Track market-moving stories before they get noisy

by Kurt Schlosser on Jul 22, 2026 at 8:22 amJuly 22, 2026 at 8:22 am

(GeekWire File Photo / Todd Bishop) Microsoft is putting $60 million behind the U.S. Department of Energy’s Genesis Mission, a push to use artificial intelligence to speed up scientific research across the government’s 17 national labs.

The company’s investment is split into two pieces: $40 million in Azure cloud computing and AI credits over three years, and $20 million for engineering and deployment help to get DOE researchers actually using the tools, Microsoft said in a blog post Wednesday.

Microsoft is also launching a new internal group called SPARK — Scientific Partnership Advancing Research & Knowledge — to serve as the single point of contact between the company and DOE on Genesis Mission work. It’s meant to combine Microsoft’s program management, engineering, security and research teams into one coordinated effort, instead of leaving individual labs to navigate Microsoft on their own.

President Trump created the Genesis Mission through an executive order in November 2025, directing DOE to build a unified computing and data platform — since named the American Science and Security Platform — that connects the national labs’ supercomputers, AI tools and scientific datasets.

The order likened the effort’s urgency and ambition to the Manhattan Project, and the White House said it’s expanded into a whole-of-government initiative involving more than 15 federal agencies, backed by more than $5 billion in commitments.

Microsoft named four initial projects taking shape under the partnership, including work with Pacific Northwest National Laboratory in Richland, Wash., to speed up the discovery of new energy storage materials — cutting analysis that used to take years down to weeks — and autonomous lab work with Lawrence Livermore National Laboratory aimed at detecting biological threats earlier.

“We move faster together,” Chris Barry, president of Microsoft’s U.S. Public Sector business, wrote in the blog post announcing the commitment, framing the investment as both a “national security imperative” and economic opportunity for the U.S.

Microsoft isn’t the only Seattle-area cloud giant courting the Genesis Mission. Amazon Web Services was recognized by DOE as a Genesis Mission supporter in December, highlighting its work with Idaho National Laboratory on AI tools for nuclear reactor design, and the company launched its own Genesis Accelerator Initiative in February, offering up to $50 million in cloud credits for DOE-related research over three years.

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Advanced Micro Devices Inc (NASDAQ:AMD, XETRA:AMD) and Anthropic announced a strategic partnership on Wednesday that includes the deployment of up to 2 gigawatts of AMD's upcoming Instinct MI450 Series GPUs, a multi-year engineering collaboration, and a planned equity investment by AMD of up to $5 billion in the artificial intelligence startup.

Under the agreement, Anthropic plans to deploy up to 2 gigawatts of AMD Helios rack-scale solutions, with the first gigawatt expected to begin deployment in the first half of 2027. The systems will feature AMD Instinct MI455X GPUs, part of the MI450 Series, alongside AMD EPYC "Venice" CPUs, Pensando networking technology and ROCm software.

The deployment expands Anthropic's existing use of AMD Instinct MI355X GPUs as the AI company increases computing capacity to support growing demand for its Claude AI models.

The companies also announced a multi-year engineering collaboration focused on software development. Anthropic's Claude AI assistant will be used to optimize workloads for AMD Instinct GPUs and accelerate development of AMD's ROCm software platform. AMD also plans to adopt Claude more broadly across its engineering and product development teams.

In addition, AMD committed to make a strategic equity investment of up to $5 billion in Anthropic in the future.

AMD CEO Lisa Su stated that the expanded collaboration combines Anthropic's AI capabilities with AMD's high-performance computing technologies to support broader AI deployment and strengthen the Helios platform for future AI infrastructure.

Anthropic chief compute officer Tom Brown stated that access to computing capacity is critical for advancing Claude and meeting customer demand.

“By partnering with AMD across the stack, we are securing the capacity we need and optimizing it for training and serving Claude,” Brown said. “Running across a diversified range of hardware lets us map the right workloads to the right hardware.”

Shares of AMD traded up about 1% at $548 on the announcement.

AMD (NASDAQ: AMD | AMD Price Prediction) and NVIDIA (NASDAQ: NVDA) both closed spring reporting periods with blockbuster AI numbers, but the businesses are pulling in different directions. AMD is trying to become the credible second source for every hyperscaler. NVIDIA is running what Jensen Huang called “the largest infrastructure expansion in human history.” That gap is where the market share fight lives.

Instinct Finally Shows Up. Blackwell Keeps Compounding. AMD’s Q1 FY2026 delivered revenue of $10.25 billion, up 37.9% year over year, with Data Center hitting $5.78 billion, a 57% jump on EPYC CPUs and Instinct GPUs. Non-GAAP EPS came in at $1.37. Lisa Su pointed to the pipeline: “Customer engagement around MI450 Series and Helios is strengthening, with leading customer forecasts exceeding our initial expectations.” The Meta 6 GW commitment and OpenAI 6 GW deal back that claim.

NVIDIA’s Q1 FY2027 is on a different scale. Revenue landed at $81.6 billion, up 85.2%, Data Center alone was $75.25 billion, and Networking exploded 199% to $14.8 billion. Non-GAAP gross margin held at 75%. Roughly half of Data Center revenue comes from hyperscalers, and Huang added a $80 billion buyback on top.

Second Source vs. Full Stack Lens AMD NVIDIA Data Center revenue $5.78B $75.25B Gross margin 55% 75% Core bet MI450, Helios rack, EPYC pairing Blackwell 300, Vera Rubin, CUDA Marquee wins Meta 6 GW, OpenAI 6 GW OpenAI 10 GW, Anthropic, CoreWeave The 20 point margin gap tells you who owns pricing power. NVIDIA sells a platform. AMD sells excellent merchant silicon, which is exactly why hyperscalers want it as leverage. That is the wedge.

Inference Is the Door AMD Walks Through The bull case is a structural rotation from AI model training to AI model inference, combined with hyperscaler enterprise demands for supply chain diversification and cost optimization. The target is aggressive: a 15% to 20% share of the $200B+ AI accelerator market by 2027/2028. Watch MI450 shipment cadence, ROCm 7 adoption, and whether AMD’s Q2 guide of roughly $11.2 billion (+46% YoY) proves conservative once Helios racks ship.

NVIDIA’s tell is different. Guidance of $91 billion excludes China Data Center compute, and Polymarket traders are pricing NVDA in a tight $200 to $216 range against an analyst target of $302.31. Near-term skepticism is real.

Where the Asymmetric Setup Sits for the Next 18 Months If you want the safer AI compounder, NVIDIA owns the software moat and 75% margins. But AMD is where the asymmetric setup sits. Shares are up 154.22% year to date against NVDA’s 11.28%, and a forward P/E near 69 reflects expectations that leave little room for execution slips. My view flips if MI450 slips or ROCm adoption stalls. Until then, the second-source thesis is doing exactly what Lisa Su said it would.

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The AI infrastructure story at Advanced Micro Devices (NASDAQ:AMD | AMD Price Prediction) keeps compounding. After landing a landmark 6 gigawatt OpenAI deployment last fall and a 6 GW Meta partnership earlier this year, AMD added Microsoft to the marquee.

On July 20, 2026, the companies announced that Microsoft Azure will deploy the AMD Helios Rackscale Solution with Instinct MI455 GPUs, Venice CPUs, and Pensando DPUs for AI inference. The customer list rivals NVIDIA‘s (NASDAQ:NVDA).

Our 24/7 Wall St. price target for AMD is $564.64, implying 12.13% upside from the current $503.57 quote. We rate the stock a buy with a 90% confidence level.

24/7 Wall St. Price Target Summary Metric Value Current Price $503.57 24/7 Wall St. Price Target $564.64 Upside 12.13% Recommendation BUY Confidence Level 90% The Microsoft Announcement Sits on Top of a Cooling Chart AMD has risen 135.14% year to date and 220.77% over the trailing year. Shares are 8% below the $584.73 52-week high. The last month has been rough, down 6.29% as traders took profits. That pullback is the entry the model is pricing in.

Fundamentals remain strong. Q1 FY2026 revenue of $10.253 billion grew 37.85% year over year and beat estimates by 3.41%, with non-GAAP EPS of $1.37 topping consensus. Data Center revenue did $5.775 billion, up 57%. Free cash flow surged to $2.566 billion. Management guided Q2 to $11.2 billion, roughly 46% growth.

Why Bulls See a Breakout Ahead The bull case rests on Lisa Su’s line: “Customer engagement around MI450 Series and Helios is strengthening, with leading customer forecasts exceeding our initial expectations.” Between OpenAI (6 GW), Meta (6 GW), Oracle’s 27,000+ node MI355X cluster, HUMAIN’s 500 MW deployment, and the Azure Helios rollout, AMD has visibility that did not exist a year ago.

China Renaissance raised its price target to $631 from $562 on July 20, reiterating Buy. Our bull-case scenario puts AMD at $629.34 over 12 months, a 24.98% return, with a peak around $635.75 next June if MI450 ramps as guided.

What Could Go Wrong Valuation is stretched. A 164 trailing P/E and 69 forward P/E leave zero margin for a data-center airpocket. Export controls cost AMD $800 million in Q2 2025 MI308 charges, and China policy remains fluid.

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Insider activity has been one-sided: 100 open-market sales in six months with no purchases. Bulls counter that this is textbook profit-taking after a triple, consistent with fundamentals that remain intact. The bear-case scenario points to $435.54, a -13.51% drawdown, if NVIDIA’s Rubin cycle crowds AMD out of hyperscale wallet share.

How AMD Compares to Nvidia and Broadcom NVIDIA remains the direct benchmark on merchant AI GPUs. That valuation gap makes AMD’s 164 multiple look aggressive on a static basis, but AMD’s 91.2% earnings growth is what the model rewards. Our target implies the gap narrows as MI450 ships.

Broadcom (NASDAQ:AVGO) competes for the same hyperscaler dollars via ASICs rather than merchant GPUs. Broadcom’s operating margin profile is well ahead of AMD’s 14.4%, suggesting the market is paying AMD for future margin expansion rather than realized profitability. Our $564.64 target looks reasonable against the peer set.

AMD Price Prediction 2026 The 24/7 Wall St. price target of $564.64 and buy rating at 90% confidence reflect a simple thesis: AMD is cashing in AI customer wins that were promises 12 months ago.

The bull path requires MI450 Helios to ramp with Microsoft on schedule in H2 2026. The setup weakens if China export policy tightens or NVIDIA’s Rubin platform delays force AMD to discount MI455X to hold share.

Our model projects the following AMD trajectory assuming current growth and margin trends hold.

Year 24/7 Wall St. Price Target 2026 $564 These projections assume AMD executes on MI450, Helios, and Venice EPYC. Upside comes from further hyperscaler wins beyond Microsoft; downside from a hyperscaler capex reset or renewed China export escalation.

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Jim Cramer’s most durable investing rule is a short one: some stocks you own, and some stocks you trade. For years he has planted Apple in the “own” column with the mantra to buy and hold it from here to eternity because the story pans out and the darn thing keeps going higher. In 2026 he has extended that same treatment to NVIDIA. This week the pairing got a fresh headline hook: Apple surpassed Nvidia in market value, reclaiming its spot as the world’s most valuable company, before both giants settled back into their usual jockeying at the top of the market cap table.

The “own it, don’t trade it” framework is built for compounders with three characteristics: a dominant platform, a mountain of capital return, and repeat earnings beats. Both names check every box.

NVIDIA: The AI Factory Compounder NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) sits at a ~$5.04 trillion market cap, and the fundamentals justify why Cramer treats it as a hold rather than a rental. In Q1 fiscal 2027, NVIDIA delivered revenue of $81.615 billion, up 85.23% year over year, with non-GAAP EPS of $1.87 against a $1.7738 consensus. Data center revenue reached $75.246 billion, with networking up 199% year over year. Non-GAAP gross margin held at 75.0%. That is four consecutive quarters of EPS beats.

Management is behaving like a company that agrees with the “never trade” thesis. NVIDIA authorized an additional $80.0 billion in share repurchases and raised the dividend from $0.01 to $0.25 per share. Total supply-related commitments now stand at $119.0 billion, which telegraphs multi-year visibility into demand. Jensen Huang framed it directly: “The buildout of AI factories, the largest infrastructure expansion in human history, is accelerating at extraordinary speed.”

The stock has been quieter recently. Shares are down 2.13% over the past week and up 11.28% year to date, with a 961.54% five-year return. Polymarket traders assign a 0.83 probability to NVDA closing above $200 by month-end and a 0.735 probability that $216 is the July peak: measured optimism rather than euphoria.

Apple: The Original “Own It” Stock Apple (NASDAQ:AAPL), at a ~$4.77 trillion market cap, is the name Cramer originally wrapped this thesis around. The Q2 fiscal 2026 report reinforced why. Revenue hit $111.184 billion, up 16.6% year over year, with EPS of $2.01 against a $1.94 consensus. iPhone revenue set a March quarter record at $56.994 billion, and Services notched an all-time record of $30.976 billion. That is eight straight EPS beats.

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Tim Cook attributed the strength to the product cycle: “iPhone achieved a March quarter revenue record, fueled by such extraordinary demand for the iPhone 17 lineup.” The installed base has crossed 2.5 billion active devices, which is the durable annuity powering the Services line. Capital return remains enormous: a $100 billion new buyback authorization and a 4% dividend hike this spring, on top of $90.711 billion in fiscal 2025 repurchases.

The stock has finally caught up to the fundamentals. AAPL is up 4.09% over the past week, up 20.78% year to date, and up 54.86% over the past year. Polymarket assigns a 91.5% probability Apple beats Q3 earnings expectations and a 96.6% probability that iPhone 18 launches in 2026.

What to Watch Next Both stocks trade at rich multiples. NVIDIA carries a P/E of 42 against Apple’s 43. Reddit sentiment for NVDA is genuinely mixed, with active debate about AI infrastructure depreciation and competitive threats from South Korean NPUs. Apple’s near-term watch item is the Q3 earnings report with iPhone revenue expectations clustered around $52 to $55 billion. NVIDIA’s is Q2 fiscal 2027 revenue guidance of $91.0 billion ± 2%.

Cramer’s framework rests on a simple observation. When a company keeps beating its own numbers, expanding margins at scale, and returning tens of billions per quarter, the trader trying to catch the next 4% dip usually forfeits the next 40% run. That is the case both AAPL and NVDA continue to make with every earnings report.

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Key Takeaways T's adjusted earnings rose 20.4% to 65 cents, beating the consensus estimate by 10.2%.AT&T added over 1 million Advanced Connectivity customers, led by Internet and postpaid phone gains.AT&T reaffirmed its 2026 outlook and now expects about $10 billion in share repurchases. AT&T Inc. (T - Free Report) reported relatively modest second-quarter 2026 results with adjusted earnings of 65 cents per share, up 20.4% year over year and above the Zacks Consensus Estimate of 59 cents by 10.2%. Revenues increased 2.3% to $31.56 billion but missed the consensus mark of $32.04 billion by 1.5%.

Results benefited from higher fiber and wireless revenues and improving profitability. AT&T added more than 1 million Advanced Connectivity customers, including 646,000 Internet net additions and 432,000 postpaid phone net additions.

T Gains From Advanced Connectivity MomentumAdvanced Connectivity revenues rose 4.1% year over year to $28.62 billion. Service revenues increased 5.1% to $23.48 billion, supported by growth across Wireless, Advanced Home Internet and Business Fiber offerings.

Operating income for the segment surged 20.3% to $7.35 billion, while EBITDA advanced 8% to $12.03 billion. The EBITDA margin expanded 150 basis points to 42%, reflecting stronger service revenue and lower depreciation expense.

AT&T Posts Strong Internet Customer GrowthAdvanced home Internet revenues jumped 27.3% year over year to $2.93 billion. Business Fiber and Advanced Connectivity revenues increased 10% to $1.95 billion, partly offset by a 16.6% decline in Business Transitional and Other revenues.

AT&T recorded 367,000 fiber net additions and 279,000 fixed wireless net additions. Fiber connections rose 22.8% year over year to 12.87 million, while fixed wireless connections climbed 77.4% to 2.61 million. The company reached 38.6 million consumer and business locations with fiber and remained on track to exceed 40 million by year-end.

T Benefits From Wireless Subscriber ExpansionWireless Service revenues increased 3.3% year over year to $17.41 billion. Growth was driven by higher retail wireless subscribers, expansion in converged accounts and pricing actions, partly offset by promotional discounts associated with subscriber additions.

Postpaid phone net additions totaled 432,000, up from 401,000 in the year-ago quarter. Postpaid phone churn improved one basis point to 0.86%. The Advanced Home Internet convergence rate reached 42.5%, indicating that a growing share of Internet customers also subscribed to AT&T wireless services.

AT&T Navigates Legacy Declines and Mexico CostsLegacy segment revenues fell 25.9% year over year to $1.63 billion as demand for copper-based services continued to decline. Operating income plunged 45.5% to $523 million, while the operating margin contracted 1,160 basis points to 32%.

Latin America revenues rose 16.1% to $1.22 billion, aided by favorable foreign exchange rates and postpaid subscriber growth. However, operating expenses increased 17.7%, causing operating income to decline 17.4% to $38 million. Segment EBITDA increased 12.9% to $227 million.

T Expands Profitability and Cash GenerationConsolidated operating income increased 8.3% year over year to $7.04 billion. Adjusted operating income rose to $7.46 billion from $6.49 billion, while adjusted EBITDA improved 5.2% to $12.34 billion. The adjusted EBITDA margin expanded to 39.1% from 38%.

Cash from operating activities was $10.80 billion, up from $9.76 billion. Free cash flow increased 6.3% to $4.67 billion despite capital expenditures rising 16.4% to $5.70 billion. Capital investment, including vendor financing payments, totaled $6.13 billion.

AT&T Reaffirms Outlook and Accelerates BuybacksAT&T reiterated its 2026 adjusted earnings guidance of $2.25-$2.35 per share. The company continues to expect adjusted EBITDA growth of 3-4%, free cash flow of more than $18 billion and capital investment of $23-$24 billion.

The company returned $4.1 billion to shareholders during the quarter, including about $2.2 billion through share repurchases. AT&T now expects approximately $10 billion of repurchases in 2026. It ended the quarter with $17.57 billion in cash, net debt of $126.38 billion and a net debt-to-adjusted EBITDA ratio of 2.68.

Zacks RankAT&T currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming ReleasesArista Networks Inc. (ANET - Free Report) is scheduled to release second-quarter 2026 earnings on Aug 4. The Zacks Consensus Estimate for earnings is pegged at 89 cents per share, suggesting a growth of 21.9% from the year-ago reported figure.

Arista has a long-term earnings growth expectation of 19.9%. Arista delivered an average earnings surprise of 8.3% in the last four reported quarters.

Akamai Technologies, Inc. (AKAM - Free Report) is slated to release second-quarter 2026 earnings on Aug 6. The Zacks Consensus Estimate for earnings is pegged at $1.58 per share, indicating an 8.7% decline from the year-ago reported figure.

Akamai has a long-term earnings growth expectation of 8.1%. Akamai delivered an average earnings surprise of 7.5% in the last four reported quarters.

Pinterest, Inc. (PINS - Free Report) is set to release second-quarter 2026 earnings on Aug 4. The Zacks Consensus Estimate for earnings is pegged at 36 cents per share, implying a rise of 9.1% from the year-ago reported figure.

Pinterest has a long-term earnings growth expectation of 27%. Pinterest delivered an average negative earnings surprise of 4.1% in the last four reported quarters.

Dallas-headquartered AT&T Inc (T) is extending gains on Wednesday morning after reporting Q2 earnings that came in handily above Street estimates.

The company posted $31.56 billion in revenue – up 2.3% on a year-over-year basis – on $0.65 per share of earnings (EPS), representing an exciting 20.4% increase from last year.

More importantly, responding to rising fears of Starlink competition in a CNBC interview, AT&T’s chief executive John Stankey said: “We can compete with anybody that comes in; we’re in a very strong position with the best product out there.”

That said, AT&T stock remains down over 20% versus its year-to-date high.

According to Stankey, new entrants like Starlink face severe structural hurdles trying to “replicate” ground-based connectivity.

While low-Earth orbit (LEO) satellites grab headlines, he pointed out that new rivals are “coming to the game very late after this industry has already been established.”

Crucially, satellite networks can’t really replace the tens of billions of dollars invested over decades to bring high-speed fiber and 5G connectivity into “dense environments” like hospitals, university campuses, stadiums, and high-rise office buildings.

AT&T currently handles more than 98% of the data traffic generated by its converged customers, leaving satellite coverage to fill only the coverage gaps when users walk entirely off the terrestrial grid, he added.

While there’ve been concerns that legacy carriers might repeat past missteps by signing wholesale network agreements that empower new competitors, Stankey dismissed the notion entirely.

According to him, AT&T does not need a wholesale partnership with Starlink to defend its market position, adding that the company pursues wholesale arrangements only when a segment of the market cannot be reached through its own brand, distribution, or fiber footprint.

In primary metropolitan and suburban US markets, AT&T’s combination of fiber buildouts and 5G spectrum allows it to “acquire and retain” both consumer and business accounts directly – making satellite-based distribution unnecessary for core market coverage.

Rather than surrendering distribution to a single satellite giant, AT&T Inc is leveraging an industry joint venture alongside T-Mobile and Verizon to manage off-grid coverage efficiently.

Stankey highlighted that the consortium allows carriers to aggregate consumer traffic volumes and contract across the entire satellite ecosystem – whether sourcing capacity from SpaceX, Amazon’s Kuiper, or AST SpaceMobile.

By maintaining flexibility across multiple satellite constellations, AT&T can handle the remaining fraction of off-network traffic at economical rates without undermining its primary connectivity offerings.

This pragmatic approach reinforces AT&T Inc’s core “fiber and wireless strategy” while offering seamless, affordable backup connectivity for subscribers wherever they travel.

Wall Street currently has a consensus Overweight rating on AT&T stock, with the mean price target of $29 indicating significant further upside from here.

Key Takeaways 3M topped Q2 estimates, posted 5.4% organic growth and raised EPS guidance to $8.80-$8.95.Commercial execution, pricing, cross-selling and lower attrition helped 3M outgrow macro trends.3M launched 92 products in Q2 and is scaling EBO for Azure data centers and other hyperscalers. 3M Company (MMM - Free Report) used its second-quarter earnings call to argue that its improvement is becoming more structural, not just cyclical. Management emphasized that commercial execution, faster product launches and tighter operations are now reinforcing one another.

That framing mattered because 3M also raised full-year guidance after posting adjusted EPS of $2.40 on $6.5 billion of revenues, both ahead of the Zacks Consensus Estimate. The EPS surprise was 5.70%, while revenues topped expectations by 1.60%.

MMM Raises the Stakes for 2026Chairman and CEO William Brown said the biggest message from the quarter was that 3M’s strategy is producing more consistent results. He pointed to 5.4% organic growth, adjusted operating margin of 24.9% and adjusted free cash flow of $1.3 billion as evidence the business is moving with more discipline.

Management also raised full-year adjusted EPS guidance to $8.80 to $8.95 from $8.50 to $8.70. The company now expects adjusted total sales growth of more than 4.5%, adjusted organic sales growth of more than 3.5% and adjusted operating cash flow of $5.8 billion to $6.0 billion.

Chief financial officer Anurag Maheshwari said the stronger outlook reflects better sales momentum, productivity gains and capital deployment, with working-capital progress helping lift the cash forecast by $100 million.

3M Says Execution is Driving OutgrowthBrown repeatedly argued that 3M’s growth is being driven more by internal actions than by a friendlier macro backdrop. He highlighted sales force effectiveness, cross-selling, pricing governance and lower customer attrition as the main contributors so far.

In Q&A, a Vertical Research Partners analyst pressed on whether the company’s roughly 2x-macro growth algorithm is sustainable. Brown answered that 3M expects to be about $450 million above macro this year, up from the company’s earlier expectation of roughly $340 million to $350 million.

That exchange stood out because management sounded confident that the growth engine is broadening. Brown said commercial excellence has led the improvement so far, but innovation should contribute more in the back half of 2026 and even more in 2027.

MMM Pushes Innovation and Data CentersInnovation was one of the clearest themes on the call. Brown said 3M launched 92 new products in the quarter and 176 in the first half, keeping the company on track for more than 350 launches this year and more than 1,000 by 2027.

The highest-profile strategic announcement was 3M’s partnership with Microsoft around expanded beam optics, or EBO, for Azure data centers. Brown described the technology as faster to install and more durable than conventional fiber connections, while management said 3M is scaling capacity and building an ecosystem around the product.

Asked by Melius Research about the size of the opportunity, Brown said EBO revenues are running at about $40 million to $50 million this year, compared with a roughly $1 billion market that 3M sees growing to $2 billion by 2028. He said deeper trials with other hyperscalers are underway.

3M Finds Strength Across Industrial MarketsMaheshwari said the quarter’s growth was broad-based geographically and stronger than expected through the period. Orders rose about 10% in the quarter, backlog was up close to 20% year over year and the company entered the second half with good visibility.

Safety and Industrial was the standout, with 8.2% organic sales growth. Management tied that strength to new product launches, better account coverage, lower churn and cross-selling, while Transportation and Electronics also posted 5.9% growth.

The softer area remained consumer, where second-quarter sales fell 2.1%. Brown said retailer inventory tightening in late June offset healthy point-of-sale trends, though management expects that pressure to normalize in the second half as back-to-school stocking improves.

MMM Balances Margin Gains and Cost PressureMargins were another point of emphasis. Maheshwari said adjusted operating margin reached 24.9%, the highest level 3M has posted, helped by stronger volume and continued productivity on both supply chain and general and administrative costs.

At the same time, management did not present the quarter as frictionless. Maheshwari said tariff impacts and stranded costs remained headwinds, while oil-related inflation is now expected to be $150 million to $175 million this year, up from $125 million previously.

Brown said 3M expects pricing to offset those oil costs on a dollar basis, even if margins still absorb some pressure. He also said the company still sees a path toward high-40% gross margin over time as transformation and network simplification continue.

3M Leaves the Call With a Firmer ToneThe call’s tone was notably more assertive than defensive. Management described 3M as ahead of its Investor Day commitments on growth, margins, earnings and cash, while pointing to commercial execution, innovation and transformation as the next legs of the story.

Just as important, analyst questions centered less on near-term volatility and more on durability, scaling opportunities and how much of the recent improvement can carry into 2027. Management’s answers consistently framed the quarter as part of a longer operating reset already in motion.

Zacks Signals Point to Mixed Style TraitsMMM carries a Zacks Rank #2 (Buy), which indicates favorable earnings estimate revision trends and generally supportive near-term prospects. Under the Zacks framework, Rank #1 (Strong Buy) and #2 stocks tend to offer the strongest setup, while the rank remains the first screen investors should watch. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Style Scores are more mixed, with a Value Score of D, Growth Score of C, Momentum Score of A and VGM Score of D. That combination points to stronger momentum characteristics than value or blended style appeal at the moment. The Zacks Rank can still change as analysts update estimates following the quarter’s results.

Netflix is down 26% YTD despite solid fundamentals, driven by a valuation reset rather than fundamental deterioration. Q2 guidance narrowed but maintained revenue and margin targets; operating income growth remains robust at 20% for 2026. NFLX leverages scale, disciplined content investment, AI efficiencies, and advertising growth to support long-term compounding.

Key Takeaways Affirm offers faster revenue and EPS growth, lower valuation and higher implied analyst upside than MA.AFRM expanded GMV, revenues, active consumers and merchant partnerships as BNPL adoption increased.Mastercard is growing value-added services, AI payments and stablecoin capabilities despite higher costs. Mastercard Incorporated (MA - Free Report) and Affirm Holdings, Inc. (AFRM - Free Report) are key players in the rapidly evolving digital payments industry, where demand for seamless, cashless and flexible payment solutions continues to grow. The expansion of e-commerce, digital wallets and installment-based financing is reshaping how consumers and merchants complete transactions.

While both companies are benefiting from this shift, they approach the market from different angles. Mastercard operates one of the world's largest global card payment networks, whereas Affirm has built its business around buy now, pay later (BNPL) financing and merchant partnerships. Their overlapping exposure to digital payments, combined with distinct business models and growth strategies, makes them compelling companies to compare.

Let’s dive deep and closely compare the fundamentals of the two stocks to determine which stock is more attractive now.

The Case for MastercardMastercard's key growth engine remains the steady expansion of its payments network alongside its fast-growing value-added services business. In the first quarter of 2026, value-added services and solutions’ net revenues rose 22% year over year, outpacing the 12% growth in payment network net revenues as demand increased for cybersecurity, authentication, consumer engagement and analytics solutions. Cross-border volumes increased 13% year over year, while switched transactions grew 9%, reflecting healthy transaction activity despite geopolitical challenges.

MA is strengthening its presence in the BNPL market through Mastercard One Credential, which allows consumers to access multiple payment options — including debit, credit and installments — through a single credential. The company has expanded the offering through partnerships with SoFi, Fiserv and Blossom, making installment payments more accessible while giving banks and credit unions a flexible payment solution. It beat earnings estimates in each of the past four quarters, with an average surprise of 5.5%.

Mastercard is preparing its network for the next generation of digital commerce. Nearly all Mastercards are now enabled for Mastercard Agent Pay, while Verifiable Intent adds an extra layer of security for AI-driven transactions. The company is also expanding partnerships with OpenAI and Crossmint to support secure autonomous payments, positioning itself at the center of emerging agentic commerce.

Mastercard continues to integrate stablecoins across its ecosystem, including Mastercard Move and settlement capabilities, while the planned acquisition of BVNK is expected to strengthen its ability to send, receive, convert and hold stablecoins. This infrastructure can unlock new use cases in cross-border B2B payments, remittances and payouts without disrupting its core card business.

MA has continued broadening its digital payments ecosystem through new partnerships. The company recently introduced Open USD alongside leading financial and technology partners to simplify stablecoin adoption, expanded Mastercard Move's cross-border payment capabilities and rolled out additional AI-powered fraud prevention and cyber intelligence solutions. These initiatives complement its strategy of generating growth from both payment volumes and higher-value services.

However, the upside was partly offset by escalating operating expenses and higher rebates and incentives. In the first quarter of 2026, adjusted operating expenses rose 11% year over year. Its long-term debt-to-capital of 71.9% is higher than the industry’s average of 39.4% and AFRM’s average of 70.5%.

The Case for AffirmAffirm continues to strengthen its position in the buy now, pay later (BNPL) market by expanding its merchant network and increasing consumer engagement. In the third quarter of fiscal 2026, gross merchandise volume (GMV) climbed 35% year over year to $11.6 billion, while revenues rose 33% to $1 billion, reflecting healthy consumer demand and higher merchant adoption. Total transactions grew 45% year over year in the third quarter of fiscal 2026.

The company's ecosystem is also benefiting from growing adoption of the Affirm Card, which combines debit functionality with flexible installment payment options. Unlike traditional BNPL products used only at checkout, the card enables consumers to access installment financing for everyday purchases, helping drive repeat usage and strengthening customer relationships beyond one-time transactions. AFRM’s active consumers increased 22% year over year to 26.8 million, while transactions per active consumer improved 20% to 6.7, indicating that customers are using Affirm's platform more frequently.

Affirm is broadening its reach through strategic merchant partnerships and platform integrations. The company recently added Bed Bath & Beyond, Overstock and buybuy BABY to its merchant network, extending financing options across major retail brands. It also continues to deepen relationships with large commerce platforms and payment providers, supporting sustained growth in merchant acceptance and payment volume. As of March 31, 2026, Affirm served approximately 515,000 active merchants, up 43.8% year over year, reflecting broad adoption across online and in-store commerce.

AFRM is also investing in technology and product innovation to diversify its business beyond traditional BNPL services. The company is leveraging artificial intelligence to improve customer experiences and operational efficiency while exploring opportunities in new markets and financial products. These initiatives, combined with its expanding merchant ecosystem and growing consumer base, are expected to support its long-term growth trajectory. It beat earnings estimates in each of the past four quarters with an average surprise of 74.9%.

However, the expansion is accompanied by rising cost pressures, with total operating expenses increasing 20.1% year over year in the third quarter of fiscal 2026, primarily due to increased provisions for credit losses, losses on loan purchase commitments, funding costs, technology and data analytics expenses and elevated processing and servicing expenses.

How Do Estimates Compare for MA & AFRM?Estimates are in favor of AFRM at this stage. The Zacks Consensus Estimate expects MA’s 2026 sales and earnings per share (EPS) to grow 12.9% and 15.4% year over year, respectively. For 2027, EPS is expected to climb another 15.6%.

Meanwhile, AFRM’s fiscal 2026 sales and EPS estimates point to 30.6% and 720% year-over-year increases, respectively, followed by a 39.2% EPS rise in fiscal 2027.

Price Performance ComparisonOver the past six months, Affirm outperformed Mastercard. Meanwhile, the S&P 500 has increased 7.4% during this time.

Price Performance – MA, AFRM & S&P 500
Image Source: Zacks Investment Research

Valuation: MA vs. AFRMOn a price-to-sales basis, MA sits at 12.02X forward revenues, significantly above Affirm’s multiple of 4.62X. AFRM’s cheaper P/S multiple leaves room for significant growth as business expansion accelerates.

Image Source: Zacks Investment Research

Price TargetMastercard currently trades below its average analyst price target of $641.64, implying a 17.2% potential upside from current levels. Meanwhile, Affirm currently trades below its average analyst price target of $91.48, implying an attractive 21.5% potential upside from current levels.

ConclusionBoth Mastercard and Affirm are well-positioned to benefit from the continued shift toward digital payments, but their growth profiles differ significantly. While MA offers stability through its diversified payments ecosystem, AFRM stands out with faster revenue growth, stronger earnings momentum, a lower valuation and greater upside potential.

For investors seeking rapid future gains rather than stability, Affirm has the edge at the moment. While AFRM currently carries a Zacks Rank #2 (Buy), MA has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.

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Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.

Earnings estimates are expectations of growth and profitability, and are determined by brokerage analysts. Together with company management, these analysts examine every aspect that may affect future earnings, like interest rates, the economy, and sector and industry optimism.

Investors also need to look at what a company will earn down the road. This is why earnings estimate revisions are so important.

Stocks that receive upward earnings estimate revisions are more likely to receive even more upward changes in the future. For example, if an analyst raised their estimates last month, they're more likely to do it again this month, and other analysts are likely to do the same.

Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank, which is a unique, proprietary stock-rating model, employs earnings estimate revisions to make it easier to build a winning portfolio.

The Zacks Rank consists of four main pillars: Agreement, Magnitude, Upside, and Surprise. Each one is given a raw score, which is recalculated every night and compiled into the Rank. Then, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell," using this data.

The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.

It can be very profitable to buy stocks with rising earnings estimates, as stock prices respond to revisions. By adding Focus List stocks, there's a great chance you'll be getting into companies whose future earnings estimates will be raised, which can lead to price momentum.

Focus List Spotlight: Visa (V - Free Report) Incorporated in 2007 as a Delaware corporation and headquartered in San Francisco, Visa Inc. operates as a leading global payments technology company. The firm went public in March 2008 through an IPO but traces its roots back to 1958. Over the past six decades, Visa has grown into one of the world’s most widely used payment networks.

On May 30, 2017, V was added to the Focus List at $94.67 per share. Shares have increased 275.85% to $355.82 since then, and the company is a #2 (Buy) on the Zacks Rank.

Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.02 to $13.13. V boasts an average earnings surprise of 3.2%.

Moreover, analysts are expecting V's earnings to grow 14.5% for the current fiscal year.

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Wall Street expects a year-over-year decline in earnings on higher revenues when Procter & Gamble (PG - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 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 world's largest consumer products maker is expected to post quarterly earnings of $1.41 per share in its upcoming report, which represents a year-over-year change of -4.7%.

Revenues are expected to be $21.36 billion, up 2.3% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.85% 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 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. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

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 P&G?For P&G, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.23%.

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

So, this combination makes it difficult to conclusively predict that P&G 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 P&G would post earnings of $1.56 per share when it actually produced earnings of $1.59, delivering a surprise of +1.92%.

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.

P&G 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.

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Marvell Technology (NASDAQ:MRVL | MRVL Price Prediction) has ridden the AI infrastructure wave to one of the sharpest reratings in the S&P 500 this year, with shares up 122.35% year to date.

After a pullback from June highs, the setup looks more interesting than dangerous. Our 24/7 Wall St. price target sees meaningful upside from here.

The 24/7 Wall St. Price Target for Marvell The 24/7 Wall St. price target for Marvell is $249.65, implying 24.35% upside from the current $200.76 quote. Our recommendation is buy with high confidence at 90%. Bookings acceleration, custom silicon wins, and a real Nvidia partnership give Marvell room to run.

Metric Value Current Price $200.76 24/7 Wall St. Price Target $249.65 Upside 24.35% Recommendation BUY Confidence Level 90% A Wild Ride From $84 to $329 and Back Marvell entered 2026 at $84.86, ripped to a 52-week high of $329.80 in June, then gave back 34.82% over the last month as hyperscaler capex worries hit the AI silicon complex.

In Q1 FY2027, revenue hit $2.418 billion (up 27.6% year over year) with data center contributing $1.827 billion, or 76% of total revenue.

CEO Matt Murphy said the team is seeing “exceptional AI-related bookings” and raised the outlook for both fiscal 2027 and fiscal 2028. Q2 guidance calls for $2.7 billion in revenue, roughly 35% growth. The recent selloff reflects sentiment rather than fundamentals.

Why Bulls See $340 and Beyond The bull case rests on custom silicon. KeyBanc’s John Vinh has a $400 target tied to a potential $12 billion Google “Merope” ASIC win, and UBS raised its target to $340 on the Teralynx T100 launch.

The $2 billion NVIDIA strategic investment and NVLink Fusion integration give Marvell a seat at the table for scale-up AI networks. Management sees the custom ASIC business scaling from $1.5 billion today to over $4 billion by 2028.

The bull case one-year target sits at $347.35, roughly 73% upside if bookings hold and hyperscaler capex stays firm.

What Could Go Wrong Marvell trades at a forward P/E of 47 and a trailing P/E of 65, both premium marks. Data center at 76% of revenue creates concentration risk, and hyperscalers pursuing in-house silicon remains a threat.

Insider selling of roughly $26.8 to $30.9 million over 90 days is a yellow flag, though largely tied to tax-related sales under 10b5-1 plans. The bear case one-year target is $191.31, a modest 4.71% decline.

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The GAAP earnings decline reflects the acquisition charge rather than operating deterioration; non-GAAP EPS of $0.80 beat consensus.

How Marvell Compares to Broadcom and NVIDIA Broadcom (NASDAQ:AVGO) is the direct comparable on custom AI silicon. Broadcom’s Q2 FY2026 AI semiconductor revenue reached $10.8 billion, up 143% year over year, with Q3 AI revenue guided at $16 billion.

That is roughly 6x Marvell’s total quarterly revenue, validating Marvell’s $4 billion custom ASIC target for 2028.

NVIDIA (NASDAQ:NVDA) is both an anchor customer and partner through NVLink Fusion. NVIDIA trades at a trailing P/E of 41, cheaper than Marvell despite posting 85.2% year-over-year revenue growth in Q1 FY2027.

NVIDIA’s networking revenue grew 199% year over year, and Marvell sells the optics and DSPs that feed those systems. Our $249.65 target looks reasonable on the peer set.

The Bottom Line on Marvell Buy with 90% confidence and a 24/7 Wall St. price target of $249.65. The raised FY2027 and FY2028 outlook combined with a 33% pullback has scrubbed froth.

The setup looks constructive if hyperscaler capex commentary holds through Q2 earnings, while a slip in custom ASIC design wins to competitors or tightening China restrictions would challenge the thesis. The risk-reward tilts in favor of longs.

Marvell Price Prediction 2026 to 2030 Here is where the 24/7 Wall St. price target model projects Marvell could trade, assuming the current growth trajectory and multiple hold.

Year 24/7 Wall St. Price Target 2026 $249.65 2027 $285 2028 $320 2029 $355 2030 $382.60 These projections assume Marvell continues executing on custom XPU wins and optical interconnect leadership. Significant upside or downside could result from hyperscaler capex cycles or a shift in in-house silicon strategy among the top three cloud customers.

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Contact [email protected] for any questions or corrections.

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Ford Motor Company (F - Free Report) Dearborn, MI-based Ford is one of the leading automakers in the world. It manufactures, markets and services cars, trucks, sport utility vehicles, electrified vehicles and Lincoln luxury vehicles. 

F is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Auto-Tires-Trucks stock. F has a Momentum Style Score of B, and shares are up 1.9% over the past four weeks.

Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.04 to $1.66 per share. F boasts an average earnings surprise of +58.4%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, F should be on investors' short list.

GM keeps generating cash from a stable business and uses that cash to retire stock. In the past year, it has spent more than $4 billion.

HomeEarnings AnalysisConsumer 

SummaryGeneral Motors Company delivered strong Q2 results, with revenues up 2% and improved North American margins, driven by higher-margin services like OnStar.GM upgraded its 2024 guidance, projecting adjusted auto FCF of $9.5B–$11.5B and adjusted EBIT of $14.0B–$16.0B, reflecting resilient profitability.I maintain a Hold rating on GM, primarily due to broader auto industry risks, rising competition from Chinese automakers, and global market share declines.GM’s focus on high-margin trucks/SUVs and disciplined incentives supports profitability, but risks in China and macroeconomic headwinds warrant caution. jetcityimage/iStock Editorial via Getty Images

High gasoline prices likely aren’t helping General Motors Company (GM), but the company put in a solid performance anyway in the second quarter, with reported revenues up about 2%. Better yet, margins in North

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

At the Farnborough International Airshow, a heavily modified Saab 340B turboprop quietly achieved a breakthrough that the commercial aviation sector has long viewed as a distant dream. Operating above 30,000 feet, a megawatt-class hybrid-electric propulsion system sustained flight for over two hours.

GE Aerospace Today

GE

GE Aerospace

$344.13 +3.43 (+1.01%)

As of 12:32 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$259.95▼

$382.97Dividend Yield0.55%

P/E Ratio40.53

Price Target$380.89

For GE Aerospace NYSE: GE, this successful collaboration with NASA and Boeing NYSE: BA validates the engineering viability of high-voltage, high-altitude hybrid commercial flight.

The successful deployment of this technology at commercial cruise altitudes shatters the engineering ceiling that previously restricted electric aviation to low-altitude air taxis and short-hop experimental aircraft. GE Aerospace proved that hybrid-electric architecture can eventually scale to commercial jetliners.

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By combining traditional fuel consumption with high-capacity electric battery power, GE Aerospace is actively drafting the blueprint for next-generation propulsion.

Pulling the Sustainable Aviation Timeline ForwardStructural transitions in the physical economy do not happen overnight. The immediate takeaway is not that legacy jet engines will disappear tomorrow, but rather that GE Aerospace has established a strong research-and-development moat. This milestone pulls the timeline for sustainable aviation forward by a decade.

If airlines begin replacing their narrowbody fleets in the late 2030s to comply with tightening global regulatory mandates, this foundational technology positions GE Aerospace to dictate the terms of the market. Regulatory bodies have historically lagged behind localized commercial deployment, meaning governments will mandate sustainable flight only after a manufacturer proves it can be done safely and at scale. By clearing the 30,000-foot hurdle today, the engineering gap between GE Aerospace and its competitors is widening, establishing a clear pathway to long-term dominance in the aerospace sector.

$210 Billion Backlog: Fueling Margins on the GroundThe market does not award a trailing price-to-earnings ratio of 40 just for successful science projects. Investors pay for ruthless execution and highly visible cash flow. While the hybrid-electric milestone captures headlines, the underlying fundamentals of GE Aerospace justify its $354 billion market capitalization.

Second-quarter 2026 earnings delivered a resounding beat, with GE Aerospace posting $2.02 in earnings per share against a $1.86 consensus estimate. This profitability was driven by a 21.1% year-over-year revenue expansion.

More importantly, GE Aerospace is operating with extreme efficiency. Net margins stand at a robust 17.72%, while return on equity has reached an exceptional 40.56%. In a highly capital-intensive industry, generating a 40% return on shareholder equity indicates that executives are highly effective at allocating capital to profitable projects rather than burning cash on low-yield ventures.

The ultimate driver of this financial performance is unyielding commercial demand, crystallized in a staggering $210 billion backlog. During the Farnborough event, traditional propulsion systems demonstrated their immediate scale. CFM International, the highly successful joint venture between GE Aerospace and Safran OTCMKTS: SAFRF, finalized a memorandum of understanding with IndiGo for more than 1,000 LEAP-1A engines. Additional agreements secured hundreds of engine packages for leasing giants like BOC Aviation and SMBC Aviation Capital.

To protect profitability amid inflationary pressures on raw materials and engine durability kits, GE Aerospace leaned heavily on its proprietary FLIGHT DECK operational system. This internal initiative successfully increased shop visit output and streamlined maintenance operations, effectively shielding a 21.7% operating profit margin.

Turbulence Ahead: The Supply Chain Reality CheckDespite the exceptional demand profile, the aerospace sector is currently wrestling with severe macro headwinds, primarily taking the form of raw material bottlenecks and supply chain constraints.

During the latest earnings call, CEO Larry Culp explicitly stated that the operational hurdle is a supply-side challenge. There are no victory laps being taken in the executive suite. While order growth surged 17%, spare parts delinquency increased 20% sequentially. Airlines are desperate for engines and replacement parts, but manufacturers are struggling to forge and assemble components fast enough to meet that demand.

This logistical bottleneck highlights why the hybrid-electric propulsion breakthrough poses no immediate existential threat to legacy airline models. The multi-decade lifecycle of existing commercial airframes means the transition will be gradual. A systemic overhaul of global aviation infrastructure would take time, and the immediate displacement of fossil-fuel engines is logistically impossible.

Beyond commercial aviation, GE Aerospace continues to bolster its defense portfolio. A recent partnership with Shield AI successfully integrated the X-Bat engine, enabling thrust vectoring and vertical flight capabilities. This dual-use capability across both the commercial and defense sectors provides a stabilizing revenue stream against potential disruptions to the commercial supply chain.

Capital Allocation: The Silent Earnings EngineThe most compelling near-term catalyst for GE Aerospace is not found in the clouds, but on the balance sheet. High-level research and development expenditures require strong free cash flow, and GE Aerospace is deploying that cash to drive aggressive shareholder yield.

During the second quarter, GE Aerospace repurchased 14.1 million shares for $4.22 billion. GE Aerospace still has $17.99 billion remaining under its active $20 billion buyback authorization. For investors, this aggressive capital-return program serves as a structural floor for valuation.

When GE Aerospace retires a significant portion of its outstanding shares, it artificially compresses forward valuation multiples by reducing the denominator in the earnings-per-share calculation. Currently trading at a forward price-to-earnings ratio of 43 and a price-to-sales multiple of 7.7, the stock appears richly valued at first glance. The relentless execution of this $20 billion buyback authorization will systematically increase the ownership stake of remaining shareholders while driving earnings growth, even if top-line revenue temporarily slows due to supply constraints.

Boarding Pass: Strategizing the Aerospace TransitionThe financial mechanics of the pure-play aerospace transition have attracted heavy institutional conviction, with ownership currently sitting at a dominant 75%. Prominent capital inflows from entities such as the Bessemer Group validate Wall Street's confidence in GE Aerospace's long-term trajectory.

GE Aerospace offers a unique combination of immediate, high-visibility cash flow and long-term technological dominance. The legacy $210 billion backlog funds the research required to lead the next generation of hybrid-electric flight, effectively creating a self-sustaining cycle of innovation and profitability.

While technological breakthroughs push sustainable aviation timelines forward, the true underlying value for current investors lies in the immediate execution of share repurchases and margin protection. Investors with a long-term horizon might consider buying shares during periods of broader market volatility, recognizing that GE Aerospace is effectively paying them to wait through an extensive buyback program while it engineers the future of commercial flight.

Should You Invest $1,000 in GE Aerospace Right Now?Before you consider GE Aerospace, you'll want to hear this.

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Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Cincinnati Financial (CINF - Free Report) Cincinnati Financial Corporation, formed in 1968 with its headquarters in Fairfield, OH, markets property and casualty insurance. Cincinnati Financial owns three subsidiaries: The Cincinnati Insurance Company, CSU Producer Resources Inc. and CFC Investment Company. In addition, the parent company has an investment portfolio. The Cincinnati Insurance Company owns four additional insurance subsidiaries. The standard market property casualty insurance group includes two of those subsidiaries – The Cincinnati Casualty Company and The Cincinnati Indemnity Company. This group writes a broad range of business, homeowner and auto policies. The Cincinnati Insurance Company also conducts the business of our reinsurance assumed operations, known as Cincinnati Re. Other subsidiaries of The Cincinnati Insurance Company include: The Cincinnati Life Insurance Company providing life insurance policies and fixed annuities and The Cincinnati Specialty Underwriters Insurance Company offering excess and surplus lines insurance products.

CINF is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Finance stock. CINF has a Momentum Style Score of B, and shares are up 2.7% over the past four weeks.

Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.10 to $8.76 per share. CINF boasts an average earnings surprise of +27.5%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, CINF should be on investors' short list.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Adobe Systems (ADBE - Free Report) San Jose California-based Adobe Inc. is a leading technology company offering personalized digital experience through the infusion of artificial intelligence (AI) in its solutions.

ADBE is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. ADBE has a Growth Style Score of A, forecasting year-over-year earnings growth of 16.1% for the current fiscal year.

For fiscal 2026, 14 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.80 to $24.31 per share. ADBE boasts an average earnings surprise of +2.5%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, ADBE should be on investors' short list.

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

The Travelers Companies (TRV - Free Report) is a stock many investors are watching right now. TRV is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 11.6, which compares to its industry's average of 27.00. Over the last 12 months, TRV's Forward P/E has been as high as 14.64 and as low as 11.13, with a median of 12.44.

Investors will also notice that TRV has a PEG ratio of 2.87. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TRV's industry has an average PEG of 4.64 right now. Over the last 12 months, TRV's PEG has been as high as 4.80 and as low as 1.01, with a median of 2.83.

Finally, we should also recognize that TRV has a P/CF ratio of 4.84. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.41. Within the past 12 months, TRV's P/CF has been as high as 5.29 and as low as 4.23, with a median of 4.74.

Value investors will likely look at more than just these metrics, but the above data helps show that The Travelers Companies is likely undervalued currently. And when considering the strength of its earnings outlook, TRV sticks out as one of the market's strongest value stocks.

MGM Resorts (MGM - 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 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 management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis casino and resort operator is expected to post quarterly earnings of $0.62 per share in its upcoming report, which represents a year-over-year change of -21.5%.

Revenues are expected to be $4.47 billion, up 1.4% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.26% 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 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. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

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 MGM?For MGM, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +3.32%.

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

So, this combination indicates that MGM will most likely 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 MGM would post earnings of $0.56 per share when it actually produced earnings of $0.49, delivering a surprise of -12.50%.

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

MGM appears 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 CCL delivered record Q2 revenues, yields, EBITDA and customer deposits despite geopolitical headwinds.Carnival plans measured fleet expansion while investing in ship upgrades and exclusive destinations.CCL has 93% of 2026 booked, with 2027 pricing and booking volumes already ahead of last year. Carnival Corporation (CCL - Free Report) is refining its growth strategy by combining measured capacity additions with greater investment in fleet modernization and destination-led differentiation. Second-quarter 2026 results underscored the progress of this strategy, as the company delivered record revenues, yields, EBITDA and customer deposits, while net income exceeded its March guidance by $100 million. Stronger commercial execution and cost discipline supported the outperformance despite geopolitical pressure on European demand.

Disciplined Growth Strategy Is Taking ShapeRather than accelerating new ship deliveries, Carnival plans to maintain a measured cadence of one to two vessels annually. The company ordered three Princess Cruises ships for delivery in 2035, 2038 and 2039 while expanding modernization programs across AIDA and Holland America Line. These upgrades are designed to enhance guest experiences, create additional onboard revenue opportunities and improve operating efficiency.

Controlled destinations are also becoming a more important growth lever. Carnival completed infrastructure improvements at Celebration Key and RelaxAway, Half Moon Cay, increasing capacity and itinerary flexibility. The broader Paradise Collection is expected to receive more than 9 million guest visits next year. Approximately 85% of Carnival’s Caribbean itineraries are projected to include at least one exclusive destination, with nearly half including two or more.

Carnival’s financial flexibility continues to improve alongside these investments. The company has repurchased more than $450 million of shares and reduced its net debt-to-adjusted EBITDA ratio to 3.1 times. Although the Middle East conflict prompted an approximately one-percentage-point reduction in normalized yield-growth guidance, Carnival views the pressure as temporary. With 93% of 2026 already booked and booking volumes and pricing for 2027 and beyond running ahead of last year, the longer-term demand outlook remains constructive.

How Does Carnival Compare With Cruise Industry Rivals?Carnival competes with Royal Caribbean Group (RCL - Free Report) and Norwegian Cruise Line Holdings (NCLH - Free Report) , which are also investing in ships, destinations and commercial capabilities.

Royal Caribbean is pursuing an ecosystem-led growth model centered on Icon-class ships, Royal Beach Clubs, Perfect Day destinations, technology and loyalty. RCL continues to expect double-digit revenue and earnings growth, supported by strong demand, record pricing and disciplined cost control.

Norwegian Cruise, meanwhile, is focused on an operational turnaround after entering 2026 behind its targeted booking curve. NCLH is improving revenue management, marketing effectiveness and organizational efficiency while targeting $125 million of annualized SG&A savings. However, internal execution challenges and softer European demand could make its revenue recovery more gradual.

Carnival’s strategy stands out through its emphasis on measured fleet growth, high-return modernization and exclusive destinations. The model does not abandon traditional capacity expansion, but it broadens the industry playbook by seeking to generate greater earnings from existing assets while preserving capital flexibility.

CCL’s Price Performance, Valuation & EstimatesShares of Carnival have dropped 1.9% in the past three months against the industry’s 0.4% growth.

CCL Stock’s Three-Month Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, CCL trades at a forward price-to-earnings ratio of 10.64, significantly below the industry’s average of 16.65.

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

The Zacks Consensus Estimate for CCL’s fiscal 2026 earnings implies a year-over-year decline of 1.8%. The EPS estimates for fiscal 2026 have declined in the past 30 days.

EPS Trend of CCL Stock
Image Source: Zacks Investment Research

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

Key Takeaways Software stocks have faced a rough 2026 but have seen some relief over the past month. AI-driven fears have been the primary driver behind the poor YTD action. Concerns are valid, but these companies' recent results show some nice overall business momentum. Many software stocks have been hit hard in 2026, including Salesforce (CRM - Free Report) , Atlassian (TEAM - Free Report) , and Workday (WDAY - Free Report) . Performance has been weighed down by a huge wave of negative sentiment surrounding AI-related concerns, specifically that their future growth will get negatively impacted. 

But all three have bounced back in a big way over the past month, perhaps a reflection of sentiment finally shifting into a more constructive direction.

Image Source: Zacks Investment Research

It’s worthwhile to take a closer look at how earnings have been going for these companies, as it’ll at least give us a baseline of how their overall businesses are performing amid the wave of negative sentiment they’ve experienced.

Salesforce Reports Record ResultsThrough Agentforce, its suite of customizable agents and tools, Salesforce brings autonomous AI agents, unified data, and Customer 360 apps together on one integrated platform to help companies connect with customers in a whole new way.

The company posted record results in its latest release, with Agentforce and Data 360 annual recurring revenue growing by 200% YoY to nearly $3.4 billion. Its platform also delivered 3.8 billion Agentic Work Units, which are tasks completed by AI agents, growing 111% sequentially.

As reflected by the results, the company is actively benefiting from its own deployment of AI. EPS and sales revisions also reflect a high level of positivity, trending higher over recent months.

EPS revisions have been particularly bullish, with the stock sporting a favorable Zacks Rank #2 (Buy). The company also raised its current fiscal year sales guidance, further adding to the positivity.

Image Source: Zacks Investment Research

Workday Sees Continued GrowthWorkday is a cloud-based software platform that helps organizations manage their Human Resources (HR), payroll, and financial operations. It uses embedded artificial intelligence to automate routine tasks, analyze workforce skills, and generate business forecasts.

Importantly, the number of customers using its AI agents more than doubled quarter-over-quarter in its latest release, with its overall subscription backlog seeing 11% YoY growth to $27.3 billion.

Management stated –

‘We had a great Q1, and it makes one thing clear: Workday is ready for this AI moment. Our core business is strong, our AI strategy is working, and we're moving with the speed and focus required to lead’.

While it’s expected for management to remain highly bullish in their comments, continued backlog growth and the growing adoption of its AI agents still help underpin the idea that its offerings remain attractive.

Sales growth has remained steadily strong, as shown below.

Image Source: Zacks Investment Research

Atlassian Posts Strong Cloud GrowthAtlassian is a leading provider of team collaboration and productivity software, increasingly embedding agentic AI across its platform to transform how enterprise teams work.

Like those above, the company posted solid growth in its latest quarterly release, with Cloud revenue of roughly $1 billion growing by 26% YoY. It also surpassed 3.5 million monthly active users of its AI capabilities, which reflected an impressive 50% sequential growth rate.

Sales growth has accelerated recently, as shown below.

Image Source: Zacks Investment Research

While growth and overall momentum seem to be intact, the company is currently a Zacks Rank #4 (Sell), with investors better off waiting until the ranking changes.

Putting Everything Together

While many software names, including Salesforce (CRM - Free Report) , Atlassian (TEAM - Free Report) , and Workday (WDAY - Free Report) , remain deep in the red from a YTD standpoint, their performance over the past month has given some nice relief. A lot of negativity surrounding future growth fears has likely been priced in, but their discounted prices certainly make them stocks all worth keeping tabs on. 

Wall Street expects a year-over-year increase in earnings on higher revenues when Agnico Eagle Mines (AEM - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 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 gold mining company is expected to post quarterly earnings of $2.98 per share in its upcoming report, which represents a year-over-year change of +53.6%.

Revenues are expected to be $3.94 billion, up 40% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 10.01% 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 Agnico?For Agnico, 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 -5.41%.

On the other hand, the stock currently carries a Zacks Rank of #5.

So, this combination makes it difficult to conclusively predict that Agnico 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 Agnico would post earnings of $3.19 per share when it actually produced earnings of $3.40, delivering a surprise of +6.58%.

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.

Agnico 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.