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Why Institutions Keep Buying Badger Meter After the Big DropBadger Meter NYSE: BMI reported lower second-quarter 2026 sales and earnings from the prior year, but management said revenue improved sequentially as previously awarded advanced metering infrastructure projects began shipping and reaffirmed its expectation for improving quarterly revenue through the rest of the year.

Chief Financial Officer and Treasurer Dan Weltzin said total sales for the quarter were $222.3 million, down 7% year-over-year. Excluding about $2 million in sales from UDlive, which Badger Meter acquired on May 1, base sales declined 7.5% from the prior-year period. However, base sales rose 9% from the first quarter, which management said reflected initial shipment ramps on several awarded projects.

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Badger Meter Gets an Upgrade—2 Stocks That Could FollowChairman, President and Chief Executive Officer Ken Bockhorst said the results were in line with expectations. “As expected, we delivered sequentially improved sales in the second quarter as a number of our previously awarded AMI projects began initial ramping of shipments,” he said. He added that the company saw “a modest increase” in short-term order rates and in flow instrumentation.

Utility Water Sales Decline, Flow Instrumentation Grows Weltzin said utility water sales declined 8% year-over-year, or 9% excluding the acquisition, due to the project pacing dynamics the company has been discussing. Lower AMI-related product revenue was partially offset by higher software and growth in what the company calls beyond-the-meter offerings. On an organic basis, utility sales increased 8% sequentially.

3 bullish mid-cap earnings plays for January 2024Flow instrumentation sales rose 6% from a year earlier, supported by broad-based water application demand. In the question-and-answer session, Bockhorst said the company benefited from orders tied to data center applications, including clamp-on meters and magnetic meters used for cooling towers and flow monitoring. However, he cautioned that the business should still be viewed as having “GDP-like” growth over the company’s five-year strategic horizon.

The company also confirmed that product shipments for the PRASA project have begun. Bockhorst said several other awarded projects have also started, and that the overall cohort of nine previously discussed awarded projects “feels like it’s pretty solid at this point.” Management declined to provide individual project-level details.

Margins Hold Within Range Despite Lower Volumes Operating earnings declined 12% year-over-year, and operating margin fell 110 basis points to 17.7%. Excluding UDlive, base operating margin was 18.4%, down 40 basis points from the year-ago quarter.

Gross margin was 40.8%, down 30 basis points from the second quarter of 2025. Weltzin attributed the decline primarily to lower sales volumes and project mix, but said gross margins remained in the upper half of the company’s normalized range, reflecting “the resiliency of our overall structural mix and pricing discipline.”

Selling, engineering and administrative expenses totaled $51.4 million, down $1.6 million from the prior year. Weltzin said spending controls, lower incentive compensation and cost containment actions more than offset about $3 million of year-over-year spending tied to UDlive and transaction-related costs. The company expects UDlive intangible asset amortization of approximately $5 million annually.

Diluted earnings per share were $1.02, down from $1.17 a year earlier. The effective tax rate was 25.2%, compared with 24.5% in the prior-year quarter.

Cash Flow Lower; Buybacks Continue Free cash flow was $21.9 million, down from $40.6 million in the prior-year quarter. Weltzin cited lower earnings and temporary increases in working capital. Primary working capital as a percentage of sales rose to 22.9% from 20.0% at the end of the prior quarter.

Weltzin said the increase in receivables was related to revenue timing, while inventory levels were above average due to revenue pacing dynamics. He said the company expects to work down inventory through the fiscal year and remains focused on full-year cash flow conversion in excess of 100% of net earnings.

During the quarter, Badger Meter repurchased 204,000 shares for $25.3 million. Weltzin said the company has about $90 million remaining under its current share repurchase authorization and has deployed roughly $80 million in buybacks over the past three quarters. The company also renewed a five-year, $150 million credit facility, which remains undrawn.

Management Reaffirms Full-Year Organic Revenue Outlook Management reaffirmed its outlook for sequential improvement in base quarterly revenue for the balance of 2026. Excluding UDlive, Badger Meter continues to expect full-year organic revenue to be “flat-ish” with 2025 levels.

Bockhorst emphasized that the outlook should not be interpreted as perfectly flat, citing variability in project ramping and short-term order patterns. He said year-over-year base sales growth is expected to be heavily weighted toward the fourth quarter because it represents the company’s easiest comparison.

On short-cycle demand, Bockhorst said the first quarter was an outlier and that second-quarter order rates were “more normal-ish” and typical of the operating environment. He said a higher daily turn rate of orders in the second quarter, combined with project activity, supports the company’s full-year stance.

Management also discussed electronic component cost and availability pressures driven by demand from artificial intelligence and data center build-outs. Weltzin said the company has been able to mitigate the impacts to date, but the pressures are not easing. Bockhorst said Badger Meter has managed similar supply chain challenges before and remains positioned to work through them.

Customer Interest Remains Focused on AMI and Software Bob Wrocklage, Executive Vice President of North America Municipal Utility, said feedback from the AWWA ACE 2026 trade show in Washington, D.C., remained constructive. He said utilities continue to prioritize modernization, efficiency and visibility across water and wastewater networks.

Wrocklage said discussions with consultants and customers focused on both hardware and software components of the company’s Network as a Service offerings, including network resiliency, dynamic multi-carrier SIM technology and the ORION Lens endpoint solution for metal pit lids. He also cited interest in EyeOnWater Premium, the BEACON Field app and Badger Meter’s embedded AI functionality, Cobalt.

Management said the company is continuing to educate utilities on stormwater and sewer line applications through SmartCover and UDlive. Bockhorst said the company’s confidence in the long-term outlook remains intact, supported by replacement demand, AMI adoption, recurring software, beyond-the-meter technologies and acquisitions.

About Badger Meter (NYSE:BMI)Badger Meter, founded in 1905 and headquartered in Milwaukee, Wisconsin, is a global leader in flow measurement and control solutions. The company's core business centers on the design, manufacture and sale of water meters, control valves and related accessories for municipal and industrial water utilities. Over its more than a century of operation, Badger Meter has built a reputation for precision engineering, durability and compliance with international regulatory standards.

The company's product portfolio includes mechanical and ultrasonic water meters, electromagnetic flow meters for industrial applications, and a range of control valves that help utilities manage pressure and flow in distribution networks.

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 Badger Meter Right Now?Before you consider Badger Meter, you'll want to hear this.

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Key Takeaways HWM's commercial aerospace and defense markets fueled strong first-quarter 2026 revenue growth. HWM benefits from aircraft production, defense demand and rising 2026 sales and EPS estimates. LHX posted record backlog and orders, but debt levels and weaker EPS estimate trends remain concerns. Geopolitical instability across the globe has fueled demand for defense equipment and technologies, providing a significant growth tailwind for companies like Howmet Aerospace Inc. (HWM - Free Report) and L3Harris Technologies, Inc. (LHX - Free Report) . These are two familiar names operating in the aerospace and defense industry.

Howmet is a leading manufacturer of components and systems for jet engines and airframes, while L3Harris provides integrated aerospace and defense technologies, including avionics, electronic systems, and command-and-control solutions, to customers in the United States and internationally.

Rising global defense spending and the continued recovery in commercial aviation have boosted investor interest in aerospace companies with defense exposure. But which of these two stocks is better positioned to capitalize on these trends? Let’s compare their fundamentals to find out.

The Case for HowmetHowmet’s strongest growth driver remains the sustained momentum in the commercial aerospace market. In the first quarter of 2026, revenues from this market increased 20% year over year to more than $1.2 billion, accounting for 53% of the company’s total quarterly sales. Healthy global air travel has boosted aircraft utilization, driving demand for replacement parts and components supplied by Howmet.

The favorable market environment benefited Howmet’s Engine Products segment, which reported a 29% year-over-year revenue increase in the first quarter. The continued strength was driven by solid momentum in the commercial aerospace, defense aerospace and gas turbine markets. The Fastening Systems segment recorded 14% revenue growth, benefiting from solid demand in both the commercial and defense aerospace markets.

Also, Boeing is witnessing a gradual production increase, particularly in the 737 MAX widebody aircraft, which is boosting demand for Howmet’s products in the market. Healthy build rates at Airbus for A320 (narrowbody) and A350 (widebody) aircraft also hold promise for HWM’s engine spares demand.

The company is also benefiting from strength in the defense aerospace market. In the first quarter, revenues from this market rose 10% year over year, fueled by higher demand for engine spares related to the F-35 program and increased orders for legacy fighter jet replacement parts.

It's worth noting that the fiscal year 2026 Defense Appropriations Act was signed into law in February 2026, providing a strong budgetary allocation for defense. Such robust provisions set the stage for Howmet, which remains focused on its defense business.

HWM’s measures to reward shareholders are encouraging. In the first three months of 2026, the company paid dividends of $48 million and repurchased shares worth $300 million. In August 2025, the company hiked its dividend by 20% to 12 cents per share (annually: 48 cents), marking its second dividend hike in 2025. Also, in July 2024, its board approved an increase in the share repurchase program by $2 billion to $2.487 billion of its common stock.

The Case for LHXL3Harris is well-positioned to benefit from robust U.S. defense spending, supported by favorable budgetary priorities and rising investments in advanced defense technologies. The fiscal 2027 President's Budget Request, introduced in April 2026, proposed roughly $1.5 trillion in funding for national defense programs, creating a favorable demand environment for the company's Space & Mission Systems, Communications & Spectrum Dominance, and Missile Solutions portfolios.

LHX also remains well aligned with key U.S. defense priorities, including the Golden Dome, missile defense and hypersonic tracking. In the first quarter of 2026, L3Harris generated $7.8 billion in orders, resulting in a robust 1.4x book-to-bill ratio, while its backlog reached a record $40.7 billion, providing strong revenue visibility for future program execution. Strengthening its position further, the company secured a Space Development Agency contract worth up to $843 million to build 18 infrared satellites for the Tranche 3 Tracking Layer, designed to detect and track advanced missile threats.

Also, its Aerojet Rocketdyne subsidiary entered into definitive agreements in April 2026 for a $1.0 billion investment from the U.S. Department of War to expand manufacturing facilities, accelerate research and development, and increase production capacity for critical propulsion and missile technologies.

Beyond the United States, L3Harris continues to benefit from rising defense spending among allied nations. The company is witnessing healthy demand across Europe, the Middle East and the Asia-Pacific region as governments strengthen their defense capabilities. In the first quarter of 2026, the company’s international revenues totaled $1.29 billion, led by the Communications & Spectrum Dominance and Space & Mission Systems.

L3Harris is also sharpening its portfolio while investing in future growth. The company is progressing with the sale of its Space Technology business to AE Industrial Partners for a net enterprise value of $825 million, with the transaction expected to close in the second half of 2026.

Despite these strengths, the company's leveraged balance sheet remains a concern. As of April 3, 2026, L3Harris had $0.59 billion in cash and cash equivalents compared with $9.19 billion in long-term debt.

Also, persistent labor shortages and supply-chain constraints across the aerospace and defense industry continue to pose execution risks, potentially affecting production schedules and timely program deliveries.

The Zacks Consensus Estimate for HWM & LHXThe Zacks Consensus Estimate for HWM’s 2026 sales and earnings per share (EPS) implies year-over-year growth of 18% and 32%, respectively. HWM’s EPS estimates for 2026 have increased over the past 60 days.

Image Source: Zacks Investment Research

The consensus estimate for LHX’s 2026 sales and EPS indicates year-over-year growth of 7.7% and 7.6%, respectively. LHX’s EPS estimates have been trending southward over the past 60 days for 2026.

Image Source: Zacks Investment Research

Price Performance and ValuationIn the past year, Howmet shares have soared 49.6%, while L3Harris stock has gained 3%.

Image Source: Zacks Investment Research

HWM is trading at a forward 12-month price-to-earnings ratio of 50.33X, above its median of 26.43X over the last five years. LHX’s forward earnings multiple sits at 21.98X, above its median of 16.70X over the same time frame.

Image Source: Zacks Investment Research

Final Take on HWM & LHXHowmet is benefiting from sustained strength in both commercial and defense aerospace markets, driven by the recovery in air travel, healthy demand for engine spares and higher defense spending. Backed by solid revenue growth and a strong order pipeline, the company continues to enhance shareholder value through dividends and share repurchases.

L3Harris is well-positioned for long-term growth, supported by its strong presence in both domestic and international defense markets, a record backlog and a robust pipeline of programs. However, ongoing supply-chain constraints, labor shortages and a highly leveraged balance sheet continue to pose challenges to its growth outlook.

Given these factors, HWM seems a better pick for investors than LHX currently. While Howmet currently has a Zacks Rank #2 (Buy), LHX carries a Zacks Rank #3 (Hold).

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

3 Energy Stocks to Watch Now as LNG Demand SurgesRange Resources NYSE: RRC said its second-quarter 2026 operations kept the company on track with a multi-year growth plan, as executives pointed to record drilling and completion efficiency, rising production and higher pricing expectations for natural gas liquids and natural gas.

Chief Executive Officer Dennis Degner said the quarter marked “a unique milestone” as Range reached the midpoint of the growth plan it announced early last year. He said the company’s cost structure, well performance and marketing portfolio are supporting free cash flow while Range grows production.

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These energy stocks are most-upgraded amid falling oil pricesSecond-quarter production averaged 2.3 billion cubic feet equivalent per day, Degner said. Range expects production to rise ratably through the rest of the year, reaching 2.5 Bcfe per day by year-end as gas processing and related infrastructure move through commissioning. Executives said that outlook remains consistent with prior guidance and positions the company for 2027.

Operational efficiency drives record activity Range reported second-quarter capital spending of $222 million. Degner said the company added a second completion crew to work through part of its drilled-but-uncompleted inventory that had accumulated over the prior 24 months. The quarter also included a spot horizontal rig for a single pad development expected to turn to sales later this year.

10 Best Natural Gas Stocks to Buy NowDegner said Range expects to return to a single horizontal rig and single frac crew in the fourth quarter, keeping capital plans aligned with prior guidance. The company drilled about 190,000 lateral feet during the quarter.

Range highlighted several operational records and efficiency gains during the call:

Drilling crews recorded 19 days in which they drilled more than one mile horizontally, including one 24-hour period above 10,500 feet. Two completion crews completed nearly 1,900 frac stages during the quarter, including downtime for moves between pad sites. The two crews averaged more than 10 stages per day per crew, while the company’s contracted electric frac fleet approached 14 stages per day. The company set records for most frac stages in one day by a single crew, at 20, and highest pumping hours in one day, at 22 hours. Degner said the stronger completion efficiency allowed Range to move a portion of second-half 2026 drilling activity into 2027 while remaining aligned with its 2026 and 2027 capital and development plans. In response to an analyst question, he said Range had planned to use about 400,000 lateral feet of DUC inventory over 2026 and 2027 and remains on track, though it is “a few wells ahead.”

Capital returns and balance sheet remain priorities Chief Financial Officer Mark Scucchi said Range repurchased $78 million of shares in the second quarter, bringing first-half repurchases to $105 million. The company also paid $24 million in dividends during the quarter, for a year-to-date total of $47 million, and reduced debt by $337 million in the first half.

Scucchi said the combined effect represented $489 million of year-to-date enterprise value returned to equity holders, or roughly 5.5% of Range’s market capitalization over six months. Since launching its repurchase program, Range has bought back 35.9 million shares, reducing its share count by nearly 10%, he said.

Scucchi described Range’s balance sheet as “roughly half a turn levered” and said the company is not delaying capital returns or business investments because of balance sheet needs. He also said Range’s balance sheet metrics are stronger than investment-grade peers, though the company remains rated below investment grade. In commercial discussions, Scucchi said, the credit rating has “never been a topic of discussion.”

Marketing outlook improves for NGLs and natural gas Range raised its full-year NGL pricing guidance to a premium of $2.50 per barrel over the Mont Belvieu index, citing strong international pricing and the structure of its physical sales agreements. Degner said Range captured an NGL premium of $3.49 per barrel over Mont Belvieu in the second quarter.

The company also improved its full-year natural gas guidance to a discount of $0.35 to $0.40 per Mcf versus Henry Hub, reflecting what Degner called a strong start to the year.

Degner said U.S. exports of LNG, ethane and LPG grew sharply from year-earlier levels during the second quarter. He said LNG feed gas averaged more than 17 Bcf per day, up 17% from the same period in 2025. U.S. waterborne ethane exports were estimated at 658,000 barrels per day, up 40% year over year, and waterborne propane and butane exports exceeded 2.6 million barrels per day, up 30% year over year.

Degner said Range expects export growth to support domestic fundamentals and pricing across its products. He also pointed to additional LPG export capacity expected in early 2027 and Repauno dock capacity that Range expects to enter service in 2027 as factors supporting continued access to international markets.

Management discusses growth beyond 2027 Executives repeatedly emphasized that Range’s current plan remains on track. Scucchi said the company previously laid out a three-year plan to grow production 20% to about 2.6 Bcfe per day in 2027. He said Range estimates it can maintain that level for less than $600 million of annual drilling and completion capital, or about $0.60 per Mcfe.

In analyst questions, management said growth beyond 2027 will depend on securing a “home” for incremental production. Degner said Range could potentially continue growing at a similar rate after 2027 with similar capital investment, provided demand materializes. He cited in-basin power and data center demand, takeaway capacity and Range’s inventory depth as key factors.

Scucchi said Range has more than 30 years of Marcellus inventory and described growth as a matter of “when and how much,” depending on customer demand and margins. He said the company would not simply grow volumes and sell into the basin without confidence that production has an end market.

Range also discussed potential longer-term flexibility in midstream investments. Degner said the company could evaluate investments in gathering and compression tied to incremental supply deals, depending on the economics of those molecules compared with traditional fee-based arrangements.

Degner said Range’s 2026 capital outlook is unchanged despite some resequencing of drilling activity. He said 2027 capital should be similar to what the company has communicated, unless a larger growth opportunity requires additional investment.

About Range Resources (NYSE:RRC)Range Resources Corporation, headquartered in Fort Worth, Texas, is an independent energy company engaged in the exploration, development and production of natural gas, oil and natural gas liquids. The company focuses its core operations on the Appalachian Basin, with a significant presence in Pennsylvania's Marcellus Shale. Through its drilling and completion activities, Range Resources seeks to optimize production efficiency while maintaining a disciplined approach to capital allocation and cost management.

The company's technical expertise centers on advanced horizontal drilling and hydraulic fracturing techniques, which it applies to unlock unconventional resources.

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 Range Resources Right Now?Before you consider Range Resources, 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 Range Resources wasn't on the list.

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BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith reminds investors of the upcoming September 14, 2026 deadline to file a lead plaintiff motion in the case filed on behalf of investors who purchased Planet Fitness, Inc. (“Planet Fitness” or the “Company”) (NYSE: PLNT) common stock between November 6, 2025 and May 6, 2026, inclusive (the “Class Period”).IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN PLANET FITNESS, INC. (PLNT), CONTACT THE LAW OFFICES OF HOWARD G. SMITH TO PARTICIPATE.

Investors looking for stocks in the Technology Services sector might want to consider either Full Truck Alliance Co. Ltd. Sponsored ADR (YMM) or Symbotic Inc. (SYM).

Shares of Pegasystems (PEGA -16.10%) were moving lower today after the enterprise automation software company missed the mark in its second-quarter earnings report, coming up short on both the top and bottom lines.

As a result, the stock was down 13.6% as of 9:49 a.m. ET.

Image source: Getty Images.

Pega comes up short Pega, as the company is often known, said that revenue in the quarter was up 9% to $420.7 million, but that missed estimates at $426.6 million.

The company reported overall annual contract value (ACV) growth of 7%, and 22% ACV growth in Pega Cloud. Management explained the slowdown in ACV growth, saying, "Unprecedented changes in the AI market caused clients to delay their purchasing decisions," which seems to reflect customers spending more on AI-native tools rather than traditional cloud software.

On the bottom line, Pega's adjusted earnings per share increased from $0.28 to $0.35, though that was short of expectations at $0.43.

Pega COO and CFO Ken Stillwell gave the quarter a positive spin, saying, "As the market shifts from AI experimentation to tokenomics and reliable business outcomes, that evolution plays directly to Pega's strengths."

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What's next for Pega Pegasystems does not give quarterly guidance, which increases the weight of the quarterly results. This is the second quarter in a row that Pegasystems has missed estimates, and its struggles seem to confirm the same headwinds in the enterprise automation software sector that caused IBM stock to plunge last week.

Pega stock looks cheap based on adjusted earnings expectations, but the sell-off is understandable given what seems to be AI disruption.

Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends International Business Machines. The Motley Fool has a disclosure policy.

3 Stocks Quietly Leveraging AI While Everyone Chases NVIDIATE Connectivity NYSE: TEL reported record adjusted earnings per share and record orders in its fiscal 2026 third quarter, with executives pointing to accelerating demand tied to artificial intelligence infrastructure, power investment, electrification and automation.

Chief Executive Officer Terrence Curtin said the company’s “strategic positioning around the accelerating data and power trend continues to drive broad-based outperformance,” adding that TE is participating in what he described as one of the largest global technology and infrastructure investment cycles. The company now expects full-year fiscal 2026 sales to grow approximately 15%, representing more than $2.5 billion of incremental revenue, while adjusted earnings per share are expected to rise 23% year over year.

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Insiders Sold Big at These 3 Stocks—Should You Worry?For the third quarter, TE Connectivity reported sales of $5.2 billion, up 14% on a reported basis and 12% organically from the prior year. Orders rose 27% year over year to a record $5.7 billion and increased 7% sequentially. The company said it ran a book-to-bill ratio of 1.1 both in the quarter and year to date.

Adjusted earnings per share increased 22% year over year to a record $2.94. Adjusted operating margin expanded 90 basis points to 21.9%. GAAP operating income was $981 million, while GAAP EPS was $2.55, including restructuring, acquisition and other charges as well as amortization expense.

AI and Power Demand Drive Industrial Segment Growth This mid-cap tech stock just jumped 30%...and is still cheapTE’s Industrial Solutions segment posted third-quarter sales growth of 22% on a reported basis and 21% organically. Curtin said the segment benefited from growth across the portfolio, led by more than 30% organic growth in both the Digital Data Networks, or DDN, business and the energy business.

In DDN, sales increased 34% year over year and were up $100 million sequentially. Curtin said the company continues to see demand tied to AI architectures, including increasing deployment of CPUs and networking that expands the market for high-speed copper connectivity. He also said TE sees longer-term opportunities in optical connectivity following its RAM Photonics acquisition, though meaningful revenue from fiber-attached unit technology is not expected until 2028 and beyond.

Responding to analyst questions about copper versus optical connectivity in AI infrastructure, Curtin said TE views the opportunity as “copper and optical,” rather than one replacing the other. He said copper is expected to remain important within racks and scale-up architectures, while optical is already prevalent in scale-out applications. He also noted that rising power requirements in AI systems are creating additional opportunities for TE’s power connectivity products.

Energy sales grew 33% organically in the quarter. Curtin said the business is benefiting from utility grid hardening, aging infrastructure replacement and data center build-outs. He estimated that about one-third of the energy market growth where TE is positioned is driven by data center build-outs, and said the company views the energy business as more of a “mid-teens” grower for the year and into next year.

Automation and Connected Living sales rose 16%, or 14% organically, with growth across every region. Aerospace and defense sales increased 12%, supported by strength in commercial aerospace and defense markets. Curtin said defense is seeing a stronger inflection, particularly in Europe and the U.S., with backlog building as program velocity increases.

Transportation Segment Outperforms Vehicle Production TE’s Transportation Solutions segment grew 7% on a reported basis and 5% organically. Automotive sales increased 5% reported and 3% organically, despite what management described as a decline in vehicle production. Curtin said the company continues to benefit from higher content per vehicle, including data connectivity, electrification of the powertrain and software-defined vehicle architectures.

Curtin said TE expects automotive content outperformance in the range of four to six percentage points for fiscal 2026 and over the longer term. In China, he said TE’s business grew 6% against a 2% decline in production, reflecting eight points of outperformance. He added that exports by Chinese original equipment manufacturers are helping offset a weaker domestic market.

Commercial Transportation sales increased 20% on a reported basis and 18% organically. Curtin cited improving cycle trends across regions and market verticals, new program wins and further electrification of trucks in Asia. Transportation segment adjusted operating margin was 21%.

Record Orders Build Visibility Into Fiscal 2027 Management emphasized that order strength was broad-based. Industrial segment orders increased 36% from the prior year, while Transportation orders rose 19%. Curtin said every business across both segments delivered double-digit order growth.

Within Industrial, year-to-date DDN orders were up more than 70% versus last year, while energy, aerospace and defense, and Automation and Connected Living each posted 20% year-to-date order growth. Curtin said roughly half of the year-over-year Industrial order increase came from DDN, with AI program ramps contributing to backlog that is expected to support fiscal 2027 growth.

Chief Financial Officer Heath Mitts said the company will exit fiscal 2026 with a strong backlog position in both Industrial and Transportation. He said order momentum and backlog growth give management confidence that TE’s performance will continue into next year.

Cash Flow, Capital Returns and Astrodyne TDI Acquisition TE generated $1.2 billion of cash from operations and $883 million of free cash flow in the quarter. Year to date, free cash flow was approximately $2.2 billion. Mitts said TE has returned about $2 billion to shareholders through dividends and share repurchases so far this year and continues to expect free cash flow conversion of roughly 100% for fiscal 2026.

The company also announced an agreement to acquire Astrodyne TDI, a bolt-on acquisition expected to add more than $250 million in annual sales. TE said the purchase price is approximately $1.4 billion and the transaction is expected to close by the end of the calendar year, subject to customary closing conditions.

Curtin said Astrodyne TDI expands TE’s portfolio of power filters and custom power supplies for mission-critical applications, including semiconductor equipment, defense and medical markets. Mitts said the acquisition will be funded with cash and is expected to be accretive to TE’s growth rates and margins at both the company level and within the Industrial segment.

Fourth-Quarter Outlook For the fiscal fourth quarter, TE expects sales of approximately $5.25 billion, up 11% from the prior year, and adjusted EPS of about $3.05. Mitts said the adjusted effective tax rate is expected to be between 22% and 23% in the fourth quarter, while cash taxes are expected to remain well below the adjusted effective rate.

Management said the company continues to manage inflationary pressures through pricing and cost actions while investing in engineering and manufacturing capacity to support future growth.

About TE Connectivity (NYSE:TEL)TE Connectivity NYSE: TEL is a global industrial technology company that designs and manufactures connectivity and sensor solutions used to enable the flow of power and data in a wide range of applications. Its product portfolio includes electrical connectors, cable and wire harness assemblies, sensors, relays and switches, fiber-optic and coaxial interconnects, and other passive and active components that provide mechanical and electrical connections in complex systems.

The company's products and engineered solutions serve diverse end markets such as automotive and transportation, industrial equipment, data communications and networks, aerospace and defense, medical devices, and energy.

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 TE Connectivity Right Now?Before you consider TE Connectivity, 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 TE Connectivity wasn't on the list.

While TE Connectivity currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

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CBIZ (CBZ - Free Report) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 29. 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 provider of outsourced business services is expected to post quarterly earnings of $0.74 per share in its upcoming report, which represents a year-over-year change of -22.1%.

Revenues are expected to be $699.41 million, up 2.3% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.62% 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 the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

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 CBIZ?For CBIZ, 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 -4.41%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that CBIZ 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 CBIZ would post earnings of $2.28 per share when it actually produced earnings of $2.50, delivering a surprise of +9.65%.

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.

CBIZ 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.

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

Key Takeaways Sterling is expanding from site development into electrical and mechanical work on mission-critical projects.Mission-critical projects made up more than 90% of E-Infrastructure backlog at the end of Q1 2026.A $5.15 billion backlog and cross-selling on data center campuses could support further margin gains. Sterling Infrastructure, Inc. (STRL - Free Report) has already delivered one of the strongest margin expansion stories in the engineering and construction industry. But the next phase of the company's profitability may depend less on project volume and more on how effectively it expands its vertically integrated service model.

That strategy became more evident following Sterling's $561.6 million acquisition of CEC Facilities Group. Traditionally recognized for large-scale site development, STRL can now provide specialty electrical and mechanical services, extending its capabilities further into mission-critical projects such as data centers, semiconductor fabrication facilities and advanced manufacturing plants. Rather than handing projects off to another specialty contractor after site preparation, Sterling is increasingly participating across multiple stages of the project lifecycle.

Early results suggest that the strategy is gaining traction. Mission-critical projects accounted for more than 90% of E-Infrastructure backlog at the end of first-quarter 2026. Segment revenues rose 174% year over year to $597.7 million, while operating income increased 187% to $133.8 million. CEC contributed $156.1 million in quarterly revenues, and Sterling is actively cross-selling its electrical capabilities with the company's legacy civil site-development services. STRL is already executing two major data center campuses under this integrated civil-and-electrical delivery model.

Vertical integration also strengthens the company's competitive position. Large customers increasingly prefer contractors capable of managing multiple phases of complex projects because it reduces coordination risk, streamlines execution and simplifies project oversight. For Sterling, providing a broader range of services increases the opportunity to capture a larger share of project spending, strengthens customer relationships and supports greater revenue visibility through its $5.15 billion combined backlog, particularly across fast-growing AI-driven data center and semiconductor markets.

Disciplined project selection, favorable mix and strong execution have already lifted profitability, while deeper integration across mission-critical projects could provide another avenue for margin expansion.

Integrated Capabilities Are Reshaping Industry CompetitionSterling's vertically integrated strategy reflects a broader industry shift, with contractors expanding their capabilities to capture a larger share of complex infrastructure projects. Companies like Comfort Systems USA, Inc. (FIX - Free Report) and MasTec, Inc. (MTZ - Free Report) are pursuing similar strategies to capitalize on growing demand from AI-driven data centers and other mission-critical facilities.

Comfort Systems continues to deepen its integrated mechanical and electrical capabilities as demand for technology infrastructure accelerates. The company reported a record backlog of $12.5 billion, with advanced technology projects accounting for 56% of revenues and remaining the largest driver of pipeline and backlog. Management also highlighted increased collaboration between its mechanical and electrical businesses, continued investments in modular manufacturing capacity and automation, and acquisitions that expand its electrical capabilities, enabling FIX to deliver more comprehensive solutions for large mission-critical projects.

MasTec is pursuing a similar strategy by broadening its turnkey infrastructure capabilities. Management emphasized that combining civil, power, telecom and construction-management expertise positions the company to capture a larger share of data center and critical infrastructure spending. MTZ continues to expand its self-perform capabilities to improve margins while customers increasingly seek deeper partnerships, alliance agreements and turnkey solutions that provide greater execution certainty for large, complex projects.

STRL Stock’s Price Performance & Valuation TrendShares of this Texas-based infrastructure services provider have surged 126.7% year to date, outperforming the Zacks Engineering - R and D Services industry, the broader Construction sector and the S&P 500 Index.

STRL's YTD Share Price Performance

Image Source: Zacks Investment Research

STRL stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 31.5, as shown in the chart below.

STRL’s P/E Ratio (Forward 12-Month) vs. Industry

Image Source: Zacks Investment Research

Earnings Estimate Revision of STRLSTRL’s earnings estimates for 2026 and 2027 have moved upward in the past 60 days to $19.12 and $25.83 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 74.7% and 32.9%, respectively.

Image Source: Zacks Investment Research

STRL's Zacks RankSterling stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

David Einhorn built his reputation shorting frauds and buying what no one else would touch. His latest 13F reads as a five-stock roadmap through merger arbitrage, coal, and utility power demand, and one of those names is already sitting 6.6% below a signed $70 all-cash acquisition price. Miss the setup and you’re funding someone else’s payday.

1. Brighthouse Financial (The Merger-Arb Layup Nobody’s Talking About) Brighthouse Financial (NASDAQ:BHF) sits directly on top of a signed deal. Aquarian Capital LLC is acquiring the company at $70.00 per share in an all-cash transaction valued at roughly $4.1 billion, expected to close in 2026 subject to regulatory approvals. That is a hard catalyst with a hard number, and the market is still pricing it well below the deal.

The setup is textbook Einhorn. Shares last traded at $65.64 as of July 17, 2026, leaving a $4.36 gross spread, or 6.6% below the deal price. Underneath the arb, the annuity engine is humming: Q1 2026 adjusted EPS came in at $4.15 versus $235M in adjusted earnings the prior year, with the annuities segment generating $324M in adjusted earnings on $2.18B in sales. Insiders logged 32 recent transactions with a net buying direction, consistent with a deal on track to close.

That kind of spread on a signed deal only stays open when investors doubt the closing. Einhorn clearly doesn’t. Neither, apparently, does the next name on the list, which is riding a very different wave.

2. PG&E (The Data Center Utility Trade) PG&E (NYSE:PCG | PCG Price Prediction) is the direct pipe into California’s AI power demand. The company’s data center pipeline hit approximately 4.6 GW in final engineering, up from 3.6 GW, with more than 10 GW of pre-application interest. Add a $73B five-year capital plan pushing rate base to roughly $106B by 2030, and this is an income compounder with a growth kicker.

The Street sees it. Analyst sentiment breaks down as 14 buy/strong buy ratings, 4 holds, and zero sells, with a consensus target of $22.84. Three data points frame the trade: Q1 2026 non-GAAP core EPS of $0.43 versus $0.33 a year ago, reaffirmed FY2026 non-GAAP core EPS guidance of $1.64 to $1.66, and 9%-plus EPS growth guided annually from 2027 through 2030. Wildfire non-core charges collapsed to $3M from $40M year over year, and no common equity issuance is planned through 2030.

Shares closed at $17.29 on July 17, 2026, up 34.62% over the past year. The base-case AI model targets $22.20, roughly 28.36% upside. If Einhorn is right that AI compute has to plug in somewhere, PG&E is the socket. But the next name plays the same power thesis from a different angle: the ones building the plants.

3. Fluor (The Nuclear Renaissance Contractor) Fluor (NYSE:FLR) is the picks-and-shovels bet on the same electrification story. The company is landing new awards across nuclear, data centers, mining, and uranium enrichment, including a Centrus FEED award, and it monetized its NuScale stake for $2.4B in proceeds since September 2025, including $1.35B in Q1 2026. That cash is being funneled straight back to shareholders via a $1.4B share repurchase target for 2026, with $516M already executed in Q1.

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The quarter was noisy. Adjusted Q1 2026 EPS of $0.14 missed the $0.62 consensus by 77.26%, and revenue of $3.663B missed by 5.92%, down 8% year over year. Segment mix skewed heavily toward Urban Solutions at $2.437B, followed by Energy Solutions at $703M and Mission Solutions at $523M. Crucially, 98% of new awards are reimbursable, insulating margins from execution risk that has plagued this stock for years.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and PG&E didn't make the cut. Grab the names FREE today.

Shares last printed $49.17, up 24.93% year to date but down 7.49% over the past 12 months. The AI model reads it as fairly valued at $49.98 (HOLD), with a bull-case path to $55.88. Einhorn’s edge here is patience: the backlog tells the real story. Which brings us to the position he has held longer than any of them.

4. Green Brick Partners (The Homebuilder Hiding in Plain Sight) Green Brick Partners (NYSE:GRBK) is Greenlight’s longest-standing anchor position, a Texas-heavy homebuilder Einhorn helped bring public. The setup: peer-leading margins and a fortress balance sheet in a housing market everyone assumes is broken. Homebuilding gross margins hit 29.4% in Q4 and 30.5% for FY2025, with net homebuilding debt-to-total capital of just 6.3% and roughly $520M in liquidity.

The Q4 print did the work. Adjusted diluted EPS of $1.78 beat the $1.67 consensus by 6.59%, revenue of $552.61M beat by 15.73%, and net new orders hit a record 883 units. Lot position expanded to 48,828 lots, and a fresh $150M share repurchase was authorized. Valuation is unusually cheap for a builder with these margins: trailing P/E of 11, forward P/E of 11, and price-to-book of 1.66.

Shares traded at $72.75 on July 17, 2026, up 20% year to date and 248.42% over five years. The AI model calls a modest BUY with a $76.42 base case and $80.94 bull case. Einhorn’s read: buy quality when the sector is out of favor. Which sets up the punchline, a name Wall Street left for dead a decade ago.

5. Core Natural Resources (The Coal Comeback Payoff) Core Natural Resources (NYSE:CNR) is the trade everyone else is too embarrassed to make. Coal, of all things, is where the AI power thesis and policy tailwinds collide. AI-driven data center power demand is projected to grow 3.7% annually over five years, coal has been designated a critical material under 45X, and the One Big Beautiful Bill Act reduced federal royalty rates. Einhorn has traded this book before, going back to his CONSOL Energy position from January 11, 2021.

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The Q1 print flipped the narrative. EPS of $0.41 beat the $0.34 consensus by 20.80%, revenue of $1.084B beat by 1.97%, and net income swung to $21M from a $69.3M loss year over year. The metallurgical segment’s adjusted EBITDA flipped from -$20.84M to +$57.97M, with cash costs falling 11% to $92.35 per ton. Capital returns are aggressive: $733.8M remaining under a $1B buyback after repurchasing 464,600 shares at an average $90.23 in Q1.

Shares closed at $82.66, up 15.84% year over year and 398.4% over five years. Analysts are unanimous: 4 buy ratings, zero holds or sells, with a consensus target of $105.25 and an AI base case of $115.99, or 40.32% upside. Rare-earth exploration at the Powder River Basin, showing grades above 1,000 ppm at Black Thunder, is an optionality kicker no one is paying for.

The Thread Einhorn’s five longs share a structure: hard catalysts, cheap valuations, and out-of-consensus narratives. A signed $70 cash deal at BHF, 28.36% modeled upside at PCG, buyback machines at FLR and GRBK, and a coal payoff modeled at 40.32% upside. The skeptic is on offense, positioned for the trades the rest of the market still refuses to make. The 13F is filed. The clock is running.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and PG&E didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

Investors interested in Medical - Instruments stocks are likely familiar with Integra LifeSciences (IART - Free Report) and SONOVA HOLDING (SONVY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, Integra LifeSciences is sporting a Zacks Rank of #2 (Buy), while SONOVA HOLDING has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that IART is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

IART currently has a forward P/E ratio of 7.77, while SONVY has a forward P/E of 17.84. We also note that IART has a PEG ratio of 1.32. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SONVY currently has a PEG ratio of 3.63.

Another notable valuation metric for IART is its P/B ratio of 1.42. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SONVY has a P/B of 4.46.

Based on these metrics and many more, IART holds a Value grade of B, while SONVY has a Value grade of C.

IART is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that IART is likely the superior value option right now.

Key Takeaways EWBC beat Q2 earnings estimates as net interest income and fee income increased y/y.EWBC reported higher loans and deposits to record levels, while lower provisions supported results.EWBC posted stronger capital and profitability ratios, though expenses increased y/y. East West Bancorp, Inc.’s (EWBC - Free Report)   second-quarter 2026 earnings per share of $2.63 beat the Zacks Consensus Estimate of $2.61. Moreover, the bottom line increased 17.4% from the prior-year quarter’s level.

The results were primarily aided by an increase in net interest income (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.

Net income was $363.7 million, up from $310.3 million in the prior-year quarter.

EWBC’s Revenues & Expenses IncreaseQuarterly net revenues were $791.1 million, up 12.5% year over year. Moreover, the top line beat the Zacks Consensus Estimate of $785.9 million.

NII amounted to $684.7 million, which increased 11% year over year. Further, the net interest margin (NIM) expanded eight basis points (bps) to 3.43%. We expected NII and NIM to be $697 million and 3.49%, respectively.

Total non-interest income was $106.5 million, up 23.6% year over year. The rise was driven by an increase in almost all fee income components, except for customer derivative income. In the reported quarter, the company recorded other investment losses against a gain in the year-ago quarter. We estimated non-interest income to be $87.4 million.

Non-interest expenses totaled $290.6 million, up 13.5% from the prior-year quarter’s level. The rise was due to an increase in all cost components except deposit account expense. Our estimate for the same was $284.3 million.

The efficiency ratio was 36.73%, up from 36.41% in the prior-year quarter. A rise in the efficiency ratio indicates a deterioration in profitability.

As of June 30, 2026, net loans held for investment (HFI) were a record $58.1 billion, reflecting a 1.5% rise sequentially. Further, total deposits rose 1.7% from the previous quarter to a record $70.1 billion.

East West Bancorp’s Credit Quality: A Mixed BagAnnualized quarterly net charge-offs were 0.19% of average loans HFI, up eight bps from the prior-year quarter’s level. Non-performing assets totaled $247 million, up 43.9% from the prior-year quarter.

However, provision for credit losses was $33 million, down from $45 million in the prior-year quarter. Our estimate for the same was $36 million.

EWBC’s Capital & Profitability Ratios ImproveAs of June 30, 2026, the common equity Tier 1 (CET1) capital ratio was 15.44%, up from 14.51% as of June 30, 2025. The total risk-based capital ratio was 16.75%, up from 15.82% a year ago.

Return on average assets was 1.75%, up from 1.62% in the prior-year quarter. Return on average tangible equity was 16.88%, up from 16.39%.

East West Bancorp’s Share Repurchase UpdateIn the reported quarter, East West Bancorp did not repurchase any shares.

Our View on EWBCEast West Bancorp is well-poised for organic growth with robust loan improvement, solid deposit balances and diversified fee income streams. However, a rise in expenses and a weak asset quality amid the tough operating backdrop are likely to hurt the bottom line.

Currently, EWBC 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 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.

HomeStock IdeasQuick Picks & Lists

SummarySeagate Technology shares continued to advance as demand for high-capacity storage tied to AI data-center buildouts supported further positive earnings revisions.On balance, the Fund's artificial intelligence positioning was a net positive contributor to relative performance during the quarter.We added the Humana position on the view that earnings are at a cyclical trough, with MA margins currently depressed, in some cases negative, as elevated medical cost trends have outpaced premium growth across the industry.Intuit was sold following a disappointing growth outlook within its TurboTax segment, where our expectations had been high. Alistair Berg/DigitalVision via Getty Images

The following segment was excerpted from the Nomura Core Equity Fund Q2 2026 Commentary.

Within the Fund For 2Q26, Nomura Core Equity Fund Institutional Class (ICIEX) shares outperformed the Fund's benchmark, the S&P 500

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The market expects Churchill Downs (CHDN - Free Report) to deliver a year-over-year increase in earnings on higher 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 earnings report, which is expected to be released on July 29, might help the stock move higher if these key numbers are better than expectations. 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 racetrack operator and gambling company is expected to post quarterly earnings of $3.51 per share in its upcoming report, which represents a year-over-year change of +13.2%.

Revenues are expected to be $974.36 million, up 4.3% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.13% lower 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 Churchill Downs?For Churchill Downs, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.

On the other hand, the stock currently carries a Zacks Rank of #4.

So, this combination makes it difficult to conclusively predict that Churchill Downs will beat the consensus EPS estimate.

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

For the last reported quarter, it was expected that Churchill Downs would post earnings of $1.06 per share when it actually produced earnings of $1.21, delivering a surprise of +14.15%.

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

Churchill Downs 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.

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

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at JB Hunt (JBHT - Free Report) , which currently has a Momentum Style Score of A. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. JB Hunt currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for JBHT that show why this trucking and logistics company shows promise as a solid momentum pick.

A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.

For JBHT, shares are up 4.09% over the past week while the Zacks Transportation - Truck industry is up 2.92% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 8.92% compares favorably with the industry's 6.2% performance as well.

While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Over the past quarter, shares of JB Hunt have risen 16.7%, and are up 93.02% in the last year. In comparison, the S&P 500 has only moved 6.61% and 20.33%, respectively.

Investors should also take note of JBHT's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now JBHT is averaging 1,028,292 shares for the last 20 days..

Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with JBHT.

Over the past two months, 10 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost JBHT's consensus estimate, increasing from $7.27 to $7.71 in the past 60 days. Looking at the next fiscal year, 10 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom LineTaking into account all of these elements, it should come as no surprise that JBHT is a #1 (Strong Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep JB Hunt on your short list.

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Clean Harbors (CLH - Free Report) . This company, which is in the Zacks Waste Removal Services industry, shows potential for another earnings beat.

When looking at the last two reports, this environmental services company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 2.68%, on average, in the last two quarters.

For the most recent quarter, Clean Harbors was expected to post earnings of $1.15 per share, but it reported $1.19 per share instead, representing a surprise of 3.48%. For the previous quarter, the consensus estimate was $1.59 per share, while it actually produced $1.62 per share, a surprise of 1.89%.

Price and EPS Surprise

For Clean Harbors, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. 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.

Clean Harbors currently has an Earnings ESP of +3.82%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #2 (Buy) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on July 29, 2026.

When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Key Takeaways Skin care reached 23% of e.l.f. Beauty's global consumption in fiscal 2026, up from 9% in fiscal 2023. e.l.f. SKIN generated about $200 million in retail sales and rose to No. 11 in U.S. mass skin care.Naturium nearly doubled pre-acquisition sales, while rhode's net sales grew more than 80% year over year. e.l.f. Beauty, Inc. (ELF - Free Report) is building a larger presence in skin care through e.l.f. SKIN, Naturium and rhode. The category accounted for 23% of the company’s global consumption in fiscal 2026, up from 9% in fiscal 2023, showing that skin care has become a more meaningful part of its brand portfolio.

e.l.f. SKIN provides the foundation of this expansion. The brand generated approximately $200 million in global retail sales in fiscal 2026. Its strategy centers on offering products inspired by prestige beauty at accessible prices. Over the past five years, e.l.f. SKIN has advanced from the No. 25 mass skin care brand in the United States to No. 11.

Despite that progress, the brand held only about 2% of the mass skin care category compared with 13% for the leading brand. This gap highlights the available share opportunity, although further gains will depend on continued product innovation and consumer adoption.

Naturium adds another established growth platform. The brand delivered nearly $250 million in global retail sales in fiscal 2026, roughly double its pre-acquisition level. It was also the fastest-growing brand among the top 50 skin care brands during the fourth quarter. Rhode brings additional scale and momentum. On a pro forma annualized basis, the brand generated more than $500 million in global retail sales and approximately $390 million in net sales in fiscal 2026, with net sales increasing more than 80% year over year.

Together, the three brands give e.l.f. Beauty exposure across different skin care segments. The next leg of growth will depend on whether e.l.f. SKIN can keep gaining share while Naturium and rhode maintain their current pace.

ELF Stock Price Performance, Valuation & EstimatesShares of this Zacks Rank #3 (Hold) company have jumped 20.6% over the past three months compared with the industry’s growth of 10.9%.

ELF Price Performance Versus Industry
Image Source: Zacks Investment Research

From a valuation standpoint, e.l.f. Beauty trades at a forward price-to-earnings ratio of 23.46, above the industry’s average of 19.48.

ELF Valuation Compared to Industry
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for ELF’s current and next fiscal-year earnings per share implies year-over-year growth of 5.8% and 9.9%, respectively.

Stocks to ConsiderUnited Natural Foods, Inc. (UNFI - Free Report) , a major food wholesaler serving grocery retailers, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for United Natural’s current and next fiscal-year earnings per share suggests a year-over-year increase of 254.9% and 21.4%, respectively. UNFI delivered a trailing four-quarter earnings surprise of 29.9%, on average.

The Estee Lauder Companies Inc. (EL - Free Report) , a leading global prestige beauty company with a diversified portfolio of skin care, makeup, fragrance and hair care brands, carries a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for The Estee Lauder Companies’ current and next fiscal-year EPS calls for a year-over-year jump of 59.6% and 31.7%, respectively. EL delivered a trailing four-quarter earnings surprise of 39.1%, on average.

Mama's Creations, Inc. (MAMA - Free Report) , a maker of refrigerated prepared foods for retail and foodservice, carries a Zacks Rank #2 at present.

The Zacks Consensus Estimate for Mama's Creations’ current and next fiscal-year EPS suggests growth of 73.3% and 46.2%, respectively, from the prior-year reported levels. MAMA delivered a trailing four-quarter earnings surprise of 129.2%, on average.

Key Takeaways ICHR's sales and EPS are projected to rise sharply through 2027 as semiconductor demand improves.AI investment, etch and deposition demand, and margin initiatives support Ichor's growth outlook.Rich valuation, customer concentration and cyclical demand raise the bar for ICHR's execution. Ichor Holdings, Ltd. (ICHR - Free Report) presents a split setup for investors. The business is tied to improving semiconductor capital equipment demand, and earnings expectations point to a sharp recovery.

The challenge is valuation. After a major stock-price move, the shares already reflect a considerable amount of optimism, leaving less room for execution missteps.

ICHR Earnings Estimates Are RisingICHR’s estimates show a clear growth-recovery story. Sales are projected to rise from $948 million in 2025 to $1.2 billion in 2026 and $1.45 billion in 2027.

The earnings trajectory is even sharper. EPS is expected to climb from 23 cents in 2025 to $1.41 in 2026 and $2.72 in 2027, suggesting meaningful operating leverage if the company delivers on the revenue ramp.

Why Ichor’s Upside Looks RealThe bullish case is not limited to a cyclical rebound. Ichor is benefiting from AI-driven semiconductor investment trends and stronger demand in etch and deposition, two areas that align well with its fluid delivery subsystems and precision-engineered components.

The company is also working to strengthen margins through vertical integration, a larger proprietary-product portfolio and manufacturing optimization. Ultra Clean Holdings, Inc. (UCTT - Free Report) is a relevant comparison for investors watching this niche, as it also supplies critical subsystems, components and services primarily to the semiconductor industry. Applied Materials, Inc. (AMAT - Free Report) , a major semiconductor equipment company, remains an important industry read-through for capital equipment demand and supply-chain conditions.

Why ICHR May Already Price In Good NewsThe valuation side is harder to ignore. ICHR was recently priced at $95.85, against a 6-12 month price target of $101, suggesting upside exists but may not be dramatic relative to the growth already anticipated.

The stock trades at a trailing P/E of 368.7, a forward P/E of 68.5 and a price-to-sales ratio of 3.5. Those multiples raise the bar for execution, especially since the investment case now depends on strong growth continuing into 2026 and 2027.

What Could Trip Up Ichor SharesCustomer concentration remains a key risk. Ichor depends on a small number of large semiconductor equipment customers, which can create pressure if order patterns shift, qualification timelines slip or pricing leverage moves against the company.

The broader semiconductor equipment market is also cyclical. Even with favorable AI-related trends, Ichor’s growth plans still rely on customer qualifications, smooth manufacturing transitions and successful execution of its production realignment efforts.

ICHR Ratings Point to a Mixed SetupThe bottom line is that ICHR has a credible long-term growth story, but the stock does not screen as an obvious bargain after its strong run. The shares may appeal more to investors focused on execution, margin improvement and earnings expansion than to those seeking a cheap entry point.

ICHR currently carries a Zacks Rank #4 (Sell), which points to weak near-term appeal. Its Zacks Style Scores are more mixed, with a Momentum Score of B, Value Score of F, Growth Score of C and VGM Score of D. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

That combination reinforces the balanced view. Momentum remains the strongest style signal, but weak value characteristics and a subdued overall VGM profile make ICHR a stock to approach with selectivity rather than broad enthusiasm.

Key Takeaways Ichor expects every quarter of 2026 to deliver sequential revenue growth amid stronger demand visibility.Gate-all-around chips require about 30% more process steps, lifting etch and deposition demand.Branded components could reach 35% of system content by year-end 2026, up from 25% entering the year. Ichor Holdings, Ltd. (ICHR - Free Report) has become a sharper semiconductor infrastructure story as AI-related wafer fab spending lifts demand across more complex chipmaking steps.

The company’s appeal rests less on AI branding and more on where that spending flows: etch, deposition, fluid delivery subsystems and higher-value manufacturing content.

How AI Trends Lift ICHR DemandAI infrastructure is pushing chipmakers toward advanced logic, high-bandwidth memory and more complex process flows. That matters for Ichor because its gas and chemical delivery subsystems are used in semiconductor fabrication steps such as etch and deposition.

First-quarter 2026 revenues rose 15% sequentially to $256.1 million, and management expects second-quarter revenues of $290-$310 million. Ichor also expects every quarter of 2026 to show sequential growth, reflecting stronger demand visibility.

Ichor’s Bet on Etch and DepositionIchor is not simply exposed to broad chip demand. Its stronger positioning is tied to etch and deposition, where process complexity is rising. Gate-all-around architectures require roughly 30% more process steps, supporting demand for the equipment categories where Ichor has meaningful exposure.

Lam Research (LRCX - Free Report) offers relevant context because etch and deposition are core wafer fabrication processes in its portfolio. Applied Materials (AMAT - Free Report) is another important reference point, given its focus on deposition and selective etch systems for advanced 3D chip structures.

Why ICHR Wants More Vertical IntegrationIchor’s strategy is also about capturing more value inside the systems it builds. The company is expanding internally designed content across valves, flow controllers, filters, substrates and related components rather than relying only on third-party sourcing.

Branded components represented 25% of system content entering 2026, up from 15% in 2024. Ichor targets 35% by the end of 2026, with a longer-term goal of supplying as much as 75% of system content.

What Trend Investors Should WatchThe trend case has limits. Lam Research and Applied Materials accounted for 76% of Ichor’s 2025 revenues, leaving the company highly exposed to spending decisions by a small group of large semiconductor equipment customers.

Execution also matters. Margin recovery depends on manufacturing transfers to Mexico and Malaysia, customer qualifications, higher internal component sourcing and smooth production ramps. Semiconductor equipment remains cyclical, so favorable AI demand does not eliminate order volatility.

How Ichor’s Ratings Fit the Trend CaseThe bottom line is that ICHR has a credible growth narrative tied to AI-led fab spending, etch and deposition intensity, and rising proprietary content. Still, the stock setup is not yet clean enough to call the story fully de-risked.

ICHR currently carries a Zacks Rank #4 (Sell). Its Momentum Score of B points to stronger price action characteristics, but the Growth Score of C is only neutral. The Value Score of F and VGM Score of D suggest the broader style-score profile is less supportive. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

For investors, that combination argues for balance. Ichor has exposure to attractive semiconductor trends, but the Zacks Rank and mixed Style Scores signal that near-term expectations, valuation and execution risk still deserve close attention.

All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.

Headquartered in Birmingham, Regions Financial (RF - Free Report) is a Finance stock that has seen a price change of 13.73% so far this year. The holding company for Regions Bank is currently shelling out a dividend of $0.26 per share, with a dividend yield of 3.44%. This compares to the Banks - Southeast industry's yield of 1.93% and the S&P 500's yield of 1.35%.

Looking at dividend growth, the company's current annualized dividend of $1.06 is up 2.9% from last year. Over the last 5 years, Regions Financial has increased its dividend 4 times on a year-over-year basis for an average annual increase of 13.34%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Regions Financial's current payout ratio is 42%, meaning it paid out 42% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, RF expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $2.62 per share, representing a year-over-year earnings growth rate of 12.45%.

From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. However, not all companies offer a quarterly payout.

High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, RF is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

Brookfield Renewable Partners (BEP +0.75%) and Brookfield Renewable Corporation (BEPC -3.75%) announced their intention to simplify their corporate structure. Their infrastructure siblings, Brookfield Infrastructure Partners (BIP +1.87%) and Brookfield Infrastructure Corporation (BIPC -0.54%), also announced the same intention. The moves would create two publicly traded corporations: one focused on renewable energy (Brookfield Renewable Partners) and another on infrastructure (Brookfield Infrastructure Partners).

Here’s a look at what these corporate simplifications mean for dividend investors.

Image source: Getty Images.

The benefits of simplifyingBrookfield Corporation (BN -0.64%), the parent company of these entities, initially created the economically equivalent corporate twins (BEPC and BIPC) to provide investors with greater access to its publicly traded operating companies. Some investors don’t like holding partnerships because they issue Schedule K-1 Federal tax forms, which adds some tax complexity. Additionally, partnerships aren't eligible for investment in most retirement accounts and inclusion in most indexes. While the creation of these corporate entities helped broaden their investment appeal, it didn't solve all the problems.

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By simplifying their corporate structures into publicly traded corporations, Brookfield expects to reap several benefits, including:

Increased trading liquidity through a single listed entity.Increased demand from indexes and the exchange-traded funds (ETFs) that track them.Simplified investor analysis.Eliminating partnership tax reporting for BEP and BIP unitholders.If security holders approve the moves, all investors will receive newly issued shares of the new corporation (BEP for current Brookfield Renewable investors and BIP for existing Brookfield Infrastructure holders). Investors will see no change to their current dividend levels (preserving their roughly 4.5% yields). Meanwhile, both companies will remain in a strong position to continue growing their dividends (5% to 9% annual growth targets) and long-term shareholder value.

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Following a successful blueprintThe simplification announcements likely didn’t come as a surprise to investors who follow Brookfield Corporation or any of its operating companies. The leading global investment firm is currently undergoing its own simplification by recombining with its insurance business (Brookfield Wealth Solutions). It announced plans to streamline its corporate structure earlier this year, which shareholders recently approved. It expects to close the simplification by year-end. Simplifying will enhance its capital efficiency and flexibility and better support its expansion.

That move followed the successful conversion of Brookfield Business Partners and Brookfield Business Corporation into a single listed corporate entity. In the company’s first-quarter letter to shareholders, CEO Bruce Flatt wrote, “The dominance of index investing, strong shareholder support, and a positive market response have reinforced our view that simpler structures with larger market capitalizations are now the most effective way to position these businesses.” That led Brookfield to evaluate similar simplification plans of its listed infrastructure and renewable energy entities, which it’s now progressing.

Making it simpler for dividend investorsBrookfield Corporation is simplifying the structures of its renewable energy and infrastructure operating companies. That will eliminate the burdensome tax reporting for dividend investors who currently hold units of either partnership. Meanwhile, it will provide income-seekers with a simple investment option focused on either infrastructure or renewable energy. That will benefit investors over the long run as it will become much easier to invest in these top high-yield dividend stocks, which will be in an even stronger position to grow their payouts and shareholder value going forward.

Matt DiLallo has positions in Brookfield Corporation, Brookfield Infrastructure, Brookfield Infrastructure Partners, Brookfield Renewable, and Brookfield Renewable Partners and has the following options: short July 2026 $40 puts on Brookfield Corporation. The Motley Fool has positions in and recommends Brookfield Corporation and Brookfield Wealth Solutions. The Motley Fool recommends Brookfield Infrastructure Partners, Brookfield Renewable, and Brookfield Renewable Partners. The Motley Fool has a disclosure policy.

GE Vernova (NYSE:GEV) shares dropped about 6.4% on Wednesday morning after the power equipment maker's wind segment losses widened even as the company posted stronger-than-expected quarterly revenue and record orders.

The company's wind business, its long-standing trouble spot, reported revenue down 10% to $2.03 billion in the second quarter, with the segment's core loss widening to about $275 million on lower onshore equipment deliveries.

GE Vernova said it expects global tariffs to add $100 million to $200 million to costs in 2026.

Second-quarter revenue rose 22% year-over-year to $11.1 billion, topping analyst estimates of $10.7 billion.

Orders climbed 88% organically to $24.2 billion, pushing the company's backlog up $13 billion from the prior quarter to $176 billion.

Data center orders exceeded $5 billion so far this year, more than double the total for all of 2025.

Earnings per share came in at $2.47, up 33% from a year earlier but below the $3.01 analysts had expected. Adjusted EBITDA was $1.2 billion, for a margin of 11.3%.

By segment, Power revenue rose 14% organically to $5.5 billion, while Electrification revenue grew 29% organically to $3.6 billion.

For the full year, GE Vernova guided revenue of $45.5 billion to $46.5 billion, above the $45.45 billion analyst estimate, with free cash flow of $11.5 billion to $12.5 billion and an adjusted EBITDA margin of 12% to 14%. Power organic revenue growth is expected at 18% to 20%, while the wind segment is projected to post a roughly $400 million EBITDA loss for the year.

The company said gas equipment under contract is expected to reach at least 125 gigawatts by the end of 2026, with gas turbine output on track to hit 20 gigawatts in the third quarter of 2026, 24 gigawatts by 2028 and 30 gigawatts by 2030.

U.S. stocks traded mostly higher midway through trading, with the Dow Jones index gaining more than 200 points on Wednesday.

The Dow traded up 0.40% to 52,432.64 while the NASDAQ declined 0.01% to 25,834.80. The S&P 500 also rose, gaining, 0.20% to 7,524.26.

Leading and Lagging Sectors

Utilities shares jumped by 1.8% on Wednesday.

In trading on Wednesday, information technology stocks fell by 0.6%.

Top Headline

GE Vernova (NYSE:GEV) shares fell around 6% on Wednesday after the company reported mixed second-quarter financial results.

GE Vernov reported quarterly earnings of $2.47 per share which missed the analyst consensus estimate of $3.13 per share. The company reported quarterly sales of $11.104 billion which beat the analyst consensus estimate of $10.734 billion.

Equities Trading UP
           

Equities Trading DOWN

Commodities

In commodity news, oil traded up 2.1% to $86.06 while gold traded up 1.8% at $4,149.80.

Silver traded up 2.5% to $60.565 on Wednesday, while copper fell 0.5% to $6.5200.

Euro zone

European shares were higher today. The eurozone’s STOXX 600 rose 0.8%, while Spain’s IBEX 35 Index rose 1.3% London’s FTSE 100 rose 1.5%, Germany’s DAX gained 0.6%, while France’s CAC 40 surged 1.1%.

Asia Pacific Markets

Asian markets closed mostly lower on Wednesday, with Japan’s Nikkei 225 falling 0.18%, Hong Kong’s Hang Seng index falling 0.95%, China’s Shanghai Composite rising 0.07% and India’s BSE Sensex falling 0.92%.

Economics

The volume of mortgage applications surged by 1.9% in the week ending July 17.

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The study is evaluating ivonescimab combined with chemotherapy compared to placebo plus chemotherapy for endothelial growth factor receptor (EGFR)-mutated, locally advanced or metastatic non-squamous non-small cell lung cancer (NSCLC) who were previously treated with a third-generation EGFR tyrosine kinase inhibitor (TKI).

The latest analysis continues to demonstrate a favorable overall survival trend and a consistent safety profile across diverse patient populations.

Prolonged Follow-Up Enhances Efficacy TrendsThe HARMONi trial investigates ivonescimab paired with chemotherapy against a placebo and chemotherapy regimen.

The study focuses on patients battling advanced or metastatic non-squamous non-small cell lung cancer (NSCLC) harboring EGFR mutations, following prior treatment with third-generation therapies.

In the primary analysis from April 2025, patients receiving the ivonescimab combination exhibited a median overall survival of 16.8 months, compared to 14.0 months for the placebo group.

While initially showing a positive trend without reaching statistical significance, subsequent evaluations highlighted improving outcomes.

By September 2025, extended monitoring of Western participants yielded a hazard ratio of 0.78.

The most recent data cut in June 2026, featuring a 23.2-month median follow-up for Western patients, showcased an even stronger hazard ratio of 0.76.

Safety Profile And Regulatory Next StepsWith longer observation periods, the magnitude of survival benefits for Western participants now aligns with the results seen in Asian patients, who had longer follow-up times during earlier assessments.

Furthermore, ivonescimab maintained a manageable safety profile with no new adverse signals detected.

Summit has provided these updated findings to the FDA to support its Biologics License Application. The regulatory agency has set a target action date of November 14, 2026, to decide on the drug’s approval.

SMMT Price Action: Summit Therapeutics shares were up 2.26% at $14.96 at the time of publication on Wednesday, according to Benzinga Pro data.

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3 Low P/E Stocks: Separating Multibaggers From a Value TrapRogers Communication NYSE: RCI reported higher second-quarter service revenue and adjusted earnings, with management emphasizing stronger free cash flow, reduced capital spending and progress on its plan to monetize sports and media assets.

On the company’s earnings call, President and CEO Tony Staffieri said Rogers “continued to deliver solid performance” across wireless, cable and sports and media despite what he described as “an overall low growth telecom market.” Consolidated service revenue rose 8%, while adjusted EBITDA increased 3%.

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Rogers Communication Stock Should Be Launching Higher Free cash flow for the quarter was CAD 1 billion, up 6% from a year earlier. Capital expenditures declined 16%, and capital intensity improved 350 basis points to 12.4%, which Staffieri said was Rogers’ lowest capital intensity ratio since the first quarter of 2008.

Chief Financial Officer Glenn Brandt said Rogers reaffirmed its 2026 outlook ranges for total service revenue growth, adjusted EBITDA growth, capital expenditures and free cash flow. The company continues to expect 2026 capital expenditures of CAD 2.5 billion to CAD 2.7 billion.

Wireless Adds Customers as Promotions Moderate In wireless, Rogers added 40,000 subscribers during the quarter, including 22,000 postpaid customers. Wireless service revenue was stable year over year, while adjusted EBITDA rose 1%.

Brandt said mobile phone net additions were down 34% from the prior year, reflecting “continued flat to declining overall population.” Mobile phone ARPU was CAD 54.25, down 2% from a year earlier. Postpaid mobile phone churn improved to 0.94%, down 6 basis points year over year.

Staffieri said Rogers has shifted away from short-term promotional price discounting and toward “meaningful, sustainable value propositions” for customers. He said the broader market also showed “much reduced promotional pricing activity” in the second quarter.

During the question-and-answer session, Staffieri said wireless market expansion appeared to be around 2%, at the lower end of the company’s prior 2% to 2.5% range. He said future wireless revenue performance will depend heavily on ARPU trends and market conditions during back-to-school and fall selling periods.

Rogers said its back-to-school offers focus on perks, partnerships, hardware discounting and higher-tier plan features rather than broad service-price reductions. Staffieri also pointed to offerings such as satellite service, roaming and savings on streaming applications as part of the company’s value strategy.

Cable Revenue and EBITDA Continue to Grow Rogers’ cable business posted 1% growth in both service revenue and adjusted EBITDA, and added 17,000 retail internet subscribers in the quarter. Brandt said the cable margin was 58%, up 10 basis points from a year earlier.

Brandt said cable’s organic growth was roughly double the reported figure after excluding the impact of Rogers’ December 2025 sale of its hosted data center business. On that basis, cable service revenue and adjusted EBITDA each rose 2% year over year.

Asked about ongoing pressure in satellite TV, Brandt declined to provide detailed figures but said the impact has been “fairly flat” and steady in recent years, and is already embedded in the company’s reported cable performance.

Sports and Media Revenue Jumps Rogers Sports & Media delivered the company’s strongest growth in the quarter. Media revenue reached CAD 1.2 billion, up 53% from a year earlier. Brandt said approximately CAD 0.3 billion of the increase came from consolidation of Maple Leaf Sports & Entertainment, while standalone organic Rogers Sports & Media revenue grew 13%, or roughly CAD 100 million.

Brandt attributed the organic growth largely to higher Toronto Blue Jays-related revenue, including more than 95% near-sellout attendance for home games at Rogers Centre, and higher subscriber revenue following the 2025 launch of the Warner Bros. Discovery suite of channels.

Media adjusted EBITDA was CAD 69 million, compared with CAD 8 million a year earlier, an increase of about 8.5 times.

MLSE Deal and Minority Stake Sale Plans Rogers recently agreed to acquire the remaining 25% ownership stake in Maple Leaf Sports & Entertainment. Staffieri said that, when the acquisition closes, Rogers will be 100% owner of MLSE’s teams and assets.

Brandt said the company expects to close the purchase in the fourth quarter, subject to league approvals, and is targeting October 1. Rogers recorded a CAD 1 billion non-cash loss in other expense related to the negotiated purchase price and settlement and termination of the MLSE put liability. Brandt said that reflected the change in fair value of the put liability from CAD 3.3 billion in July 2025 to the CAD 4.35 billion negotiated transaction at June 30, 2026.

After completing the acquisition, Rogers plans to combine Rogers Sports & Media with MLSE and sell a minority stake, or stakes, in the combined sports, media and entertainment business. Brandt said the company is targeting the first half of 2027 for that transaction and expects proceeds to be used to reduce debt.

In response to analyst questions, Rogers said it plans to sell non-voting common equity in the holding company for the combined assets, rather than stakes in individual teams such as the Blue Jays, Maple Leafs or Raptors. Brandt said Rogers is not specifically seeking a strategic investor, though it would evaluate opportunities if they arise.

Balance Sheet, CapEx and Network Strategy Rogers ended the quarter with leverage of 3.8 times, down from 4 times at Dec. 31, 2025. Liquidity was more than CAD 6 billion, including CAD 1.7 billion in cash and cash equivalents and CAD 4.4 billion available under bank and other credit facilities.

Management said the lower capital spending level is expected to be sustained beyond 2026. Staffieri said Rogers views capital in two categories: spending to sustain its existing network and business, and spending for network expansion, particularly wireline expansion. He said the current regulatory environment has made it harder to justify some expansion investments.

Asked about satellite-based competition such as Starlink, Staffieri said Rogers sees satellite service as complementary to terrestrial wireless and wireline networks rather than a near-term replacement. Rogers is working with SpaceX/Starlink on satellite service in Canada.

Staffieri also said network slicing remains an opportunity to differentiate higher-tier wireless plans through priority access or enhanced experiences, such as in stadiums during concerts or other high-traffic events.

“We’re executing on our telecom priorities and sports monetization plan with discipline,” Staffieri said. “We are doing what we said we would do, and we’re doing it ahead of schedule.”

About Rogers Communication (NYSE:RCI)Rogers Communications Inc is a Canadian integrated communications and media company headquartered in Toronto, Ontario. The company provides a broad range of telecommunications services to residential and business customers across Canada, including wireless voice and data services, cable television, high-speed internet, and home phone services. In the enterprise market it offers managed IT, data center and cloud solutions, networking and connectivity services targeted to small businesses, large enterprises and public sector clients.

In addition to connectivity services, Rogers operates a significant media portfolio that includes national and regional television and radio assets, sports broadcasting properties and other content businesses.

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].

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