Hauppauge, NY, May 13, 2026 – PRISM MediaWire (Press Release Service – Press Release Distribution) – AmpliTech Group, Inc. (Nasdaq: AMPG, AMPGR, AMPGZ), a designer, developer, and manufacturer of advanced radio frequency (RF) microwave components, 5G communication systems and Quantum computing LNAs, today announced financial results for the quarter ended March 31, 2026.
First Quarter 2026 Highlights
• Revenue increased 48.6% year-over-year to $5.35 million, compared to $3.60 million in the first quarter of 2025.
• Gross profit increased 116.1% year-over-year to $2.57 million from $1.19 million in the prior- year period.
• Gross margin improved significantly to 48.0%, compared to 33.0% in the prior-year period.
• Manufacturing and engineering segment revenue increased to $3.28 million from $0.99 million in the prior-year quarter.
• Net loss improved 17.3% year-over-year to $(1.52) million.
• Cash, cash equivalents and marketable securities increased to approximately $18.4 million as of March 31, 2026.
• Working capital improved to approximately $25.4 million from $10.2 million on December 31, 2025. Current ratio (defined as current assets/current liabilities) improved to 4.25 from 1.68 on December 31, 2025.
• Multiple 5G and MMIC development programs advanced further into commercialization stages.
• Total Assets to Total Liabilities improved approximately 47% to $48.36 million from $32.86 million on December 31, 2025. AmpliTech Group remains debt free.
Operational and Strategic Progress
During the quarter, the Company continued to advance commercialization initiatives related to:
• 5G ORAN radio systems
• Proprietary RF and microwave technologies
• 5G MMIC chip design programs
• Satellite and defense communications applications
The Company also reported lower research and development expenses year-over-year as several products transitioned from active development into commercialization and deployment phases.
Balance Sheet and Liquidity
As of March 31, 2026, AmpliTech reported:
• Cash, cash equivalents and marketable securities of $18.4 million
• Total current assets of approximately $33.2 million
• Total stockholders’ equity of approximately $48.4 million
During the quarter, the Company completed both a rights offering and a registered direct offering, generating aggregate net proceeds exceeding $16 million to support growth initiatives, working capital requirements, and operational expansion.
Outlook
Management believes the Company is positioned to continue benefiting from:
• Expanding global 5G infrastructure deployment activity
• Increasing demand for RF and microwave technologies
• Continued development of ORAN ecosystem opportunities
• Growth in satellite and defense communications markets
• Increasing adoption of compact high-performance MMIC-based solutions
The Company remains focused on:
• Expanding revenue scale
• Improving operational leverage
• Strengthening internal controls and infrastructure
• Increasing commercialization activity
• Supporting long-term sustainable growth
“The first quarter of 2026 reflects meaningful progress across several areas of our business,” said Fawad Maqbool, Chief Executive Officer of AmpliTech Group. “We achieved substantial revenue growth YoY, expanded gross margins significantly, strengthened our balance sheet, and continued transitioning key technologies from development into commercial deployment.”
Mr. Maqbool continued, “We believe our investments in 5G ORAN radio technologies, MMIC design capabilities, and advanced RF systems are beginning to contribute more meaningfully to operational performance. We are encouraged by the increasing demand environment for next-generation wireless infrastructure and remain focused on disciplined execution, operational scalability, and long-term shareholder value creation.” Mr. Maqbool concluded: “The Company continues to believe its full-year revenue guidance remains achievable; however, based on current customer delivery schedules, production timing, and anticipated order flow, the Company expects revenue recognition to be more heavily weighted toward the second half of the year”.
About AmpliTech Group, Inc.
AmpliTech Group, Inc. (NASDAQ: AMPG, AMPGR, AMPGZ) designs, develops, and manufactures advanced RF and microwave signal-processing components and systems for satellite, 5G/6G telecom, quantum computing, defense, and space applications. Its five divisions, AmpliTech Inc., Specialty Microwave, Spectrum Semiconductor Materials, AmpliTech Group Microwave Design Center, and AmpliTech Group 5G Divisions work symbiotically and serve customers worldwide. Through continuous innovation and U.S.-based manufacturing, AmpliTech is enabling the next generation of connectivity and communication systems. For further information, please visit www.amplitechgroup.com.
Safe Harbor Statements
This release contains statements that constitute forward-looking statements. These statements appear in several places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things, that the words “may” “would” “will” “expect” “estimate” “anticipate” “believe” “intend” and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company’s ability to control, and that actual results may differ materially from those projected in the forward-looking statements because of various factors. Other risks are identified and described in more detail in the “Risk Factors” section of the Company’s filings with the SEC, which are available on our website. We undertake no obligation to update, and we do not have a policy of updating or revising these forward-looking statements, except as required by applicable law.
Corporate Social Media
X: @AmpliTechAMPG
Instagram: @AmpliTechAMPG
Facebook: AmpliTechInc
LinkedIn: AmpliTech Group Inc
The latest news and updates relating to $AMPG are available in the company’s newsroom at: https://tinyurl.com/ampgnewsroom
$AMPG AmpliTech Group (NASDAQ: AMPG) posted 48.6% YoY Q1 2026 revenue growth, expanded gross margins to 48%, and strengthened its balance sheet amid rising 5G demand https://t.co/aixVQHibsN The latest news and updates relating to $AMPG are available in the company’s newsroom at:… pic.twitter.com/eGJYuXEt1E
— PRISM MediaWire (@prism_mediawire) May 13, 2026 PRISM MediaWire GPT
Key Takeaways MTB targets higher NII and fee income growth through acquisitions and commercial banking expansion. RF plans 135-150 new branches and expands digital payments through fintech partnerships.RF offers lower valuation, higher dividend yield and stronger earnings growth estimates than MTB. In a banking environment shaped by geopolitical uncertainties, volatile markets and evolving customer expectations, investors are increasingly favoring regional banks with more diversified business models, stable balance-sheet growth and expanding fee-income streams for resilient long-term returns. Two such lenders, M&T Bank Corporation (MTB - Free Report) and Regions Financial Corporation (RF - Free Report) , stand out for their strategic expansion initiatives, lending capabilities and growing fee-income businesses.
While M&T Bank is focused on acquisitions and expanding its commercial banking footprint, Regions Financial is prioritizing branch expansion along with growth in treasury and wealth management to diversify revenues. Let us take a closer look at the growth drivers and financial outlook of MTB and RF to determine which stock offers better long-term upside potential.
The Case for MTBM&T Bank has shown strong revenue momentum, supported by lending expansion and growth in fee-based businesses. Going forward, higher net interest income (NII), driven by modest loan growth and the benefit of a stabilizing rate environment, will continue to support its revenue performance. Management expects NII (tax-equivalent basis) to be $7.2-$7.35 billion in 2026. The company is also accelerating its fee-income base through treasury management, capital markets, mortgage banking and trust services, while its diversified regional franchise across 12 Mid-Atlantic states and Washington, D.C., remains a key long-term growth driver. Non-interest income is anticipated to be at the high end of the $2.68 billion and $2.77 billion, driven by broad-based growth across fee types and business lines.
MTB is also strengthening its operations through continued investments in technology and AI-driven capabilities. In its March 2026 annual shareholder letter, the company highlighted that its ongoing technology transformation initiatives are expected to improve client experience and support long-term growth. Earlier, in 2024, it expanded its partnership with nCino to integrate an AI-powered credit-monitoring solution aimed at enhancing risk assessment and lending automation.
Nevertheless, elevated expenses remain a concern for MTB as the company continues investing in enterprise initiatives and franchise expansion. Management expects 2026 GAAP expenses, including intangible amortization, to be at the higher end of the $5.5 billion and $5.6 billion. Further, its sizable exposure to commercial and industrial as well as commercial real estate loans could pose asset-quality risks in a challenging macroeconomic environment.
The Case for RFSimilar to MTB, Regions Financial has shown steady revenue growth over the years, supported by improving lending trends and expansion in fee-generating businesses. Going forward, NII is expected to benefit from balance-sheet expansion, improving loan pipelines and continued deposit cost discipline, while lower rates are likely to aid margin expansion through easing funding costs. Management expects 2026 NII to grow 2.5-4% from the 2025 reported level of $4.9 billion. Further, it continues to strengthen the non-interest income base through investment management, treasury services and diversified fee streams, despite continued weakness in mortgage-related income. Management projects adjusted non-interest income to increase 3-5% in 2026 from the 2025 level of $2.6 billion.
Additionally, branch expansion remains a key growth driver, with plans to open 135-150 branches over the next five years across high-growth Southeastern markets such as Florida, Georgia and Tennessee. The company also plans more than 1,000 branch renovations to enhance customer experience and support its relationship-based banking model. This strategy is expected to strengthen the company’s presence in key markets, improve customer acquisition and support deposit growth, thereby contributing to a more stable funding base over time.
Compared with MTB, Regions Financial has been more aggressive in expanding its digital banking and payments capabilities through multiple strategic collaborations. In January 2026, the company partnered with Worldpay to enhance business payment solutions and cash-flow management capabilities, followed by a collaboration with Dash Solutions in April 2026 to launch a real-time reimbursement and digital payments platform. These strategic collaborations are expected to strengthen RF’s digital banking ecosystem while enhancing client engagement and supporting long-term fee-income growth.
Yet, elevated expenses remain a headwind for the company as it continues to invest in technology upgrades, hiring initiatives and branch expansion efforts. The company expects adjusted non-interest expenses (inclusive of investments) to rise 1.5-3.5% in 2026 from the adjusted 2025 total of $4.3 billion. Meanwhile, its higher exposure to commercial loans, particularly commercial real estate, could pressure asset quality if macroeconomic conditions weaken.
MTB & RF: Price Performance, Valuation & Other ComparisonsOver the past six months, shares of MTB and RF have rallied 12.2% and 10.8%, respectively, compared with the industry’s growth of 15.2%.
Price Performance
Image Source: Zacks Investment Research
In terms of valuation, MTB is currently trading at a 12-month forward price-to-earnings (P/E) of 10.77X. Meanwhile, RF stock is currently trading at a 12-month forward P/E of 10.19X.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
Both stocks are trading at a discount compared with the industry average of 11.39X. However, Regions Financial’s stock is cheaper than that of M&T Bank.
MTB and RF reward their shareholders handsomely. M&T Bank hiked its dividend by 11.1% to $1.50 per share in August 2025. It has raised its dividend four times over the past five years and has a dividend yield of 2.9%. Similarly, Regions Financial hiked its quarterly cash dividend on common stock by 6% to 26 cents per share in July 2025. It currently offers a dividend yield of 3.9% and has raised its dividend five times over the past five years. Based on dividend yield, RF has an edge over MTB.
Dividend Yield
Image Source: Zacks Investment Research
How Do Estimates Compare for MTB & RF?The Zacks Consensus Estimate for MTB’s 2026 and 2027 sales is pegged at 2.9% and 4.1%, respectively. The Zacks Consensus Estimate for MTB’s 2026 and 2027 earnings is pegged at 8.7% and 11.7%, respectively. The company’s 2026 earnings estimates have remained unchanged over the past month, while 2027 estimates have been revised downward.
Estimates Revision Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RF’s 2026 and 2027 sales is pegged at 4.1% and 4.7%, respectively. The Zacks Consensus Estimate for 2026 and 2027 earnings is pegged at 12% and 9.2%, respectively. The company’s 2026 earnings estimates have been revised upward over the past month, while 2027 estimates have remained unchanged.
Estimates Revision Trend
Image Source: Zacks Investment Research
MTB or RF: Which Stock Has Better Potential?Both M&T Bank and Regions Financial are fundamentally strong regional lenders with diversified revenue streams, stable deposit franchises and improving earnings prospects. While MTB benefits from solid commercial banking operations, strategic acquisitions and continued investments in technology transformation initiatives, elevated expenses and higher exposure to commercial and commercial real estate loans remain concerns in a challenging macroeconomic environment.
Meanwhile, Regions Financial continues to benefit from branch expansion in high-growth Southeastern markets, growing treasury and wealth-management businesses, and multiple digital banking and payments collaborations that are strengthening its fee-income capabilities. Though RF is also facing elevated expenses due to ongoing investments in technology, hiring and branch expansion, its business expansion efforts, stronger earnings growth estimates and improving revenue outlook provide a favorable growth narrative.
Further, RF trades at a cheaper valuation and offers a higher dividend yield than MTB, making it relatively more attractive from both growth and income perspectives. Hence, Regions Financial appears better positioned for long-term upside potential at present.
Currently, RF and MTB carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BIRMINGHAM, Ala.--(BUSINESS WIRE)--Regions Bank on Wednesday announced the appointment of Todd Nelson as head of Regions Home Improvement Financing, reinforcing the bank's commitment to expanding a growing consumer lending platform supporting contractors and their homeowner customers nationwide. Regions Home Improvement Financing (HIFi) operates nationally, supporting nearly 8,000 home improvement contractors with fast, flexible financing solutions for homeowners. The service enables contractor.
BIRMINGHAM, Ala.--(BUSINESS WIRE)--Regions Bank on Thursday announced it has again ranked No. 1* among regional banks in the JD Power 2026 U.S. Online Banking Satisfaction Study SM, marking the sixth time in the past seven years Regions has earned the top designation. Additionally, Regions ranked No. 2 among regional banks in the JD Power 2026 U.S. Banking Mobile App Satisfaction Study SM, improving by four spots from the prior year. Both rankings underscore the bank's consistent focus on deliv.
BIRMINGHAM, Ala.--(BUSINESS WIRE)--Regions Bank is recognizing June as National Homeownership Month by highlighting no-cost homeownership resources, financial education, and mortgage guidance – all designed to help people, including first-time homebuyers, navigate the homebuying process. This is not just routine financial advice. Regions Bank specializes in one-on-one, custom-tailored guidance from bankers who take the time to truly understand a customer's goals, opportunities, challenges, and.
BIRMINGHAM, Ala.--(BUSINESS WIRE)--Regions Bank on Thursday announced its Institutional Services division within Regions Wealth Management has been named to the National Association of Plan Advisors' (NAPA) Top Defined Contribution Advisor Teams list. This esteemed recognition is awarded to firms providing retirement plan advisory services, fiduciary oversight and 401(k) solutions. Further, this national recognition highlights Regions' continued growth in helping clients design, manage and opti.
BIRMINGHAM, Ala.--(BUSINESS WIRE)--Regions Financial Corp. (NYSE:RF) on Wednesday announced the dates on which the company plans to issue its quarterly earnings results in 2027. Regions will announce results pre-market open on each of the following dates, and executives will host conference calls each quarter to review the results. Fourth Quarter 2026 Results: To be announced pre-market open on Friday, Jan. 22, 2027. Regions executives will host the conference call at 10 a.m. ET on that date. T.
Key Takeaways Screen picks Hudson Pacific Properties, Strategic Education, AES, Nexa Resources and PG&E as low P/B stocks.Stocks selected using metrics like low P/B, P/S, P/E, PEG under 1, and solid trading volume thresholds.Hudson Pacific shows 15% EPS growth outlook, while Nexa Resources leads with a 51.2% projection. When evaluating a company’s valuation, the price-to-earnings (P/E) ratio is often the default metric because it’s simple and based on readily available earnings data. However, for companies that are unprofitable or still in the early stages of growth with minimal or no earnings, the price-to-sales (P/S) ratio becomes more useful, helping investors spot potentially undervalued stocks.
Beyond P/E and P/S, the price-to-book (P/B) ratio is another straightforward tool for identifying attractively priced companies with strong growth potential. It measures how much investors are paying for each dollar of a company’s book value and is calculated by dividing the stock’s current price by its most recent book value per share.
This metric can help identify attractively priced stocks with upside potential like Hudson Pacific Properties (HPP - Free Report) , Strategic Education (STRA - Free Report) , The AES Corporation (AES - Free Report) , Nexa Resources (NEXA - Free Report) and PG&E Corporation (PCG - Free Report) .
Let us understand the concept of book value.
What is Book Value?There are several ways in which book value can be defined. Book value is the total value that would be left over, according to the company’s balance sheet, if it went bankrupt immediately. In other words, this is what shareholders would theoretically receive if a company liquidates all its assets after paying off all its liabilities.
It is calculated by subtracting total liabilities from the total assets of a company. In most cases, this equates to common stockholders’ equity on the balance sheet. However, depending on the company’s balance sheet, intangible assets should also be subtracted from total assets to determine book value.
Understanding P/B RatioBy comparing the book value of equity to its market price, we get an idea of whether a company is under- or overpriced. Like P/E or P/S ratios, it is always better to compare the P/B ratio within industries.
A P/B ratio of less than one means that the stock is trading at less than its book value or the stock is undervalued and, therefore, a good buy. Conversely, a stock with a ratio greater than one can be interpreted as being overvalued or relatively expensive.
For example, a stock with a P/B ratio of 2 means that we pay $2 for every $1 of book value. Thus, the higher the P/B, the more expensive the stock.
But there is a warning. A P/B ratio of less than one can also mean that the company is earning weak or even negative returns on its assets or that the assets are overstated. In such a case, the stock should be shunned because it may be destroying shareholder value. Conversely, the stock’s price may be significantly high — thereby pushing the P/B ratio to more than one — in the likely case that it has become a takeover target, a good enough reason to own the stock.
Moreover, the P/B ratio is not without limitations. It is useful for businesses like finance, investments, insurance and banking or manufacturing companies with many liquid/tangible assets on the books. However, it can be misleading for firms with significant R&D expenditure, high debt, service companies, or those with negative earnings.
In any case, the ratio is not particularly relevant as a standalone number. One should analyze other ratios like P/E, P/S and debt to equity before arriving at a reasonable investment decision.
Screening ParametersPrice to Book (common Equity) less than X-Industry Median: A lower P/B compared with the industry average implies that there is enough room for the stock to gain.
Price to Sales less than X-Industry Median: The P/S ratio determines how much the market values every dollar of the company’s sales/revenues — a lower ratio than the industry makes the stock attractive.
Price to Earnings using F(1) estimate less than X-Industry Median: The P/E ratio (F1) values a company based on its current share price relative to its estimated earnings per share — a lower ratio than the industry is considered better.
PEG less than 1: PEG links the P/E ratio to the future growth rate of the company. The PEG ratio portrays a more complete picture than the P/E ratio. A value of less than 1 indicates that the stock is undervalued, and investors need to pay less for a stock that has bright earnings growth prospects.
Current Price greater than or equal to $5: They must all be trading at a minimum of $5 or higher.
Average 20-Day Volume greater than or equal to 100,000: A substantial trading volume ensures that the stock is easily tradable.
Zacks Rank less than or equal to #2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
Value Score equal to A or B: Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best opportunities in the value investing space.
5 Low Price-to-Book StocksHere are five of the 12 stocks that qualified for the screening:
LA-based Hudson Pacific Properties is a full-service, vertically integrated real estate company focused on owning, operating and acquiring office properties and media and entertainment properties in select growth markets primarily in Northern and Southern California. Hudson Pacific currently has a Zacks Rank #1 and a Value Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.
HPP has a projected 3-5-year EPS growth rate of 9.7%.
Herndon, VA-based Strategic Education, through its subsidiaries Strayer University and New York Code and Design Academy (NYCDA), provides a range of post-secondary education and other academic programs in the United States. NYCDA is a New York City-based provider of web and application software development courses. Strategic Education has a projected 3-5-year EPS growth rate of 15%.
STRA currently has a Zacks Rank #1 and a Value Score of B.
Arlington, VA-based AES is a global power company. The company’s businesses are spread across 14 countries in four continents.
AES has a Zacks Rank #2 and a Value Score of A. AES has a projected 3-5-year EPS growth rate of 10.9%.
Luxembourg City, Brazil-based Nexa Resources is an integrated zinc producer. It is engaged in developing and operating mining and smelting assets primarily in Latin America. NEXA currently has a Value Score of A and a Zacks Rank #2. NEXA has a projected 3-5-year EPS growth rate of 51.2%.
San Francisco, CA-based PG&E Corporation is the parent holding company of California’s largest regulated electric and gas utility, Pacific Gas and Electric Company. The utility generates revenues mainly through the sale and delivery of electricity and natural gas to customers. This Zacks Rank #2 company has a Value Score of A. PCG has a projected 3-5-year EPS growth rate of 15.9%.
LOS ANGELES--(BUSINESS WIRE)--Hudson Pacific Properties, Inc. (NYSE: HPP) today announced its Quixote subsidiaries will commence the phased wind-down of leased sound stage facilities and Atlanta-area operations, along with other ongoing cost optimization efforts. Select equipment assets are expected to be redeployed from Atlanta to Los Angeles and New York where Quixote's fleet, lighting and grip, production supplies and communications rental services will continue. These actions, which will ta.
Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of Hudson Pacific Properties (HPP - Free Report) and EastGroup Properties (EGP - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Hudson Pacific Properties has a Zacks Rank of #1 (Strong Buy), while EastGroup Properties has a Zacks Rank of #2 (Buy) right now. This means that HPP's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
HPP currently has a forward P/E ratio of 9.33, while EGP has a forward P/E of 20.95. We also note that HPP has a PEG ratio of 0.97. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. EGP currently has a PEG ratio of 3.01.
Another notable valuation metric for HPP is its P/B ratio of 0.19. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, EGP has a P/B of 3.01.
These are just a few of the metrics contributing to HPP's Value grade of B and EGP's Value grade of F.
HPP has seen stronger estimate revision activity and sports more attractive valuation metrics than EGP, so it seems like value investors will conclude that HPP is the superior option right now.
LOS ANGELES--(BUSINESS WIRE)--Hudson Pacific Properties, Inc. (NYSE: HPP) (the "Company," "Hudson Pacific," or "HPP") today announced financial and operating results for the first quarter 2026. Victor Coleman, Hudson Pacific's CEO and Chairman, commented, "Our first quarter results reflect the meaningful progress we're making to position Hudson Pacific for long-term value creation. We delivered our third consecutive quarter of occupancy gains, executing over 550,000 square feet of office leases.
Hudson Pacific Properties (HPP - Free Report) came out with quarterly funds from operations (FFO) of $0.25 per share, beating the Zacks Consensus Estimate of $0.18 per share. This compares to FFO of $0.63 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an FFO surprise of +36.39%. A quarter ago, it was expected that this real estate investment trust would post FFO of $0.2 per share when it actually produced FFO of $0.21, delivering a surprise of +5%.
Over the last four quarters, the company has surpassed consensus FFO estimates four times.
Hudson Pacific, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $181.85 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 1.11%. This compares to year-ago revenues of $198.46 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
Hudson Pacific shares have lost about 1.9% since the beginning of the year versus the S&P 500's gain of 7.6%.
What's Next for Hudson Pacific?While Hudson Pacific has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Hudson Pacific was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus FFO estimate is $0.22 on $186.9 million in revenues for the coming quarter and $1.00 on $757.5 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Other is currently in the top 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the broader Zacks Finance sector, BitFuFu Inc. (FUFU - Free Report) , has yet to report results for the quarter ended March 2026.
This company is expected to post break-even quarterly earnings per share in its upcoming report, which represents a year-over-year change of +100%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
BitFuFu Inc.'s revenues are expected to be $90.97 million, up 16.6% from the year-ago quarter.
Hudson Pacific Properties (HPP - Free Report) reported $181.85 million in revenue for the quarter ended March 2026, representing a year-over-year decline of 8.4%. EPS of $0.25 for the same period compares to -$3.71 a year ago.
The reported revenue represents a surprise of -1.11% over the Zacks Consensus Estimate of $183.89 million. With the consensus EPS estimate being $0.18, the EPS surprise was +36.39%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Hudson Pacific performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Rentable Square Feet - Total STUDIO: 1,680 versus the two-analyst average estimate of 1,448.Rentable Square Feet - Total in-service office: 12,905 compared to the 13,178 average estimate based on two analysts.Revenues- Office- Rental: $145.23 million versus the two-analyst average estimate of $145.06 million. The reported number represents a year-over-year change of -8.3%.Revenues- Office- Service and other revenues: $3.45 million compared to the $4.5 million average estimate based on two analysts. The reported number represents a change of -49.5% year over year.Revenues- Studio- Total: $33.18 million versus $34.34 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -0.2% change.Revenues- Studio- Service and other revenues: $19.38 million versus the two-analyst average estimate of $20.75 million. The reported number represents a year-over-year change of -1.1%.Revenues- Office- Total: $148.67 million versus the two-analyst average estimate of $149.56 million. The reported number represents a year-over-year change of -10%.Revenues- Studio- Rental: $13.8 million compared to the $13.51 million average estimate based on two analysts. The reported number represents a change of +1.1% year over year.Segment Profit- Studio: $1.47 million compared to the $0.57 million average estimate based on two analysts.Segment Profit- Office: $78.85 million versus $76.75 million estimated by two analysts on average.View all Key Company Metrics for Hudson Pacific here>>>
Shares of Hudson Pacific have returned +100.2% over the past month versus the Zacks S&P 500 composite's +11% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.
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Key Takeaways Hudson Pacific is among five low P/B stocks identified as potentially undervalued in May.Strategic Education carries a projected 3-5-year EPS growth rate of 15% from its education portfolio.Avnet has a projected 3-5-year EPS growth rate of 28.1% among the screened low P/B names. In valuation analysis, while ratios like the price-to-earnings (P/E) and price-to-sales (P/S) multiples are more commonly used by investors, the often-overlooked price-to-book (P/B) ratio can also be a practical tool for spotting potentially undervalued stocks with attractive return potential. The P/B ratio compares a company’s current market price with the book value of its equity.
The formula is:
P/B ratio = Market price per share ÷ Book value per share
Book value per share is calculated by dividing a company’s total shareholders’ equity by its number of outstanding shares.
The P/B ratio indicates how much investors are willing to pay for each dollar of a company’s net assets. For example, if a stock trades at $10 per share and its book value per share is $5, the P/B ratio is 2. This means investors are willing to pay two times the company’s book value for each share.
This metric can help identify attractively priced stocks with upside potential like Hudson Pacific Properties (HPP - Free Report) , Strategic Education (STRA - Free Report) , Hilton Grand Vacations (HGV - Free Report) , Nexa Resources (NEXA - Free Report) and Avnet (AVT - Free Report) .
Let us understand the concept of book value.
What is Book Value?There are several ways in which book value can be defined. Book value is the total value that would be left over, according to the company’s balance sheet, if it went bankrupt immediately. In other words, this is what shareholders would theoretically receive if a company liquidates all its assets after paying off all its liabilities.
It is calculated by subtracting total liabilities from the total assets of a company. In most cases, this equates to common stockholders’ equity on the balance sheet. However, depending on the company’s balance sheet, intangible assets should also be subtracted from total assets to determine book value.
Understanding P/B RatioBy comparing the book value of equity to its market price, we get an idea of whether a company is under- or overpriced. Like P/E or P/S ratios, it is always better to compare the P/B ratio within industries.
A P/B ratio of less than one means that the stock is trading at less than its book value or the stock is undervalued and, therefore, a good buy. Conversely, a stock with a ratio greater than one can be interpreted as being overvalued or relatively expensive.
For example, a stock with a P/B ratio of 2 means that we pay $2 for every $1 of book value. Thus, the higher the P/B, the more expensive the stock.
But there is a warning. A P/B ratio of less than one can also mean that the company is earning weak or even negative returns on its assets or that the assets are overstated. In such a case, the stock should be shunned because it may be destroying shareholder value. Conversely, the stock’s price may be significantly high — thereby pushing the P/B ratio to more than one — in the likely case that it has become a takeover target, a good enough reason to own the stock.
Moreover, the P/B ratio is not without limitations. It is useful for businesses like finance, investments, insurance and banking or manufacturing companies with many liquid/tangible assets on the books. However, it can be misleading for firms with significant R&D expenditure, high debt, service companies, or those with negative earnings.
In any case, the ratio is not particularly relevant as a standalone number. One should analyze other ratios like P/E, P/S and debt to equity before arriving at a reasonable investment decision.
Screening ParametersPrice to Book (common Equity) less than X-Industry Median: A lower P/B compared with the industry average implies that there is enough room for the stock to gain.
Price to Sales less than X-Industry Median: The P/S ratio determines how much the market values every dollar of the company’s sales/revenues — a lower ratio than the industry makes the stock attractive.
Price to Earnings using F(1) estimate less than X-Industry Median: The P/E ratio (F1) values a company based on its current share price relative to its estimated earnings per share — a lower ratio than the industry is considered better.
PEG less than 1: PEG links the P/E ratio to the future growth rate of the company. The PEG ratio portrays a more complete picture than the P/E ratio. A value of less than 1 indicates that the stock is undervalued, and investors need to pay less for a stock that has bright earnings growth prospects.
Current Price greater than or equal to $5: They must all be trading at a minimum of $5 or higher.
Average 20-Day Volume greater than or equal to 100,000: A substantial trading volume ensures that the stock is easily tradable.
Zacks Rank less than or equal to #2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
Value Score equal to A or B: Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best opportunities in the value investing space.
5 Low Price-to-Book StocksHere are five of the 10 stocks that qualified for the screening:
LA-based Hudson Pacific Properties is a full-service, vertically integrated real estate company focused on owning, operating and acquiring office properties and media and entertainment properties in select growth markets primarily in Northern and Southern California. Hudson Pacific currently has a Zacks Rank #1 and a Value Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.
HPP has a projected 3-5-year EPS growth rate of 9.7%.
Herndon, VA-based Strategic Education, through its subsidiaries Strayer University and New York Code and Design Academy (NYCDA), provides a range of post-secondary education and other academic programs in the United States. NYCDA is a New York City-based provider of web and application software development courses. Strategic Education has a projected 3-5-year EPS growth rate of 15%.
STRA currently has a Zacks Rank #2 and a Value Score of A.
Orlando, FL-based Hilton Grand Vacations Company is a division of Hilton Worldwide. It is engaged in the hospitality business. It markets and operates vacation ownership resorts and also manages and serves club membership programs.
HGV has a Zacks Rank #1 and a Value Score of B. HGV has a projected 3-5-year EPS growth rate of 22.0%.
Luxembourg City, Brazil-based Nexa Resources is an integrated zinc producer. It is engaged in developing and operating mining and smelting assets, primarily in Latin America. NEXA currently has a Value Score of A and a Zacks Rank #2. NEXA has a projected 3-5-year EPS growth rate of 27.5%.
Based in Phoenix, AZ, Avnet is one of the world’s largest distributors of electronic components and computer products. The company’s customer base includes original equipment manufacturers, electronic manufacturing services providers, original design manufacturers, and value-added resellers.
Avnet has a Zacks Rank #1 and a Value Score of B. AVT has a projected 3-5-year EPS growth rate of 28.1%.
Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.
Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potential fails to justify their swelled-up valuation. In that phase, investors find themselves invested in shares that have limited to no upside or even a downside. So, betting on a stock just by looking at the traditional momentum parameters could be risky at times.
A safer approach could be investing in bargain stocks with recent price momentum. While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.
There are several stocks that currently pass through the screen and Hudson Pacific Properties (HPP - Free Report) is one of them. Here are the key reasons why this stock is a great candidate.
Investors' growing interest in a stock is reflected in its recent price increase. A price change of 85.4% over the past four weeks positions the stock of this real estate investment trust well in this regard.
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. HPP meets this criterion too, as the stock gained 72.2% over the past 12 weeks.
Moreover, the momentum for HPP is fast paced, as the stock currently has a beta of 1.86. This indicates that the stock moves 86% higher than the market in either direction.
Given this price performance, it is no surprise that HPP has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped HPP earn a Zacks Rank #1 (Strong Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Most importantly, despite possessing fast-paced momentum features, HPP is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. HPP is currently trading at 0.75 times its sales. In other words, investors need to pay only 75 cents for each dollar of sales.
So, HPP appears to have plenty of room to run, and that too at a fast pace.
In addition to HPP, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Hudson Pacific Properties (HPP) and EastGroup Properties (EGP). But which of these two companies is the best option for those looking for undervalued stocks?
Key Takeaways HPP has a projected 3-5-year EPS growth rate of 11.8% and a Value Score of B.STRA, HGV and NEXA have projected long-term EPS growth rates of 15%, 22% and 27.5%, respectively.AVT stands out with a projected 43.3% 3-5-year EPS growth rate and a Value Score of A. Value investing often focuses on finding stocks that appear undervalued by the market but are backed by solid fundamentals and long-term growth potential. Investors use different strategies and valuation metrics to identify such opportunities, depending on their investment style and risk appetite.
One of the most widely used valuation tools is the price-to-book (P/B) ratio. The metric helps investors identify stocks trading at relatively low valuations compared with the company’s underlying net assets.
The P/B ratio measures how much investors are willing to pay for every dollar of a company’s book value, which represents total assets minus liabilities. A lower P/B ratio may indicate that a stock is undervalued, although it should always be evaluated alongside the company’s financial strength, industry trends and growth outlook.
The ratio is calculated by dividing a company’s current stock price by its book value per share (BVPS), where:
P/B Ratio = Current Share Price ÷ Book Value Per Share
This metric can help identify attractively priced stocks with upside potential. Some such stocks are Hudson Pacific Properties (HPP - Free Report) , Strategic Education (STRA - Free Report) , Hilton Grand Vacations (HGV - Free Report) , Nexa Resources (NEXA - Free Report) and Avnet (AVT - Free Report) .
Let us understand the concept of book value.
What is Book Value?There are several ways in which book value can be defined. Book value is the total value that would be left over, according to the company’s balance sheet, if it went bankrupt immediately. In other words, this is what shareholders would theoretically receive if a company liquidates all its assets after paying off all its liabilities.
It is calculated by subtracting total liabilities from the total assets of a company. In most cases, this equates to common stockholders’ equity on the balance sheet. However, depending on the company’s balance sheet, intangible assets should also be subtracted from total assets to determine book value.
Book Value Per Share = (Total Assets – Total Liabilities) ÷ Number of Outstanding Shares
Understanding P/B RatioBy comparing the book value of equity to its market price, we get an idea of whether a company is under- or overpriced. Like P/E or P/S ratios, it is always better to compare the P/B ratio within industries.
A P/B ratio of less than one means that the stock is trading at less than its book value or the stock is undervalued and, therefore, a good buy. Conversely, a stock with a ratio greater than one can be interpreted as being overvalued or relatively expensive.
For example, a stock with a P/B ratio of 2 means that we pay $2 for every $1 of book value. Thus, the higher the P/B, the more expensive the stock.
But there is a warning. A P/B ratio of less than one can also mean that the company is earning weak or even negative returns on its assets or that the assets are overstated. In such a case, the stock should be shunned because it may be destroying shareholder value. Conversely, the stock’s price may be significantly high — thereby pushing the P/B ratio to more than one — in the likely case that it has become a takeover target, a good enough reason to own the stock.
Moreover, the P/B ratio is not without limitations. It is useful for businesses like finance, investments, insurance and banking or manufacturing companies with many liquid/tangible assets on the books. However, it can be misleading for firms with significant R&D expenditure, high debt, service companies, or those with negative earnings.
In any case, the ratio is not particularly relevant as a standalone number. One should analyze other ratios like P/E, P/S and debt to equity before arriving at a reasonable investment decision.
Screening ParametersPrice to Book (common Equity) less than X-Industry Median: A lower P/B compared with the industry average implies that there is enough room for the stock to gain.
Price to Sales less than X-Industry Median: The P/S ratio determines how much the market values every dollar of the company’s sales/revenues — a lower ratio than the industry makes the stock attractive.
Price to Earnings using F(1) estimate less than X-Industry Median: The P/E ratio (F1) values a company based on its current share price relative to its estimated earnings per share — a lower ratio than the industry is considered better.
PEG less than 1: PEG links the P/E ratio to the future growth rate of the company. The PEG ratio portrays a more complete picture than the P/E ratio. A value of less than 1 indicates that the stock is undervalued, and investors need to pay less for a stock that has bright earnings growth prospects.
Current Price greater than or equal to $5: They must all be trading at a minimum of $5 or higher.
Average 20-Day Volume greater than or equal to 100,000: A substantial trading volume ensures that the stock is easily tradable.
Zacks Rank less than or equal to #2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
Value Score equal to A or B: Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best opportunities in the value investing space.
5 Low Price-to-Book StocksHere are five of the 17 stocks that qualified for the screening:
LA-based Hudson Pacific Properties is a full-service, vertically integrated real estate company focused on owning, operating and acquiring office properties and media and entertainment properties in select growth markets primarily in Northern and Southern California. Hudson Pacific currently has a Zacks Rank #1 and a Value Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.
HPP has a projected 3-5-year EPS growth rate of 11.8%.
Herndon, VA-based Strategic Education, through its subsidiaries Strayer University and New York Code and Design Academy (NYCDA), provides a range of post-secondary education and other academic programs in the United States. NYCDA is a New York City-based provider of web and application software development courses. Strategic Education has a projected 3-5-year EPS growth rate of 15%.
STRA currently has a Zacks Rank #2 and a Value Score of A.
Orlando, FL-based Hilton Grand Vacations Companyis a division of Hilton Worldwide. It is engaged in the hospitality business. It markets and operates vacation ownership resorts and also manages and serves club membership programs.
HGV has a Zacks Rank #2 and a Value Score of A. HGV has a projected 3-5-year EPS growth rate of 22.0%.
Luxembourg City, Brazil-based Nexa Resources is an integrated zinc producer. It is engaged in developing and operating mining and smelting assets, primarily in Latin America. NEXA currently has a Value Score of A and a Zacks Rank #1. NEXA has a projected 3-5-year EPS growth rate of 27.5%.
Based in Phoenix, AZ, Avnet is one of the world’s largest distributors of electronic components and computer products. The company’s customer base includes original equipment manufacturers, electronic manufacturing services providers, original design manufacturers, and value-added resellers.
Avnet has a Zacks Rank #2 and a Value Score of A. AVT has a projected 3-5-year EPS growth rate of 43.3%.
Investors in Hudson Pacific Properties, Inc. (HPP - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Jun 18, 2026 $22.50 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for Hudson Pacific Properties shares, but what is the fundamental picture for the company? Currently, Hudson Pacific Properties is a Zacks Rank #1 (Strong Buy) in the REIT and Equity Trust – Other industry that ranks in the Top 36% of our Zacks Industry Rank. Over the last 30 days, the Zacks Consensus Estimate for the current quarter has moved from 22 cents per share to 24 cents in that period.
Given the way analysts feel about Hudson Pacific Properties right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Hudson Pacific Properties (HPP - Free Report) or EastGroup Properties (EGP - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Hudson Pacific Properties and EastGroup Properties are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This means that HPP's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
HPP currently has a forward P/E ratio of 13.24, while EGP has a forward P/E of 20.73. We also note that HPP has a PEG ratio of 1.12. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. EGP currently has a PEG ratio of 2.98.
Another notable valuation metric for HPP is its P/B ratio of 0.28. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, EGP has a P/B of 2.98.
These metrics, and several others, help HPP earn a Value grade of B, while EGP has been given a Value grade of D.
HPP stands above EGP thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HPP is the superior value option right now.
LOS ANGELES--(BUSINESS WIRE)--Hudson Pacific Properties, Inc. (NYSE: HPP) today announced that its Board of Directors has declared a dividend for the second quarter of 2026 on its 4.750% Series C cumulative preferred stock of $0.296875 per share, equivalent to an annual rate of $1.18750 per share, which will be paid on June 29, 2026 to preferred stockholders of record on June 18, 2026. About Hudson Pacific Properties Hudson Pacific Properties (NYSE: HPP) is a real estate investment trust servin.
Hudson Pacific Properties, Inc. (NYSE: HPP) today announced that its Board of Directors has declared a dividend for the second quarter of 2026 on its 4.750% Se
LOS ANGELES--(BUSINESS WIRE)--Hudson Pacific Properties, Inc. (NYSE: HPP) today announced a new 502,082-square-foot, 23-year lease with the City and County of San Francisco at 1455 Market Street, bringing occupancy at the approximately 1 million-square-foot tower to 89% and the City's total footprint in the building to over 900,000 square feet. This latest lease represents the largest office lease signed in San Francisco since 2018. Beneficial occupancy commences in the second quarter of 2026,.
Hudson Pacific Properties, Inc. (NYSE: HPP) today announced a new 502,082-square-foot, 23-year lease with the City and County of San Francisco at 1455 Market S
On Holding AG (NYSE:ONON) will release earnings for its first quarter before the opening bell on Tuesday, May 12.
Analysts expect the Zurich, Switzerland-based company to report quarterly earnings of 27 cents per share, up from 21 cents per share in the year-ago period. The consensus estimate for On Holding's quarterly revenue is $821.52 million (it reported $726.6 million last year), according to Benzinga Pro.
On March 25, On Holding named co-founders David Allemann and Caspar Coppetti as co-CEOs and promoted Scott Maguire to president and COO.
Shares of On Holding fell 3.4% to close at $34.04 on Monday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let's have a look at how Benzinga's most-accurate analysts have rated the company in the recent period.
Considering buying ONON stock? Here’s what analysts think:
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Item 1 of 2 Cast member Zendaya attends a premiere for the television series "Euphoria" in Los Angeles, California, U.S., April 7, 2026. REUTERS/Mario Anzuoni/File Photo
[1/2]Cast member Zendaya attends a premiere for the television series "Euphoria" in Los Angeles, California, U.S., April 7, 2026. REUTERS/Mario Anzuoni/File Photo Purchase Licensing Rights, opens new tab
SummaryCompaniesOn raises profitability forecast thanks to new sneaker salesZendaya collaboration attracting younger women to On brandMay 12 (Reuters) - Sportswear brand On (49G.BN), opens new tab raised its profit margin forecast on Tuesday after strong first-quarter sales, as the Swiss company continues to gain ground in the sneaker and running shoe market long dominated by Nike and Adidas.
With Euphoria and Dune star Zendaya as a brand ambassador, co-CEO Caspar Coppetti said On is targeting younger, female consumers, adding that a clothing range launched with the 29-year-old actor is performing well.
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"In terms of the long-term growth, what we're trying to do with apparel or on the sneaker side, we see early very encouraging signs from that," Coppetti told Reuters.
First-quarter sales grew 26.4% to 831.9 million Swiss francs ($1.07 billion) in currency-adjusted terms, beating analysts' average forecast of 822.5 million francs in LSEG-compiled data.
On now expects an operating profit margin of between 19.5% and 20% for 2026, up from 18.5% to 19% previously, and a gross profit margin of at least 64.5%. It maintained its target of at least 23% sales growth this year.
On was managing inflationary costs "very well" and could stand to benefit further from U.S. tariff refunds, said Rick Patel, analyst at Raymond James.
U.S.-listed On shares reversed premarket gains to fall about 4% in early trading as analysts highlighted a slowing rate of growth in the United States.
Sales in the Americas - accounting for more than half of On's revenue - rose 17.1% in the quarter, compared with a 28.6% gain a year ago.
Asia-Pacific was the strongest region, with 61.4% sales growth, as On expands in China and South Korea.
Jefferies analysts said On's management is emphasising growth in Asia, but warned a slowing growth rate in the U.S. risks ending its margin outperformance in the longer term.
STRONG LAUNCHES BOOST MARGINSCoppetti said profitability was helped by successful new launches, with Cloudtilt sneakers - retailing at between 170 euros and 190 euros - the best-selling shoe across Foot Locker Europe in March. On's operating profit margin rose to 21% in the first quarter, from 16.5% a year ago.
On has changed its senior leadership, with co-founders David Allemann and Caspar Coppetti taking over as joint CEOs on May 1, when Frank Sluis, previously at supermarket group Ahold Delhaize, also joined as chief financial officer.
On's share price is near its lowest levels in two years, having fallen more than 20% since the start of 2026 as the energy price shock triggered by the Iran war dents consumer confidence in the U.S. and Europe.
Share price of On since its IPO in September 2021($1 = 0.7797 Swiss francs)
Reporting by Helen Reid in London and Juveria Tabassum in Bengaluru, Editing by Louise Heavens and Alexander Smith
Our Standards: The Thomson Reuters Trust Principles., opens new tab
London-based reporter covering the European retail sector through a global lens. Focusing on companies including Adidas, H&M, Ikea, and Inditex and analysing corporate strategy, consumer trends, and regulatory changes, Helen also covers major supermarket groups like Ahold Delhaize, Carrefour, and Casino. She has a special interest in sustainability and how investors push for change in companies. Previously based in Johannesburg where she covered the mining industry.
1. ONON Pops 5% as Premium Push Pays Off On Holding (ONON +3.10%) rose over 5% ahead of the opening bell after results showed record net sales and profitability, driven by a 44.4% revenue growth in the APAC region versus the previous year, as well as lifting its full-year profit outlook.
"Q1 was an outstanding start to the year and another strong proof point of our premium strategy in action": Casper Coppetti, founder and co-CEO, emphasized the push to being a premium brand, with the Stock Advisor recommendation by Team Rule Breakers projecting an impressive 64.5% gross profit margin by year end. "The business is doing fine": In late March, TMF chief investment officer Andy Cross explained, "even though they continue to put up some good numbers, they have some of the bigger headwinds from spending and tariffs and margins," but flagged the business had been "a long-term performer." 2. OpenAI Caps Microsoft Revenue Share The Information reports Microsoft (MSFT 1.75%) and OpenAI have agreed to cap revenue-sharing payments at $38 billion as details emerge of the renegotiated contract from last month, allowing OpenAI to have a stronger pitch to take on new investors.
Revenue-sharing will continue through to 2030: Even though the contract obligates payments for the coming years, the cap makes OpenAI more attractive when considering an IPO later this year, as it puts the company more in control of its finances. "It has worked out well because we took the risk": Microsoft CEO Satya Nadella said he was proud of the early investment in the business, with the initial $13 billion stake estimated to be worth $92 billion. 3. Inference Shift Triggers CPU Boost Chip processor makers including Advanced Micro Devices (AMD +7.97%) and Intel (INTC +9.34%) closed higher yesterday after GlobalFoundries (GFS +7.91%) announced the CPU market is entering a growth "super cycle."
CPUs becoming more key as AI workloads shift toward inference: The AI training phase used to have a ratio of 8:1 for GPUs to CPUs. However, as inference and agentic AI becomes more popular, this ratio has dropped to 4:1 and could fall further. AMD and Intel expected to be near-term winners: The current chip offerings from certain companies makes them best placed for the workload shift. AMD is beating the S&P 500 by 120% since the January 2024 SA rec from Team Rule Breakers. Qualcomm (QCOM +6.09%) was also noted as a potential long-term winner as it expands into data center CPUs. 4. Selected Stock Advisor Pre-Market Earnings JD.com (JD 1.37%) rose by 2.5% in pre-market trading as quarterly net revenue increased by 4.9% versus the same period last year, with CEO Sandy Xu saying "our user base and shopping frequency continued to expand robustly, with annual active customers hitting a new record." Under Armour (UA +5.24%) releases earnings before the opening bell, with a focus on the North America turnaround and potential trade headwinds for the stock, recommended by both Team Rule Breakers and Team Hidden Gems Zebra Technologies (ZBRA +2.61%) surged almost 15% in early trade, reporting a 14.3% year-over-year revenue increase to $1.49 billion. The Team Rule Breakers rec also saw a significant boost in profitability, with non-GAAP diluted earnings per share climbing to $4.75 and adjusted EBITDA reaching $347 million. 5. Your Take When a stock you own has been moving in the opposite direction of the S&P 500 for over a year – you're down while the market's up – what do you do? Hold, add, or sell? What goes through your mind when making that call?
Discuss with friends and family, or become a member to hear what your fellow Fools are saying!
This image and article was created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, GlobalFoundries, Intel, Microsoft, On Holding, Qualcomm, and Zebra Technologies. The Motley Fool recommends JD.com and Under Armour. The Motley Fool has a disclosure policy.
On Holding (ONON - Free Report) came out with quarterly earnings of $0.47 per share, beating the Zacks Consensus Estimate of $0.35 per share. This compares to earnings of $0.23 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +32.77%. A quarter ago, it was expected that this running-shoe and apparel company would post earnings of $0.26 per share when it actually produced earnings of $0.31, delivering a surprise of +19.23%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
On Holding, which belongs to the Zacks Retail - Apparel and Shoes industry, posted revenues of $1.06 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.86%. This compares to year-ago revenues of $808.1 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
On Holding shares have lost about 26.8% since the beginning of the year versus the S&P 500's gain of 8.3%.
What's Next for On Holding?While On Holding has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for On Holding was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.42 on $1.13 billion in revenues for the coming quarter and $1.64 on $4.53 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Apparel and Shoes is currently in the bottom 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, American Eagle Outfitters (AEO - Free Report) , has yet to report results for the quarter ended April 2026. The results are expected to be released on May 28.
This teen clothing retailer is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of +137.9%. The consensus EPS estimate for the quarter has been revised 0.7% lower over the last 30 days to the current level.
American Eagle Outfitters' revenues are expected to be $1.18 billion, up 8.5% from the year-ago quarter.
This is a fair market value price provided by Massive. Learn more.
52-Week Range$31.41▼
$56.81P/E Ratio42.13
Price Target$55.05
On Holdings’ NYSE: ONON share price has its share of headwinds, including macroeconomic pressures, a surprise CEO change, FX conversion, and slowing growth, but these are priced into the market. While headwinds remain, the company continues to perform well, sustaining a high growth pace and widening margins in a world with share for the taking.
Its biggest competitor is Nike NYSE: NKE, and Nike is a long way from reclaiming its lost glory. The takeaway for ONON investors is that the stock trades at a significant discount to its outlook, an outlook that was juiced by its May guidance update, suggesting triple-digit upside for patient investors.
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ONON Stock Poised for Significant Near-Term UpsideBetween now and then, there is a substantial near-to mid-term opportunity as well. The company not only trades at a discount to its forward outlook, a low-ball estimate, but to its competitor, suggesting price multiple expansion now and over the long-term. Additionally, analysts remain committed to this name, providing a solid support base for accumulating shares. Data tracked by MarketBeat reveals 19 current ratings, a Moderate Buy consensus, and a 79% Buy-side bias.
The price target is the operational detail following the Q1 2026 earnings report, forecasting more than 70% upside from the critical support level. As it stands, the price target has been steady on a trailing 12-month basis (TTM) and is unlikely to change significantly without a change in the outlook. The critical support level is near April lows, just below $32, and is likely to be tested.
Institutional data suggest that support at the critical level is strong and a rebound from there is likely. The institutional group owns only 37% of the stock but has been aggressively accumulating it over the TTM. The data reveals them buying at a nearly $2-to-$1 pace, with activity ramping sequentially to a record high in Q1 2026. The pace remained bullish in early Q2 and will likely remain so given the value proposition. The biggest risk from the sell-side is the insiders, but even that isn’t alarming. Ex-CEO Martin Hoffmann is exiting his stake as part of a prearranged plan triggered by his departure; aside from that, insiders, including the founders/co-CEOs, hold a significant stake and aren’t selling.
On Holdings Raises Profit Guidance After Hot QuarterOn Holdings had a solid Q1 report, with revenue growing by 14.5% year-over-year (YOY), 26.4% on a forex-neutral (FXN) basis, with strength across all channels, geos, and product lines. DTC, the higher-margin segment, grew by 16.4% and 28.7% FXN, while Wholesale grew by 13.3% and 25.1% FXN, with both underpinned by strength in Asia-Pacific (APAC) and Apparel.
Regionally, APAC led with gains of 44.4% and 61.4%, followed by 25.6% FXN increase in Europe, the Middle East, and Africa, and a 13.3% FXN gain in the Americas. Regarding the product channels, the core shoe segment grew by 12.2%, 24% FXN, while Apparel grew by 57.5% FXN to 20% of the business, and Accessories grew by 86.6%.
Margin news was also strong. The company logged improvements at the gross, EBITDA, and net income levels on both a GAAP and an adjusted basis. GAAP and adjusted earnings increased by 82% and 76%, respectively, both ahead of consensus and the impact of Q1 strengths on the outlook. The company cited operational strength and execution as drivers of margin, reaffirming the revenue forecast and raising the full-year margin outlook.
Executives expect an adjusted EBITDA margin in the 19.5% to 20% range, a full 100 bps better than the previous guide, and the revenue outlook is likely cautious. Either way, the revenue guide forecasts a YOY slowdown in growth, but sequential acceleration through year’s end.
On Holdings: A Solid Brand With Catalysts AheadWhile the company’s headwinds are unlikely to ease, including uncertainty and tariff-related cost pressures, there are catalysts in place to drive outperformance. They include strength in DTC, APAC, and Apparel, as well as the LightSpray innovation. It enables rapid, wasteless, automated shoe construction, paving the way to significant margin improvement and operating efficiencies. It uses a robotic arm to spray a mile-long filament onto a shoe mold, which instantly hardens into a laceless upper.
The strength of On Holdings' business and brand is reflected in the balance sheet highlights. The company increased its cash, working capital, current, and total assets while reducing total liabilities. Equity improved by 8.5% on a year-to-date basis and will likely continue increasing as the year progresses.
Should You Invest $1,000 in ON Right Now?Before you consider ON, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and ON wasn't on the list.
While ON currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
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On Holding AG reported good Q1 results. Growth remained good across sales channels, markets, and product categories. Expansion in China and increased sales of apparel and accessories present clear long-term growth potential for ONON. Profitability has gained from ONON's strong brand power, leading to a 2026 EBITDA guidance raise.
On Holding is rated Buy with a $46 twelve-month price target, offering 29% upside from current levels. ONON's premium brand, 63% gross margins, and DTC sales nearing 50% of revenue underpin its high-quality growth profile. Recent stock weakness stems from softer FY2026 guidance, CEO departure, and tariff concerns, but fundamentals remain robust.
An analyst firm is stepping back on price, but not on conviction. KeyBanc lowered its price target on On Holding to $43 from $58 while keeping its Overweight rating, framing the move as a recalibration tied to tariff exposure rather than a break in the long-term growth thesis. For investors weighing the premium athletic name, the message is mixed: near-term headwinds are real, but the underlying brand momentum still has Wall Street’s attention.
The price target cut on On Holding (NYSE:ONON | ONON Price Prediction) lands one day after the Swiss footwear brand delivered a sizable Q1 2026 beat. ONON stock closed at $33.83 on May 12, and the shares are down about 27% year to date (YTD).
Ticker Company Firm Action Old Rating New Rating Old Target New Target ONON On Holding KeyBanc Price Target Cut Overweight Overweight $58 $43 The Analyst’s Case KeyBanc’s reset reflects tariff-related cost pressure rather than a deteriorating brand. The firm continues to view On Holding’s reiterated 23%-plus constant currency growth guidance as conservative if current demand trends persist. That language is unusually bullish for a downgrade-in-target call.
The other nuance is potential tariff relief. KeyBanc flagged that tariff refunds could serve as incremental upside if and when they materialize, a scenario On Holding’s own guidance explicitly excludes.
Company Snapshot On Holding is a premium Swiss sportswear brand competing with Hoka, Nike (NYSE:NKE), and other performance labels in running and lifestyle. On Holding’s Q1 2026 revenue came in at $1.07 billion, beating estimates by 22%, with gross margin of 64%.
Asia-Pacific is the standout, with revenue up 44% year-over-year. On Holding also disclosed approximately $70.43 million in IEEPA tariffs absorbed during the quarter, with co-founders David Allemann and Caspar Coppetti stepping back in as Co-CEOs.
Why the Move Matters Now Tariff exposure is the central issue. Roughly 90% of On Holding’s footwear and 65% of apparel are sourced from Vietnam, and the company’s full-year outlook embeds a 20% incremental tariff rate on Vietnam imports.
The valuation backdrop also matters. ONON stock trades at a forward P/E ratio of 24x, with a consensus analyst target of $56.42. KeyBanc’s $43 marks one of the more cautious Street views, though the Overweight tag keeps the firm in the bull camp.
What It Means for Your Portfolio For prudent investors, KeyBanc’s call captures both sides of the On Holding stock debate. The bull case rests on premium pricing power, accelerating Asia-Pacific growth, and apparel revenue that rose 45%. Customers paying $150 to $200 for performance shoes tend to absorb tariff pass-through better than mass-market buyers.
The On Holding bear case rests on Vietnam concentration, a beta of 2.087 that has translated into sharp drawdowns, and growth deceleration from 36% in 2025 to a guided 23%-plus this year. The Overweight rating signals that KeyBanc sees this as a near-term recalibration, not a thesis change, leaving moderate position sizing as a sensible posture while tariff clarity develops.
On Holding shares have declined ~30% YTD despite robust Q1 sales growth and a raised full-year profit outlook. ONON is capturing market share with near-30% constant currency growth, outpacing flat revenue at Nike in a mature sportswear category. Gross margins remain in the mid-60s, reflecting premium positioning and resilience to tariffs, while Asia revenue growth outpaces core U.S. and Europe markets.
On Holdings Sets Up for Marathon Rally: New Highs Are ComingON NYSE: ONON reported what executives described as an “outstanding” start to 2026, with first-quarter net sales surpassing CHF 800 million for the first time and profitability expanding as the company reiterated its full-year growth outlook.
Net sales reached CHF 831.9 million in the quarter, up 26.4% year over year on a constant currency basis and 14.5% on a reported basis, according to outgoing CEO and CFO Martin Hoffmann. The company also reported a gross profit margin of 64.2%, up from 59.9% in the prior-year period, and an adjusted EBITDA margin of 21%, up 450 basis points year over year.
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Down 75% From Its High, How Much Lower Can Nike Get?Founder and co-CEO Caspar Coppetti said the results reflected “broad-based” demand across regions, product categories and channels, citing double-digit constant currency growth in the Americas, EMEA and APAC, as well as apparel growth of more than 50% globally.
Regional and Channel Growth Remains Broad-Based Hoffmann said direct-to-consumer sales reached CHF 322.3 million, growing 28.7% at constant currency and 16.4% on a reported basis. He said digital and physical traffic is growing faster than revenue, which he characterized as a sign that demand is ahead of current conversion.
After Cooling Off, On Holding May Be Ready to Sprint HigherWholesale net sales exceeded CHF 500 million for the first time, reaching CHF 509.6 million. That represented growth of 25.1% at constant currency and 13.3% on a reported basis. Hoffmann said On continues to see momentum with key accounts including Dick’s Sporting Goods, Foot Locker and JD Sports, while noting the company is present in only about half of stores with those major partners.
By region, the Americas generated CHF 450.7 million in net sales, up 17.1% at constant currency but only 3.1% on a reported basis due to foreign exchange headwinds. EMEA net sales rose to CHF 207.1 million, growing 25.6% at constant currency, marking the sixth consecutive quarter of more than 25% constant currency growth in the region. APAC net sales reached CHF 174 million, up 61.4% at constant currency, and exceeded 20% of the company’s total business for the first time.
Hoffmann highlighted Greater China as growing well above the APAC average and said South Korea’s net sales more than tripled year over year.
Footwear Leads, Apparel Gains Share Footwear remained On’s largest category, with net sales of CHF 763.7 million, up 24% at constant currency. Hoffmann cited continued strength from major franchises, including Cloudmonster, as well as newer products such as Cloudzone, which he said grew more than 350% in volume from a low base.
Apparel net sales reached CHF 55.3 million, rising 57.5% at constant currency and 45.1% on a reported basis. Hoffmann said apparel contributed more than 10% of direct-to-consumer sales for the first time and is becoming a more important entry point for the brand.
Coppetti pointed to lifestyle products such as Cloudtilt and Cloudtilt Remix as drivers of growth with younger consumers. He said Cloudtilt became the top seller at Foot Locker Europe “by wide margin” in March. He also cited recent collaborations and campaigns, including a Cloudswift relaunch with Kith and a female-led head-to-toe launch with Zendaya, as efforts to expand the brand’s cultural relevance while maintaining premium positioning.
Innovation Pipeline Includes LightSpray and SURREAL Executives placed significant emphasis on On’s product innovation pipeline. Coppetti said LightSpray, the company’s robotic upper-manufacturing technology, is moving from a performance proof point toward a commercial engine. He said On increased LightSpray production capacity thirtyfold in February with the opening of a factory in Busan, South Korea.
Coppetti said the LightSpray Cloudmonster Hyper sold out quickly across many channels, with particularly strong demand in Asia Pacific and the U.S. During the opening week of On’s new Boston store, LightSpray represented close to 20% of footwear net sales, and the company is selling several hundred pairs per day through direct-to-consumer channels alone, he said.
The company also discussed SURREAL, a superfoam technology expected to debut with Cloudsurfer 3 in October and roll out across key everyday running franchises in 2027. Coppetti said SURREAL weighs roughly half as much as industry-standard EVA while providing 60% to 70% more energy return.
Leadership Transition and Strategy The call also marked Hoffmann’s final earnings call as CEO and CFO. Coppetti thanked him for 13 years with the company and said Hoffmann will continue to support On as an adviser into next year. Frank Sluis, who became CFO on May 1, said he plans to build on the company’s financial foundation while supporting long-term growth and preserving the brand’s premium economics.
Coppetti and co-founder David Allemann are continuing as co-CEOs. In response to an analyst question, Coppetti said the management transition is intended to provide continuity, adding that the company is not changing its strategy, values or premium positioning.
When asked about the risk of driving growth by lowering prices, Coppetti said On’s ambition is not to build the largest company, but “the most desirable, most beautiful, most sustainable, most performant, most innovative company.” Hoffmann added that the company sees multiple growth trajectories in footwear, apparel, global expansion, lifestyle and retail that can be pursued in a premium way.
Guidance Reaffirmed, Profit Outlook Raised On reiterated its full-year constant currency net sales growth guidance of at least 23%. Based on current spot rates, the company said that would translate to reported net sales of CHF 3.51 billion. Executives said they continue to expect direct-to-consumer, APAC and apparel to outperform.
The company now expects a full-year gross profit margin of at least 64.5%, despite additional tariff pressure. Coppetti said the outlook assumes 20% incremental tariff rates from Vietnam and excludes any potential refunds. On also raised its adjusted EBITDA margin outlook to a range of 19.5% to 20%.
Hoffmann said marketing expenses are expected to be between 13% and 13.5% of sales for the full year, reflecting investments in brand-building, Zendaya-related activity, LightSpray activations and media aimed at reaching newer communities.
During the question-and-answer session, executives said the company remains encouraged by U.S. demand, with U.S. brand awareness crossing 30% for the first time. Coppetti said On is reaching younger and more female consumers, while Allemann said direct-to-consumer demand remains healthy and full-price oriented.
On said it will host an Investor Day in Zurich on September 21 and 22, 2026, where it plans to present its next phase of strategy and a new 2030 vision.
About ON NYSE: ONONOn Holding AG, commonly known as On, is a Swiss performance footwear and apparel company headquartered in Zurich. Founded in 2010, the company designs, develops and sells running shoes, performance apparel and accessories for road, trail and everyday use. On’s product philosophy centers on engineered cushioning and responsiveness intended to serve both serious athletes and lifestyle consumers.
On is best known for its proprietary midsole technology and distinctive sole architecture, marketed under names such as the Cloud family of shoes and related performance lines.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in ON Right Now?Before you consider ON, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and ON wasn't on the list.
While ON currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Discover the 10 Best High-Yield Dividend Stocks for 2026 and secure reliable income in uncertain markets. Download the report now to identify top dividend payers and avoid common yield traps.
On Holding delivered strong Q1 '26 results, and management raised gross margin and EBITDA margin guidance for FY26. ONON's Asia-Pacific net sales surged 61% CC, highlighting APAC as a key growth catalyst. Gross margin reached 64.2%, and adjusted EBITDA margin hit 21%, both exceeding guidance and consensus.
On Holding (ONON - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this running-shoe and apparel company have returned +0.8%, compared to the Zacks S&P 500 composite's +5.6% change. During this period, the Zacks Retail - Apparel and Shoes industry, which On Holding falls in, has lost 9.2%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, On Holding is expected to post earnings of $0.42 per share, indicating a change of +481.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.5% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $1.66 points to a change of +71.1% from the prior year. Over the last 30 days, this estimate has changed -0.4%.
For the next fiscal year, the consensus earnings estimate of $2.1 indicates a change of +26.3% from what On Holding is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, On Holding is rated Zacks Rank #4 (Sell).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of On Holding, the consensus sales estimate of $1.13 billion for the current quarter points to a year-over-year change of +24.3%. The $4.53 billion and $5.48 billion estimates for the current and next fiscal years indicate changes of +24.5% and +21%, respectively.
Last Reported Results and Surprise HistoryOn Holding reported revenues of $1.06 billion in the last reported quarter, representing a year-over-year change of +31.4%. EPS of $0.47 for the same period compares with $0.23 a year ago.
Compared to the Zacks Consensus Estimate of $1.05 billion, the reported revenues represent a surprise of +0.86%. The EPS surprise was +34.29%.
Over the last four quarters, On Holding surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
On Holding is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about On Holding. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about On Holding (ONON - Free Report) .
On Holding currently has an average brokerage recommendation (ABR) of 1.42, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 24 brokerage firms. An ABR of 1.42 approximates between Strong Buy and Buy.
Of the 24 recommendations that derive the current ABR, 19 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 79.2% and 4.2% of all recommendations.
Brokerage Recommendation Trends for ONON
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While the ABR calls for buying On Holding, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is ONON Worth Investing In?In terms of earnings estimate revisions for On Holding, the Zacks Consensus Estimate for the current year has declined 0.4% over the past month to $1.66.
Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for On Holding. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, it could be wise to take the Buy-equivalent ABR for On Holding with a grain of salt.
The S&P 500 continues to hit new highs, and it's becoming alarmingly expensive. The cyclically adjusted P/E ratio, or CAPE ratio, recently hit its second-highest level ever, and its highest rate since the market crashed in 2000.
There are reasons this time might be different, but there's no ignoring that it's getting harder to find bargains in the market. If you have $1,000 to invest today and are looking for stocks on sale, Target (TGT +3.61%), Carnival (CCL +8.20%), and On Holding (ONON +3.10%) look like good deals.
Image source: Target.
1. Target Target has been in the dumps for several years, dealing with issue after issue. Sales and profits have dropped, but there have been many silver linings along the way. The company still has a large store and consumer base, and it demonstrated progress in the 2026 fiscal first quarter (ended May 2). It impressed the market so much that the stock is up 31% this year, well ahead of the S&P 500's 10% gain.
It has a new CEO, and the company is aggressively making changes. It's refreshing its merchandise collection, bringing more technology into its operations, and renovating stores to create an improved shopping experience. Sales increased 6.7% year over year in the first quarter, and comparable sales were up 5.6%. Those are fantastic results for the struggling retailer, but as management acknowledges, it still has a ways to go.
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However, Target is a Dividend King, which means it has raised its dividend for at least 50 years. This coming June will be the 55th consecutive increase, and shareholders can rely on Target for their quarterly check. Target's dividend yields a high 3.6% at the current price.
Target stock trades at 17 times trailing 12-month earnings. The market is still unsure about where the recovery is headed, but it looks priced to buy for long-term or passive income investors as the business recovers.
2. Carnival Carnival continues to demonstrate impressive growth despite headwinds of all kinds, but the market continues to price in all of those headwinds. It trades at a P/E ratio less than 12, which could be a good entry point for long-term investors who can handle volatility.
The results have been strong. In the 2026 fiscal first quarter (ended Feb. 28), revenue increased 6% year over year to a record $6.2 billion. Earnings per share (EPS) were up 50% to $0.19, and it had record net yields, a cruise profitability metric.
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Despite inflation, demand remains robust, and Carnival has its highest-ever booking levels in the first quarter. The booked position for the rest of 2026 is at historical highs for price and occupancy, and bookings for 2027 and beyond are at record highs.
The newest headache for Carnival is soaring oil prices. Cruise companies are highly exposed to oil prices, since it's one of their main costs. Despite this volatility, profitability remains strong, and management explained that operational efficiency is helping to offset the impact of rising costs.
Carnival is the leading cruise company, and over time, Carnival stock should rebound and reward patient investors.
On is a relatively new player in athletic wear. You may recognize the distinctive logo on its products or the distinctive shoe sole on its sneakers. The brand has been catching on as a popular alternative to other premium brands, and it's still rolling out across the globe. It has developed a loyal following of affluent fans that are more resilient under pressure, and the company has a high rate of full-price sales.
That's why, despite inflationary pressure and a retail landscape where many of its peers are struggling, On continues to deliver robust results. In the 2026 first quarter, sales increased 26% year over year (currency-neutral), driven by direct-to-consumer sales growth of 28% and wholesale growth of 25%.
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The company is also incredibly profitable despite rising costs. Gross margin improved from 59.9% to 64.2%, and net income rose 82.2%.
There may be pressure ahead, and the growth rate has decelerated, which is why the stock is down. However, it's already heading higher, and it trades at 42 times trailing 12-month earnings, just off its all-time low.
Baron Focused Growth Fund had a disappointing start to 2026, with a decline of 4.99% (Institutional Shares) compared with a 3.52% loss for the Russell 2500 Growth Index (the Benchmark). Top contributors were Space Exploration Technologies Corp., FIGS, Inc., and Choice Hotels International, Inc. Top detractors were Tesla, Inc., CoStar Group, Inc., and On Holding AG.
On Holding (ONON - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this running-shoe and apparel company have returned +11.6%, compared to the Zacks S&P 500 composite's +6% change. During this period, the Zacks Retail - Apparel and Shoes industry, which On Holding falls in, has gained 4.5%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, On Holding is expected to post earnings of $0.42 per share, indicating a change of +481.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The consensus earnings estimate of $1.66 for the current fiscal year indicates a year-over-year change of +71.1%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $2.1 indicates a change of +26.4% from what On Holding is expected to report a year ago. Over the past month, the estimate has changed +0.5%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for On Holding.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of On Holding, the consensus sales estimate of $1.13 billion for the current quarter points to a year-over-year change of +24.3%. The $4.53 billion and $5.46 billion estimates for the current and next fiscal years indicate changes of +24.5% and +20.5%, respectively.
Last Reported Results and Surprise HistoryOn Holding reported revenues of $1.06 billion in the last reported quarter, representing a year-over-year change of +31.4%. EPS of $0.47 for the same period compares with $0.23 a year ago.
Compared to the Zacks Consensus Estimate of $1.05 billion, the reported revenues represent a surprise of +0.86%. The EPS surprise was +34.29%.
Over the last four quarters, On Holding surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
On Holding is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about On Holding. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
On Holding (ONON - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this running-shoe and apparel company have returned +13.1% over the past month versus the Zacks S&P 500 composite's no change. The Zacks Retail - Apparel and Shoes industry, to which On Holding belongs, has gained 6.8% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, On Holding is expected to post earnings of $0.42 per share, indicating a change of +481.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.1% over the last 30 days.
The consensus earnings estimate of $1.71 for the current fiscal year indicates a year-over-year change of +76.3%. This estimate has changed +5.8% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $2.12 indicates a change of +24.2% from what On Holding is expected to report a year ago. Over the past month, the estimate has changed +1.4%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for On Holding.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For On Holding, the consensus sales estimate for the current quarter of $1.13 billion indicates a year-over-year change of +24.3%. For the current and next fiscal years, $4.53 billion and $5.46 billion estimates indicate +24.5% and +20.5% changes, respectively.
Last Reported Results and Surprise HistoryOn Holding reported revenues of $1.06 billion in the last reported quarter, representing a year-over-year change of +31.4%. EPS of $0.47 for the same period compares with $0.23 a year ago.
Compared to the Zacks Consensus Estimate of $1.05 billion, the reported revenues represent a surprise of +0.86%. The EPS surprise was +34.29%.
Over the last four quarters, On Holding surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
On Holding is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about On Holding. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Intuitive Machines (LUNR +15.56%) stock rode the rollercoaster this week.
First came the Cantor Fitzgerald endorsement on Tuesday, driving the stock higher on one Wall Street analyst's confidence that Intuitive would definitely win a multi-billion-dollar NASA contract to build Lunar Terrain Vehicles (LTVs). Disappointment quickly followed when Intuitive did not, in fact, win said contract.
(Two smaller, privately owned space companies did instead.)
Nevertheless, Cantor doubled down on its endorsement, ignoring the LTV news, and instead listing a series of other contracts that Intuitive might still win. Intuitive shares that began the week trading near $38 soared past $45, then dropped back to $38, and finally closed yesterday for a second straight win -- over $40.
Today, it's looking like LUNR wants to make it three wins in a row. As of 12:55 p.m. ET, the space stock is up 9.8%.
Image source: Getty Images.
Roth Capital really loves Intuitive Machines All week long, Cantor Fitzgerald has stuck to its guns, insisting Intuitive Machines stock is worth $43 a share, but today, a second analyst chimed in. According to Roth Capital, Cantor's actually being too conservative, and Intuitive is worth closer to $75 a share!
As reported on TheFly.com, Roth raised its price target to this new mark last night, citing "significant opportunity in upcoming lunar contract awards across landers, rovers, and broader infrastructure/services."
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Current Price
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30.66
All's not lost But wait. "Rovers?" Didn't Intuitive Machines just lose the LTV contract?
Well, yes and no. Yes, two other companies won $439 million worth of LTV contracts. But the total LTV program is said to be worth $4.6 billion over time.
That means there's still a lot of money up for grabs -- and Cantor and Roth might both still be proven right about Intuitive Machines being a buy.
Rich Smith has positions in Intuitive Machines. The Motley Fool has positions in and recommends Intuitive Machines. The Motley Fool has a disclosure policy.
With SpaceX clearing the runway for what could be the largest IPO in U.S. market history and the broader sector posting back-to-back contract wins, capital is flowing rapidly into the public space names building tomorrow's launch, satellite, and defense infrastructure.
USA News Group Commentary
, /PRNewswire/ -- The global space economy approached $613 billion in 2024 and is on track to cross the $1 trillion mark as soon as 2032, according to The Space Report from the Space Foundation. Capital is finally catching up to that growth curve. SpaceX filed its S-1 on May 20 and is targeting a Nasdaq listing on June 12 under the ticker SPCX, aiming to raise up to $75 billion at a valuation of approximately $1.75 trillion — a figure that, if it holds at pricing, would mark the largest IPO in U.S. market history by a wide margin. Investors are already rotating into the public names with real revenue, expanding backlogs, and direct exposure to national security space programs.
Names like Starfighters Space, Inc. (NYSE American: FJET), Rocket Lab Corporation (NASDAQ: RKLB), Intuitive Machines, Inc. (NASDAQ: LUNR), Firefly Aerospace Inc. (NASDAQ: FLY), and AST SpaceMobile, Inc. (NASDAQ: ASTS) are increasingly the way institutional capital is positioning ahead of the SpaceX listing window.
The capital flows are visible in the data. Rocket Lab's contracted backlog has more than doubled year-over-year to $2.2 billion. Firefly Aerospace has guided full-year 2026 revenue to $420–$450 million on the back of Q1 revenue of $80.9 million. AST SpaceMobile has secured over $1.2 billion in aggregate contracted revenue commitments and holds approximately $3.9 billion in cash, cash equivalents, restricted cash and liquidity. And the U.S. Space Force's Andromeda IDIQ — under which Intuitive Machines was selected as one of 14 awardees — carries a total potential value of $6.24 billion across the program. The pattern is consistent: government and institutional capital is being deployed at scale into commercial space platforms with credible execution roadmaps.
Starfighters Space, Inc. (NYSE American: FJET) is one of the newer entrants to that institutional rotation, and the Company just gave the market a fresh marker on its commercial trajectory. On May 22, 2026, Starfighters announced a $17.5 million strategic equity investment led by global institutional investors to support continued advancement of STARLAUNCH and broader commercial space development initiatives.
The capital is earmarked specifically for operational expansion, infrastructure development, and continued advancement of the STARLAUNCH platform — Starfighters' responsive airborne launch architecture that uses its commercial fleet of MACH 2+ supersonic aircraft as a first stage. Near-term milestones disclosed alongside the financing include continued advancement of the STARLAUNCH platform with a targeted space demonstration flight timeline over the next 18 to 24 months, subject to regulatory approvals and program execution.
"This financing represents a strong endorsement of our platform and long-term strategy," said Tim Franta, Chief Executive Officer of Starfighters Space, in the Company's release. From an investor lens, that framing matters: Starfighters is no longer pitching a development-stage thesis. Since completing its IPO in December 2025, the Company has differentiated itself in the emerging market for flexible, high-cadence space access, with the recent completion of wind tunnel testing validating key STARLAUNCH system dynamics and reducing technical risk ahead of near-term commercial mission activity.
Adding to the credibility narrative, on May 7, 2026, Starfighters announced the appointment of two senior leaders out of Blue Origin — Jose Arias as Vice President, Space Operations, and Catrina L. Medeiros as Director, STARLAUNCH Operations. Mr. Arias, who joins from Blue Origin where he served as Senior Manufacturing Engineer and Integration & Production Lead across propulsion system hardware, oversees all space-related operations for the Company. Ms. Medeiros, who comes from Blue Origin's New Glenn Stage 2 and Precision Cleaning Facility programs, supports execution of STARLAUNCH-related programs under Mr. Arias's direction.
These are operational hires from one of the most demanding launch programs in the U.S. commercial sector.
Starfighters operates the world's only commercial fleet of flight-ready MACH 2+ supersonic aircraft, based at NASA's Kennedy Space Center. The Company'sSTARLAUNCHarchitecture is designed to deliver flexible, high-cadence space access and satellite deployment across multiple commercial and defense markets — payload deployment, airborne aerospace testing, microgravity and high-speed flight environments, and reusable airborne launch infrastructure. The May 22 raise gives the Company the balance sheet to push that architecture from operational capability toward scaled commercial execution.
In other industry developments:
RocketLabCorporation (NASDAQ: RKLB) — On May 21, 2026, Rocket Lab announced a $90 million contract from the U.S. Space Force's Space Systems Command to design, manufacture, integrate, and operate two geostationary (GEO) satellites hosting the Heimdall space domain awareness payload. The award is Rocket Lab's first satellite production program for geostationary orbit and continues a Space Systems Command program for development and delivery on orbit of two Heimdall prototype payloads originally developed by GEOST, which Rocket Lab acquired in 2025 and integrated as Rocket Lab Optical Systems.
The win lands against a backdrop of Rocket Lab's contracted backlog up 108% year-over-year to $2.2 billion and record Q1 2026 revenue of $200.3 million — up 63.5% year-over-year. The Company also booked a $190 million 20-launch block order from the U.S. Department of War for HASTE hypersonic test flights, and a separate $30 million HASTE contract from Anduril announced May 7. Rocket Lab has emerged as one of the most direct publicly traded ways to play the broader launch-and-satellite build-out ahead of the SpaceX listing.
IntuitiveMachines,Inc. (NASDAQ: LUNR) — On May 13, 2026, Intuitive Machines was selected by the U.S. Space Force for the Andromeda IDIQ contract, a 10-year, multi-vendor procurement vehicle with a total potential value of approximately $6.24 billion. Intuitive Machines is one of 14 selected awardees that will compete for task orders to design and field next-generation Space Domain Awareness capabilities — detecting, tracking, and characterizing objects in geosynchronous orbit. The selection significantly expands the Company's addressable government contract base beyond its CLPS-anchored lunar mission profile.
Days later, Intuitive Machines was named prime contractor for operations of NASA's Lunar
Reconnaissance Orbiter Camera (LROC) and the ShadowCam instrument aboard the Korea Aerospace Research Institute's Pathfinder Lunar Orbiter, under two three-year, cost-plus-fixed-fee contracts — $15.5 million for LROC and $4.5 million for ShadowCam, totaling $20.0 million. Q1 2026 revenue came in at a record $186.7 million, with quarter-end backlog of approximately $1.1 billion. The combination of expanding government work and lunar data services has positioned LUNR among the most visible names in the SpaceX-IPO-adjacent trade.
FireflyAerospaceInc. (NASDAQ: FLY) — On May 26, 2026, Firefly announced a $75 million subcontract from NASA's Jet Propulsion Laboratory (JPL) to deliver four drones to the Moon's south pole as part of the agency's MoonFall mission, targeted to launch no earlier than 2028. MoonFall is part of the first phase of NASA's Moon Base — a long-term lunar exploration and infrastructure initiative designed to enable sustained human presence and expanded commercial activity at the lunar south pole. Firefly's Elytra spacecraft will carry the drones over a 45-day transit to the Moon and deploy them approximately 50 km above the lunar south pole.
Firefly CEO Jason Kim called MoonFall "an incredible breakthrough mission" in the Company's release, framing the win as aligned with Firefly's track record of bold execution. On the same day, Firefly also commenced a public offering of 12,000,000 shares — 4,000,000 primary and 8,000,000 from selling stockholders — pointing to the capital-markets dynamic playing out across the sector: contract momentum is creating windows for sponsors and existing holders to recycle capital into the next phase of build-out.
ASTSpaceMobile,Inc. (NASDAQ: ASTS) — Q1 2026 results delivered on May 11, 2026 included a critical regulatory milestone: the FCC granted commercial Supplemental Coverage from Space authorization for the SpaceMobile network in the United States, enabling direct-to-device broadband connectivity in premium spectrum bands. The Company disclosed peak in-orbit data speeds of 98.9 Mbps using a Block 1 BlueBird satellite, and confirmed the next orbital launch — BlueBird 8, 9, and 10 — on a Falcon 9 in mid-June.
AST SpaceMobile has secured over $1.2 billion in aggregate contracted revenue commitments from partners, was awarded a $30 million prime contract by the Space Development Agency for the HALO Europa Track 2 program, and is participating in the Missile Defense Agency's SHIELD program. Founder, Chairman and CEO Abel Avellan framed the quarter as positioning AST SpaceMobile to capture the direct-to-device broadband opportunity at scale. With a balance sheet of approximately $3.9 billion in cash, equivalents, and liquidity (pro forma for the convertible notes offering and ATM facility availability), ASTS is one of the better-capitalized commercial space names heading into the SpaceX listing window.
Across the comparable set, the message from the past month of news flow is consistent: contracts are flowing, balance sheets are being topped up, and the public space complex is moving in step with the SpaceX listing thesis. Starfighters Space's May 22 financing puts the Company squarely inside that flow — with capital allocated to STARLAUNCH advancement, two senior Blue Origin operators newly seated on the execution team, and a roadmap toward future demonstration flights over the next 18 to 24 months. For investors building exposure to the SpaceX-IPO rotation trade,FJET is increasingly difficult to overlook.
CONTINUED… Read this and more news for Starfighters Space at: https://usanewsgroup.com/fjet-landing
Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a digital media distribution and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. This article is being distributed by Canada News Group ("CNG"), which is a wholly-owned subsidiary of Market IQ Media Group, Inc. ("MIQ"). MIQ has been paid a fee for Starfighters Space, Inc. advertising and digital media from Creative Direct Marketing Group ("CDMG"). There may be 3rd parties who may have shares of Starfighters Space, Inc., and may liquidate their shares which could have a negative effect on the price of the stock. The owner/operator of MIQ does not currently own shares of Starfighters Space, Inc. but reserves the right to buy and sell, and will buy and sell shares of Starfighters Space, Inc. at any time without any further notice commencing immediately and ongoing. This potential for trading constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this, individuals are strongly encouraged to not use this publication as the basis for any investment decision. Please let this disclaimer serve as notice that all material, including this article, which is disseminated by MIQ has been reviewed and approved on behalf of Starfighters Space, Inc. by CDMG. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.
Issued on behalf of Starfighters Space, Inc. by Canada News Group / Market IQ Media Group, Inc.
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Intuitive Machines (LUNR +15.56%) stock tumbled 7.3% through 12:15 p.m. ET this morning -- that's the bad news. The good news is that there's no bad news on the wires today concerning Intuitive, per se, to explain why the stock is going down. Instead, shares of this space stock are reacting to bad news from another space company entirely:
Blue Origin.
Image source: NASA.
Disaster for Blue Origin could be good or bad for Intuitive Machines Last night, a Blue Origin New Glenn rocket exploded on its launch pad at Cape Canaveral in Florida while undergoing a routine engine test. Initial reports suggest Blue Origin's LC-36A launch complex has been badly damaged, if not destroyed.
Now, this isn't necessarily bad news for Intuitive Machines. In the lunar lander market, Intuitive is in fact a competitor to Blue Origin, such that bad news for Blue could end up reducing competition for Intuitive!
Intuitive does not use Blue Origin's megarocket to launch either its satellites or its lunar landers. Still, it might need to in the future. Moreover, because Intuitive lacks a rocket of its own, it does use other launch providers, and the loss of capacity from Blue Origin launches could raise launch prices across the industry.
That's just how the law of supply and demand works -- taking New Glenn offline reduces the total launch services "supply." Given constant or growing demand, Intuitive's launch costs could rise.
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Things could get worse My bigger worry, and I suspect what's really worrying investors today, concerns Intuitive's stock price. Up 300% over the past year, Intuitive stock has been priced for a perfection that's very hard for any company to achieve -- as Blue Origin's accident just reminded us.
Carefully gauge your risk tolerance, investor, before investing in risky space stocks -- because space will always be hard.
Rich Smith has positions in Intuitive Machines. The Motley Fool has positions in and recommends Intuitive Machines. The Motley Fool has a disclosure policy.
As the weather warms heading into June, so does the space industry. The much-anticipated SpaceX initial public offering is creating a frenzy among aerospace companies. There are obvious adjacent winners, such as Rocket Lab, which has seen its valuation launch into the stratosphere.
Yet other space stocks are trading at prices that aren't light-years ahead of reality. Let's have a look at which ones are flying under the radar but are worth exploring. The three stocks mentioned below have all performed incredibly well in the short term, but are generally less well-known in the mainstream and have much smaller market values than Rocket Lab.
1. Intuitive Machines is a (literal) Moonshot Intuitive Machines (LUNR +15.56%) is an interesting company in that its main focus is lunar access and exploration. Moon infrastructure is proving to be big business. The company is expanding its capabilities and earning industry trust as it recently acquired Lanteris Space Systems and collaborates with NASA on the Commercial Lunar Payload Services program.
Image source: Getty Images.
Intuitive's backlog has grown to $1.1 billion since it won more than $428 million in new contracts. The company's first-quarter 2026 revenue grew to a record $186 billion, nearly triple the year-earlier figure. In its latest earnings report, management reaffirmed its full-year guidance of $900 million to $1 billion.
The stock has shot to the Moon so far in 2026, up more than 110% as of this writing.
Today's Change
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2. Redwire is an inexpensive ticket to space Much of the space-related sector trades at sky-high valuations; Redwire (RDW +14.93%), however, is much more reasonably priced. It isn't quite as flashy as some other space-related companies, but it has a portfolio of space infrastructure technologies.
Redwire is diversifying its revenue streams as it leans into its defense business, particularly through the 2025 acquisition of Edge Autonomy. First-quarter 2026 revenue reached $97 million, a nearly 58% increase from last year.
The company also boasts a record backlog of $498 million. Multi-year, multi-million-dollar deals with NATO allies and the U.S. Space Force sent Redwire's shares soaring. The stock has risen about 190% since the start of the year, but it still has a market value of just $4 billion.
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3. Spire Global is worth observing In what is probably the least-known company on this list, Earth-observation company Spire Global (SPIR +20.89%) operates a satellite network with a surprising number of use cases across industries such as meteorology and aviation.
In a sector with immense levels of spending, Spire Global is a breath of fresh air for its solid financial fundamentals. The company sold its maritime business in 2025 and used the proceeds to pay down debt.
The company anticipates revenue of $75 million to $85 million in 2026, representing 50% year-over-year growth. The stock has gained 145% year to date.
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To infinity and beyond for these three space companies There's an influx of capital moving into space-related companies. While the more flashy, headline-grabbing businesses like SpaceX hog the spotlight, there are plenty of under-the-radar stocks that are financially sound and could make for a lucrative long-term investment.
