.

Drivers from the UK, the Netherlands and other countries have joined the compensation claim that could run into billions of dollars. It alleges an AI-powered pay-setting system breaches data protection laws and pushes down their earnings.

The claim has been filed at Amsterdam’s district court, where the $150bn (£111bn) San Francisco tech company has its European HQ. It is the first collective legal move of its kind, according to the European Trade Union Confederation.

The case centres on an opaque “black box” algorithm fed on information about drivers, which sets a personalised rate for each ride. Drivers fear it pushes down fares to the minimum they are willing to accept.

Drivers have told the Guardian the algorithm has offered the same job to different people at different pay rates and offers them less for a return journey after a long trip because it calculates they will not want to come home empty.

“It is like someone watching you all the time and knowing about your weakness – the boss is the algorithm,” said Mohammed Shirwa, a 41-year-old Uber driver in Rotterdam. “All the time the algorithm is learning about you and what you are willing to accept. So the prices go low but you are stuck. It knows you need the job.”

Kola Oba, from Tottenham in north London, claims Uber exploits information it collects about him to push down fares.Kola Oba, who calls the algorithm “soulless”, was taking a break in Tottenham, north London, with another driver when they were offered the same job.

The other driver was offered £27 and Oba was offered £23. The pair suspected it was because Oba, 48, had taken several cheap jobs and the AI assumed he would accept a lower price. Uber has previously said such discrepancies were down to other features of its system including GPS, surge pricing, promotions and testing.

“It’s scary – they have all my information and they are using it against my own wellbeing,” Oba said. “It defines how much I earn, how long I have to work, my time with my family, my resting time.”

AI models take an increasing role in assigning work to humans by using their rapidly increasing power to learn about a business’s needs and staff behaviour and then acting as a “synthetic manager”.

The Dutch data protection authority fined ⁠Uber €825m (£708m) last month for deactivating driver ⁠accounts through automated systems without ​adequate notice. Uber said it would appeal. The company is also planning to roll out driverless cars in European cities from London to Zagreb, initially with human supervisions.

The legal case is being led by the Worker Info Exchange, a campaign group whose founder, James Farrar, secured a UK supreme court ruling that Uber drivers should have worker rights.

Relating to about 241,000 drivers across the EU and the UK, the claim alleges that Uber has unlawfully used automated decision-making, including profiling, in dynamically setting pay and allocating work.

The lawsuit, which also claims the company unlawfully used driver data to train its AI models, is seeking damages for affected drivers and an injunction to halt the conduct which it claims breaches GDPR data regulations.

The drivers claim Uber has operated dynamic pay-setting in the UK since 2023, pushing down their annual incomes by about £5,000. The system was introduced in the Netherlands this year.

Uber’s chief executive, Dara Khosrowshahi, said in 2023: “I think that what we can do better is targeting of different trips to different drivers based on their preferences or based on behavioural patterns that they’re showing us.”

Uber, which has its headquarters in San Francisco, said it categorically rejected the allegations. Photograph: Bloomberg/Getty ImagesUber said it did not adjust the price offered for a trip based on an individual driver’s behaviour and that a history of accepting or rejecting trips was not used to personalise pay offers. Instead, it said, dynamic pricing allowed it to increase pay on less attractive trips, boosting a driver’s earning potential.

“While we haven’t seen the claim yet, we categorically reject the allegations,” an Uber spokesperson said. “The Uber app uses real-time information about the trip such as journey, duration and destination to calculate fares.

“Drivers see their earnings and where a trip is going before they decide whether to accept it. The vast majority of total fares continue to go where they belong: into drivers’ pockets, and the percentage that Uber keeps from fares has remained relatively flat.”

A 2025 study by academics at the University of Oxford, which Uber said relied on incomplete and selective data, found there had been substantial cuts in driver earnings after the “dynamic” algorithm was introduced.

Farrar said: “It’s bad enough that Uber’s dynamic pay algorithms have squeezed driver pay for years now but the intrusive and underhanded way in which Uber uses its technology to monitor and influence drivers’ behaviour is an affront to their dignity as workers and as human beings.”

Anton Ekker, a Dutch lawyer leading the case, said: “A computer algorithm should not independently make decisions that strip individuals of their livelihood. Like so many other online platforms, it should be held accountable for the large-scale exploitation of vulnerabilities of European citizens.”

Confluence Wealth Services Inc. lifted its stake in shares of Amazon.com, Inc. (NASDAQ:AMZN) by 48.1% during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 47,283 shares of the e-commerce giant’s stock after buying an additional 15,356 shares during the period. Confluence Wealth Services Inc.’s holdings in Amazon.com were worth $11,269,000 at the end of the most recent quarter.

Several other institutional investors have also bought and sold shares of AMZN. Red Crane Wealth Management LLC lifted its position in shares of Amazon.com by 2.3% during the first quarter. Red Crane Wealth Management LLC now owns 1,663 shares of the e-commerce giant’s stock valued at $346,000 after purchasing an additional 38 shares in the last quarter. Robinson Smith Wealth Advisors LLC grew its position in Amazon.com by 0.7% in the 1st quarter. Robinson Smith Wealth Advisors LLC now owns 5,509 shares of the e-commerce giant’s stock worth $1,147,000 after purchasing an additional 40 shares in the last quarter. Sfam LLC increased its stake in Amazon.com by 3.4% in the 1st quarter. Sfam LLC now owns 1,224 shares of the e-commerce giant’s stock valued at $255,000 after buying an additional 40 shares during the last quarter. Measured Risk Portfolios Inc. increased its stake in Amazon.com by 3.4% in the 1st quarter. Measured Risk Portfolios Inc. now owns 1,206 shares of the e-commerce giant’s stock valued at $251,000 after buying an additional 40 shares during the last quarter. Finally, CoreFirst Bank & Trust lifted its position in shares of Amazon.com by 1.1% during the 1st quarter. CoreFirst Bank & Trust now owns 3,620 shares of the e-commerce giant’s stock worth $754,000 after buying an additional 40 shares in the last quarter. Institutional investors own 72.20% of the company’s stock.

Amazon.com News Summary Here are the key news stories impacting Amazon.com this week:

Positive Sentiment: AWS and AI expansion remain key catalysts. Amazon’s planned $5.3 billion investment in a Saudi Arabia cloud region, expanded access to OpenAI, Meta, and Anthropic models through AWS GovCloud, and a deeper partnership with Nvidia—including two million additional GPUs—could strengthen AWS’s position in government and enterprise AI. AMZN’s Saudi Arabia investment Positive Sentiment: New commerce initiatives could broaden monetization. YouTube’s integration of Amazon products into its Shopping Affiliate Program may increase product discovery and sales, while Alexa’s personalized shopping alerts and Amazon Pharmacy’s Solv integration could improve customer engagement and conversion. YouTube Amazon partnership Positive Sentiment: Analysts remain constructive. Citi reiterated a Buy rating and a $350 price target despite the legal risks, while recent results showed $200.6 billion in revenue and substantially stronger-than-expected earnings, with AWS revenue reportedly growing 36.7% year over year. Analyst reiterates Amazon Buy rating Neutral Sentiment: Zoox is expanding its robotaxi efforts. Amazon’s autonomous-vehicle unit plans testing in Houston and San Diego, but the initiative is still early-stage and has limited near-term earnings impact. Zoox and Waymo robotaxi expansion Negative Sentiment: The FTC lawsuit is driving the immediate pressure. The FTC and 22 states allege Amazon manipulated advertising auctions and overcharged approximately 1.2 million advertisers by more than $20 billion. Potential penalties, refunds, operational changes, and limits on ad-pricing practices threaten a rapidly growing, high-margin business. Amazon denies the allegations. FTC lawsuit against Amazon Negative Sentiment: AI spending and shareholder concerns remain overhangs. Investors are weighing the capital required for Amazon’s AI infrastructure against future returns, while reports of an institutional investor trimming its stake add near-term selling pressure. Amazon.com Trading Down 1.9% Shares of AMZN stock opened at $254.92 on Wednesday. The company’s fifty day simple moving average is $252.57 and its two-hundred day simple moving average is $241.40. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.03 and a quick ratio of 0.87. Amazon.com, Inc. has a 1 year low of $196.00 and a 1 year high of $287.20. The stock has a market capitalization of $2.75 trillion, a price-to-earnings ratio of 20.51, a PEG ratio of 2.00 and a beta of 1.44. Amazon.com (NASDAQ:AMZN – Get Free Report) last posted its earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.82 by $3.93. The firm had revenue of $200.61 billion for the quarter, compared to the consensus estimate of $197.03 billion. Amazon.com had a return on equity of 18.00% and a net margin of 17.44%.The business’s quarterly revenue was up 19.6% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.68 earnings per share. As a group, analysts anticipate that Amazon.com, Inc. will post 8.05 earnings per share for the current year.

Insider Buying and Selling at Amazon.com In other Amazon.com news, CEO Andrew R. Jassy sold 20,000 shares of the firm’s stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $259.01, for a total value of $5,180,200.00. Following the completion of the transaction, the chief executive officer owned 2,235,766 shares in the company, valued at $579,085,751.66. This trade represents a 0.89% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Brian T. Olsavsky sold 6,172 shares of Amazon.com stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $260.31, for a total value of $1,606,633.32. Following the transaction, the chief financial officer directly owned 109,207 shares of the company’s stock, valued at $28,427,674.17. The trade was a 5.35% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 70,589 shares of company stock worth $18,314,015 in the last three months. 8.90% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In Several research firms have recently issued reports on AMZN. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $375.00 target price (up from $335.00) on shares of Amazon.com in a report on Friday, July 31st. Morgan Stanley reissued an “overweight” rating and issued a $335.00 price objective (up from $330.00) on shares of Amazon.com in a research report on Friday, July 31st. Robert W. Baird set a $310.00 price objective on Amazon.com and gave the company an “outperform” rating in a research note on Friday, July 31st. Monness Crespi & Hardt raised their target price on Amazon.com from $315.00 to $330.00 and gave the company a “buy” rating in a research report on Friday, July 31st. Finally, Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and set a $325.00 target price (up from $315.00) on shares of Amazon.com in a research note on Friday, July 31st. One analyst has rated the stock with a Strong Buy rating, fifty-six have assigned a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $323.09.

View Our Latest Research Report on Amazon.com

Amazon.com Profile (Free Report)

Amazon.com, Inc is a diversified technology and retail company best known for its e-commerce marketplace and broad portfolio of consumer and enterprise services. Founded by Jeff Bezos in 1994 and headquartered in Seattle, Washington, the company launched as an online bookseller and expanded into a global retail platform that sells products directly to consumers and provides a marketplace for third-party sellers. Over time Amazon has grown beyond retail into areas including cloud computing, digital media, devices and logistics.

Key businesses and offerings include Amazon’s online marketplace and fulfillment services, the Amazon Prime membership program (which bundles expedited shipping with streaming and other benefits), Amazon Web Services (AWS) which supplies on-demand cloud computing and storage to businesses and public-sector customers, and a range of content and advertising services such as Prime Video and Amazon Advertising.

Featured Stories Five stocks we like better than Amazon.com Dutch Bros Sell-Off Creates a Growth Opportunity NVIDIA’s MediaTek Bet Shows How It Plans to Defend Its AI Moat Is Abercrombie & Fitch’s Hot Streak Just Getting Started? Medtronic’s Stars Are Aligning for a Price Recovery Want to see what other hedge funds are holding AMZN? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Amazon.com, Inc. (NASDAQ:AMZN – Free Report).

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Cox Capital Mgt LLC boosted its stake in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 13.4% during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 22,610 shares of the software giant’s stock after acquiring an additional 2,669 shares during the quarter. Microsoft makes up approximately 4.7% of Cox Capital Mgt LLC’s holdings, making the stock its 3rd biggest holding. Cox Capital Mgt LLC’s holdings in Microsoft were worth $8,434,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in MSFT. WFA Asset Management Corp raised its position in shares of Microsoft by 27.0% during the first quarter. WFA Asset Management Corp now owns 1,016 shares of the software giant’s stock worth $427,000 after acquiring an additional 216 shares during the last quarter. Ironwood Wealth Management LLC. boosted its holdings in Microsoft by 0.3% in the second quarter. Ironwood Wealth Management LLC. now owns 12,658 shares of the software giant’s stock valued at $5,658,000 after acquiring an additional 38 shares during the last quarter. Discipline Wealth Solutions LLC boosted its holdings in Microsoft by 410.4% in the third quarter. Discipline Wealth Solutions LLC now owns 2,659 shares of the software giant’s stock valued at $1,144,000 after acquiring an additional 2,138 shares during the last quarter. Wealth Group Ltd. increased its position in Microsoft by 1.2% in the fourth quarter. Wealth Group Ltd. now owns 2,374 shares of the software giant’s stock worth $1,000,000 after purchasing an additional 28 shares during the period. Finally, Eagle Capital Management LLC raised its holdings in Microsoft by 0.4% during the 4th quarter. Eagle Capital Management LLC now owns 23,097 shares of the software giant’s stock worth $9,735,000 after purchasing an additional 96 shares during the last quarter. Institutional investors and hedge funds own 71.13% of the company’s stock.

Wall Street Analyst Weigh In MSFT has been the topic of several recent research reports. Wolfe Research reaffirmed an “outperform” rating and issued a $550.00 target price on shares of Microsoft in a research note on Thursday, July 30th. Wedbush reissued an “outperform” rating and set a $575.00 price target on shares of Microsoft in a research note on Wednesday, May 13th. Truist Financial reaffirmed a “buy” rating and issued a $575.00 price objective on shares of Microsoft in a research note on Wednesday, July 22nd. The Goldman Sachs Group reaffirmed a “buy” rating and set a $640.00 target price on shares of Microsoft in a report on Thursday, July 30th. Finally, Royal Bank Of Canada reiterated an “outperform” rating and set a $640.00 target price on shares of Microsoft in a research report on Thursday, July 30th. Forty-two equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $562.49.

Check Out Our Latest Research Report on MSFT Insider Transactions at Microsoft In other news, EVP Takeshi Numoto sold 4,810 shares of Microsoft stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the transaction, the executive vice president owned 42,677 shares in the company, valued at $21,188,276.96. The trade was a 10.13% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Judson Althoff sold 10,000 shares of the business’s stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total value of $4,878,900.00. Following the completion of the transaction, the chief executive officer owned 100,447 shares of the company’s stock, valued at $49,007,086.83. This represents a 9.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 21,810 shares of company stock worth $10,110,874. 0.03% of the stock is currently owned by insiders.

Microsoft News Summary Here are the key news stories impacting Microsoft this week:

Positive Sentiment: Bank of America raised its price target to $600 from $500 and maintained a Buy rating. The bank cited accelerating cloud growth, improving AI efficiency and better visibility into returns on investment. Its thesis includes approximately 43% Azure growth and more than 30 million paid Copilot seats, implying substantial upside. Microsoft’s AI strategy accelerates cloud growth and efficiency: analysts Positive Sentiment: Microsoft expanded its HUMAIN partnership in the Middle East and Africa. The companies plan to combine HUMAIN ONE with Microsoft 365 Copilot and IQ capabilities for as many as one million enterprise users, while also bringing Arabic-language AI models to Microsoft’s ecosystem. The deal supports Microsoft’s international AI distribution and enterprise monetization strategy. Microsoft extends HUMAIN tie up Positive Sentiment: Analysts and financial media continue to view Microsoft as a leading hyperscaler, citing Azure demand, Copilot adoption, strong cash generation and a valuation that remains reasonable relative to its growth prospects. Technical coverage also places MSFT in or near a potential buy zone after its recent rally. Why Microsoft’s stock could rally another 20% Neutral Sentiment: Microsoft customers can now deploy Laurel through the Microsoft Marketplace, adding another application to the company’s enterprise distribution ecosystem, though the immediate financial effect was not disclosed. Laurel Now Available in the Microsoft Marketplace Negative Sentiment: Microsoft 365 and Outlook outages persisted into a second day. Although service appeared to be improving, prolonged disruptions could frustrate enterprise customers and raise questions about reliability. Microsoft 365 outage drags on Negative Sentiment: Investors remain focused on Microsoft’s approximately $116 billion in fiscal 2026 property and equipment spending. Continued AI infrastructure investment may support long-term growth but could pressure depreciation, margins and returns if demand fails to keep pace. Rising interest rates and Windows 11 update problems add further near-term risk. Microsoft Trading Down 1.2% Shares of NASDAQ MSFT opened at $501.02 on Wednesday. Microsoft Corporation has a twelve month low of $349.20 and a twelve month high of $553.72. The stock has a market cap of $3.72 trillion, a price-to-earnings ratio of 27.90, a P/E/G ratio of 1.63 and a beta of 1.11. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07. The company’s fifty day moving average is $436.21 and its 200-day moving average is $413.78.

Microsoft (NASDAQ:MSFT – Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping the consensus estimate of $4.24 by $0.50. The business had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The firm’s revenue was up 17.7% compared to the same quarter last year. During the same quarter last year, the business posted $3.65 EPS. Equities research analysts predict that Microsoft Corporation will post 19.59 EPS for the current year.

Microsoft Dividend Announcement The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be given a dividend of $0.91 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.7%. Microsoft’s dividend payout ratio (DPR) is currently 20.27%.

Microsoft Profile (Free Report)

Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.

Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).

Featured Articles Five stocks we like better than Microsoft Dutch Bros Sell-Off Creates a Growth Opportunity NVIDIA’s MediaTek Bet Shows How It Plans to Defend Its AI Moat Is Abercrombie & Fitch’s Hot Streak Just Getting Started? Medtronic’s Stars Are Aligning for a Price Recovery Want to see what other hedge funds are holding MSFT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Microsoft Corporation (NASDAQ:MSFT – Free Report).

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Bluefin Capital Management LLC purchased a new position in Advanced Micro Devices, Inc. (NASDAQ:AMD – Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund purchased 50,750 shares of the semiconductor manufacturer’s stock, valued at approximately $29,481,000. Advanced Micro Devices makes up about 7.4% of Bluefin Capital Management LLC’s portfolio, making the stock its 5th biggest holding.

A number of other hedge funds have also recently bought and sold shares of the business. Southpoint Capital Advisors LP increased its holdings in shares of Advanced Micro Devices by 50.0% in the 1st quarter. Southpoint Capital Advisors LP now owns 900,000 shares of the semiconductor manufacturer’s stock worth $183,087,000 after acquiring an additional 300,000 shares during the period. Jefferies Financial Group Inc. increased its stake in shares of Advanced Micro Devices by 6,228.8% in the fourth quarter. Jefferies Financial Group Inc. now owns 308,021 shares of the semiconductor manufacturer’s stock valued at $65,966,000 after purchasing an additional 303,154 shares during the period. Boomfish Wealth Group LLC bought a new stake in shares of Advanced Micro Devices during the first quarter valued at approximately $1,193,000. Dimensional Fund Advisors LP raised its holdings in shares of Advanced Micro Devices by 6.0% during the first quarter. Dimensional Fund Advisors LP now owns 5,142,516 shares of the semiconductor manufacturer’s stock valued at $1,045,954,000 after buying an additional 291,165 shares during the last quarter. Finally, Williamson Legacy Group LLC acquired a new position in shares of Advanced Micro Devices during the fourth quarter worth approximately $1,118,000. Institutional investors and hedge funds own 71.34% of the company’s stock.

Trending Headlines about Advanced Micro Devices Here are the key news stories impacting Advanced Micro Devices this week:

Positive Sentiment: AMD, Cisco and HUMAIN said AMD Instinct MI355X-based AI infrastructure is now live and serving customers in Saudi Arabia. The partners plan up to 250 megawatts of additional capacity beginning in 2027, potentially scaling to 1 gigawatt by 2030. The deployment provides tangible evidence of commercial AI demand for AMD’s GPUs and CPUs. AMD’s Instinct Systems Are Now Live in Saudi Arabia Positive Sentiment: Analysts remain broadly constructive, with a reported median price target of $490 and several targets above $600. Recent commentary also highlights AMD’s strong AI growth prospects and the possibility that optimization advances could make AMD-based inference systems more competitive with Nvidia’s offerings. AMD Stock Is Up 115% YTD Neutral Sentiment: AMD’s recent results remain a fundamental support: quarterly revenue rose about 50% year over year to $11.5 billion and exceeded expectations. However, investors are weighing that growth against a high valuation after the stock’s substantial advance. Negative Sentiment: A global bond selloff pushed long-term yields higher, pressuring high-multiple technology and semiconductor stocks. AMD declined alongside Nvidia, Intel and other chipmakers, indicating sector-wide risk reduction rather than a company-specific setback. Semiconductor Stocks Slide as Yields Rise Negative Sentiment: Valuation concerns are intensifying. Analysts question how much upside remains after AMD’s rapid rally, while tightening export controls and competition from Nvidia’s expanding edge-to-cloud ecosystem could limit future gains. AMD: There’s Little Upside Here Negative Sentiment: ARK Invest reportedly sold tens of millions of dollars of AMD shares while reallocating capital toward Nvidia and Broadcom. The move may reinforce short-term profit-taking concerns, although it represents one fund’s portfolio decision rather than a change in AMD’s fundamentals. Cathie Wood Sells AMD and Buys Another Chip Stock Insider Activity In other news, SVP Ava Hahn sold 2,993 shares of Advanced Micro Devices stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $488.69, for a total transaction of $1,462,649.17. Following the sale, the senior vice president directly owned 26,623 shares in the company, valued at approximately $13,010,393.87. The trade was a 10.11% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jean X. Hu sold 15,000 shares of the stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $474.08, for a total value of $7,111,200.00. Following the completion of the transaction, the executive vice president directly owned 160,979 shares of the company’s stock, valued at approximately $76,316,924.32. The trade was a 8.52% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 232,577 shares of company stock valued at $109,509,170. 0.50% of the stock is owned by insiders. Wall Street Analyst Weigh In A number of research analysts have recently commented on the company. William Blair reissued a “market perform” rating on shares of Advanced Micro Devices in a report on Friday, July 24th. JPMorgan Chase & Co. increased their target price on shares of Advanced Micro Devices from $385.00 to $550.00 and gave the company a “neutral” rating in a research report on Wednesday, August 5th. The Goldman Sachs Group raised their target price on shares of Advanced Micro Devices from $450.00 to $640.00 and gave the company a “buy” rating in a research note on Monday, July 6th. Sanford C. Bernstein restated an “outperform” rating and set a $650.00 price target on shares of Advanced Micro Devices in a research report on Wednesday, August 5th. Finally, Argus upped their price target on shares of Advanced Micro Devices from $450.00 to $625.00 and gave the stock a “buy” rating in a research note on Thursday, August 6th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Advanced Micro Devices presently has a consensus rating of “Moderate Buy” and an average price target of $553.72.

Check Out Our Latest Research Report on Advanced Micro Devices

Advanced Micro Devices Price Performance Shares of AMD opened at $459.61 on Wednesday. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.91 and a current ratio of 2.61. Advanced Micro Devices, Inc. has a twelve month low of $149.22 and a twelve month high of $584.73. The firm’s 50 day moving average price is $502.84 and its 200 day moving average price is $389.16. The firm has a market cap of $750.30 billion, a PE ratio of 118.15, a PEG ratio of 4.87 and a beta of 2.48.

Advanced Micro Devices (NASDAQ:AMD – Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, beating the consensus estimate of $1.62 by $0.04. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%.The company had revenue of $11.54 billion for the quarter, compared to the consensus estimate of $11.31 billion. During the same quarter last year, the company posted $0.48 earnings per share. The company’s revenue for the quarter was up 50.1% compared to the same quarter last year. As a group, research analysts expect that Advanced Micro Devices, Inc. will post 6.44 EPS for the current fiscal year.

(Free Report)

Advanced Micro Devices, Inc (NASDAQ: AMD) is a global semiconductor company that designs and sells microprocessors, graphics processors, chipsets and adaptive computing solutions for a broad set of markets. The company’s product portfolio includes consumer and commercial CPUs under the Ryzen and Threadripper brands, data center processors under the EPYC brand, and Radeon graphics processing units for gaming and professional visualization. AMD also offers semi-custom system-on-chip (SoC) products for gaming consoles and other specialized applications, and provides supporting software and platform technologies for OEMs, cloud service providers and end users.

Founded in 1969, AMD has evolved from a supplier of logic chips into a diversified, fabless semiconductor designer.

Further Reading Five stocks we like better than Advanced Micro Devices Dutch Bros Sell-Off Creates a Growth Opportunity NVIDIA’s MediaTek Bet Shows How It Plans to Defend Its AI Moat Is Abercrombie & Fitch’s Hot Streak Just Getting Started? Medtronic’s Stars Are Aligning for a Price Recovery Want to see what other hedge funds are holding AMD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Advanced Micro Devices, Inc. (NASDAQ:AMD – Free Report).

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Nvidia NVDA , the AI-chip powerhouse with data centers at 92.5% of revenue, took its regulatory fight to the G20 on Wednesday. According to Reuters, CEO Jensen Huang urged governments to tackle proven AI damage instead of writing sweeping rules for dangers that remain hypothetical.

The timing is no accident. Nvidia's second-quarter results delivered $96.2 billion in revenue, with data centers supplying $89 billion. Sales doubled year over year. Adjusted gross margin hit 75%. Management then guided for roughly $108 billion in third-quarter revenue. Nvidia's AI engine is running flat out.

The chart tells the same story: Nvidia's 95/100 GF Score reflects exceptional growth, profitability and financial strength, while GF Value remains its weakest category. Huang won no policy concessions, but he spotlighted the risk sitting beside Nvidia's extraordinary numbers. Faster AI adoption can send earnings sharply higher. Tougher deployment, security or model rules could squeeze nearly the entire revenue machine.

Jim Cramer and a top Wall Street analyst both see Nvidia as mispriced, but their prescriptions could not be further apart, and only one of them has the earnings to back it up.

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Two CNBC voices looked at the same stock inside the same 12-hour window and reached opposite conclusions about what it needs. Jim Cramer wants NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) to launch a buyback roughly equal to a tenth of its market value to fix what he sees as broken price discovery. New Street Research’s Pierre Ferragu says the earnings will do the work themselves.

Ferragu’s $400 Call, No Corporate Action Required Speaking Tuesday morning, Ferragu said a $400 stock price is “very, very, very likely” within 18 months, driven by earnings power alone. He cited Jensen Huang’s guidance for at least 70% business growth next year and framed NVIDIA as operating in “halcyon days” with no visible cycle top. His valuation argument leans on multiple compression: NVIDIA, he argues, is trading at “single digit earnings multiples” against a forward earnings base most investors have not fully repriced.

From the September 1 close of $217.44, a move to $400 implies roughly 84% upside and a market cap approaching $10 trillion. The stock traded at $226.67 on Wednesday morning.

Cramer’s Half-Trillion-Dollar Prescription Cramer’s remedy is louder. He wants NVIDIA to buy back roughly a tenth of itself, which against a $5.46 trillion market cap pencils out to more than $500 billion. NVIDIA’s board authorized $80 billion in additional repurchase capacity on May 18, 2026, leaving approximately $99 billion remaining at quarter end. That is a fraction of what Cramer is asking for.

Cramer recently disclosed his highest cash position in 25 years, then prescribed the largest corporate repurchase in history to lift a stock he says is mispriced. NVIDIA has been actively returning capital. Management said it returned “$26 billion to shareholders” in the latest quarter, comprising “$20 billion through share repurchases” and “$6 billion through our quarterly dividend of $0.25 per share.”

Why the Fundamentals Favor Ferragu Q2 FY27 revenue reached $96.22 billion, up 105.8% year over year, with Data Center revenue of $89.02 billion. Non-GAAP EPS came in at $2.22, the fifth consecutive beat. Huang told analysts that “AI is now doing productive and useful work” and “AI is generating profitable tokens.” Consensus already reflects the acceleration: analysts model FY2028 EPS of 13.1277 on revenue of $573.6 billion. At those earnings, a $400 share price requires a forward multiple in the low 30s, roughly where the stock trades now.

The full-chain put/call ratio of 0.48 shows options traders are positioned in Ferragu’s direction. Cramer’s buyback demand may make headlines. Ferragu’s math is the one that would compound.

Contact [email protected] for any questions or corrections.

Key Takeaways Mastercard's VAS revenues rose 20% year over year in Q2 2026, reaching 41.2% of net revenues.Security, AI, cybersecurity and fraud prevention remain key drivers of VAS growth and customer engagement.Around 60% of Mastercard's VAS net revenues are linked to its payment network, supporting service expansion. Mastercard Incorporated (MA - Free Report) continues to strengthen its Value-Added Services and Solutions (VAS) business, making it an increasingly important part of the company’s growth strategy. VAS’ net revenues increased 20% year over year in the second quarter of 2026, accounting for 41.2% of total net revenues and underscoring its growing contribution to the company’s top line.

Security remains a key growth driver for the VAS business as payment fraud and digital threats become more sophisticated. MA is expanding its capabilities across cybersecurity, authentication and fraud prevention while using data and artificial intelligence to address evolving risks. Its Merchant Trust Services offering, for example, uses AI to help identify potentially fraudulent merchants, adding another opportunity to deepen customer relationships.

MA is also broadening VAS through consumer engagement, personalization, digital services and data-driven solutions. Around 60% of VAS net revenues are linked to the company’s payment network, allowing Mastercard to combine its transaction infrastructure with additional services. Its Advantage Partner program, which has more than 200 partners, further expands the range of solutions available to customers.

However, sustained growth will likely depend on continued demand for cybersecurity, data and AI solutions, along with Mastercard’s ability to expand cross-selling opportunities across its customer base. With VAS already rising at a double-digit rate and benefiting from several structural trends, the business could remain a key source of revenue growth while supporting MA’s broader strategy of increasing the value generated from each relationship. We expect VAS net revenues to rise 17% year over year in 2026.

How Are Competitors Faring?Some of MA’s competitors in the value-added services include Visa Inc. (V - Free Report) and American Express Company (AXP - Free Report) .

Visa is also expanding its VAS portfolio across issuing, acceptance, risk and security, and advisory services. V continued investing in AI, cybersecurity and digital solutions to broaden its services opportunity. In the third quarter of fiscal 2026, VAS revenues rose 34% year over year in constant dollars and now account for roughly one-third of total company revenues.

American Express is steadily strengthening its value-added services through fraud protection, merchant analytics, digital payments, loyalty programs and AI-enabled tools. AXP’s closed-loop network provides rich transaction data, helping deepen customer engagement, improve merchant outcomes and reinforce its differentiated payments ecosystem.

Mastercard’s Price Performance, Valuation & EstimatesIn the year-to-date period, MA’s shares have risen 1.8% against the industry’s fall of 3.7%.

Image Source: Zacks Investment Research

From a valuation standpoint, MA trades at a forward price-to-earnings ratio of 26.54, above the industry average of 19.18. MA carries a Value Score of D.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Mastercard’s 2026 earnings implies 16.8% growth from the year-ago period.

Image Source: Zacks Investment Research

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

The new objective implies roughly 16% upside and reflects stronger expectations for J&J's pharmaceutical pipeline. Summary

Wall Street is pricing pipeline acceleration beyond current earnings.

Johnson & Johnson JNJ, the pharmaceutical and medical-technology powerhouse, surged roughly 1.2% to $274.395 Wednesday after UBS cranked its price target from $280 to $320. Barron's reported that J&J became the Dow's biggest point booster in early trading. Wall Street heard the message loud and clear: UBS sees more fuel in this rally.

The firm kept its Buy rating, pointing to faster growth and more value hiding inside J&J's pharmaceutical pipeline. The operating engine is already delivering. J&J's second-quarter results showed sales climbing 6.6% to $25.3 billion, while management raised its 2026 sales midpoint to $101.1 billion and adjusted earnings guidance to $11.68 per share.

But the valuation is flashing yellow. The picture shows J&J trading 42.25% above its $192.90 GF Value, leaving little room for pipeline stumbles. UBS's $320 target still points to roughly 16.6% upside from $274.395, but J&J must earn every dollar. Clinical wins, regulatory approvals and successful launches now matter more than another round of multiple expansion.

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

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Cisco is posting hyperscaler AI order numbers that would make pure-play networking rivals jealous, yet its valuation still reflects a company selling switches to office parks. Something in that gap deserves a closer look.

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Cisco Systems (NASDAQ:CSCO | CSCO Price Prediction) has quietly become one of the most important names in the AI infrastructure buildout, yet trades like a legacy networking vendor. With $9.3 billion in FY2026 hyperscale AI orders and management guiding to $7.5 billion in AI infrastructure revenue in FY2027, the setup for the next twelve months looks compelling.

Our 24/7 Wall St. price target for Cisco is $134.21, roughly 21.47% above the recent close of $110.49. Our recommendation is buy, with a high confidence rating of 90%.

24/7 Wall St. Price Target Summary Metric Value Current Price $110.49 24/7 Wall St. Price Target $134.21 Upside 21.47% Recommendation BUY Confidence Level 90% A Rerating That Hyperscaler Orders Are Powering Cisco is up 45.51% year to date and 63.21% over the past year, driven by a rerating around AI networking. Shares are down 4.74% over the past month after touching a 52-week high of $129.88.

Q4 FY2026 revenue reached $17.252 billion, up 17.58%, beating estimates by 2.52%, while non-GAAP EPS of $1.22 topped consensus by 4.38%, extending the beat streak to five consecutive quarters. Networking revenue grew 28%, and Q4 networking product orders climbed 40%, an eighth consecutive quarter of double-digit growth.

Bull Case for $140+ The bull thesis is straightforward: CEO Chuck Robbins says “we believe the accelerating adoption of agentic AI is fueling a networking super cycle”, and the order book supports it.

Four of the top hyperscalers each grew AI infrastructure orders in Q4, and Acacia optics alone generated over $1 billion in orders (Cisco is one of several picks-and-shovels beneficiaries of that buildout, and we profiled seven of them, from power to cooling to networking, in a free AI infrastructure report).

FY2027 guidance calls for revenue of $72.2 billion to $73.4 billion and non-GAAP EPS of $5.05 to $5.11. If Cisco holds a forward multiple of 27x on FY2028 EPS estimates near $5.60, the bull scenario reaches $139.87, aligning with Wall Street consensus of $137.74.

What Could Go Wrong Non-GAAP gross margin fell to 66.3% from 68.4% year over year on a mix shift toward high-volume AI hardware, and tariff exposure remains a live risk. Restructuring charges announced in May 2026 could weigh on GAAP results.

Management stated operating margin is now the better profitability gauge as hyperscaler scale requires limited incremental operating expense. Our bear-case path lands at $111.44, essentially flat from here.

How Cisco Compares to Arista and HPE Arista Networks (NYSE:ANET) is the pure-play AI networking comp. Q2 2026 revenue grew 37.7% to $3.04 billion, but Arista trades at a trailing P/E near 70x. Cisco’s 21x forward P/E looks cheap for a business showing accelerating networking growth.

Hewlett Packard Enterprise (NYSE:HPE) is the closest scaled competitor post-Juniper. HPE’s Networking segment grew 148.2% in Q2 FY2026 to $2.69 billion, but runs on thinner margins with a trailing P/E stretched by acquisition charges. Against both peers, our $134.21 target for Cisco looks reasonable, arguably conservative given the FY2027 AI revenue ramp.

Company Forward P/E Latest Revenue Growth Cisco 21x 17.58% Arista Networks 70x trailing 37.7% HPE Elevated on charges 40% Cisco Price Prediction 2026-2030 The 24/7 Wall St. price target of $134.21 with a buy rating and 90% confidence reflects a company translating a networking super cycle into real dollars.

The bull case strengthens if FY2027 AI infrastructure revenue tracks toward the $7.5 billion guide. The setup weakens if gross margin dips below 65% without offsetting operating leverage. Right now, the risk/reward tilts constructive.

Year 24/7 Wall St. Price Target 2026 $118 2027 $136 2028 $157 2029 $169 2030 $185 These projections assume Cisco continues executing on hyperscaler AI wins and campus refresh. Meaningful upside or downside could result from Silicon One design wins accelerating or hyperscaler capex normalizing.

Contact [email protected] for any questions or corrections.

Edmond DE Rothschild Holding S.A. bought a new stake in Caterpillar Inc. (NYSE:CAT – Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund bought 4,677 shares of the industrial products company’s stock, valued at approximately $4,981,000.

Other large investors have also made changes to their positions in the company. Lam Group Inc. bought a new stake in Caterpillar during the first quarter worth $26,000. Frazier Financial Advisors LLC increased its stake in shares of Caterpillar by 220.0% in the 4th quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company’s stock valued at $28,000 after purchasing an additional 33 shares during the last quarter. Decker Retirement Planning Inc. raised its holdings in shares of Caterpillar by 440.0% during the 2nd quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company’s stock worth $29,000 after buying an additional 22 shares in the last quarter. Cornerstone Financial Management LLC bought a new stake in shares of Caterpillar during the 4th quarter worth $32,000. Finally, Matrix Trust Co boosted its stake in Caterpillar by 93.8% in the second quarter. Matrix Trust Co now owns 31 shares of the industrial products company’s stock valued at $33,000 after buying an additional 15 shares in the last quarter. Institutional investors and hedge funds own 70.98% of the company’s stock.

Caterpillar Price Performance CAT stock opened at $778.59 on Wednesday. The company has a fifty day moving average price of $885.31 and a 200-day moving average price of $838.23. The company has a market capitalization of $357.89 billion, a P/E ratio of 33.50, a PEG ratio of 1.38 and a beta of 1.60. Caterpillar Inc. has a 52-week low of $410.52 and a 52-week high of $1,073.46. The company has a debt-to-equity ratio of 1.65, a quick ratio of 0.85 and a current ratio of 1.37.

Caterpillar (NYSE:CAT – Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share for the quarter, topping the consensus estimate of $6.22 by $1.95. The company had revenue of $20.54 billion for the quarter, compared to analysts’ expectations of $19.34 billion. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. Caterpillar’s revenue for the quarter was up 23.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $4.72 earnings per share. As a group, equities analysts expect that Caterpillar Inc. will post 27.35 EPS for the current year. Caterpillar Increases Dividend The business also recently declared a quarterly dividend, which was paid on Wednesday, August 19th. Stockholders of record on Monday, July 20th were paid a $1.63 dividend. The ex-dividend date of this dividend was Monday, July 20th. This is a positive change from Caterpillar’s previous quarterly dividend of $1.51. This represents a $6.52 annualized dividend and a dividend yield of 0.8%. Caterpillar’s payout ratio is currently 28.06%.

Insider Buying and Selling at Caterpillar In other news, CEO Joseph E. Creed sold 32,401 shares of the firm’s stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $808.98, for a total transaction of $26,211,760.98. Following the completion of the transaction, the chief executive officer directly owned 34,555 shares in the company, valued at $27,954,303.90. This trade represents a 48.39% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 0.33% of the company’s stock.

Caterpillar News Summary Here are the key news stories impacting Caterpillar this week:

Positive Sentiment: Higher earnings expectations: Erste Group Bank raised its FY2026 EPS forecast for Caterpillar to $27.50 from $24.78, above the current analyst consensus of $27.14. The firm maintains a “Hold” rating, so the estimate increase is positive but not a strong bullish endorsement. Erste Group Bank Predicts Stronger Earnings for Caterpillar Positive Sentiment: Analyst sentiment remains favorable: Caterpillar has received a consensus “Moderate Buy” rating, while a separate analysis highlighted the stock as a potential beneficiary of improving industrial activity. However, brokerage recommendations can be overly optimistic and may have limited immediate impact. Caterpillar Receives Consensus Rating of Moderate Buy Positive Sentiment: Improving durable-goods demand: July durable-goods orders increased 1.1%, supporting the view that a manufacturing recovery could benefit Caterpillar’s equipment demand and broader industrial stocks. 4 Industrial Stocks to Grab on Robust Jump in Durable Goods Orders Neutral Sentiment: Investors are watching the pullback: Commentary focused on Caterpillar’s recent decline, suggesting the stock’s technical performance and elevated valuation remain important considerations even after strong quarterly earnings. Why We’re Watching the Caterpillar Stock Pullback Negative Sentiment: Market-wide pressure: Caterpillar was among the stocks weighing on the Dow as investors reduced exposure to major companies, indicating that broader market sentiment—not just company-specific fundamentals—is contributing to the weakness. NVIDIA Corp., Caterpillar Share Losses Lead Dow’s Fall Negative Sentiment: CEO insider selling: CEO Joseph E. Creed sold 32,401 shares for approximately $26.2 million, reducing his position by 48.39%. The sale may concern investors, although insider transactions can reflect personal financial planning rather than a change in the company’s outlook. SEC Insider Transaction Filing Analysts Set New Price Targets Several research analysts have commented on CAT shares. Citigroup boosted their target price on Caterpillar from $1,020.00 to $1,100.00 and gave the stock a “buy” rating in a research note on Tuesday, July 14th. Barclays upped their price objective on shares of Caterpillar from $800.00 to $900.00 and gave the stock an “equal weight” rating in a research report on Thursday, August 6th. Rothschild & Co Redburn increased their price objective on shares of Caterpillar from $700.00 to $950.00 and gave the company a “neutral” rating in a research note on Thursday, May 14th. Wells Fargo & Company raised their target price on shares of Caterpillar from $1,050.00 to $1,155.00 and gave the company an “overweight” rating in a research report on Tuesday, June 23rd. Finally, Evercore reiterated an “outperform” rating and set a $1,103.00 price target on shares of Caterpillar in a report on Monday, May 11th. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eleven have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $995.52.

Check Out Our Latest Report on Caterpillar

Caterpillar Profile (Free Report)

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company’s product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off‑highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.

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