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Super Micro Computer Inc (NASDAQ:SMCI) shares opened about 20% higher on Tuesday after the company released preliminary fourth quarter fiscal 2026 results showing significantly stronger-than-expected gross margins and a record order backlog, despite revenue tracking near the low end of its guidance.

The AI server maker said revenue for the quarter ended June 30 is expected to be near the lower end of its previously issued guidance range of $11.0 billion to $12.5 billion. Wall Street analysts had been expecting revenue of about $11.73 billion.

Supermicro estimated GAAP and non-GAAP gross margins of 15% to 17%, well above its prior guidance of 8.2% to 8.4%. The company attributed the improvement primarily to a favorable customer and product mix.

The company also reported receiving more than $60 billion in new orders during the quarter, lifting its backlog to a record level at the end of fiscal 2026. Supermicro said the orders are expected to be delivered over future quarters.

Supermicro said it will release its complete Q4 fiscal 2026 financial results on August 11. 

Super Micro Computer says that business is booming and profitability is improving. Investors like the sound of that.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of SMCI either through stock ownership, options, or other derivatives. 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.

Wall Street analysts expect SouthState (SSB - Free Report) to post quarterly earnings of $2.33 per share in its upcoming report, which indicates a year-over-year increase of 1.3%. Revenues are expected to be $677.15 million, up 1.9% from the year-ago quarter.

The current level reflects an upward revision of 0.1% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

With that in mind, let's delve into the average projections of some SouthState metrics that are commonly tracked and projected by analysts on Wall Street.

Analysts predict that the 'Efficiency Ratio' will reach 52.5%. Compared to the present estimate, the company reported 52.8% in the same quarter last year.

It is projected by analysts that the 'Net Interest Margin (Non-Tax Equivalent)' will reach 3.8%. Compared to the current estimate, the company reported 4.0% in the same quarter of the previous year.

The collective assessment of analysts points to an estimated 'Average Balance - Total interest-earning assets' of $61.42 billion. Compared to the present estimate, the company reported $57.71 billion in the same quarter last year.

Analysts forecast 'Total nonperforming assets' to reach $320.33 million. Compared to the current estimate, the company reported $323.84 million in the same quarter of the previous year.

The consensus estimate for 'Total nonperforming loans (non-acquired & acquired)' stands at $286.10 million. Compared to the current estimate, the company reported $297.80 million in the same quarter of the previous year.

Analysts expect 'Net Interest Income' to come in at $575.87 million. The estimate is in contrast to the year-ago figure of $577.95 million.

The consensus among analysts is that 'Total Noninterest Income' will reach $101.25 million. The estimate is in contrast to the year-ago figure of $86.82 million.

The combined assessment of analysts suggests that 'Net interest income, tax equivalent (Non-GAAP)' will likely reach $576.45 million. The estimate compares to the year-ago value of $578.62 million.

The average prediction of analysts places 'Trust and investment services income' at $14.56 million. Compared to the current estimate, the company reported $14.42 million in the same quarter of the previous year.

According to the collective judgment of analysts, 'Fees on deposit accounts' should come in at $40.98 million. The estimate compares to the year-ago value of $37.87 million.

Based on the collective assessment of analysts, 'Mortgage banking income' should arrive at $9.37 million. The estimate compares to the year-ago value of $5.94 million.

Analysts' assessment points toward 'Total correspondent banking and capital market income' reaching $21.11 million. The estimate is in contrast to the year-ago figure of $13.77 million.

View all Key Company Metrics for SouthState here>>>

Over the past month, shares of SouthState have returned +3.5% versus the Zacks S&P 500 composite's +0.3% change. Currently, SSB carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

First Financial Bancorp. NASDAQ: FFBC reported record adjusted second-quarter earnings and outlined plans to expand further in the Chicago and Northwest Indiana markets through its planned acquisition of Finward Bancorp, executives said on the company’s earnings call.

President and Chief Executive Officer Archie Brown said the quarter was “another active quarter” as the company continued post-integration work related to the Westfield acquisition and completed the systems conversion for BankFinancial. He said operating results were strong, with adjusted net income of $83.9 million, or $0.80 per share.

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Brown said adjusted earnings per share increased 8% from the second quarter of 2025, driven by higher earning assets from organic loan growth and recent acquisitions. Adjusted return on assets was 1.5%, while adjusted return on tangible common equity was 19.7%.

Loan Growth and Margin Remained Stable Chief Financial Officer Jamie Anderson said the quarter was highlighted by “strong earnings, 7% loan growth, a solid net interest margin, and positive credit trends.” Net interest margin was 3.98%, down one basis point from the linked quarter. Anderson said deposit costs declined six basis points, while asset yields fell seven basis points due to lower accretion income.

Loan balances rose $240 million, or 7% annualized, with growth across much of the portfolio. Management highlighted commercial and industrial lending, Summit and Agile as key contributors. Brown said loan originations increased 23% from the first quarter and that advanced-stage pipelines remained strong heading into the second half of the year.

Average deposits increased $41 million, which Anderson attributed mainly to a seasonal influx in public funds and growth in interest-bearing demand accounts. He said 21% of total deposit balances remained in non-interest-bearing accounts and that the company remains focused on growing lower-cost deposits.

Fee Income Fell From First Quarter, Expenses Declined Brown said adjusted fee income was below management’s expectations after a strong first quarter, with lower foreign exchange swap income and investment banking fees weighing on non-interest income. However, he said the company expects a rebound in the third quarter.

Anderson said adjusted fee income totaled $72 million, led by leasing and foreign exchange. Other non-interest income increased $3.6 million due to higher income from bank-owned life insurance and limited partnership investments.

Adjusted non-interest expenses declined from the linked quarter, which management attributed to lower commission expense, payroll taxes and acquisition-related synergies. Anderson said core expenses decreased $5.7 million, driven by lower compensation costs tied to lower fee income.

Brown said virtually all expected Westfield cost reductions had been realized by June 30, while BankFinancial-related savings are expected to phase in during the third quarter, with full savings anticipated by quarter-end.

Credit Trends Improved and Capital Levels Rose Asset quality trends were positive in the quarter. Net charge-offs declined 15 basis points to 0.20% of total loans on an annualized basis. Anderson said net charge-offs were down 42% from the first quarter, while non-performing assets and classified assets also declined.

The allowance for credit losses increased two basis points to 1.38% of total loans. The company recorded $8.2 million of provision expense, driven primarily by loan growth and net charge-offs.

Capital levels remained above internal and regulatory targets. Tangible book value increased to $16.64, and the tangible common equity ratio rose to 8.2%. Anderson said tangible book value now exceeds pre-Westfield and BankFinancial levels.

The company did not repurchase shares during the quarter as it focused on acquisitions and integration work. Anderson said 34% of second-quarter earnings were returned to shareholders through the common dividend, and the board voted to raise the common dividend to $0.26 per share.

Third-Quarter Outlook Calls for Steady Margin For the third quarter, Brown said management expects mid-single-digit annualized loan growth and low single-digit core deposit growth. The company expects net interest margin to remain in a range of 3.96% to 4.01%, assuming no changes in interest rates and purchase accounting accretion in line with the second quarter.

Management expects credit costs to approximate second-quarter levels and allowance coverage to remain relatively stable as a percentage of loans. Brown said net charge-offs are expected to approximate 25 to 30 basis points in the back half of the year.

The company projected total fee income of $74 million to $77 million in the third quarter, including $15 million to $17 million from foreign exchange and $22 million to $24 million from leasing business revenue. Non-interest expenses are expected to range from $149 million to $152 million.

Finward Deal Expands Chicago and Northwest Indiana Presence First Financial also discussed its agreement to acquire Finward Bancorp, the holding company for Peoples Bank. Finward is headquartered in Munster, Indiana, and has 24 banking locations. Brown said the transaction is expected to expand First Financial’s ability to serve consumers and businesses in the Chicagoland and Northwest Indiana markets.

Finward has approximately $2 billion in assets, $1.7 billion in deposits, $1.5 billion in loans and $412 million in wealth assets under management. Under the agreement, each outstanding Finward common share will be converted into the right to receive 1.35 shares of First Financial common stock. Brown said the transaction was valued at approximately $208 million based on First Financial’s July 20 closing price.

Brown said the deal is expected to be approximately 5% accretive to First Financial’s earnings per share, with tangible book value per share at closing estimated to be only slightly diluted and an anticipated earn-back period of just over half a year.

Including the BankFinancial acquisition, Brown said First Financial will have added $2.9 billion in lower-cost deposits to its Northwest Indiana operations and will have $4.1 billion in deposits in Chicago and Northwest Indiana. The combined branch network in the region is expected to exceed 40 offices.

During the question-and-answer session, Brown said the company does not expect to be on the sidelines for M&A permanently, but said management does not see anything in the near to intermediate term beyond closing and integrating Finward. He said the acquisition is strategic and incremental relative to First Financial’s size.

Anderson said First Financial expects to close the Finward transaction around year-end, with conversion anticipated sometime in the second quarter of next year. He said cost savings would likely phase in after conversion, with the first full quarter of all expected savings likely in the fourth quarter of next year.

Brown said First Financial is also committing $500,000 to its foundation for the benefit of organizations in communities served by Finward, in addition to the $1 million donation made when the company entered the Chicago market through BankFinancial.

About First Financial Bancorp. (NASDAQ:FFBC)First Financial Bancorp NASDAQ: FFBC is a bank holding company headquartered in Cincinnati, Ohio, and the parent of First Financial Bank. The company provides a comprehensive suite of commercial and consumer banking services through a network of more than 100 full-service banking centers and mortgage offices across Ohio, Indiana and Kentucky. Its core mission centers on delivering personalized relationship banking to businesses, individuals and public sector clients.

First Financial Bank's product portfolio includes deposit solutions such as checking, savings and money market accounts, alongside a range of lending offerings that cover commercial and industrial loans, real estate and construction financing, home mortgages and home equity lines of credit.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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IonQ faces mounting pressure as deep losses, long revenue cycles and execution risks test whether growth can keep pace with its ambitious quantum roadmap.

Wall Street expects a year-over-year increase in earnings on higher revenues when Fair Isaac (FICO - 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 financial services company is expected to post quarterly earnings of $12.02 per share in its upcoming report, which represents a year-over-year change of +40.3%.

Revenues are expected to be $679.31 million, up 26.6% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.47% 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. 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 Fair Isaac?For Fair Isaac, 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 -0.04%.

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

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

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

For the last reported quarter, it was expected that Fair Isaac would post earnings of $11.03 per share when it actually produced earnings of $12.50, delivering a surprise of +13.33%.

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.

Fair Isaac 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.

Wall Street expects a year-over-year decline in earnings on lower revenues when Everest Group (EG - 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 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 reinsurance company is expected to post quarterly earnings of $14.59 per share in its upcoming report, which represents a year-over-year change of -16%.

Revenues are expected to be $4.09 billion, down 9% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.14% 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 Everest Group?For Everest Group, 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 +1.67%.

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

So, this combination indicates that Everest Group 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 Everest Group would post earnings of $14.03 per share when it actually produced earnings of $16.08, delivering a surprise of +14.61%.

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.

Everest Group 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.

Expected Results of an Industry PlayerAmong the stocks in the Zacks Insurance - Multi line industry, Slide Insurance Holdings, Inc. (SLDE - Free Report) , is soon expected to post earnings of $0.88 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +57.1%. This quarter's revenue is expected to be $370.8 million, up 41.7% from the year-ago quarter.

The consensus EPS estimate for Slide Insurance Holdings, Inc. has been revised 6.3% lower over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +7.43%.

When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Slide Insurance Holdings, Inc. will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

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

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

PattersonUTI Energy (PTEN - Free Report) is a stock many investors are watching right now. PTEN is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.

Investors should also recognize that PTEN has a P/B ratio of 0.62. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. PTEN's current P/B looks attractive when compared to its industry's average P/B of 1.74. Over the past year, PTEN's P/B has been as high as 1.06 and as low as 0.61, with a median of 0.80.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PTEN has a P/S ratio of 0.86. This compares to its industry's average P/S of 1.41.

These figures are just a handful of the metrics value investors tend to look at, but they help show that PattersonUTI Energy is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PTEN feels like a great value stock at the moment.

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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.

It also includes access to the Zacks Style Scores.

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

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 ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

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

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

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

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.

#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

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

That's where the Style Scores come in.

To 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.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

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

Stock to Watch: Alcon (ALC - Free Report) Headquartered in Geneva, Switzerland Alcon Inc. researches, develops, manufactures, distributes, and sells a full suite of eye care products. Founded in 1945, Alcon was first acquired by a Swiss subsidiary of Nestlé S.A. and operated as a wholly owned subsidiary of Nestlé until 2002. From March 20, 2002 until its 2011 merger into Novartis, Alcon was publicly listed and traded on the NYSE. In 2011, Novartis completed the acquisition of a full stake in Alcon.

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

Momentum investors should take note of this Medical stock. ALC has a Momentum Style Score of A, and shares are up 1.9% over the past four weeks.

For fiscal 2026, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.00 to $3.50 per share. ALC boasts an average earnings surprise of +3.7%.

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

Wall Street analysts expect Associated Banc-Corp (ASB - Free Report) to post quarterly earnings of $0.72 per share in its upcoming report, which indicates a year-over-year increase of 10.8%. Revenues are expected to be $443.65 million, up 20.9% from the year-ago quarter.

Over the last 30 days, there has been an upward revision of 1.4% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

In light of this perspective, let's dive into the average estimates of certain Associated Banc-Corp metrics that are commonly tracked and forecasted by Wall Street analysts.

The average prediction of analysts places 'Nonaccrual loans' at $126.83 million. The estimate is in contrast to the year-ago figure of $113.00 million.

Analysts expect 'Net Interest Margin' to come in at 3.1%. Compared to the current estimate, the company reported 3.0% in the same quarter of the previous year.

Analysts' assessment points toward 'Average Balance - Total earning assets and related interest income' reaching $46.57 billion. The estimate is in contrast to the year-ago figure of $40.07 billion.

It is projected by analysts that the 'Total Noninterest Income' will reach $79.80 million. The estimate is in contrast to the year-ago figure of $66.98 million.

The consensus among analysts is that 'Capital markets, net' will reach $7.08 million. The estimate compares to the year-ago value of $5.77 million.

Analysts predict that the 'Service charges and deposit accounts fees' will reach $15.44 million. Compared to the present estimate, the company reported $13.15 million in the same quarter last year.

The consensus estimate for 'Wealth management fees' stands at $25.73 million. Compared to the present estimate, the company reported $23.03 million in the same quarter last year.

The combined assessment of analysts suggests that 'Other fee-based revenue' will likely reach $5.19 million. Compared to the current estimate, the company reported $5.00 million in the same quarter of the previous year.

The collective assessment of analysts points to an estimated 'Mortgage banking, net' of $6.13 million. The estimate is in contrast to the year-ago figure of $4.21 million.

According to the collective judgment of analysts, 'Card-based fees' should come in at $12.22 million. Compared to the present estimate, the company reported $11.20 million in the same quarter last year.

Based on the collective assessment of analysts, 'Bank and corporate owned life insurance' should arrive at $3.90 million. The estimate compares to the year-ago value of $4.14 million.

Analysts forecast 'Net Interest Income (FTE)' to reach $363.85 million. Compared to the present estimate, the company reported $304.23 million in the same quarter last year.

View all Key Company Metrics for Associated Banc-Corp here>>>

Over the past month, Associated Banc-Corp shares have recorded returns of +3.6% versus the Zacks S&P 500 composite's +0.3% change. Based on its Zacks Rank #3 (Hold), ASB will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Alamo Group (ALG - Free Report) closed the last trading session at $161.18, gaining 1.3% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $207.25 indicates a 28.6% upside potential.

The average comprises four short-term price targets ranging from a low of $188.00 to a high of $225.00, with a standard deviation of $16.48. While the lowest estimate indicates an increase of 16.6% from the current price level, the most optimistic estimate points to a 39.6% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.

However, an impressive consensus price target is not the only factor that indicates a potential upside in ALG. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Why ALG Could Witness a Solid UpsideAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current year, one estimate has moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 0.4%.

Moreover, ALG currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much ALG could gain, the direction of price movement it implies does appear to be a good guide.

SAN DIEGO--(BUSINESS WIRE)---- $BTU #Energy--Robbins LLP reminds stockholders that a class action was filed on behalf of all investors who purchased or otherwise acquired Peabody Energy Corporation (NYSE: BTU) common stock between October 14, 2024 to May 4, 2026. Peabody Energy describes itself as a leading producer of metallurgic and thermal coat. The Company owns interests in 16 active coal mining operations in the United States and Australia. For more information, submit a form, email attorney Aaron Dumas, J.

Key Takeaways Barrick Mining will invest about $14.83M in Kingfisher through a private placement for a 9.9% stake. B gains exposure to the HWY 37 Project, with most proceeds funding exploration and development. Barrick Mining and Kingfisher will form a technical committee and collaborate on future drilling plans. Barrick Mining Corporation (B - Free Report) announced that it has agreed to make an investment in Kingfisher Metals Corp. through a non-brokered private placement valued at approximately C$20.9 million (approximately $14.83 million). Under the agreement, Barrick will subscribe for 15.47 million units of Kingfisher at C$1.35 per unit (approximately 96 cents per unit), with each unit comprising one common share and one-half of a common share purchase warrant. 

Upon completion of the transaction, Barrick will own about 9.9% of Kingfisher's outstanding shares on a non-diluted basis and roughly 14.1% on a partially diluted basis, assuming full exercise of the warrants. The transaction is expected to close on or before July 27, 2026, subject to customary closing conditions, including regulatory approvals.  

The investment strengthens Barrick's exposure to the HWY 37 Project in British Columbia's prolific Golden Triangle, a district known for significant copper-gold discoveries. Kingfisher plans to allocate at least 80% of the proceeds toward exploration and development at the HWY 37 Project, while the remaining funds will be used for general corporate purposes and working capital. 

Per the agreement, Barrick and Kingfisher will establish a technical committee to collaborate on the HWY 37 Project. Barrick may also provide technical expertise for Kingfisher's 2027 and 2028 drilling campaigns upon request. In addition, Barrick will receive anti-dilution and information rights as long as it maintains at least a 5% ownership stake. Kingfisher will also face restrictions on transferring interests in the HWY 37 Project for two years without Barrick's consent, subject to certain exceptions.  

The agreement includes a two-year standstill provision, generally limiting Barrick's ownership to 15%, with the potential to increase to 19.9% under specified circumstances. Barrick will also be subject to an additional 18-month lock-up period, restricting the sale of its shares following the transaction. 

Shares of B are up 68.3% in the past year compared with the industry’s 30.2% growth. 

Image Source: Zacks Investment Research

B’s Zacks Rank & Key PicksB carries a Zacks Rank #3 (Hold). 

Some better-ranked stocks in the Basic Materials space are CSW Industrials, Inc. (CSW - Free Report) , Carpenter Technology Corporation (CRS - Free Report)  and Ternium S.A. (TX - Free Report) . CSW, IDR and TX carry a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. 

The Zacks Consensus Estimate for CSW’s current-year earnings stands at $12.52 per share, implying a 20.6% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 3.8%.

The Zacks Consensus Estimate for CRS’s current-year earnings is pegged at $10.58 per share, implying a 41.4% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 9%.

The Zacks Consensus Estimate for TX’s current-year earnings is pegged at $5.71 per share, indicating a 163.1% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, with the average surprise being 3.5%. 

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

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

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

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.

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

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

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

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

VGM 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 is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

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

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

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

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

Stock to Watch: Cactus, Inc. (WHD - Free Report) Along with its consolidated affiliates, Cactus Inc is involved in manufacturing, designing and selling wellhead and pressure control equipment. The products are being utilized by customers for drilling and completing onshore oil and natural gas wells. The equipment are also used by upstream energy companies during production phases in oil and gas wells. Thus, Cactus, headquartered in Houston, TX, generates significant cashflow from selling and renting wellhead and pressure control equipment.

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

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 18.92; value investors should take notice.

Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.12 to $2.92 per share. WHD also boasts an average earnings surprise of +8.5%.

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

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

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

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

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

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.

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.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

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.

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

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

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

Stock to Watch: Medpace (MEDP - Free Report) Medpace Holdings, Inc. is a global clinical contract research organization (CRO) delivering full-service Phase I-IV drug and device development support, including protocol and project management, regulatory affairs, clinical monitoring, data management/analysis, pharmacovigilance, submission support, and specialized services such as bioanalytical labs and medical imaging. The company is headquartered in Cincinnati, OH, and employs approximately 6,200 people across 46 countries as of fiscal 2025.

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

Additionally, the company could be a top pick for growth investors. MEDP has a Growth Style Score of A, forecasting year-over-year earnings growth of 11.5% for the current fiscal year.

One analyst revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.00 to $17.04 per share. MEDP also boasts an average earnings surprise of +10%.

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

The price trend for Trex (TREX - Free Report) has been bearish lately and the stock has lost 8.9% over the past two weeks. However, the formation of a hammer chart pattern in its last trading session indicates that the stock could witness a trend reversal soon, as bulls might have gained significant control over the price to help it find support.

While the formation of a hammer pattern is a technical indication of nearing a bottom with potential exhaustion of selling pressure, rising optimism among Wall Street analysts about the future earnings of this maker of fencing and decking products is a solid fundamental factor that enhances the prospects of a trend reversal for the stock.

What is a Hammer Chart and How to Trade It?This is one of the popular price patterns in candlestick charting. A minor difference between the opening and closing prices forms a small candle body, and a higher difference between the low of the day and the open or close forms a long lower wick (or vertical line). The length of the lower wick being at least twice the length of the real body, the candle resembles a 'hammer.'

In simple terms, during a downtrend, with bears having absolute control, a stock usually opens lower compared to the previous day's close, and again closes lower. On the day the hammer pattern is formed, maintaining the downtrend, the stock makes a new low. However, after eventually finding support at the low of the day, some amount of buying interest emerges, pushing the stock up to close the session near or slightly above its opening price.

When it occurs at the bottom of a downtrend, this pattern signals that the bears might have lost control over the price. And, the success of bulls in stopping the price from falling further indicates a potential trend reversal.

Hammer candles can occur on any timeframe -- such as one-minute, daily, weekly -- and are utilized by both short-term as well as long-term investors.

Like every technical indicator, the hammer chart pattern has its limitations. Particularly, as the strength of a hammer depends on its placement on the chart, it should always be used in conjunction with other bullish indicators.

Here's What Increases the Odds of a Turnaround for TREXThere has been an upward trend in earnings estimate revisions for TREX lately, which can certainly be considered a bullish indicator on the fundamental side. That's because a positive trend in earnings estimate revisions usually translates into price appreciation in the near term.

The consensus EPS estimate for the current year has increased 5.7% over the last 30 days. This means that the Wall Street analysts covering TREX are majorly in agreement about the company's potential to report better earnings than what they predicted earlier.

If this is not enough, you should note that TREX currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. And stocks carrying a Zacks Rank #1 or 2 usually outperform the market. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Moreover, a Zacks Rank of 1 for Trex is a more conclusive indication of a potential trend reversal, as the Zacks Rank has proven to be an excellent timing indicator that helps investors identify precisely when a company's prospects are beginning to improve.

Wall Street expects a year-over-year increase in earnings on higher revenues when Evercore (EVR - 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 investment bank is expected to post quarterly earnings of $3.02 per share in its upcoming report, which represents a year-over-year change of +24.8%.

Revenues are expected to be $993.52 million, up 18.4% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.02% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Evercore?For Evercore, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.

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

So, this combination makes it difficult to conclusively predict that Evercore 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 Evercore would post earnings of $5.57 per share when it actually produced earnings of $7.53, delivering a surprise of +35.19%.

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.

Evercore 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.

Marvell Technology, Inc. is upgraded to a timely Buy as valuation finally cools from a frothy level, while long-term growth drivers solidify. MRVL's integration with Nvidia and leadership in CXL position it for significant revenue inflection through FY2028. Despite a recent 50% correction, MRVL still trades at a premium (46x forward earnings), demanding robust execution and a clear roadmap.

Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.

The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.

The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.

The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information.

Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.

In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.

Stocks with a ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Stocks with rankings of #2 (Buy) and #1 (Strong Buy), or the top 15% and top 5% of stocks, respectively, should outperform the market; Strong Buy stocks should outperform more than any other rank.

Should You Consider Monster Beverage?The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Monster Beverage (MNST - Free Report) holds a #3 (Hold) at the moment and its Most Accurate Estimate comes in at $0.60 a share 15 days away from its upcoming earnings release on August 6, 2026.

By taking the percentage difference between the $0.60 Most Accurate Estimate and the $0.59 Zacks Consensus Estimate, Monster Beverage has an Earnings ESP of +2.61%. Investors should also know that MNST is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

MNST is one of just a large database of Consumer Staples stocks with positive ESPs. Another solid-looking stock is Anheuser-Busch Inbev (BUD - Free Report) .

Anheuser-Busch Inbev, which is readying to report earnings on July 30, 2026, sits at a Zacks Rank #3 (Hold) right now. Its Most Accurate Estimate is currently $1.11 a share, and BUD is eight days out from its next earnings report.

Anheuser-Busch Inbev's Earnings ESP figure currently stands at +1.60% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.09.

MNST and BUD's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.

Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>

Lululemon (LULU - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Shares of this athletic apparel maker have returned +7.1% over the past month versus the Zacks S&P 500 composite's +0.3% change. The Zacks Textile - Apparel industry, to which Lululemon belongs, has gained 8.4% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Lululemon is expected to post earnings of $1.79 per share, indicating a change of -42.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days.

The consensus earnings estimate of $10.94 for the current fiscal year indicates a year-over-year change of -17.5%. This estimate has changed -1.8% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $11.54 indicates a change of +5.5% from what Lululemon is expected to report a year ago. Over the past month, the estimate has changed -2.8%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Lululemon is rated Zacks Rank #5 (Strong Sell).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Lululemon, the consensus sales estimate of $2.47 billion for the current quarter points to a year-over-year change of -2.3%. The $11.08 billion and $11.43 billion estimates for the current and next fiscal years indicate changes of -0.2% and +3.2%, respectively.

Last Reported Results and Surprise HistoryLululemon reported revenues of $2.47 billion in the last reported quarter, representing a year-over-year change of +4.3%. EPS of $1.69 for the same period compares with $2.6 a year ago.

Compared to the Zacks Consensus Estimate of $2.43 billion, the reported revenues represent a surprise of +1.59%. The EPS surprise was +1.2%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Lululemon is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Lululemon. However, its Zacks Rank #5 does suggest that it may underperform the broader market in the near term.

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Shares of cooling infrastructure play Vertiv (NASDAQ:VRT | VRT Price Prediction) have been that much harder to hang onto since the shares peaked out back in May. Despite the pick-up in turbulence and the plunge into bear market territory, a number of analysts have not soured on the name. The AI data center buildout hasn’t gone anywhere; if anything, things could get even more intense as companies look to get AI compute where it needs to be to roll out the red carpet for that agentic AI blast-off.

While chatbots are getting more efficient over time, the agents we keep hearing about that could run around the clock are going to require worlds more compute. And, with that, there just aren’t enough data centers to feed what could be one of the most transformative shifts we’ve seen in this AI revolution.

Vertiv’s secured its front-row seat to the AI data center buildout. It’s time to sit back and enjoy the show As more data center projects get the green light, a company like Vertiv, which supplies critical cooling solutions, is going to win more business. It seems like such an obvious bull point, but it’s one that numerous analysts seem to think is underpriced in the shares, especially after that latest dip into a bear market.

Baird started its coverage of the $117 billion firm with a buy and a $370.00 price target, which entails a gain of just north of 21% from Tuesday’s close. Indeed, shares of Vertiv bounced back furiously on Tuesday, gaining 4.4% on a day that saw much of the battered semiconductor-tied plays bounce. With a slate of impressive and red-hot AI hardware launching in the second half, the need for cooling solutions could kick things up a few more notches.

What’s most interesting, at least in my view, is how blistering-hot next-generation hardware (think Vera Rubin and beyond) racks stand to be. Liquid cooling is quickly becoming the new default, and, for many, Vertiv is going to be that number-one provider of liquid-cooling infrastructure that flows into the data center and into each rack.

Vertiv’s tailwinds could become even more pronounced It’s not just liquid innovation that makes Vertiv such a stellar firm to hang onto as the AI data center buildout continues on. Heat rejection is another key piece of the puzzle, and with the ThermoKey acquisition in the books, the company can now dissipate the heat in a way that few other firms can.

Of course, liquid cooling solutions might seem unexciting at best, commoditized at worst. But at the same time, there’s a lot of complexity in designing a thermal management system that scales. These data centers are getting bigger and bigger, and firms are going to need the expertise to get the job done well the first time.

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Given the stakes when it comes to thermal management and the costs that accompany thermal downtime, perhaps Vertiv is the essential service provider that deserves its pricing power.

Any way you look at it, Vertiv has way too much business coming in. As the more than $15 billion backlog swells further (order velocity is off the charts, up 252% in the fourth quarter) and the firm looks to really get going, I wouldn’t be so quick to time a peak in the name, as it may very well be a bet against the data center buildout as we know it.

As the DRAM shortage gets corrected in the coming years and other chokepoints are addressed, my guess is that buildouts could accelerate further. For a company like Vertiv, that’s some serious growth that, believe it or not, might not be priced in just yet.

Vertiv looks expensive, but why it might be worth buying anyway With shares going for 47.2 times forward price-to-earnings (P/E), it feels like the premium multiple has already reflected the massive growth. Any way you look at it, Vertiv is the cool leader with a flywheel that looks like it could keep spinning as the AI supercycle looks to extend for who knows how long.

Perhaps Loop Capital’s Ananda Baruah is right on the money when they say Vertiv is a “tech company” that just so happens to sell industrial gear. If the firm can add to its moat in this explosive phase of the buildout, my guess is that shares aren’t yet pricey enough.

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Wall Street expects a year-over-year increase in earnings on higher revenues when Vertiv Holdings Co. (VRT - 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 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 company is expected to post quarterly earnings of $1.43 per share in its upcoming report, which represents a year-over-year change of +50.5%.

Revenues are expected to be $3.39 billion, up 28.4% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.33% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. 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 Vertiv?For Vertiv, 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 +3.28%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination indicates that Vertiv will most likely 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 Vertiv would post earnings of $1.02 per share when it actually produced earnings of $1.17, delivering a surprise of +14.71%.

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.

Vertiv 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.

An Industry Player's Expected ResultsAnother stock from the Zacks Computers - IT Services industry, Vertiv Holdings Co. (VRT - Free Report) , is soon expected to post earnings of $1.43 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +50.5%. Revenues for the quarter are expected to be $3.39 billion, up 28.4% from the year-ago quarter.

The consensus EPS estimate for Vertiv has been revised 0.3% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +3.28%.

When combined with a Zacks Rank of #2 (Buy), this Earnings ESP indicates that Vertiv will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

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

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