Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Invesco (IVZ - Free Report) Headquartered in Atlanta, GA, Invesco Ltd. operates as an independent investment manager and offers a wide range of investment products and services. The company was incorporated in 1935. As of March 31, 2026, Invesco served clients in more than 120 countries and had AUM worth $2.16 trillion.
IVZ is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 10.72; value investors should take notice.
Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.20 to $2.78 per share. IVZ boasts an average earnings surprise of +7.9%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, IVZ should be on investors' short list.
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In private equity, pulling a public company off the market requires an alignment of the stars. Buyout shops need a precise playbook:
Predictable cash generation to service debt An equity discount worth exploiting Balance sheet capacity for financial engineering Clear operational levers to pull A check size big enough to actually move the needle for a multi-billion-dollar fund. When a target checks all five boxes, the conversation rapidly shifts from if a deal makes sense to how quickly it can be executed.
Below are four U.S.-listed names screening well against that framework. Each has been beaten down, throws off real free cash flow, and has levers a sponsor could pull.
4. Papa John’s International Papa John’s International (NASDAQ:PZZA) has a market cap of just $998.6 million, and shares closed most recently at $30.35, down 30.0% over the past year. That sub-$1 billion equity check is a rounding error for a mid-market sponsor.
The franchise-heavy model produces a royalty-like revenue stream, with FY26 adjusted EBITDA guided to $200 to $210 million, implying an EV/EBITDA around 11x. Q1 FY26 was weak: revenue fell 7.7% to $478.6 million and free cash flow was negative $6.2 million after refranchising 85 stores. Management targets $30 million in corporate cost savings and $60 million in supply chain savings through 2027, the exact playbook PE runs itself.
Comparable sales in North America down 6.4% represents some risk. Plausible acquirers include Roark Capital or Apollo.
3. Etsy Etsy (NASDAQ:ETSY | ETSY Price Prediction) closed at $80.91, still 61.3% below its 2021 peak despite a 45.9% year-to-date rally. Its forward P/E is 15x, and its EV/EBITDA is 24x.
FY25 free cash flow was $638.75 million on capex of just $54.66 million, a capital-light marketplace profile. The $1.2 billion Depop sale to eBay gives new CEO Kruti Patel Goyal a clean, single-brand focus and a cash position of $1.4 billion. Q1 FY26 GMS grew 5.5%, the second straight quarter of expansion.
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The risk here is consumer discretionary exposure. Silver Lake and Advent are plausible acquirers.
2. Match Match Group (NASDAQ:MTCH) checks nearly every box. Shares at $37.40 are 76.5% below their five-year high. The forward P/E is 14x, and EV/EBITDA is 11x, cheap for a business owning Tinder, Hinge, OkCupid, and Plenty of Fish.
FY25 operating cash flow was $1.08 billion and free cash flow was $1.02 billion, growing every year since 2022. Hinge revenue jumped 28% to $194 million in Q1 FY26, with a path to $1 billion by 2027. Management returned $975 million to shareholders in FY25. Debt of $4.0 billion is manageable against that FCF. Tinder’s ongoing turnaround is a risk, and Blackstone and KKR are plausible acquirers.
1. Kraft Heinz Kraft Heinz (NASDAQ:KHC) is the textbook take-private candidate. Shares at $25.36 are 54.5% below where they traded a decade ago. The forward P/E is 13x, the price-to-book is 0.73, and the dividend yields 6.3%.
FY25 free cash flow was $3.66 billion, up 15.9%, and Q1 FY26 delivered $766 million in FCF alone. The Heinz, Kraft, Philadelphia, Lunchables, and Ore-Ida brand roster is exactly the moat sponsors underwrite for a decade. New CEO Steve Cahillane bought 213,106 shares at $23.4616 on May 12, 2026. The company paused its previously announced separation, freeing capital for a broader transaction. Analyst sentiment is cautious, with an average target of just $23.97, precisely the setup a sponsor wants: low expectations, high cash generation. Key risks include organic sales guided down 1.5% to 3.5%. Plausible acquirers include 3G Capital and Apollo.
What Happens to Shareholders When a Buyout Hits When a leveraged buyout offer lands, target shareholders typically receive a cash premium of 20% to 40% over the unaffected price. For beaten-down names like Kraft Heinz, where the market has priced in years of underperformance, a take-private premium could deliver in weeks what public-market patience has failed to produce in years. The names above may well test that thesis next.
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Key Takeaways United Rentals topped Q2 earnings estimates, raised its 2026 view and cited accelerating large-project demand.Specialty rental revenues rose 24.8% y/y to a record $1.43B, with growth across all seven business lines.URI lifted its gross CapEx guidance to $4.85-$5.25B as record utilization supported added fleet investment. United Rentals, Inc. (URI - Free Report) highlighted accelerating demand, record utilization and a stronger outlook during its second-quarter 2026 earnings call. Management raised its full-year guidance as large projects and customer activity exceeded prior expectations.
Executives emphasized capital discipline, specialty rental growth and operational execution as the key themes, while analyst questions focused on margins, capacity expansion and the durability of current demand trends.
URI Sees Demand Momentum ContinueCEO Matthew Flannery said that United Rentals is benefiting from strong customer activity, particularly around large projects, while its technology, service model and broad fleet offering continue to differentiate the business.
URI reported second-quarter adjusted earnings per share of $12.76, beating the Zacks Consensus Estimate of $11.67. Revenues were $4.41 billion, surpassing the Zacks Consensus Estimate of $4.24 billion.
Management pointed to construction, infrastructure and industrial activity as important contributors, with projects involving hospitals, airports, LNG terminals and data centers supporting demand.
United Rentals Expands Specialty ReachUnited Rentals said that specialty rental revenues increased 24.8% year over year to a quarterly record of $1.43 billion. The company reported growth across all seven specialty business lines.
Flannery noted that complex customer projects require broader service capabilities, supporting demand for the company’s one-stop-shop approach. Specialty offerings such as power, HVAC, tools and matting continued to gain traction.
The company also highlighted strength in power-related demand, which management said represents an important growth area with continued organic expansion opportunities.
URI Raises CapEx Behind UtilizationURI increased its gross rental capital expenditure guidance after demand exceeded earlier expectations. Management said that historically high time utilization levels supported additional fleet investment.
The company raised its gross CapEx guidance to $4.85-$5.25 billion from the prior mentioned $4.4-$4.8 billion. Net rental capital expenditure is expected to be $3.4-$3.8 billion.
Flannery said that the company is adding fleet based on confidence in project visibility rather than simply pursuing near-term revenue opportunities. Management expects large-project demand trends to continue into the following year.
United Rentals Addresses Margin PressureURI discussed margin dynamics as analysts questioned the impacts of fuel costs, delivery expenses and ancillary revenue growth. CFO William Grace said that cost execution remained a priority.
The adjusted EBITDA margin was 46.6% in the quarter. Excluding the benefits from the sale of part of the scaffolding business, management said that the underlying margin performance reflected ongoing cost actions.
Grace noted that labor, delivery and repair-related costs showed positive absorption trends, while higher ancillary and re-rent revenue growth created some margin mix pressure.
URI Highlights Capital StrengthURI maintained a focus on shareholder returns and balance sheet flexibility. The company ended the quarter with a net leverage ratio of 1.8X and total liquidity of nearly $3 billion.
Management said that it returned $998 million to shareholders year to date through share repurchases and dividends. The company expects to complete $1.5 billion in share repurchases in 2026.
The company also discussed potential credit improvement after S&P raised its outlook, while management continued to emphasize maintaining financial flexibility for growth and capital returns.
United Rentals Maintains Strategic FocusAnalysts questioned whether improving local markets, acquisitions and industry consolidation could provide additional growth opportunities. Management said that consolidation remains part of the equipment rental industry’s evolution.
Flannery said that the company continues evaluating acquisitions, particularly opportunities that expand specialty offerings or address portfolio gaps. He noted that current growth is primarily organic.
Management’s overall message centered on continued execution, disciplined investment and supporting customers through large-scale projects while preserving returns.
Zacks Rank & Style ScoresURI currently carries a Zacks Rank #2 (Buy). The Zacks Rank focuses on earnings estimate revisions and is designed to help identify stocks with stronger potential relative performance over the next one to three months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company has a Value Score of C, a Growth Score of B, a Momentum Score of C and a VGM Score of B. Zacks Style Scores range from A to F, with stronger scores indicating more favorable characteristics for their respective investment styles.
The combination of a Zacks Rank #2 and a VGM Score of B reflects favorable characteristics across the combined value, growth and momentum measures. The Zacks Rank can change as analysts update earnings estimates following the quarterly results.
NEW YORK, July 24, 2026 (GLOBE NEWSWIRE) -- Kaplan Fox & Kilsheimer LLP announces that a class action lawsuit has been filed against Hub Group, Inc. (“Hub Group” or the “Company”) (NASDAQ: HUBG) on behalf of investors that purchased or otherwise acquired Hub Group securities between April 28, 2023 and May 11, 2026 (the “Class Period”). CLICK HERE TO RECEIVE MORE INFORMATION ABOUT THIS INVESTIGATION If you are an investor in Hub Group and have suffered losses, you may CLICK HERE to contact us.
LOS ANGELES, July 24, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against Hub Group, Inc. (“Hub” or “the Company”) (NASDAQ: HUBG) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.
Investors who purchased the Company’s securities between April 28, 2023 and May 11, 2026, inclusive (the “Class Period”), are encouraged to contact the firm before August 28, 2026.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
According to the Complaint, the Company made false and misleading statements to the market. Hub suffered from material misstatements in its financial statements from Q1 2023 to Q4 2024 including its annual reports for 2023 and 2024. The Company’s misstatements included operating revenue, operating income, and revenue recognition. The Company’s financial statements from Q1 2025 to Q3 2025 contained misstatements related to the understatement of purchased transportation costs amongst other errors. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Hub, investors suffered damages.
Join the case to recover your losses
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.,
www.schallfirm.com
Office: 310-301-3335 [email protected]
Key Takeaways Sallie Mae missed Q2 earnings and revenue estimates as lower NII and higher expenses hurt the results. SLM's non-interest income grew on gains from loan sales and higher other income.Sallie Mae's private education loans held for investment declined y/y to $19.5 billion. Sallie Mae (SLM - Free Report) , reported second-quarter 2026 earnings per share (EPS) of 29 cents, missing the Zacks Consensus Estimate of 46 cents. The metric declined 9.4% from the year-ago quarter.
Revenues of $338.8 million missed the Zacks Consensus Estimate of $355.2 million by 4.6%. This compares with the year-ago revenues of $376.82 million.
The quarterly results were hurt by lower net interest income (NII), higher provisions for credit losses and an increase in expenses. However, growth in non-interest income and private education loan originations offered some support.
The company’s GAAP net income attributable to common stock was $55 million compared with $67 million in the year-ago quarter.
Sallie Mae’s NII Declines, Expenses RiseSecond-quarter NII totaled $332.8 million, down 11.7% from $376.8 million in the prior-year quarter.
The quarterly net interest margin was 4.75%, contracting 56 basis points year over year.
Quarterly non-interest income was $68.3 million, up significantly from $26.8 million in the year-ago quarter. Gains on sales of loans were $14.9 million against a loss of $13,000 in the prior-year quarter. Other income grew 54.1% year over year to $45.3 million.
Non-interest expenses increased 16.6% year over year to $195 million. Compensation and benefits expenses rose 18.1% to $100.3 million. Other operating expenses were $88.9 million, up 24.1%.
SLM’s Credit Quality: Mixed BagIn the second quarter, provisions for credit losses were $125.7 million, down from $148.7 million in the prior-year quarter.
Net charge-offs were $113 million in the reported quarter, up from the year-ago quarter.
Delinquencies as a percentage of loans in repayment were 3.72% for the second quarter of 2026 compared with 3.51% in the prior-year quarter.
Sallie Mae’s Balance Sheet PositionAs of June 30, 2026, deposits totaled $19.9 billion, down from $20.5 billion in the year-ago quarter.
Private education loans held for investment, net, were $19.5 billion, down from $21.2 billion in the prior-year quarter.
Average loans outstanding, net, totaled $21.1 billion in the quarter. In the reported quarter, private education loan originations increased 4.5% year over year.
Key Ratios of SLMThe efficiency ratio was 48.6% compared with 41.4% in the year-ago quarter.
Return on assets was 0.8% compared with 1% in the prior-year quarter.
Return on common equity was 9.9% compared with 12.6% in the year-ago quarter.
SLM Share Repurchase UpdateThe company’s $200-million accelerated share repurchase concluded in June 2026. It repurchased 9.3 million shares under the program, including the final delivery of 0.9 million shares in the second quarter. As of June 30, 2026, $242 million remained available under the company’s 2026 share repurchase program.
Sallie Mae Reaffirms 2026 OutlookManagement reaffirmed its 2026 EPS guidance of $3.10-$3.20.
Sallie Mae expects year-over-year private education loan origination growth of 12-14%, net charge-offs of $365-$385 million and non-interest expenses of $750-$780 million.
The company sold $420 million in private education loans during the quarter, including $399 million of principal and $21 million of capitalized interest through its strategic partnerships business.
Final Thoughts on SLMSallie Mae delivered a disappointing second-quarter performance. Lower NII, margin contraction, higher expenses, declining loan and deposit balances, and elevated delinquencies remain concerning. Nonetheless, lower provisions for credit losses, growth in non-interest income and higher private education loan originations were positives.
Currently, SLM carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Dates & Expectations of SLM’s PeersOneMain Holdings (OMF - Free Report) is slated to announce second-quarter 2026 numbers on July 29.
In the past week, the Zacks Consensus Estimate for OneMain’s quarterly earnings has been revised downward to $1.31. This implies a 9.7% decrease from the prior-year reported number.
Navient (NAVI - Free Report) is scheduled to announce quarterly numbers on Aug. 6.
In the past seven days, the Zacks Consensus Estimate for Navient’s quarterly earnings has been unchanged at 19 cents. This indicates a 9.5% decline from the prior-year reported number.
LOS ANGELES, July 24, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against Insulet Corporation (“Insulet” or “the Company”) (NASDAQ: PODD) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.
Investors who purchased the Company’s securities between February 21, 2025 and May 26, 2026, inclusive (the “Class Period”), are encouraged to contact the firm before August 31, 2026.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
According to the Complaint, the Company made false and misleading statements to the market. Insulet suffered from defective controls over its manufacturing processes. The Company faced increased risks of safety violations due to these deficiencies. The Company’s manufacturing problem necessitating its March 2026 Medical Device Cirrection impacted a greater number of its Pod Products than it claimed. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Insulet, investors suffered damages.
Join the case to recover your losses.
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.,
www.schallfirm.com
Office: 310-301-3335 [email protected]
Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Cabot (CBT - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Basic Materials peers, we might be able to answer that question.
Cabot is a member of our Basic Materials group, which includes 275 different companies and currently sits at #14 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Cabot is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for CBT's full-year earnings has moved 1.3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that CBT has returned about 34.4% since the start of the calendar year. Meanwhile, the Basic Materials sector has returned an average of 7.4% on a year-to-date basis. As we can see, Cabot is performing better than its sector in the calendar year.
Another Basic Materials stock, which has outperformed the sector so far this year, is CF Industries (CF - Free Report) . The stock has returned 63.8% year-to-date.
Over the past three months, CF Industries' consensus EPS estimate for the current year has increased 27.8%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Cabot is a member of the Chemical - Diversified industry, which includes 31 individual companies and currently sits at #91 in the Zacks Industry Rank. This group has gained an average of 18.6% so far this year, so CBT is performing better in this area.
In contrast, CF Industries falls under the Fertilizers industry. Currently, this industry has 6 stocks and is ranked #70. Since the beginning of the year, the industry has moved +17.2%.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Cabot and CF Industries as they could maintain their solid performance.
HCA Healthcare (HCA - Free Report) came out with quarterly earnings of $7.59 per share, beating the Zacks Consensus Estimate of $7.57 per share. This compares to earnings of $6.84 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +0.26%. A quarter ago, it was expected that this hospital operator would post earnings of $7.17 per share when it actually produced earnings of $7.15, delivering a surprise of -0.28%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
HCA, which belongs to the Zacks Medical Services industry, posted revenues of $20.23 billion for the quarter ended June 2026, in line with the Zacks Consensus Estimate. This compares to year-ago revenues of $18.61 billion. 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 earnings expectations will mostly depend on management's commentary on the earnings call.
HCA shares have lost about 19.4% since the beginning of the year versus the S&P 500's gain of 8.2%.
What's Next for HCA?While HCA 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 HCA 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 $7.13 on $19.73 billion in revenues for the coming quarter and $29.19 on $78.51 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, Medical Services is currently in the top 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Teladoc (TDOC - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on July 29.
This telehealth services provider is expected to post quarterly loss of $0.24 per share in its upcoming report, which represents a year-over-year change of -26.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Teladoc's revenues are expected to be $614.69 million, down 2.7% from the year-ago quarter.
HCA Healthcare (HCA - Free Report) reported $20.23 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 8.7%. EPS of $7.59 for the same period compares to $6.84 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $20.23 billion, representing no surprise. The company delivered an EPS surprise of +0.26%, with the consensus EPS estimate being $7.57.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how HCA performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue per Equivalent Admission: $19,370.00 versus $18,771.14 estimated by five analysts on average.Equivalent Admissions: 1.04 billion versus the five-analyst average estimate of 1.04 billion.Admissions: 579.56 million versus the three-analyst average estimate of 579.01 million.Patient Days: 2,690.92 Days compared to the 2,713.59 Days average estimate based on two analysts.Average Length of Stay: 5 versus 5 estimated by two analysts on average.Number of hospitals: 190 versus 189 estimated by two analysts on average.Inpatient Revenue per Admission: $22,524.00 compared to the $20,251.40 average estimate based on two analysts.Equivalent Patient Days: 4.85 million versus 4.9 million estimated by two analysts on average.Licensed Beds at End of Period: 50,550 versus 50,729 estimated by two analysts on average.Number of freestanding outpatient surgery centers: 118 versus the two-analyst average estimate of 119.View all Key Company Metrics for HCA here>>>
Shares of HCA have returned -2.7% over the past month versus the Zacks S&P 500 composite's +0.6% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
Investors interested in Utilities stocks should always be looking to find the best-performing companies in the group. CenterPoint Energy (CNP - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Utilities sector should help us answer this question.
CenterPoint Energy is a member of the Utilities sector. This group includes 111 individual stocks and currently holds a Zacks Sector Rank of #16. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. CenterPoint Energy is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for CNP's full-year earnings has moved 0.1% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, CNP has returned 15.4% so far this year. Meanwhile, stocks in the Utilities group have gained about 8.1% on average. As we can see, CenterPoint Energy is performing better than its sector in the calendar year.
Another stock in the Utilities sector, Evergy Inc (EVRG - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 19.5%.
For Evergy Inc, the consensus EPS estimate for the current year has increased 0% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, CenterPoint Energy is a member of the Utility - Electric Power industry, which includes 63 individual companies and currently sits at #165 in the Zacks Industry Rank. This group has gained an average of 9.9% so far this year, so CNP is performing better in this area. Evergy Inc is also part of the same industry.
Investors interested in the Utilities sector may want to keep a close eye on CenterPoint Energy and Evergy Inc as they attempt to continue their solid performance.
Grayscale Bitcoin Trust ETF remains expensive at a 1.50% fee, losing market share to lower-cost peers despite resilient legacy assets. GBTC's lack of yield features limits Grayscale's ability to enhance the fund, unlike recent improvements for ETHE and GSOL via staking distributions. Significant embedded gains and tax consequences keep legacy GBTC holders in place, but new capital is deterred by high fees and no product enhancements.
Investors in Constellation Energy Corporation (CEG - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the January 15, 2027 $95.00 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 Constellation Energy share, but what is the fundamental picture for the company? Currently, Constellation Energy is a Zacks Rank #3 (Hold) in the Alternative Energy - Other Industry that ranks in the Bottom 38% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their estimates for the current quarter, while two have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter to move from $2.30 per share to $2.24 per share in the same time period.
Given the way analysts feel about Constellation Energy right now, this huge implied volatility could mean there’s a trade developing. Often times, 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.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Silgan Holdings (SLGN - Free Report) Silgan Holdings is a leading supplier of rigid packaging for consumer goods products. Its products are used in diverse end markets. It is the largest metal-container supplier for food products in North America. Silgan operates 113 manufacturing facilities in North and South America, Europe and Asia. Its product lines include steel and aluminum containers for human and pet food; custom-designed plastic containers for personal care, healthcare, pharmaceutical, household, industrial chemical, food, pet care, agricultural chemical, automotive and marine chemical products; and metal, composite and plastic closures for food and beverage products.
SLGN is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 11.98; value investors should take notice.
Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.00 to $3.79 per share. SLGN also boasts an average earnings surprise of +1.9%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, SLGN should be on investors' short list.
The market expects AutoNation (AN - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 31. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis auto retailer is expected to post quarterly earnings of $5.43 per share in its upcoming report, which represents a year-over-year change of -0.6%.
Revenues are expected to be $6.97 billion, down 0.1% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.08% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for AutoNation?For AutoNation, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.22%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that AutoNation will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that AutoNation would post earnings of $4.71 per share when it actually produced earnings of $4.69, delivering a surprise of -0.42%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
AutoNation doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAmong the stocks in the Zacks Automotive - Retail and Whole Sales industry, Group 1 Automotive (GPI - Free Report) , is soon expected to post earnings of $10.79 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -6.3%. This quarter's revenue is expected to be $5.65 billion, down 0.9% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Group 1 Automotive has been revised 1.6% down to the current level. Nevertheless, the company now has an Earnings ESP of -0.03%, reflecting a lower Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Group 1 Automotive will beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
First Hawaiian (FHB - Free Report) came out with quarterly earnings of $0.6 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.58 per share a year ago. These figures are adjusted for non-recurring items.
A quarter ago, it was expected that this bank holding company would post earnings of $0.53 per share when it actually produced earnings of $0.55, delivering a surprise of +3.77%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
First Hawaiian, which belongs to the Zacks Banks - West industry, posted revenues of $231.27 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.48%. This compares to year-ago revenues of $217.54 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
First Hawaiian shares have added about 13.2% since the beginning of the year versus the S&P 500's gain of 8.2%.
What's Next for First Hawaiian?While First Hawaiian has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for First Hawaiian 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 EPS estimate is $0.61 on $233.48 million in revenues for the coming quarter and $2.38 on $921.18 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, Banks - West is currently in the top 24% 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.
Bank of Marin (BMRC - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on July 27.
This bank holding company is expected to post quarterly earnings of $0.52 per share in its upcoming report, which represents a year-over-year change of +79.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Bank of Marin's revenues are expected to be $34.05 million, up 16.6% from the year-ago quarter.
First Hawaiian (FHB - Free Report) reported $231.27 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 6.3%. EPS of $0.60 for the same period compares to $0.58 a year ago.
The reported revenue represents a surprise of +1.48% over the Zacks Consensus Estimate of $227.91 million. With the consensus EPS estimate being $0.60, the company has not delivered EPS surprise.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how First Hawaiian performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net charge-offs: 0.1% versus the three-analyst average estimate of 0.1%.Total Non-Accrual Loans and Leases: $39.5 million versus $39.42 million estimated by three analysts on average.Net interest margin: 3.3% compared to the 3.2% average estimate based on three analysts.Efficiency Ratio: 56.2% versus the three-analyst average estimate of 56.1%.Average Balance - Total Earning Assets: $21.19 billion versus the three-analyst average estimate of $21.45 billion.Total Non-Performing Assets: $39.5 million versus the three-analyst average estimate of $40.75 million.Total Noninterest Income: $60.28 million versus $54.58 million estimated by three analysts on average.Net Interest Income (FTE): $171.9 million compared to the $173.33 million average estimate based on three analysts.Net Interest Income: $170.99 million compared to the $172.67 million average estimate based on three analysts.Service charges on deposit accounts: $8.32 million versus the two-analyst average estimate of $8.28 million.Other service charges and fees: $14.41 million versus $14.01 million estimated by two analysts on average.Noninterest income- Other: $6.01 million versus the two-analyst average estimate of $2.64 million.View all Key Company Metrics for First Hawaiian here>>>
Shares of First Hawaiian have returned -2.2% over the past month versus the Zacks S&P 500 composite's +0.6% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.
Key Takeaways SouthState Q2 EPS beat estimates, while revenues declined and missed expectations.SSB's non-interest income, loans and deposits grew, while expenses fell and asset quality improved.SouthState raised its quarterly dividend to 66 cents per share despite lower NII and rise in provision. SouthState Corporation (SSB - Free Report) reported second-quarter 2026 earnings per share of $2.35, which surpassed the Zacks Consensus Estimate of $2.33. Also, the bottom line increased 11% from the prior-year quarter.
Results were supported by growth in non-interest income, along with higher loans and deposit balances. Lower expenses and an improvement in asset quality were other positives. However, a decline in net interest income (NII) and net interest margin (NIM), along with higher provisions, acted as headwinds.
Net income (GAAP basis) was $230 million, up 6.9% from $215.2 million in the year-ago quarter.
SouthState’s Revenues Decline, Expenses FallTotal revenues for the quarter were $672.7 million, representing a 1.2% year-over-year decline. Also, the top line missed the Zacks Consensus Estimate of $677.2 million.
NII was $575.9 million, down marginally from the year-ago quarter. NIM declined to 3.78% from 4.02% in the prior-year quarter.
Non-interest income was $96.7 million, up 11.4% from the prior-year quarter. The increase was mainly driven by higher fees on deposit accounts, correspondent banking and capital markets income, trust and investment services income, and bank-owned life insurance income. This was partly offset by lower mortgage banking income and other income.
Non-interest expenses declined 4.6% to $357.7 million. The decrease was mainly due to the absence of merger, branch consolidation, severance-related and other expenses, along with lower information services expenses, OREO and loan-related expenses, the amortization of intangibles, and FDIC assessment and other regulatory charges. This was partly offset by higher salaries and employee benefits, occupancy expenses, business development and staff-related expenses, and other operating expenses.
The efficiency ratio decreased to 50% from 52.75% in the year-ago quarter. A decline in the efficiency ratio indicates a rise in profitability.
SSB’s Loans & Deposits RiseAs of June 30, 2026, net loans were $50.3 billion, up 2.8% from the prior quarter. Total deposits were $56.3 billion, which rose 0.8% sequentially.
SouthState’s Asset Quality: Mixed BagIn the reported quarter, the company recorded a provision for credit losses of $15.9 million, up from $7.5 million in the prior-year quarter.
Allowance for credit losses as a percentage of loans was 1.15%, down 16 basis points year over year. The ratio of annualized net charge-offs to total average loans was 0.06%, down from 0.21% in the year-ago quarter.
Non-performing loans to total loans were 0.54%, down from 0.63% in the previous-year quarter. Total non-performing assets declined to $287.4 million from $323.8 million in the year-ago quarter.
SSB’s Capital Ratios Mixed, Profitability Ratios ImproveAs of June 30, 2026, the Tier I leverage ratio was 9.4%, up from 9.2% in the year-ago quarter. The Tier 1 common equity ratio decreased to 11.1% from the prior-year quarter’s 11.2%.
At the end of the second quarter, the annualized return on average assets was 1.36%, up from the year-ago period’s 1.34%. Return on average common equity was 10.19% compared with 9.93% in the prior-year quarter.
SSB Capital Distribution UpdateThe company increased its quarterly cash dividend on its common stock from 60 cents per share to 66 cents. The dividend is payable Aug. 14, 2026, to shareholders of record as of Aug. 7, 2026
Our Take on SouthStateSouthState’s growth in non-interest income, along with higher loan and deposit balances, is expected to support its financial performance. Lower expenses and improving asset quality trends are additional positives. However, pressure on NII and NIM, along with higher provisions, remains concerning.
Currently, SSB carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other BanksCommerce Bancshares Inc.’s (CBSH - Free Report) second-quarter 2026 earnings of $1.10 per share surpassed the Zacks Consensus Estimate of $1.04. The bottom line reflected a rise of 1% from the prior-year quarter.
CBSH’s results primarily benefited from higher NII and a rise in non-interest income. The sequential rise in loan balances acted as a tailwind. However, higher expenses and provisions hurt CBSH’s results to some extent.
F.N.B. Corporation (FNB - Free Report) reported second-quarter 2026 earnings of 42 cents per share, which matched the Zacks Consensus Estimate. The bottom line jumped 16.7% year over year.
FNB’s results primarily benefited from higher NII, a rise in non-interest income and lower provisions. Higher average loans and deposits were other positives. However, higher non-interest expenses hurt the results to some extent.
SummaryBloom Energy is positioned as a critical AI infrastructure enabler, addressing hyperscaler power constraints with modular, on-site fuel cell solutions.Q1 2026 results proved BE’s scalable model, with 130% YoY revenue growth, expanding margins, and credible upward guidance for 2026.Strategic partnerships—especially Brookfield’s $25B commitment and Oracle’s multi-GW deployments—underscore BE’s moat in rapid, financed power delivery.Despite valuation volatility and customer concentration risks, BE’s operational leverage and AI-driven demand support a long-term Buy rating. da-kuk/E+ via Getty Images
Elevator Thesis The conversation around AI infrastructure has changed, to say the least.
Semiconductors remain important as Nvidia (NVDA) continues to scale supply, and Taiwan Semiconductor (TSM) continues to add
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
The upcoming report from Bloom Energy (BE - Free Report) is expected to reveal quarterly earnings of $0.39 per share, indicating an increase of 290% compared to the year-ago period. Analysts forecast revenues of $766.88 million, representing an increase of 91.1% year over year.
Over the last 30 days, there has been a downward revision of 1.4% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
Bearing this in mind, let's now explore the average estimates of specific Bloom Energy metrics that are commonly monitored and projected by Wall Street analysts.
According to the collective judgment of analysts, 'Revenue- Installation' should come in at $85.92 million. The estimate indicates a year-over-year change of +129.9%.
Analysts' assessment points toward 'Revenue- Service' reaching $71.81 million. The estimate indicates a year-over-year change of +31.9%.
The consensus among analysts is that 'Revenue- Electricity' will reach $14.33 million. The estimate points to a change of +11.8% from the year-ago quarter.
Analysts predict that the 'Revenue- Product' will reach $641.95 million. The estimate points to a change of +116.4% from the year-ago quarter.
The consensus estimate for 'Gross profit (loss)- Product' stands at $242.62 million. The estimate compares to the year-ago value of $97.87 million.
The collective assessment of analysts points to an estimated 'Gross profit (loss)- Electricity' of $3.99 million. The estimate compares to the year-ago value of $5.07 million.
Analysts expect 'Gross profit (loss)- Service' to come in at $9.91 million. Compared to the present estimate, the company reported $5.04 million in the same quarter last year.
View all Key Company Metrics for Bloom Energy here>>>
Over the past month, shares of Bloom Energy have returned -29.7% versus the Zacks S&P 500 composite's +0.6% change. Currently, BE carries a Zacks Rank #1 (Strong Buy), suggesting that it may outperform. the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Customers Bancorp NYSE: CUBI reported second-quarter 2026 earnings per share of $2.05, up about 4% from the prior quarter and 18% from a year earlier, as loan growth, deposit gathering and net interest income increased. CEO Sam Sidhu and Chief Financial Officer Mark McCollum said the company reaffirmed its key full-year guidance and expects stronger net interest income in the second half of 2026.
Total loans reached a record $18 billion, rising $624 million, or 4%, during the quarter and 17% year over year. Total deposits increased by more than $140 million sequentially to a record $21.7 billion, while non-interest-bearing deposits reached a second consecutive record of $6.9 billion, representing 32% of deposits.
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“The second quarter was further evidence of our core strategy firing on all cylinders,” Sidhu said, citing continued balance-sheet growth, credit quality and capital levels.
Net Interest Income and Margin Outlook Net interest income totaled more than $193 million, increasing $16 million, or 9%, from a year earlier. McCollum said the increase reflected higher average loan balances and a lower cost of funds. On an annualized linked-quarter basis, net interest income rose about 4%.
The company’s net interest margin was 3.17% in the second quarter, which McCollum described as the expected low point for 2026. Customers Bancorp expects third-quarter margin to move closer to its first-quarter level and to build from there, while net interest income is expected to be stronger in the year’s second half.
Management pointed to deposit pipelines, continued remixing of higher-cost funding, the contribution from recently hired commercial teams and loan growth that accelerated late in the second quarter. During the quarter, the bank remixed more than $600 million of less-strategic deposits, improving pricing by 150 basis points, according to McCollum.
In response to an analyst question, McCollum said the company’s loan-growth outlook appears more likely to land toward the higher end of its guidance range. He said new-loan pricing varied by business vertical, generally ranging from 200 to 225 basis points over SOFR to 300 basis points over SOFR.
Deposit Growth and Commercial Team Recruitment Non-interest-bearing deposits increased by about $175 million during the quarter. Excluding the digital-assets, or DA, channel, such balances rose approximately $375 million, up 14% sequentially and 37% year over year. The company has added more than $840 million of non-interest-bearing deposits outside the DA channel over the past 12 months.
Sidhu said teams recruited since 2023 account for 18% of the company’s deposit base. Teams hired during the past 12 months held more than $500 million in deposits across 1,600 accounts, with 63% of those deposits non-interest bearing. The company said about 30 team members had joined or were in advanced discussions to join during 2026, with four teams expected to join in the third quarter.
Management said the bank’s 2025 recruiting cohort became profitable in approximately three quarters and operated with roughly 1.7 times deposits to loans. The company also cited a roughly $250 million non-interest-bearing deposit pipeline for new teams over the following 90 days.
cubiX Payments Platform Expands Customers Bancorp’s cubiX payments platform surpassed $5 trillion in cumulative transaction activity during the quarter. The bank said it processed more than 200,000 cubiX internal transfers year to date, double the level in the comparable period last year.
The real estate payments vertical is becoming a larger contributor, with transaction volume rising roughly sevenfold sequentially and spot deposit balances exceeding $400 million after only a few quarters. The bank added about 350 deposit accounts in the vertical.
Sidhu said the company projects that real estate could represent 20% of payment units by 2027. Management said mortgage-finance customers migrated to cubiX and newly added real estate customers represented about $1 billion in aggregate balances, with an internal target of reaching approximately $1.5 billion by year-end.
While DA trading activity was lower in May and June, management said total cubiX balances were roughly flat in the quarter because of growth in real estate payments. Customers Bancorp said it expects cubiX to become a growth area in 2027 as newer verticals scale.
AI Investments and Efficiency Efforts Sidhu said Customers Bancorp is pursuing a goal of becoming an “AI-native regional bank.” The company is working with OpenAI engineers on custom capabilities and has piloted a multi-agent credit-underwriting process that it said helped close certain commercial-and-industrial and commercial-real-estate loans within a week.
The bank said its AI-enabled workflow automation has saved at least 46,000 hours, equivalent to 24 full-time employees, and that employees have built more than 600 agents and custom GPTs. All team members are now AI licensed, according to Sidhu.
Management is targeting a low-40% run-rate efficiency ratio in 2027, compared with roughly 50% currently, through revenue growth and productivity improvements. Non-interest expense was $114.9 million in the second quarter, including about $1 million of severance. The company’s operational excellence program has achieved its $30 million annual run-rate target, including about $4 million from revenue initiatives and $26 million from expense initiatives.
Tangible book value per share rose 3% sequentially and 16% year over year to $65.20. The CET1 ratio stood at 12.8%, while the tangible common equity-to-tangible assets ratio was 8.3%. Management said credit quality remained stable, with commercial charge-offs at 18 basis points and reserve coverage at 293%.
About Customers Bancorp (NYSE:CUBI)Customers Bancorp, Inc NYSE: CUBI is a bank holding company headquartered in Phoenixville, Pennsylvania, and the parent of Customers Bank, a federally chartered institution. The company offers a full suite of commercial and consumer banking services, combining traditional deposit and lending products with modern digital banking platforms. As a publicly traded entity, Customers Bancorp focuses on delivering tailored financial solutions to mid‐market companies, small businesses, professionals and individuals across the United States.
Through its commercial banking division, the company provides term loans, lines of credit, real estate financing, asset‐based lending and treasury management services.
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 Customers Bancorp Right Now?Before you consider Customers Bancorp, 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 Customers Bancorp wasn't on the list.
While Customers Bancorp currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
The AI boom is creating opportunities across semiconductors, cloud computing, enterprise software, infrastructure, cybersecurity, and automation.
Inside this report, you’ll find 10 companies positioned to benefit as artificial intelligence moves from hype to real-world deployment and becomes a core growth driver for corporate America.
Amerant Bancorp NYSE: AMTB reported higher second-quarter earnings as growth in low-cost international deposits supported loan and securities balances, while the company continued to reduce criticized credit exposures and outlined plans for further loan, deposit and profitability growth through year-end.
Diluted earnings per share rose to $0.53 in the second quarter of 2026 from $0.44 in the first quarter. Net interest income increased to $82.6 million from $80.3 million, while net income, return on assets and return on equity improved, according to Chief Financial Officer Sharymar Calderón.
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Return on assets rose to 0.84% from 0.73% in the prior quarter, and return on equity increased to 9.23% from 7.63%. Amerant’s efficiency ratio improved modestly to 68.37% from 68.52%.
Deposits Drive Balance-Sheet Growth Total assets increased to $10.3 billion at June 30 from $9.9 billion at the end of the first quarter. Total deposits rose by $416 million to $8.4 billion, principally because of international deposit growth. Gross loans increased by $112 million to $6.9 billion, led by commercial and industrial lending and residential mortgages, partly offset by commercial prepayments, loan sales and strategic exits.
President and CEO Carlos Iafigliola said the company is emphasizing Florida loan growth, more granular C&I production and selected residential mortgage lending. Amerant does not take credit risk outside the U.S. and uses its international funding to support domestic lending, Calderón said.
International deposits, particularly from Venezuela, were a major source of the quarter’s funding growth. Iafigliola said Venezuelan deposits rose by nearly $500 million from the first quarter, citing the company’s brand recognition, established client relationships and banking relationships in the country.
In response to an analyst question, Iafigliola said the deposits are largely tied to oil production and include institutional balances that are ultimately redeployed into commercial and personal accounts. He said Amerant views the deposits as relatively sticky, while noting the company will manage concentration, compliance and pricing discipline as balances grow.
The higher proportion of lower-cost deposits reduced Amerant’s total deposit cost to 2.21% from 2.31% in the prior quarter, while its cost of funds declined to 2.38% from 2.47%. Net interest margin edged down to 3.52% from 3.55%, however, as lower loan yields offset much of the benefit from reduced funding costs.
Management said competitive pricing for high-quality loans has narrowed new-loan spreads. Iafigliola said Amerant previously originated some loans at spreads above 200 basis points over SOFR, but competition for the asset classes now targeted by the bank has tightened pricing. The company expects net interest margin of about 3.50% for the remainder of 2026.
Credit Optimization Continues Management described credit transformation as its highest strategic priority. During the quarter, Amerant revised credit policies and procedures, including approval authorities and product programs, and completed a revamp of its loan-origination stage.
The bank also continued to exit selected exposures, loans outside its footprint and criticized credits. Nonperforming loans declined by $5 million, or 2.8%, to $171 million, equal to 1.7% of total assets. After the quarter closed, a $9 million New York commercial real estate loan was repaid, reducing nonperforming loans to $162 million, Calderón said.
Loan payoffs totaled $24 million and loan sales totaled about $40 million within the classified portfolio during the quarter. Special mention loans, classified loans and nonperforming loans all declined, according to the company.
The provision for credit losses fell to $4.8 million from $7.8 million in the first quarter, reflecting lower needs for specific reserves and higher recoveries, partially offset by loan growth and macroeconomic adjustments. Gross charge-offs were $5.5 million, mainly associated with two commercial loans, and were offset by $4 million in recoveries. Amerant expects gross charge-offs of 25 to 30 basis points, potentially offset by recoveries from workout efforts.
Iafigliola said future growth will be concentrated mainly in C&I lending, with a smaller contribution from residential lending. The bank remains selective in commercial real estate as it continues to address classified and nonperforming CRE assets. He said the bank’s typical target transaction size is near $30 million, with larger loans generally reserved for selected top-tier customers or especially stable properties and projects.
Expenses, Capital Returns and Outlook Noninterest expense increased 2.9% sequentially to $68.9 million, driven by higher variable compensation, vendor costs and the final portion of a terminated sports partnership agreement. Those increases were partly offset by the absence of investment impairment expense recorded in the first quarter and lower losses on loans held for sale.
Amerant expects third-quarter expenses to be in line with the second quarter, followed by fourth-quarter expenses of $66 million to $67 million. The company is targeting an efficiency ratio of approximately 60% and said it identified additional cost-saving initiatives expected to materialize in the fourth quarter. Management also said it has identified artificial intelligence use cases intended to improve productivity.
For the fourth quarter, Amerant expects total loans of about $7.3 billion and deposits of about $9.1 billion. Management said it expects to reach a 1% return on assets by year-end, with net interest income expected to be the largest contributor.
Common equity tier 1 capital rose to 11.94% from 11.84% in the first quarter, aided by lower risk-weighted assets and quarterly earnings. The company repurchased 690,000 shares during the quarter at a weighted average price of $23.29 per share, or about one times tangible book value, and paid a $0.09 quarterly common dividend. Its board approved another $0.09 per-share dividend payable Aug. 28.
Management said the bank expects to remain above $10 billion in assets by year-end and believes costs associated with crossing that threshold are largely incorporated into its current expense run rate. The company said it expects only modest additional technology investments in 2027 while seeking to maintain expenses near anticipated fourth-quarter levels.
About Amerant Bancorp (NYSE:AMTB)Amerant Bancorp is the bank holding company and parent of Amerant Bank, a community-oriented financial institution headquartered in Coral Gables, Florida. Amerant Bank delivers a comprehensive range of deposit and lending products to both retail and commercial clients, including checking and savings accounts, certificates of deposit, consumer mortgages, and business lines of credit. In addition, the company offers specialized services such as treasury management, international trade finance, foreign exchange, and asset-based lending to support the complex needs of corporate and high-net-worth customers.
Tracing its roots to the early 1980s, Amerant has grown through a combination of strategic acquisitions and organic expansion.
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 Amerant Bancorp Right Now?Before you consider Amerant Bancorp, 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 Amerant Bancorp wasn't on the list.
While Amerant Bancorp currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
With the proliferation of data centers and electric vehicles, the electric grid will only get more strained. Download this report to learn how energy stocks can play a role in your portfolio as the global demand for energy continues to grow.
The upcoming report from Boston Scientific (BSX - Free Report) is expected to reveal quarterly earnings of $0.83 per share, indicating an increase of 10.7% compared to the year-ago period. Analysts forecast revenues of $5.39 billion, representing an increase of 6.5% year over year.
Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
With that in mind, let's delve into the average projections of some Boston Scientific metrics that are commonly tracked and projected by analysts on Wall Street.
According to the collective judgment of analysts, 'Net Sales- MedSurg- Worldwide' should come in at $1.80 billion. The estimate indicates a change of +4.8% from the prior-year quarter.
The combined assessment of analysts suggests that 'Net Sales- Cardiovascular- Worldwide' will likely reach $3.61 billion. The estimate indicates a year-over-year change of +7.9%.
It is projected by analysts that the 'Net Sales- MedSurg- Neuromodulation- Worldwide' will reach $335.33 million. The estimate indicates a change of +10.7% from the prior-year quarter.
The average prediction of analysts places 'Net Sales- MedSurg- Endoscopy- Worldwide' at $774.10 million. The estimate indicates a year-over-year change of +5%.
Based on the collective assessment of analysts, 'Net Sales- MedSurg- Urology- Worldwide' should arrive at $694.74 million. The estimate points to a change of +2.8% from the year-ago quarter.
Analysts' assessment points toward 'Net Sales- Cardiovascular- Cardiac Rhythm Management (CRM)- Worldwide' reaching $601.79 million. The estimate suggests a change of +2% year over year.
The consensus estimate for 'Net Sales- Cardiovascular- Interventional Cardiology & Vascular Therapies- Worldwide' stands at $1.26 billion. The estimate suggests a change of +73% year over year.
Analysts predict that the 'Net Sales- Cardiovascular- Watchman- Worldwide' will reach $553.70 million. The estimate suggests a change of +13.9% year over year.
The collective assessment of analysts points to an estimated 'Net Sales- Cardiovascular- Electrophysiology- Worldwide' of $923.15 million. The estimate indicates a change of +9.9% from the prior-year quarter.
The consensus among analysts is that 'Geographic Revenue- U.S.' will reach $3.39 billion. The estimate suggests a change of +5.1% year over year.
Analysts expect 'Geographic Revenue- Rest of the World' to come in at $1.98 billion. The estimate suggests a change of +8% year over year.
View all Key Company Metrics for Boston Scientific here>>>
Shares of Boston Scientific have experienced a change of -1.4% in the past month compared to the +0.6% move of the Zacks S&P 500 composite. With a Zacks Rank #4 (Sell), BSX is expected to underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Artificial intelligence is creating a problem few investors were talking about just a year ago: the U.S. may not have enough reliable electricity to support the next wave of data centers without driving up energy costs for everyone else.
That challenge increasingly points to one solution. Nuclear power can provide around-the-clock electricity without the carbon emissions of natural gas, making it an ideal match for AI’s insatiable appetite for power. But while the economics look compelling, there’s one obstacle that could determine whether nuclear becomes AI’s energy backbone or remains a niche solution: where these projects get built.
Looming Natural Gas Crisis Makes Nuclear More Attractive Matthew Smith of Chronometer Partners spent 18 months building a detailed model of the U.S. natural gas system, tracking everything from production wells and pipelines to underground storage. His conclusion, shared on a recent episode of the Invest Like the Best podcast, is sobering.
As liquefied natural gas (LNG) exports continue climbing and AI data centers dramatically increase electricity demand, the U.S. could begin drawing down its natural gas storage by mid-to-late 2028. By around 2030, the country’s traditional inventory cushion could be largely depleted, leaving consumers more exposed to price spikes. If gas prices surge, electricity prices are likely to follow.
Nuclear power offers a solution. Existing reactors already provide dependable, carbon-free baseload power, and once operating, production costs are generally well below those of building new gas-fired plants. Restarting retired reactors and deploying small modular reactors (SMRs) could help absorb AI’s rapidly growing electricity demand before it translates into higher utility bills for households.
Amazon‘s (NASDAQ:AMZN | AMZN Price Prediction) data center campus sits alongside Talen Energy‘s (NASDAQ:TLN) Susquehanna nuclear plant. Microsoft (NASDAQ:MSFT) has signed a 20-year agreement to purchase electricity from the restarted Three Mile Island Unit 1, while Meta Platforms (NASDAQ:META) has signed multi-gigawatt agreements tied to Vistra‘s (NYSE:VST) Ohio nuclear facilities and future Oklo (NASDAQ:OKLO) SMRs.
By sourcing power directly from nuclear facilities, these companies can reduce their dependence on the broader electric grid and limit the impact on residential ratepayers.
Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
Gallup’s survey found 53% of Americans still oppose having a nuclear plant in their own community. Data center opposition is even stronger. Emerson College found 63% of people opposed data centers being built nearby — up sharply from 42% just six months earlier. Gallup puts it even higher at 71%.
And data centers themselves face growing backlash. New York just recently imposed a one-year moratorium on building new ones. Communities often support AI, clean energy, and economic growth in principle, but only if it’s in someone else’s backyard.
Geography Could Decide the Winners The good news is that there is a way forward. Expanding nuclear generation at existing reactor sites largely avoids the debate over whether nuclear belongs in a community. Residents have already accepted the technology and frequently value the jobs and tax revenue these facilities provide. Surveys also suggest between 70% and 86% of nearby residents support adding SMRs at existing nuclear sites.
Unfortunately, data centers aren’t typically built where nuclear plants already exist. Developers prioritize inexpensive land, abundant fiber connectivity, water access, and generous tax incentives. That’s why Northern Virginia, Texas, Arizona, and other emerging data-center hubs continue attracting the majority of new investment despite having limited nearby nuclear capacity.
As a result, much of AI’s growing electricity demand still flows through the broader power grid, where natural gas remains the primary balancing fuel.
Key Takeaway If Smith’s model proves accurate, natural gas markets could become significantly tighter by the end of the decade as AI demand collides with rising LNG exports. Nuclear power remains one of the most practical sources of reliable, carbon-free electricity capable of offsetting that pressure.
But investors should focus on companies expanding or restarting nuclear generation at existing sites, where public acceptance is strongest, rather than betting on entirely new nuclear or data-center developments that may face years of local resistance.
Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
Quantum computing is a technology that's coming quicker than most expect, and it could cause some industry stocks to skyrocket, outperforming big tech by a wide margin over the next few years. If that's the case, then investors would be smart to start scooping up some quantum computing stocks now, and one that's massively on sale is IonQ (IONQ -1.26%).
IonQ is generally recognized as a leader in quantum computing and has taken a unique approach that has attracted several clients recently. This makes IonQ a smart stock pick for the quantum revolution, and it could lead to incredible returns over the next few years.
Image source: The Motley Fool.
IonQ is rapidly expanding The quantum computing field is still fairly immature, and several approaches are being pursued to determine which is the best option. The most popular is superconducting, which involves cooling a chamber containing a particle to nearly absolute zero, then using its quantum mechanics for calculations. IonQ is taking a slightly different approach: It uses a laser to pinpoint and cool a particle, then an electromagnetic trap to perform quantum computing.
One of the major problems with quantum computing is that it isn't as accurate as traditional computing, and errors can compound, wrecking calculations. However, IonQ's technique is the most accurate in the world, as it holds the world record for the highest two-qubit gate fidelity at 99.99% -- a commonly used industry metric. It also has a blueprint for building a 10,000-qubit computer on this technology, which would lead to a commercially viable computer that could revolutionize computing.
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If IonQ can do this, then it will be a wildly successful company, and its stock could easily skyrocket over the next few years. Because quantum computing is such an early-stage technology, the success of stocks within that industry is mostly dominated by the market's risk appetite. Currently, the market has no such appetite for risk, and the stock is down over 50% from its all-time high. This makes right now the perfect buying opportunity.
During Q1, IonQ's revenue grew by an incredible 755% year over year, and if it can keep that up for a bit longer, it will be a great investment pick if it can develop a viable technology. There's still no guarantee that IonQ's approach to quantum computing is the right one, but with a solid strategy, a plan to produce a commercially viable computing platform, and increasing early-stage customers, I think IonQ is one of the top investment options to consider in this space.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
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 IonQ, Inc. (IONQ - Free Report) .
IonQ currently has an average brokerage recommendation (ABR) of 1.58, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 12 brokerage firms. An ABR of 1.58 approximates between Strong Buy and Buy.
Of the 12 recommendations that derive the current ABR, eight are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 66.7% and 8.3% of all recommendations.
Brokerage Recommendation Trends for IONQ
Check price target & stock forecast for IonQ here>>>
The ABR suggests buying IonQ, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
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.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
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.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is IONQ a Good Investment?In terms of earnings estimate revisions for IonQ, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at -$1.07.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market 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 #3 (Hold) for IonQ. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for IonQ.
Energy Transfer LP (ET - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this energy-related services provider have returned +6.5% over the past month versus the Zacks S&P 500 composite's +0.6% change. The Zacks Oil and Gas - Production Pipeline - MLB industry, to which Energy Transfer LP belongs, has gained 6.1% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
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, Energy Transfer LP is expected to post earnings of $0.37 per share, indicating a change of +15.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.1% over the last 30 days.
The consensus earnings estimate of $1.43 for the current fiscal year indicates a year-over-year change of +18.2%. This estimate has changed +0.3% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $1.52 indicates a change of +6.6% from what Energy Transfer LP is expected to report a year ago. Over the past month, the estimate has changed -0.1%.
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 #1 (Strong Buy) for Energy Transfer LP.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Energy Transfer LP, the consensus sales estimate for the current quarter of $30.87 billion indicates a year-over-year change of +60.4%. For the current and next fiscal years, $121.01 billion and $126.05 billion estimates indicate +41.5% and +4.2% changes, respectively.
Last Reported Results and Surprise HistoryEnergy Transfer LP reported revenues of $27.77 billion in the last reported quarter, representing a year-over-year change of +32.1%. EPS of $0.35 for the same period compares with $0.36 a year ago.
Compared to the Zacks Consensus Estimate of $29.28 billion, the reported revenues represent a surprise of -5.17%. The EPS surprise was -7.89%.
Over the last four quarters, Energy Transfer LP surpassed consensus EPS estimates times. The company topped consensus revenue estimates times 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.
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.
Energy Transfer LP is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe 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 Energy Transfer LP. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
Key Takeaways Patterson-UTI Energy reports Q2 2026 earnings on July 29, with estimates calling for a 3-cent per-share loss.PTEN's lower direct operating costs and reduced depreciation may have contributed to its Q2 results.PTEN carries a negative Earnings ESP despite beating earnings estimates in three of the past four quarters. Patterson-UTI Energy, Inc. (PTEN - Free Report) is set to report second-quarter 2026 earnings on July 29. The Zacks Consensus Estimate for the to-be-reported quarter is pegged at a loss of 3 cents per share on revenues of $1.15 billion.
Let’s delve into the factors that might have influenced PTEN’s performance in the to-be-reported quarter. Before that, it’s worth taking a look at the company’s performance in the last reported quarter.
Highlights of PTEN’s Q1 Earnings & Surprise HistoryIn the last reported quarter, the Houston, TX-based oil and gas drilling company’s earnings beat the consensus mark. Patterson-UTI Energy reported a first-quarter 2026 adjusted net loss of 6 cents per share, narrower than the Zacks Consensus Estimate of a 10-cent loss. This was due to a decrease in operating income in its Drilling Services, Completion Services and Drilling Products segments. Total revenues of $1.1 billion beat the Zacks Consensus Estimate by 3.1%.
PTEN’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark once, delivering an average surprise of 27.96%
This is depicted in the graph below:
Trend in PTEN’s Estimate RevisionThe Zacks Consensus Estimate for second-quarter 2026 earnings has not experienced any upward or downward movements in the past seven days. The estimated figure indicates a 5.85% year-over-year decline. However, the Zacks Consensus Estimate for revenues indicates an increase of about 5.85% from the year-ago period’s actual.
Factors to Consider Ahead of PTEN’s Q2 ReleasePTEN generates revenues by providing drilling, completion and related services to oil and gas producers. The company supports customers throughout the well lifecycle by drilling wells, completing them and supplying the equipment and technologies required for these operations. The reduction in PTEN's costs is likely to have supported its bottom line. The company’s operating costs and expenses are projected to reach $1.11 billion in the second quarter, which is 11% up from the year-ago period’s level. Direct operating costs are projected to be $825.6 million, down 11.2% year over year, while depreciation, depletion, amortization and impairment expenses are estimated to be $220.1 million, representing a 15.9% decline from the prior-year period.
On the bearish side, PTEN’s revenues are likely to have come under pressure in the quarter to be reported. The Zacks Consensus Estimate for second-quarter revenues is expected to be down from the year-ago quarter’s $1.22 billion. The decline is likely to have reflected weaker year-over-year performance across the company’s Drilling Services, Completion Services, Drilling Products and Other segments.
What Does Our Model Say About PTEN Stock?The proven Zacks model does not conclusively predict an earnings beat for Patterson-UTI Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. However, that is not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
PTEN’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -10.77%.
PTEN’s Zacks Rank: PTEN currently carries a Zacks Rank #2.
Stocks With the Favorable CombinationHere are some firms from the energy space that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.
Cheniere Energy (LNG - Free Report) has an Earnings ESP of +20.97% and a Zacks Rank #1. The firm is scheduled to release earnings on Aug. 6. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cheniere Energy is valued at $56.03 billion. It is a leading U.S.-based liquefied natural gas (“LNG”) company that produces, exports and markets LNG to customers around the world from the major facilities in Louisiana and Texas. Cheniere Energy's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark once, delivering an average surprise of 74.97%
Murphy Oil (MUR - Free Report) has an Earnings ESP of +10.92% and a Zacks Rank #3. The firm is scheduled to release earnings on Aug. 5. Murphy Oil is an independent oil and natural gas exploration and production company with operations in the United States, Canada and offshore international markets, focusing on the development of conventional and unconventional hydrocarbon resources.
The company is valued at $5.56 billion. Murphy Oil’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 117.54%.
Helmerich & Payne (HP - Free Report) has an Earnings ESP of +2.08% and a Zacks Rank #3. The firm is scheduled to release earnings on Aug. 5.
Helmerich & Payne is valued at $3.52 billion. The company is a leading provider of drilling solutions, offering land and offshore contract drilling services and advanced drilling technologies to oil and natural gas exploration and production companies.
Key Takeaways FIX beat Q2 earnings and revenue estimates as results surged year over year on strong end-market demand.Comfort Systems reported record backlog of $14.06 billion, up 73.2% year over year.FIX expanded margins, strengthened cash flow and reduced long-term debt while returning cash to shareholders. Comfort Systems USA, Inc. (FIX - Free Report) delivered impressive second-quarter 2026 results, with earnings and revenues surpassing the Zacks Consensus Estimate and increasing sharply year over year.
The quarterly performance reflected continued strength across its end markets, robust execution by the operating teams and sustained demand that drove record backlog growth, reinforcing the company’s confidence in the business momentum.
FIX’s Q2 DiscussionThe company reported earnings per share of $12.53, which topped the Zacks Consensus Estimate of $10.38 by 20.7% and increased 91.9% from $6.53 reported in the year-ago quarter.
Revenues of $3.27 billion also surpassed the consensus mark of $2.94 billion by 10.96% and rose 50.3% from $2.17 billion generated in the prior-year quarter.
Comfort Systems Sees Broad-Based Segment GrowthComfort Systems generated Mechanical segment revenues of $2.30 billion in the second quarter, up 40.1% from the prior-year quarter. The Electrical segment's revenues climbed 81.2% year over year to $969 million, reflecting strong demand across electrical contracting operations and contributions from acquisitions.
Customer mix continued to underscore the dominance of technology-related work. Technology customers represented 58.7% of second-quarter consolidated revenues, followed by manufacturing at 16.4%, healthcare at 7.1%, education at 5.1% and government at 4.4%.
Activity type also highlighted where project activity remained concentrated. New construction accounted for 75.1% of revenues, while existing building construction contributed 14.8%. Service projects represented 4.4% of revenues, and service calls, maintenance and monitoring comprised the remaining 5.7%, reinforcing the company's continued emphasis on large construction projects.
FIX Backlog Rises as Demand Stays RobustBacklog as of June 30, 2026, totaled $14.06 billion, increasing 12.9% from $12.45 billion at March 31, 2026, and jumping 73.2% from $8.12 billion reported a year ago. On a same-store basis, backlog climbed to $13.70 billion from $8.12 billion in the year-ago period.
The mix continued to skew toward the Mechanical segment, which represented 71.5% of total backlog ($10.06 billion), while the Electrical segment contributed 28.5% ($4 billion). The company also noted that approximately 65-75% of its remaining performance obligations are expected to be recognized as revenues over the next 12 months, providing healthy visibility into growth.
Comfort Systems Expands Margins on ExecutionOperating performance strengthened alongside the sharp increase in revenues. Gross profit increased to $844.2 million from $509.9 million a year ago, and gross margin expanded to 25.9% from 23.5%, reflecting improved project execution and operating leverage.
Selling, general and administrative expenses increased to $287 million, but as a percentage of revenues, SG&A improved to 8.8% from 9.7%. Operating income climbed to $558 million from $299.9 million a year earlier, lifting the operating margin to 17.1% from 13.8%.
Adjusted EBITDA rose to $600.5 million from $334.1 million in the year-ago quarter, while adjusted EBITDA margin expanded 300 basis points to 18.4%.
FIX Financial Position Remains StrongAs of June 30, 2026, Comfort Systems had cash and cash equivalents of $1.85 billion, up from $981.9 million at 2025-end. Long-term debt declined to $53.8 million from $139.1 million at Dec. 31, 2025, further strengthening the company's balance sheet.
During the first six months of 2026, net cash provided by operating activities totaled $1.53 billion compared with $164.5 million in the year-ago period. Free cash flow increased to $1.24 billion from $113.1 million a year earlier. During the quarter, the company also paid dividends of 80 cents per share and continued repurchasing shares, reflecting its robust cash generation and shareholder return strategy.
FIX’s Zacks Rank & Recent Construction ReleasesComfort Systems currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PulteGroup, Inc. (PHM - Free Report) reported better-than-expected second-quarter 2026 results, with adjusted earnings and total revenues topping the Zacks Consensus Estimate, but declining year over year. The quarterly results reflect reduced home-closing volumes, softer average selling prices (“ASP”) and margin compression.
PulteGroup ended the quarter with a backlog of 10,966 homes, up 1.7% from the prior-year level. Backlog units increased in the Northeast, Florida, Midwest and Texas, while the Southeast and West reported declines. The value of homes in backlog slipped 0.6% to $6.80 billion. The divergence between higher units and lower value indicates that the average value of homes in backlog declined year over year, consistent with PHM’s broader pricing pressure.
D.R. Horton, Inc. (DHI - Free Report) reported third-quarter fiscal 2026 earnings of $3.20 per share, beating the Zacks Consensus Estimate of $2.99 by 7%. Revenues of $9.23 billion also surpassed the consensus mark of $9.19 billion by 0.5%. On a year-over-year basis, earnings declined 4.8%, while revenues increased marginally.
DHI’s earnings and revenue beat was driven by higher home-closing volumes, resilient home sales margins, disciplined management of pricing and incentives, and contributions from the Rental, Forestar and Financial Services businesses. However, lower profitability, elevated incentives and cautious consumer demand continued to weigh on results. D.R. Horton now expects fiscal 2026 consolidated revenues of $32.5-$33 billion, down from $33.5-$34.5 billion expected earlier.
Lennar Corporation (LEN - Free Report) reported mixed second-quarter fiscal 2026 results, with adjusted earnings topping the Zacks Consensus Estimate while revenues missed the same. Year over year, both metrics declined, given ongoing softness in housing demand and a lower ASP for homes delivered.
LEN’s Homebuilding revenues declined 2% year over year to $7.62 billion from $7.84 billion, with home deliveries increasing 2% to 20,519 homes from 20,131 homes a year ago. Backlog at quarter-end increased to 16,818 homes from 15,538 homes. For the third quarter of fiscal 2026, Lennar expects home deliveries in the range of 20,500-21,500 and new orders between 21,000 and 22,000 homes. Gross margin on home sales is expected to be approximately 16%.
Brookfield Infrastructure trades under two separate tickers for one identical business, with a price premium between the two. The gap between the two tickers has moved sharply in the last few days. In this article, I share an overview of the company, explaining the dual ticker structure and discussing the simplification plan that has just been announced.
3 Insurance Stocks Hitting 52-Week Highs With More Room to RunThe Hartford Insurance Group NYSE: HIG reported second-quarter 2026 core earnings of $945 million, or $3.42 per diluted share, as strength in its commercial insurance, employee benefits and investment operations supported results. The insurer’s trailing 12-month core earnings return on equity was 18.7%, while book value per share excluding accumulated other comprehensive income rose 7% from year-end to $78.91.
Chairman and Chief Executive Officer Chris Swift said the company’s results reflected the strength of its property-and-casualty and Employee Benefits franchises, distribution relationships and customer-service capabilities. The Hartford also announced an agreement to sell Hartford Funds to Wellington Management, characterizing the business as a non-core long-term investment.
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The board authorized a new $4.2 billion share-repurchase program through December 2028, in addition to approximately $650 million remaining under the prior authorization as of June 30. Chief Financial Officer Beth Costello said the company repurchased 3.4 million shares for $450 million during the quarter and expects to raise quarterly repurchases to $475 million for the rest of 2026.
Business Insurance Posts Premium Growth Business Insurance generated core earnings of $695 million, with written premiums increasing 5% and an underlying combined ratio of 89.3. Small Business written premiums rose 7%, supported by double-digit growth in package products and excess-and-surplus binding business. Its underlying combined ratio improved 2.5 points from a year earlier to 86.5, primarily due to lower non-catastrophe property losses and improved operating leverage.
Middle and Large business premiums increased 4%, while its underlying combined ratio was 95.3. Costello said results included elevated non-catastrophe property losses, including several large fire losses, as well as a business mix shift toward National Accounts and commercial auto. She said the company expects the full-year Middle and Large underlying combined ratio to be roughly a point better than its 93.3 year-to-date level if non-catastrophe property losses normalize in the second half.
Global Specialty premiums grew 4%, and the segment reported an 85.8 underlying combined ratio. The ratio increased from the previous year because of a higher international loss ratio and technology-related expenses. Swift said the business continued to see momentum in wholesale excess casualty and auto, bond, and financial lines.
Business Insurance renewal written pricing excluding workers’ compensation was 5.8%, relatively consistent with prior trends. Commercial auto and general liability rates remained above loss trends, while umbrella and excess lines achieved some of the strongest increases across the portfolio. Property pricing moderated, particularly in large property, although Swift said aggregate pricing in Small Business package and middle-market general-industry property remained in the mid-single digits.
Morris Tooker, president of Commercial Lines, said increased competition affected Middle and Large retention, rather than any targeted pruning following reserve actions. He added that The Hartford has reduced its shared-and-layered large-property book to less than $25 million as pricing in that market no longer met the company’s benchmarks.
Reserve Actions Reflect Casualty Trends The company reported favorable prior-year reserve development in workers’ compensation, catastrophes, bond and Personal Insurance, partly offset by increases in general liability and commercial auto liability reserves.
Costello said general liability prior-year reserves increased by $46 million during the quarter, primarily because of a higher frequency of large losses in excess casualty and umbrella lines across several accident years. The affected periods included 2017 through 2019 and 2022 and 2023, with no addition to accident year 2025, she said.
Commercial auto liability reserves rose as adverse development in accident years 2023 and 2024 pointed to higher severity than previously estimated. Costello said the company is seeing more attorney representation and time-limit demands in claims that previously may have involved more minor accidents and injuries.
Management described the changes as modest relative to the reserve base and said the reserve review process was unchanged. Costello said the effect on expected forward loss trends was minimal, amounting to tenths of basis points.
Current accident-year property-and-casualty catastrophe losses totaled $222 million before tax, compared with $212 million a year earlier. The catastrophe ratio remained unchanged at 4.9 combined-ratio points.
Personal Insurance Profitability Improves Despite Lower Premiums Personal Insurance produced $128 million in core earnings and an 86.3 underlying combined ratio, an improvement of 1.7 points from the second quarter of 2025. Auto’s underlying combined ratio improved 1.9 points as earned pricing continued to exceed loss trends, while home results were supported by underwriting execution and low-double-digit pricing.
Written premiums in Personal Insurance declined 7%, including a 10% decline in auto and flat home premiums, amid elevated competition for new business. Agency business grew 7% from a year earlier. Renewal written pricing increased 5.5% in auto and 10.4% in home, while auto policy retention improved slightly and home retention was relatively stable.
The Personal Insurance expense ratio rose to 26.3 from 25.1 a year earlier, driven by lower earned premiums and higher commissions associated with a growing agency-business mix. Swift said the company’s contemporary agency product was available in 23 states following its July rollout and is expected to reach 30 states by early 2027. He said direct-channel growth is likely to face continued pressure amid high customer shopping activity and strong competition.
Employee Benefits and Investments Add Support Employee Benefits earned $139 million in core earnings, producing a 7.4% core earnings margin. Fully insured premium growth benefited from sales execution and persistency in the low 90s. Group life performance was described as excellent, while disability performance was solid.
The group disability loss ratio increased 6.3 points to 74.8%, reflecting increased claim incidence across short- and long-term disability. Mike Fish, head of Employee Benefits, said behavioral-health claims were rising somewhat more than other diagnoses in short-tail lines. Paid family and medical leave utilization was also higher in newly launched states and in some longer-established states, though Fish said the company continues to apply rate increases to the book.
Net investment income climbed 22% year over year to $800 million, driven by income from limited partnerships and other alternative investments, along with a higher level of invested assets. Annualized limited partnership returns were 7.6% before tax, supported by real estate joint-venture sales and infrastructure and energy-transition funds. The Hartford expects full-year net investment income to increase, with overall portfolio yields broadly in line with 2025.
About The Hartford Insurance Group (NYSE:HIG)The Hartford Financial Services Group, commonly known as The Hartford, is a U.S.-based insurance and investment company that provides a broad range of commercial and personal insurance products and employee benefits. Its core businesses include property and casualty insurance for businesses and individuals, group benefits such as group life, disability and dental plans, and retirement and investment solutions offered through affiliated asset-management operations. The company also delivers risk management, claims-handling and loss-prevention services designed to support policyholders across a variety of industries.
Founded in Hartford, Connecticut, in 1810, The Hartford is one of the oldest insurance organizations in the United States and has a long history of underwriting and product development across multiple insurance lines.
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First Interstate BancSystem NASDAQ: FIBK reported second-quarter 2026 net income of $83.9 million, or $0.87 per diluted share, compared with $60.2 million, or $0.61 per diluted share, in the first quarter. Results included a $19.5 million gain from a branch transaction completed during the quarter.
Management said it continued to prioritize long-term profitability, deposit mix, credit quality and operating efficiency, even as elevated loan payoffs drove a larger-than-expected decline in reported loan balances.
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Margin expands as funding costs decline Net interest income rose 0.7% from the first quarter to $202.2 million, supported by net interest margin expansion and an additional accrual day. The increase was partly offset by lower interest-earning assets, including the impact of the branch sale completed in April.
Fully taxable equivalent net interest margin rose to 3.48%, from 3.43% in the first quarter and 3.32% a year earlier. The second quarter marked the company’s ninth consecutive quarter of margin expansion.
Chief Financial Officer David Della Camera said average loan yields increased two basis points sequentially to 5.62%, while total deposit costs declined three basis points and total funding costs fell four basis points. He also noted that, over the past year, investment-security yields increased to 2.98% from 2.72%, while total deposit costs declined to 1.17% from 1.33%.
“These trends highlight the continued improvement in the underlying profitability of the balance sheet,” Della Camera said.
Loan balances fall on accelerated payoffs Loans declined $447 million during the second quarter, reflecting continued reductions in agricultural and residential loans, amortization in the indirect lending portfolio, and higher loan paydowns and payoffs. Management said the increased payoff activity accelerated late in the quarter and was concentrated in criticized loans, secondary-market activity, loans in divested markets and credits considered to have limited relationship value.
Chief Executive Officer James Reuter said the company has not pursued near-term balance-sheet growth that would conflict with its relationship-banking strategy. Commercial loan production improved during the quarter, particularly in the Rocky Mountain region, he said, though production was outweighed by payoffs.
Della Camera said the company categorizes its out-of-market portfolio at roughly the mid-$600 million level, with approximately $100 million of payoffs from that portfolio during the second quarter. He said most commercial loan payoffs did not affect core relationships.
Management expects accelerated payoff activity to continue through the rest of 2026, pulling forward some exits that the company previously expected in later years. The company’s updated outlook incorporates a smaller near-term balance sheet, including additional expected runoff in mortgage, indirect and out-of-market lending categories.
During the question-and-answer session, Della Camera said average earning assets are expected to bottom in the third quarter, while period-end earning assets are expected to be roughly flat to improving from there. Fourth-quarter average earning assets are expected to be higher, based on the company’s guidance.
New loan yields were in the low- to mid-6% range depending on the loan type, Della Camera said, and there were no notable prepayment fees contributing to second-quarter margin performance.
Deposits decline following branch transaction Total deposits fell $441.7 million to $21.4 billion as of June 30. More than half of the decline resulted from the sale of $244 million in deposits as part of the Nebraska branch transaction.
The company said its deposit mix improved during the quarter. Noninterest-bearing balances returned to growth both sequentially and year over year when adjusted for deposits sold in branch transactions. Average deposits declined $212.3 million, less than the period-end decline, due to end-of-period outflows associated with larger customer deposit movements.
Management said it allowed some higher-cost time deposits to leave the balance sheet while focusing on core customer relationships. The loan-to-deposit ratio declined to 66.6% at quarter-end, from 67.3% in the first quarter and 72.3% a year earlier.
Credit quality improves, capital returns continue Net charge-offs rose $7.3 million sequentially to $9.7 million, or 27 basis points of average loans, primarily from partial or total resolutions of previously reserved credits. The company recorded a $3.2 million reduction in its provision for credit losses, driven mainly by lower loan balances.
Criticized loans declined $95.8 million, or 9.3%, from the first quarter and were down 22% over the past 12 months. The total funded allowance for credit losses decreased to 1.28% of loans held for investment, from 1.33% in the prior quarter, reflecting resolutions within previously reserved nonperforming loans.
Noninterest income increased $20.6 million sequentially to $61.7 million, driven primarily by the branch-sale gain. Noninterest expense rose $1.3 million to $158.9 million, reflecting higher advertising, professional fees related largely to branding efforts, donations, branch-closure costs and other expenses. Those increases were mostly offset by lower salaries, wages and employee benefits.
First Interstate repurchased about 1.9 million shares for approximately $69 million during the quarter. Since beginning its repurchase program in August, the company has repurchased roughly 8 million shares and returned about $270 million to shareholders. It increased its cumulative repurchase authorization by $150 million to $450 million.
The company also declared a quarterly common dividend of $0.47 per share. Its Common Equity Tier 1 capital ratio rose 24 basis points sequentially to 14.54%, while its leverage ratio was 9.59%.
Management said it added 14 relationship managers year to date while maintaining what it views as a structurally lower staffing level following its reorganization. Reuter said the company is seeing growing commercial pipelines across its footprint and that July had begun positively, while emphasizing that future expansion will remain disciplined and relationship focused.
About First Interstate BancSystem (NASDAQ:FIBK)First Interstate BancSystem, Inc is a bank holding company headquartered in Billings, Montana. Through its principal subsidiary, First Interstate Bank, the company provides a full range of commercial and consumer banking services. Its offerings include business lending, commercial real estate financing, agricultural loans, residential mortgage products, and deposit accounts suitable for individuals, small businesses, and large corporations.
The company traces its roots back to the late 1960s and has grown through a combination of organic expansion and strategic acquisitions across the Western United States.
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First Interstate BancSystem, Inc. (FIBK) Q2 2026 Earnings Call July 24, 2026 9:30 AM EDT
Company Participants
Nancy Vermeulen
James Reuter - President, CEO & Director
David Camera - Executive VP & CFO
Conference Call Participants
Matthew Clark - Piper Sandler & Co., Research Division
Kelly Motta - Keefe, Bruyette, & Woods, Inc., Research Division
Timur Braziler - UBS Investment Bank, Research Division
Jeff Rulis - D.A. Davidson & Co., Research Division
Presentation
Operator
Hello, everyone. Thank you for joining us, and welcome to the First Interstate BancSystem Inc. Second Quarter 2026 Earnings Call. [Operator Instructions]
I will now hand the conference over to Nancy Vermeulen. Please go ahead.
Nancy Vermeulen
Thanks very much. Good morning, and thank you for joining us for our second quarter earnings conference call. As we begin, please note that the information provided during this call will contain forward-looking statements. Actual results or outcomes might differ materially from those expressed by those statements. I'd like to direct all listeners to read the cautionary note regarding forward-looking statements contained in our most recent quarterly report on Form 10-K filed with the SEC and in our earnings release as well as the risk factors identified in the quarterly report and our more recent periodic reports filed with the SEC.
Relevant factors that could cause actual results to differ materially from any forward-looking statements are included in the earnings release and in our SEC filings, and the company does not undertake to update any of the forward-looking statements made today. A copy of our earnings release, which contains non-GAAP financial measures, is available on our website at fibk.com. Information regarding our use of the non-GAAP financial measures may be found in the body of the earnings release and a reconciliation to their most directly comparable GAAP financial measures is included at the end of the
Key Takeaways Columbia Banking beat Q2 earnings estimates, though revenues missed the same. COLB's NII and fee income rose on the larger balance sheet after the Pacific Premier acquisition.Columbia Banking completed acquisition cost synergies as of June 30, 2026 and met its cost-saving target. Columbia Banking System (COLB - Free Report) posted second-quarter 2026 operating earnings of 76 cents per share, beating the Zacks Consensus Estimate of 73 cents. The figure was unchanged from the prior-year quarter.
Quarterly results reflected higher net interest income (NII) and a rise in non-interest income. Lower provisions were another positive. However, higher non-interest expenses and lower loan and deposit balances were the undermining factors.
Net income (GAAP) was $208 million compared with $152 million in the year-ago quarter.
COLB’s NII & Fee Income RiseTotal revenues came in at $677 million, up 32.5% year over year. The metric, however, missed the Zacks Consensus Estimate of $688.4 million.
COLB’s NII was $589 million, up 32.1% from the second quarter of 2025. The increase reflected the larger balance sheet following the Pacific Premier acquisition.
The net interest margin expanded 18 basis points year over year to 3.93%. Funding costs were lower than the year-ago quarter, with the cost of interest-bearing deposits declining 56 basis points to 1.96% from 2.52%. The cost of total deposits fell to 1.32% from 1.73%.
Non-interest income was $88 million, up 35.4% from the year-ago level. Service charges on deposits increased 15% to $23 million, while card-based fees rose 21% to $17 million. Financial services and trust revenues increased to $15 million from $6 million. Other income was $19 million, up 58%.
COLB’s Expenses IncreaseColumbia Banking’s non-interest expenses were $375 million, up 34.9% from the second quarter of 2025. The year-over-year increase reflected higher costs across several categories on a larger operating base.
Salaries and employee benefits were $196 million, up 26.5% from $155 million. Occupancy and equipment expenses increased 38.3% to $65 million, while intangible amortization rose 46.2% to $38 million. Merger and restructuring expenses were $9 million compared with $8 million in the year-ago quarter.
Management noted that all organizational changes and cost-related synergies associated with the Pacific Premier acquisition were essentially complete as of June 30, 2026, including the achievement of its previously disclosed cost-savings target.
COLB’s Loans & Deposits Decline SequentiallyAs of June 30, 2026, loans and leases were $47.2 billion, down 1% sequentially. The decline reflected continued expected runoff in below-market-rate transactional loans and lower non-owner-occupied commercial real estate balances because of elevated payoffs and competitive pricing pressure.
Commercial loans, including owner-occupied commercial real estate, increased at an annualized rate of 5% from the prior quarter, partly offsetting contraction in other portfolios.
Total deposits declined 3% sequentially to $52.1 billion. The decrease reflected intentional reductions in brokered deposits and wholesale public deposits.
Columbia Banking’s Credit Quality: Mixed BagCOLB’s provision for credit losses was $27 million, down 10% from $30 million in the year-ago quarter.
Net charge-offs were 0.25% of average loans and leases (annualized), down from 0.31% a year earlier. The allowance for credit losses was $475 million, up 8.2% from $439 million. However, the allowance for credit losses-to-loans and leases ratio declined to 1.01% from 1.17%.
Non-performing assets totaled $273 million, up 51.7% from $180 million, and the non-performing assets-to-total assets ratio increased to 0.42% from 0.35% in the second quarter of 2025.
Columbia Banking’s Capital Ratios ImproveAs of June 30, 2026, the estimated total risk-based capital ratio was 13.4%, up from 13% in the second quarter of 2025. The estimated common equity Tier 1 risk-based capital ratio was 11.6%, up from 10.8% in the prior-year quarter.
Book value per common share increased 5.1% year over year to $26.70. Tangible book value per common share rose 4.1% to $19.22.
COLB’s Share Repurchases UpdateIn the reported quarter, Columbia Banking repurchased 6.6 million common shares at an average price of $29.93, returning $199 million to shareholders. The company had $202 million remaining under its existing share repurchase authorization as of June 30, 2026.
Our Viewpoint on COLBColumbia Banking’s larger balance sheet following the Pacific Premier acquisition supported solid year-over-year growth in NII and fee income. Lower deposit costs and active management of funding rates aided the net interest margin. The completion of acquisition-related organizational changes and cost synergies should support operating efficiency.
However, the continued runoff of below-market-rate transactional loans, competitive pressure in commercial real estate and intentional reductions in higher-cost deposits are likely to constrain near-term balance-sheet growth. Rising non-performing assets and elevated operating expenses remain concerning.
At present, COLB carries a Zacks Rank 4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other BanksFirst Horizon Corporation (FHN - Free Report) posted second-quarter 2026 earnings per share of 54 cents, surpassing the Zacks Consensus Estimate of 52 cents. This compares favorably with earnings of 45 cents in the year-ago quarter.
FHN’s results benefited from higher net interest income and non-interest income, along with a lower provision for credit losses. Higher loan and deposit balances also provided support. However, rising expenses and weaker capital ratios were headwinds.
F.N.B. Corporation (FNB - Free Report) reported second-quarter 2026 earnings of 42 cents per share, which matched the Zacks Consensus Estimate. The bottom line jumped 16.7% year over year.
FNB’s results primarily benefited from higher NII, a rise in non-interest income and lower provisions. Higher average loans and deposits were other positives. However, higher non-interest expenses hurt the results to some extent.
Key Takeaways ASB beat Q2 earnings estimates as net interest income and fee income lifted revenues y/y.ASB saw sequential loan and deposit growth, while expenses and credit provisions increased y/y.ASB raised its 2026 loan growth outlook after the American National acquisition. Associated Banc-Corp’s (ASB - Free Report) second-quarter 2026 adjusted earnings of 73 cents per share beat the Zacks Consensus Estimate by a penny. The bottom line compared favorably with 65 cents in the prior-year quarter.
Results were primarily aided by higher net interest income (NII) and non-interest income. A sequential rise in loans and deposit balances acted as tailwinds. However, higher expenses and provisions were the undermining factors.
Results in the reported quarter excluded several non-recurring expenses associated with the acquisition of American National, which was completed in April. After considering those, net income available to common equity was $120.7 million, up 11% year over year. Our estimate for the metric was $136.8 million.
ASB’s Revenues Improve, Expenses RiseTotal revenues (FTE basis) for the quarter were $454.6 million, up from $367 million in the prior-year quarter. The top line outpaced the Zacks Consensus Estimate of $443.7 million.
NII was $370 million, increasing 23% year over year. The net interest margin was 3.17%, up 13 basis points. We had expected NII and net interest yield to be $360.4 million and 3.14%, respectively.
Non-interest income totaled $80.4 million, improving 20% from the prior-year quarter. This reflected increases in wealth management fees, service charges and deposit account fees, card-based fees, other fee-based revenues, capital markets revenues, bank and corporate-owned life insurance, net investment securities gains, and other income. Our estimate for non-interest income was $78.6 million.
Non-interest expenses were $271.9 million, up 30% year over year. The rise reflected an increase in almost all cost components, except for loan and foreclosure costs. Our estimate for non-interest expenses was $244.4 million.
The adjusted efficiency ratio was 52.91%, down from 55.81% in the prior-year quarter. A fall in the efficiency ratio indicates an improvement in profitability.
Associated Banc-Corp’s Loans & Deposits RiseAs of June 30, 2026, total loans were $36.5 billion, up 15% sequentially. The rise was driven by higher commercial and business lending, commercial real estate lending and consumer lending. Our estimate for total loans was $36.3 billion.
Total deposits rose 12% sequentially to $39.9 billion. Our estimate for total deposits was $40.6 billion.
Associated Banc-Corp’s Credit Quality WorsensIn the reported quarter, the company recorded a provision for credit losses of $19.4 million, up 8% from the prior-year quarter. Our estimate for the metric was $18.4 million.
As of June 30, 2026, total non-performing assets were $185.3 million, up 25% year over year. Total non-accrual loans were $150 million, rising 33%. Net charge-offs were $23.2 million, up 81% from the prior-year quarter.
Associated Banc-Corp’s Capital Ratios ImproveAs of June 30, 2026, the common equity Tier 1 (CET1) capital ratio was 10.47%, up from 10.20% in the corresponding period of 2025. The Tier 1 capital ratio was 10.94%, up from 10.77%.
ASB’s 2026 ViewAfter including the impact of the acquisition of American National, management expects total period-end loan growth of 18-20% compared with ASB’s standalone results for the year ended Dec. 31, 2025. This is changed from the previous expectation of 17-19% growth.
Period-end total deposit growth is estimated to be 17-19%, while period-end core customer deposit growth is anticipated to be 19-21%.
The company expects NII growth of 19-21%.
Total non-interest income is expected to rise 8-10%.
Including the non-recurring costs incurred in connection with the American National acquisition, non-interest expenses are expected to increase 20-21%.
The annual effective tax rate is expected to be 19-21%.
Our Take on Associated Banc-CorpIn April, ASB completed the previously announced acquisition of American National Corporation, which is expected to improve its deposit mix through low-cost deposits, strengthen its Midwest scale and enhance its liquidity profile. The deal is anticipated to be 2% accretive to the company’s 2027 earnings per share, assuming the execution of cost savings.
In addition to this, continued commercial and industrial loan growth, expanding core customer deposits, steady credit performance and a solid capital position bode well for ASB’s sustained growth. However, rising expenses remain a near-term headwind.
ASB currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other BanksEast West Bancorp, Inc.’s (EWBC - Free Report) second-quarter 2026 earnings per share of $2.63 beat the Zacks Consensus Estimate of $2.61. The bottom line increased 17.4% from the prior-year quarter.
EWBC’s results were primarily aided by increases in NII and non-interest income, alongside lower provisions. Also, loan and deposit balances increased sequentially in the quarter to record levels. However, higher non-interest expenses acted as a spoilsport.
Commerce Bancshares Inc.’s (CBSH - Free Report) second-quarter 2026 earnings of $1.10 per share surpassed the Zacks Consensus Estimate of $1.04. The bottom line reflected a rise of 1% from the prior-year quarter.
CBSH’s results primarily benefited from higher NII and a rise in non-interest income. The sequential rise in loan balances acted as a tailwind. However, higher expenses and provisions hurt CBSH’s results to some extent.
LOS ANGELES, July 24, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm , a national shareholder rights litigation firm, reminds investors of a class action lawsuit against Peabody Energy Corporation (“Peabody” or “the Company”) (NYSE: BTU) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission. Investors who purchased the Company's securities between October 14, 2024 and May 4, 2026, inclusive (the “Class Period”), are encouraged to contact the firm before August 24, 2026.
Valero Energy (VLO - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this oil refiner have returned +19.7% over the past month versus the Zacks S&P 500 composite's +0.6% change. The Zacks Oil and Gas - Refining and Marketing industry, to which Valero Energy belongs, has gained 18.8% 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.
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.
Valero Energy is expected to post earnings of $9.81 per share for the current quarter, representing a year-over-year change of +330.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +42.9%.
The consensus earnings estimate of $35.11 for the current fiscal year indicates a year-over-year change of +230.9%. This estimate has changed +27.7% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $25.33 indicates a change of -27.8% from what Valero Energy is expected to report a year ago. Over the past month, the estimate has changed +17.8%.
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 #2 (Buy) for Valero Energy.
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 Valero Energy, the consensus sales estimate of $35.95 billion for the current quarter points to a year-over-year change of +20.3%. The $135.14 billion and $129.08 billion estimates for the current and next fiscal years indicate changes of +10.2% and -4.5%, respectively.
Last Reported Results and Surprise HistoryValero Energy reported revenues of $32.38 billion in the last reported quarter, representing a year-over-year change of +7%. EPS of $4.22 for the same period compares with $0.89 a year ago.
Compared to the Zacks Consensus Estimate of $30.88 billion, the reported revenues represent a surprise of +4.86%. The EPS surprise was +37.46%.
The company beat consensus EPS estimates in each of the trailing four quarters. 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.
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.
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.
Valero Energy is graded B on this front, indicating that it is trading at a discount 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 Valero Energy. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Investors in Alcoa Corporation (AA - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Sept. 18, 2026 $20.00 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 Alcoa shares, but what is the fundamental picture for the company? Currently, Alcoa is a Zacks Rank #5 (Strong Sell) in the Metal Products - Distribution industry that ranks in the Bottom 3% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while three analysts have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from $2.18 per share to $1.56 in that period.
Given the way analysts feel about Alcoa 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.
Clear Secure (YOU - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this airport security company have returned -2.5% over the past month versus the Zacks S&P 500 composite's +0.6% change. The Zacks Internet - Software industry, to which Clear Secure belongs, has gained 5.5% 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.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
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, Clear Secure is expected to post earnings of $0.40 per share, indicating a change of +53.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -11.3% over the last 30 days.
The consensus earnings estimate of $1.61 for the current fiscal year indicates a year-over-year change of +43.8%. This estimate has changed -9.6% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $1.93 indicates a change of +19.9% from what Clear Secure is expected to report a year ago. Over the past month, the estimate has changed -14.2%.
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 Clear Secure.
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 Clear Secure, the consensus sales estimate of $269.9 million for the current quarter points to a year-over-year change of +23%. The $1.09 billion and $1.26 billion estimates for the current and next fiscal years indicate changes of +20.5% and +15.7%, respectively.
Last Reported Results and Surprise HistoryClear Secure reported revenues of $253 million in the last reported quarter, representing a year-over-year change of +19.7%. EPS of $0.38 for the same period compares with $0.32 a year ago.
Compared to the Zacks Consensus Estimate of $244.73 million, the reported revenues represent a surprise of +3.38%. The EPS surprise was +8.57%.
Over the last four quarters, Clear Secure 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.
Clear Secure 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.
ConclusionThe 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 Clear Secure. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
The Board of Directors of Lamb Weston Holdings, Inc. (NYSE: LW) has declared a quarterly dividend of $0.38 per share of Lamb Weston common stock. The dividend
Lamb Weston (LW - Free Report) came out with quarterly earnings of $0.87 per share, beating the Zacks Consensus Estimate of $0.62 per share. This compares to earnings of $0.87 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +40.32%. A quarter ago, it was expected that this frozen foods supplier would post earnings of $0.61 per share when it actually produced earnings of $0.72, delivering a surprise of +18.03%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Lamb Weston, which belongs to the Zacks Food - Miscellaneous industry, posted revenues of $1.77 billion for the quarter ended May 2026, surpassing the Zacks Consensus Estimate by 4.05%. This compares to year-ago revenues of $1.68 billion. 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.
Lamb Weston shares have added about 17.4% since the beginning of the year versus the S&P 500's gain of 8.2%.
What's Next for Lamb Weston?While Lamb Weston has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Lamb Weston was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.62 on $1.61 billion in revenues for the coming quarter and $3.10 on $6.35 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, Food - Miscellaneous is currently in the bottom 16% 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, Post Holdings (POST - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.
This cereal maker is expected to post quarterly earnings of $1.63 per share in its upcoming report, which represents a year-over-year change of -19.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Post Holdings' revenues are expected to be $2.02 billion, up 1.8% from the year-ago quarter.
Lamb Weston (LW - Free Report) reported $1.77 billion in revenue for the quarter ended May 2026, representing a year-over-year increase of 5.6%. EPS of $0.87 for the same period compares to $0.87 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $1.7 billion, representing a surprise of +4.05%. The company delivered an EPS surprise of +40.32%, with the consensus EPS estimate being $0.62.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Lamb Weston performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Pricing/Mix- Consolidated: -3% versus -5.8% estimated by two analysts on average.Pricing/Mix- North America: -2% compared to the -5% average estimate based on two analysts.Volume- International: -2% compared to the -3% average estimate based on two analysts.Volume- North America: 11% compared to the 3% average estimate based on two analysts.Volume- Consolidated: 7% compared to the -4% average estimate based on two analysts.Pricing/Mix- International: -4% versus -7.5% estimated by two analysts on average.Geographic Sales- International: $563.9 million compared to the $551.27 million average estimate based on three analysts. The reported number represents a change of -1.5% year over year.Geographic Sales- North America: $1.21 billion versus the three-analyst average estimate of $1.15 billion. The reported number represents a year-over-year change of +9.4%.View all Key Company Metrics for Lamb Weston here>>>
Shares of Lamb Weston have returned +10.1% over the past month versus the Zacks S&P 500 composite's +0.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Leidos (LDOS - Free Report) Founded in 1969, Delaware-based Leidos Holdings, Inc. is a global science and technology leader that serves the defense, intelligence, civil and health markets. Its core capabilities include providing solutions in the fields of cybersecurity; data analytics; enterprise IT modernization; operations and logistics; sensors, collection and phenomenology; software development; and systems engineering.
LDOS is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Computer and Technology stock. LDOS has a Momentum Style Score of B, and shares are up 10.3% over the past four weeks.
For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.05 to $12.30 per share. LDOS boasts an average earnings surprise of +13.8%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, LDOS should be on investors' short list.
A strong stock as of late has been Medpace (MEDP - Free Report) . Shares have been marching higher, with the stock up 16.5% over the past month. The stock hit a new 52-week high of $677.9 in the previous session. Medpace has gained 7.9% since the start of the year compared to the -0.1% gain for the Zacks Medical sector and the -1.8% return for the Zacks Medical Services industry.
What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on July 22, 2026, Medpace reported EPS of $4.25 versus consensus estimate of $4.08 while it beat the consensus revenue estimate by 1.12%.
For the current fiscal year, Medpace is expected to post earnings of $17.12 per share on $2.81 in revenues. This represents a 12.04% change in EPS on a 11.02% change in revenues. For the next fiscal year, the company is expected to earn $18.63 per share on $2.92 in revenues. This represents a year-over-year change of 8.8% and 4.07%, respectively.
Valuation MetricsMedpace may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Medpace has a Value Score of D. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 35.4X current fiscal year EPS estimates, which is a premium to the peer industry average of 16X. On a trailing cash flow basis, the stock currently trades at 35.6X versus its peer group's average of 10X. Additionally, the stock has a PEG ratio of 3.01. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks RankWe also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Medpace currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Medpace passes the test. Thus, it seems as though Medpace shares could still be poised for more gains ahead.
How Does MEDP Stack Up to the Competition?Shares of MEDP have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is CVS Health Corporation (CVS - Free Report) . CVS has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of B.
Earnings were strong last quarter. CVS Health Corporation beat our consensus estimate by 16.29%, and for the current fiscal year, CVS is expected to post earnings of $7.46 per share on revenue of $409 billion.
Shares of CVS Health Corporation have gained 2.1% over the past month, and currently trade at a forward P/E of 14.33X and a P/CF of 7.18X.
The Medical Services industry is in the top 39% of all the industries we have in our universe, so it looks like there are some nice tailwinds for MEDP and CVS, even beyond their own solid fundamental situation.
V posledních týdnech jsme se tu zabývali financemi a valuacemi společnosti SpaceX a Nike, což jsou z určitého pohledu protiklady. První je do nemalé míry sci fi akcií, druhá „starou“ ekonomikou. Dnes bych se věnoval další firmě, která je protikladem těmto oběma. Svou velikostí. Ve srovnání s nimi jde totiž o minifirmu, navíc ne z USA, ale menší evropské země. Z Finska. Zná jí ale přesto asi většina z těch, kteří pracují na zahradě, v lese, venku. Podíváme se totiž na Fiskars a to z určité specifické perspektivy. Ukazující, jak se na trhu celkem běžně provádí „valuace“. A co to přináší.
Je to vlastně můj druhý pohled na Fiskars, ten první přišel před řadou let. Tehdy jsem také zmiňoval, že dělat technologický pokrok v softwaru, nových technologiích a oblastech je jedna věc. Fiskars ale dokáže znatelně vylepšit něco, co tu je po tisíce let. Sekyrku. Jak je na tom tedy firma a její akcie nyní z finančního, respektive a valuačního hlediska? V odpovědi a příběhu nám pomůže čerstvá analýza Danske Bank, která ukazuje, jak se také dá uchopit „valuace“. A zamyslet se můžeme nad tím, jaké to má širší důsledky.
V principu DB postupuje tak, že se podívá na porovnatelné společnosti a na to, s jakými valuačními násobky se obchodují (zde poměr hodnoty společností k provozním ziskům). Následující tabulka tak v bílých řádcích postupně zahrnuje poměr hodnoty společnosti k ziskům na úrovni EBIT. Poměr jde od 11,3 k 19. DB pro odhad hodnoty akcií Fiskarsu považuje za relevantní hodnoty 13,9 – 16,4. Které nasazeny na očekávaný EBIT pro letošní rok znamenají odhad hodnoty akcie Fiskarsu mezi 10 – 13 eury. Použité násobky jsou přitom 5 – 25 % nad násobky porovnatelných firem pro divizi Vita a 25 – 48 % u samotného Fiskarsu (třetí a čtvrtý bílý řádek).
Pak ještě v tabulce vidíme, že taková „valuace“ implikuje PE ve výši 16,1 – 20,9, dividendový výnos 8,4 – 6,5 %. A implikovaná cena akcie je -20,6 – 3,2 % pod, respektive nad cenou na trhu. Tedy žádné mohutné „kupovat“. Druhá podtabulka pak ukazuje, co se stane, pokud se stejný postup, tedy valuační násobky odvozené z porovnatelných společností a akcií, aplikuje na zisky očekávané pro rok 2027.
Druhá tabulka ukazuje, jaké jsou vlastně ony porovnatelné společnosti a jaký je rozptyl jejich valuačních násobků. Tedy klíčová vstupní data, na kterých odhad „férové“ ceny akcií Fiskarsu stojí:
Dochází tu zde tedy k naprosto běžnému postupu: Pohled na to, za co se obchodují více, či méně podobné společnosti a aplikace tohoto poznatku na společnost v centru našeho zájmu. Detailnější pohled ukazuje, že ony porovnatelné společnosti se obchodují za celkem širokou škálu násobků, nějaký jasný standard moc neexistuje. I proto, že ona porovnatelnost je docela relativní. V dosavadním textu jsem přitom dával slovo valuace do uvozovek, protože spíše bychom měli hovořit o nacenění – díváme se, jak trhy naceňují to, či ono a to aplikujeme na akcii, o kterou se zajímáme.
Je přitom jednoduché si uvědomit, že při masivním používání tohoto postupu dochází k velké kruhové referenci. Relativně podobné společnosti jsou naceňovány pohledem na zbytek skupiny s žádným vstupem „zvenčí“. Mimo jiné to znamená, že takový postup eliminuje korekční mechanismy, které by indikovaly, že akcie ve skupině, nebo na celém trhu, jsou v bublině. Naopak, kruhová reference „potvrzuje“, že vše je v pořádku a vlny na trzích spíše násobí, než by tlumila.
Je to podobné, jako kdyby na silnici v obci všichni jezdili stovkou s tím, že tak jede každý a tudíž je to v pořádku. Korekčním mechanismem „zvenčí“ je v takovém případě dopravní předpis. Existuje něco takového u akcií? V podstatě „jen“ odhad toho, co bude společnost v budoucnu akcionářům skutečně generovat. A převod tohoto toku hotovosti na současnou hodnotu. I u takového DCF se dá čarovat a i při nejlepší snaze není to žádná pevná kotva. Jen názor. Ale může pomoci.
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Key Takeaways Hilltop Holdings' Q2 EPS rose 10.5% to 63 cents, beating the 42-cent consensus estimate.HTH's revenues climbed 4.1% as NII and non-interest income grew, while loans rose 2.9% sequentially.Hilltop Holdings raised its buyback authorization to $200 million and increased its dividend 10%. Hilltop Holdings Inc.’s (HTH - Free Report) second-quarter 2026 earnings of 63 cents per share surpassed the Zacks Consensus Estimate of 42 cents. The bottom line increased 10.5% from the prior-year quarter.
Results primarily benefited from higher net interest income (NII), growth in non-interest income and a reversal of credit losses. Sequential growth in loans was another positive. However, an increase in non-interest expenses and pressure on certain profitability metrics were headwinds.
Net income attributable to common stockholders was $36.5 million, up 1.2% year over year. Our estimate for the metric was $21.7 million.
Hilltop Holdings’ Revenues Increase, Expenses RiseNet revenues in the second quarter were $315.8 million, up 4.1% year over year. The top line surpassed the Zacks Consensus Estimate of $300.8 million.
NII increased 4.7% year over year to $115.9 million. The net interest margin (NIM) (taxable-equivalent basis) was 3.23%, expanding 19 basis points (bps). Our estimates for NII and NIM were $114.4 million and 3.13%, respectively.
Non-interest income was $200 million, up 3.8%. The increase was driven by growth in principal transactions, commissions and fees, and investment banking, advisory and administrative fees. This was partly offset by lower mortgage-related revenues and other non-interest income. We had projected the metric to be $188.5 million.
Non-interest expenses rose 2.1% from the prior-year quarter to $266.7 million. The increase was mainly due to higher employees' compensation and benefits costs, professional services expenses and other expenses, partly offset by lower occupancy and equipment costs. We projected total non-interest expenses of $267.7 million.
As of June 30, 2026, net loans held for investment were $8.6 billion, up 2.9% sequentially. Total deposits were $10.5 billion, largely stable. Our estimates for net loans held for investment and total deposits were $8.51 billion and $10.77 billion, respectively.
Hilltop Holdings’ Credit Quality ImprovingIn the second quarter, Hilltop Holdings recorded a reversal of credit losses of $1 million compared with a reversal of $7.3 million in the prior-year quarter. Our estimate for the metric was $4.9 million.
As of June 30, 2026, non-performing assets, as a percentage of total assets, were 0.39%, which decreased 14 bps from the year-ago quarter. Non-accrual loans were $54.8 million, or 0.57% of total loans, down from $72.7 million, or 0.80%, as of June 30, 2025.
HTH’s Profitability Ratios Improve, Capital Ratios DeclineReturn on average assets at the end of the reported quarter was 0.99%, up from the prior-year quarter’s 0.98%. The return on average stockholders’ equity was 6.89%, which increased from 6.62%.
The common equity tier 1 capital ratio was 18.34% as of June 30, 2026, down from 20.74% in the corresponding period of 2025. The total capital ratio was 20.63%, declining from the year-ago period’s 23.38%.
HTH’s Capital Distribution UpdateIn the reported quarter, the company repurchased 1.25 million shares for $47 million.
In July 2026, Hilltop Holdings increased its share repurchase authorization by $75 million to $200 million. Following repurchases completed in 2026, the company had approximately $106 million of available repurchase capacity through January 2027.
Concurrently, Hilltop Holdings announced a quarterly cash dividend of 22 cents per share, representing a hike of 10% from the prior payout. The dividend will be paid out on Aug. 21 to shareholders on record as of Aug. 7.
Our Viewpoint on Hilltop HoldingsDecent loan growth, a strong balance sheet and HTH's business restructuring efforts will likely aid the top line. This, along with favorable rate environment, will drive the company’s financials. However, weak mortgage banking business and uncertain operating backdrop are headwinds.
Hilltop Holdings currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of HTH’s Peer BanksEast West Bancorp, Inc.’s (EWBC - Free Report) second-quarter 2026 earnings per share of $2.63 beat the Zacks Consensus Estimate of $2.61. The bottom line increased 17.4% from the prior-year quarter’s level.
The results were primarily aided by an increase in NII and non-interest income alongside lower provisions. Also, loan and deposit balances increased sequentially in the quarter to record levels. However, higher non-interest expenses acted as a spoilsport.
Hancock Whitney Corp.’s (HWC - Free Report) second-quarter 2026 earnings per share of $1.55 matched the Zacks Consensus Estimate. The bottom line rose 17.4% from the prior-year quarter.
Results were supported by higher NII and non-interest income, along with a decline in provisions. Also, a sequential increase in loans and deposit balances was a positive. However, higher expenses were the undermining factor.
Hilltop Holdings Inc. (HTH) Q2 2026 Earnings Call July 24, 2026 9:00 AM EDT
Company Participants
Matthew Dunn - Head of Investor Relations
Jeremy Ford - President, CEO & Chairman
William Furr - Executive VP & CFO
Conference Call Participants
Matt Olney - Stephens Inc., Research Division
Evan Yee - Raymond James & Associates, Inc., Research Division
Presentation
Operator
Hello, everyone. Thank you for joining us, and welcome to Hilltop Holdings Second Quarter 2026 Earnings Conference Call. [Operator Instructions]
I will now hand the conference over to Matt Dunn, Corporate Development Officer and Head of Investor Relations. Matt, please go ahead.
Matthew Dunn
Head of Investor Relations
Thank you. Before we get started, please note that certain statements during today's presentation that are not statements of historical fact, including statements concerning such items as our outlook, business strategy, future plans, financial condition, credit risks and trends in credit, allowance for credit losses, liquidity and sources of funding, funding costs, dividends, stock repurchases, subsequent events and impacts of interest rate changes as well as such other items referenced in the preface of our presentation are forward-looking statements.
These statements are based on management's current expectations concerning future events that, by their nature, are subject to risks and uncertainties. Our actual results, capital, liquidity and financial condition may differ materially from these statements due to a variety of factors, including the precautionary statements referenced in the preface of our presentation and those included in our most recent annual and quarterly reports filed with the SEC. Please note that certain information presented is preliminary and based upon data available at this time. Except to the extent required by law, we expressly disclaim any obligation to update earlier statements as a result of new information.
Additionally, this presentation includes certain non-GAAP measures, including tangible common equity and
Hilltop NYSE: HTH reported second-quarter 2026 net income attributable to common stockholders of $36.5 million, or $0.63 per diluted share, as growth at its banking and broker-dealer operations offset continued pressure in mortgage banking.
Return on average assets was 1.0% and return on average equity was 6.9% for the quarter. President and CEO Jeremy Ford said PlainsCapital Bank generated $51 million in pretax income, while HilltopSecurities produced $12 million. PrimeLending posted a $2 million pretax loss amid a difficult mortgage market.
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Bank posts loan growth and margin expansion PlainsCapital Bank’s net interest margin expanded to 3.42% during the second quarter, according to Ford, while the bank delivered a 1.3% return on average assets. The bank’s efficiency ratio was 55%, unchanged from the first quarter of 2026 and the second quarter of 2025.
CFO Will Furr said consolidated net interest income totaled $116 million, including $800,000 of purchase accounting accretion. Net interest income rose 5% from a year earlier, supported by lower interest-bearing deposit costs and a shift in the balance sheet from cash into loans held for investment.
On a consolidated basis, net interest margin increased 8 basis points from the first quarter to 3.21%. Furr said Hilltop’s current economic outlook assumes one rate increase in December 2026. Under that scenario, the company expects net interest margin to remain around current levels but potentially decline modestly in the second half, while net interest income remains relatively stable in coming quarters.
Period-end loans held for investment rose by $239 million from the first quarter. The increase included $114 million in commercial real estate lending, $54 million in commercial and industrial lending, $45 million in broker-dealer-related loans and $28 million of seasonal mortgage warehouse lending growth.
Hilltop increased its full-year forecast for average loan growth to a range of 5% to 7%, excluding mortgage warehouse lending and mortgages retained from PrimeLending. During the question-and-answer session, Furr said new loan production yields were in a range of roughly 6.5% to 7%, depending on asset class and individual transaction, despite intense competition in the company’s markets.
Average total deposits were approximately $10.4 billion, down $263 million from the prior-year quarter. Ending deposits were stable from the first quarter at $10.5 billion, including a $300 million movement of HilltopSecurities sweep deposits into the bank. Excluding that movement, Furr attributed deposit declines to seasonal tax payments, public-fund distributions and flows from large commercial and industrial customers. The company expects customer deposits to begin growing again in the second half.
Interest-bearing deposit costs declined to 2.37%, and Furr said PlainsCapital achieved a 75% interest-bearing deposit beta during the down-rate cycle. However, he said rising competition could lead to higher offered rates and more exception pricing.
Credit reserve declines despite one loan deterioration Hilltop recorded a $1 million net reversal of provision for credit losses in the quarter. Its allowance for credit losses declined by $4 million to $85 million.
The company recorded approximately $3.2 million of net charge-offs, equivalent to 16 basis points of average loans. It also increased specific reserves by $1.9 million, primarily related to deterioration in one loan. Classified and special mention loans increased in the period, largely because of a large single-family credit that deteriorated, Furr said.
Still, management said overall credit quality remained sound, while nonperforming asset levels have declined consistently over the past 12 months. The bank’s allowance for credit losses coverage ended the quarter at 103 basis points, including mortgage warehouse lending.
Broker-dealer gains offset mortgage weakness HilltopSecurities reported net revenue of $124 million and a 10% pretax margin. Net revenue increased 13% from the second quarter of 2025, while pretax income rose by $6 million year over year.
Structured Finance net revenue increased 73% from a year earlier, driven by robust buy-side demand for call-protected collateral. Fixed Income services reported a 10% increase in net revenue as municipal and taxable sales and trading revenue improved. Wealth Management also grew, helped by advisory and transaction fees in the retail business.
Public Finance generated $30 million in net revenue, a modest decline from the prior-year quarter. Ford said industry issuance volumes were strong in the first half and are expected to remain elevated during the second half.
Furr said Hilltop’s broker-dealer revenue outlook calls for a range of negative 3% to positive 1%. He cited the potential effects of rate movements on sweep fees, public-finance debt issuance and the shape of the yield curve on Fixed Income services. Management said it remained constructive on Public Finance, Fixed Income, Wealth Management and Structured Finance, while acknowledging that capital-markets revenues can fluctuate with market conditions, liquidity and production volumes.
PrimeLending’s results continued to reflect elevated mortgage rates, home affordability concerns, property taxes, insurance costs and limited housing inventory. Mortgage revenue declined $1.8 million from a year earlier, principally because of lower valuation marks on the rate-lock pipeline. Second-quarter originations were consistent with prior-year levels, while gain-on-sale margins on loans sold to third parties declined 6 basis points to 217 basis points.
Ford said PrimeLending had reduced fixed costs by about $10 million on an annualized basis compared with the second quarter of 2025. The company expects the mortgage market to remain highly competitive until long-term rates decline and industry volumes improve.
Capital returns increase Hilltop ended the quarter with a Common Equity Tier 1 capital ratio of 18.3% and tangible book value per share of $32.36. The company returned $11.6 million to shareholders through dividends and repurchased $47 million in shares during the quarter.
The board increased the quarterly cash dividend by 10% to $0.22 per share and added $75 million to the company’s share repurchase authorization. Ford said Hilltop had $200 million of total repurchase authorization for 2026 and would prioritize organic growth first, followed by capital returns, while retaining resources for potential mergers and acquisitions.
About Hilltop (NYSE:HTH)Hilltop Holdings, Inc NYSE: HTH is a Dallas, Texas–based financial holding company offering commercial banking, mortgage lending and capital markets services through its three primary subsidiaries: PlainsCapital Corporation, PrimeLending and HilltopSecurities. PlainsCapital provides deposit, lending and treasury management solutions to small and mid-sized businesses, professionals and individuals. PrimeLending specializes in home purchase and refinance loans, serving retail, wholesale and correspondent channels.
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