Track market-moving stories before they get noisy

Key Takeaways Visa is poised for a fiscal Q4 earnings beat, with EPS projected to rise 15.1% and revenues to grow 12.7%.Higher payment volumes, cross-border demand and digital transactions could fuel Visa's Q4 revenue growth.Visa's 16.3% YTD stock gain and premium valuation favor holding shares over buying ahead of earnings.
Visa Inc. (V - Free Report) is set to report its fourth-quarter fiscal 2026 results on Oct. 27, 2026, after market close. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $3.43 per shareon revenues of $12.08 billion.

The estimate for fiscal fourth-quarter earnings has remained stable over the past 60 days. The bottom-line projection indicates a year-over-year increase of 15.1%. The Zacks Consensus Estimate for quarterly revenues suggests year-over-year growth of 12.7%.

Image Source: Zacks Investment Research

For fiscal 2026, the Zacks Consensus Estimate for Visa’s revenues is pegged at $45.84 billion, implying a rise of 14.6% year over year. The consensus mark for EPS is pegged at $13.22, suggesting a jump of about 15.3% year over year.

The payments juggernaut has a robust history of surpassing earnings estimates. It beat estimates in each of the last four quarters, with the average being 2.8%. This is depicted in the graph below:

Q4 Earnings Whispers for VisaOur proven model predicts a likely earnings beat for the company this time around as well. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is precisely the case here.

Visa has an Earnings ESP of +0.66% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

Factors Shaping Visa’s Q4 ResultsVisa appears well positioned to deliver solid year-over-year growth in fiscal fourth-quarter results, supported by higher consumer spending, rising digital payment adoption and continued growth in cross-border transactions. The Zacks Consensus Estimate calls for a 7.5% increase in total Gross Dollar Volume from the year-ago quarter, while our model projects 7.7% growth.

As the company draws revenues as a set percentage of total transaction value every time a customer makes payments with a debit/credit card, higher spending means more revenue in the form of transaction processing fees. The Zacks Consensus Estimate for total processed transactions points to 9.6% year-over-year growth, slightly above our model's projection of 9.4%.

The consensus mark for total payment volumes indicates a 9.1% year-over-year increase. We expect the metric for U.S. operations alone to jump nearly 8% year over year. Similarly, our model predicts 15.6% year-over-year growth in Latin America and 11.2% in CEMEA.

The Zacks Consensus Estimate for data processing revenues indicates 15% growth in the fiscal fourth quarter from the year-ago level of $5.39 billion. Similarly, the consensus mark for service revenues suggests 12.6% year-over-year growth, whereas we expect the metric to grow 13.3% from $4.6 billion.

Furthermore, the consensus estimate for international transaction revenues indicates 8.9% growth from a year ago. Continuous growth in cross-border volumes is expected to have supported the metric. The factors stated above are expected to have positioned Visa for an earnings beat. However, rising expenses and client incentives (a contra-revenue item) are likely to have partially offset the positive impact of higher volumes.

We expect adjusted total operating expenses for the quarter under review to increase 11.6% year over year due to increased Personnel, Professional Fees, Marketing, and Network and Processing expenses. Meanwhile, the Zacks Consensus Estimate for client incentives is pegged at $4.98 billion for the to-be-reported quarter.

Visa Price Performance & ValuationVisa's stock has gained 16.3% in the year-to-date period. It has outperformed the industry’s 4.2% fall andthe S&P 500’s increase of 10.6%. In comparison, its peers like Mastercard Incorporated (MA - Free Report) and American Express Company (AXP - Free Report) have increased 9.2% and declined 15.3%, respectively, during this time.

YTD Price Performance – V, MA, AXP, Industry & S&P 500 Image Source: Zacks Investment Research

Now, let’s look at the value Visa offers investors at current levels.

The company’s valuation looks somewhat stretched compared with the industry average. Currently, Visa is trading at 26.97X forward 12-month earnings, above the industry’s average of 18.76X, and remains above its five-year median of 25.59X.

Image Source: Zacks Investment Research

In comparison, Mastercard is trading at 27.84X forward 12-month earnings. American Express, on the other hand, is trading at 15.86X now.

How Should You Play Visa Ahead of Q4 Earnings?Visa enters its fiscal fourth-quarter earnings report with plenty working in its favor. Steady consumer spending, higher transaction volumes and cross-border demand should support revenue and earnings growth. Its record of topping estimates adds to that case.

The longer-term story is also taking shape. Visa is expanding stablecoin-linked payments and settlement, building tools for AI-driven shopping and growing its Value-Added Services business. These efforts offer new ways to earn revenue beyond traditional card transactions, without straying far from the network that underpins its business.

Still, expectations are not low. After outperforming the industry and broader market this year, Visa trades above both its industry average and its own five-year median valuation. Higher operating expenses and client incentives could limit how much stronger payment activity flows through to earnings. Competition from alternative payment networks and regulatory scrutiny also remain concerns.

For existing shareholders, the company's strong core business and newer growth opportunities support staying invested through the report. New investors, however, may want to avoid chasing the stock ahead of earnings, particularly with its valuation leaving little room for disappointment.

Walmart's stock is closing in on a $1 trillion market cap, and the company just dropped a three-event holiday sales calendar to get there. But a strategy built on aggressive price cuts carries a profit risk that could make or…

Walmart (NASDAQ:WMT | WMT Price Prediction) announced three holiday shopping events on Oct. 26, with its stock close to a $1 trillion market value. As of 10:25 a.m. ET, shares traded at $121.59. That was up 1.42% on the day, 10.01% over the past month and 9.83% year to date, for a market value of about $966.67 billion.

Investors may be counting on a strong holiday season to carry Walmart past $1 trillion. Available sources link the rally to other factors. TIKR attributes the move to investors paying a higher valuation multiple, and TipRanks linked the Oct. 22 gain to comments from an Oppenheimer analyst. That puts a lot of weight on the holidays, because a richer valuation needs profit growth to back it up.

Three Holiday Sales Built Around Lower Prices
Walmart’s holiday calendar, per its press release:

Early Black Friday Deals: Nov. 12 to 15
Black Friday: Nov. 23 to 29. Both Black Friday sales open online at 12:01 a.m. ET and in stores at 6 a.m. local time.
Cyber Monday: Nov. 30 to Dec. 2, online only

Walmart said Walmart+ members get early access to hot deal drops for the first 24 hours of each Black Friday sale. Walmart’s own research found that 60% of shoppers say gift prices affect how they feel about the season, and Walmart said 70% say lower prices would make holiday shopping easier. Walmart is also promoting its new Walmart+ and Sam’s Club Plus bundle at $120 a year. Walmart’s Top Toys list includes 25 toys priced under $25.

Julie Barber, chief merchandising officer for Walmart U.S., summed up the pitch: “It’s all about helping our customers save more, discover more and make more room for what matters.”

A Higher Multiple Drove the Rally
TIKR data shows Walmart closed at $119.89 on Oct. 23, up 15.4% from $103.92 on Sept. 30. Over that period, TIKR shows analysts’ next-12-months earnings estimate stayed at $3.00 a share. The forward price-to-earnings ratio, which measures what investors pay for each dollar of profit expected over the next year, rose from about 35 times to about 40 times, per TIKR. In other words, investors paid more for the same expected earnings. TIKR puts the Street’s mean price target at $127.48, about 6% above the Oct. 23 close.

Why Price Cuts Can Squeeze Profit
Walmart has been putting its gains back into prices. Management said Walmart qualified for about $2.9 billion in tariff refunds and is using much of that money to fund more than 11,000 rollbacks. CEO John Furner said, “We’re investing heavily in price because customers need us to and because we believe it drives market share gains over time.”

TIKR names the main risk: if Walmart keeps reinvesting in lower prices, earnings could fall short. Oppenheimer’s Rupesh Parikh rates the stock Perform. According to TIKR, citing TipRanks, he said the bundle strengthens Walmart’s value proposition but noted a near-term profit headwind.

Higher-margin businesses help cover that cost. In the second quarter of fiscal 2027, global advertising rose 38% and membership fee revenue grew 17%. Adjusted EPS came in at $0.81, beating the $0.74 estimate, according to Walmart’s earnings release filed with the SEC. Even so, the stock fell 9.15% on the day of that report.

Nov. 19 Falls Between the Two Black Friday Sales
Walmart’s next report is expected on Nov. 19, though the company has not made that date official. That falls between its two Black Friday sales. The report covers the fall quarter, and holiday-quarter results won’t come until early next year, so Nov. 19 will give investors their first look at Walmart’s holiday outlook.

Walmart forecast to adjusted EPS of $0.62 to $0.64 for the quarter, and TIKR puts the year-earlier figure at $0.62 and the consensus estimate at $0.64. TIKR says results at or above consensus, along with Walmart’s full-year range of $2.80 to $2.87 held or raised, would support the higher multiple. A result at the low end of guidance would mean a stock TIKR values near 40 times forward earnings had reported flat quarterly earnings.

What to Watch Before the Holidays

The Nov. 19 report, and any update to Walmart’s holiday outlook and full-year guidance
How deep Walmart’s holiday discounts go, and whether management says they are weighing on margins
Whether Walmart’s $120 bundle brings in new members, since membership fees help offset lower prices

Contact [email protected] for any questions or corrections.

Verizon Communications (VZ - Free Report) came out with quarterly earnings of $1.31 per share, beating the Zacks Consensus Estimate of $1.27 per share. This compares to earnings of $1.21 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +3.15%. A quarter ago, it was expected that this largest U.S. cellphone carrier would post earnings of $1.27 per share when it actually produced earnings of $1.3, delivering a surprise of +2.36%.

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

Verizon, which belongs to the Zacks Wireless National industry, posted revenues of $34.31 billion for the quarter ended September 2026, missing the Zacks Consensus Estimate by 1.43%. This compares to year-ago revenues of $33.82 billion. The company has topped consensus revenue estimates just once over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Verizon shares have added about 9.7% since the beginning of the year versus the S&P 500's gain of 11.4%.

What's Next for Verizon?While Verizon has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Verizon was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.15 on $37.27 billion in revenues for the coming quarter and $5.03 on $140.96 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Wireless National is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, ATN International (ATNI - Free Report) , has yet to report results for the quarter ended September 2026. The results are expected to be released on November 4.

This provider of telecommunications services is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of +5.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

ATN International's revenues are expected to be $184.9 million, up 1% from the year-ago quarter.

The upcoming report from Norwegian Cruise Line (NCLH - Free Report) is expected to reveal quarterly earnings of $0.91 per share, indicating a decline of 24.2% compared to the year-ago period. Analysts forecast revenues of $2.87 billion, representing a decline of 2.2% year over year.

Over the last 30 days, there has been a downward revision of 7% 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.

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 usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.

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

Analysts expect 'Revenue- Onboard and other' to come in at $884.41 million. The estimate points to a change of -0.4% from the year-ago quarter.

Analysts predict that the 'Revenue- Passenger ticket' will reach $1.98 billion. The estimate indicates a year-over-year change of -3.6%.

Based on the collective assessment of analysts, 'Passenger Cruise Days' should arrive at 7062 thousands of days. Compared to the current estimate, the company reported 6828 thousands of days in the same quarter of the previous year.

It is projected by analysts that the 'Capacity Days' will reach 6796 thousands of days. The estimate is in contrast to the year-ago figure of 6418 thousands of days.

Analysts forecast 'Net Yield' to reach $313.17 . The estimate is in contrast to the year-ago figure of $341.89 .

The consensus among analysts is that 'Occupancy percentage' will reach 103.9%. Compared to the present estimate, the company reported 106.4% in the same quarter last year.

According to the collective judgment of analysts, 'Fuel price per metric ton, net of hedges' should come in at $791.47 . The estimate is in contrast to the year-ago figure of $744.00 .

Analysts' assessment points toward 'Net Cruise Cost per Capacity Day' reaching $185.86 . The estimate compares to the year-ago value of $186.03 .

The average prediction of analysts places 'Gross Cruise Cost per Capacity Day' at $295.04 . The estimate is in contrast to the year-ago figure of $301.95 .

The combined assessment of analysts suggests that 'Net Cruise Cost Excluding Fuel' will likely reach $1062.98 . The estimate compares to the year-ago value of $1017.97 .

The consensus estimate for 'Total Passengers carried' stands at 915,799 . Compared to the current estimate, the company reported 803,268 in the same quarter of the previous year.

The collective assessment of analysts points to an estimated 'Adjusted Net Cruise Cost Excluding Fuel' of $1.04 billion. Compared to the present estimate, the company reported $998.99 million in the same quarter last year.

View all Key Company Metrics for Norwegian Cruise Line here>>>

Shares of Norwegian Cruise Line have experienced a change of +3.4% in the past month compared to the -1.2% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), NCLH is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

SummaryIntel Corporation maintains a Buy rating, with conviction rising as the stock trades near $87 ahead of Q3 earnings.Recent INTC stock volatility was driven by sector sentiment and competitive headlines, not by changes in Intel’s fundamentals or earnings outlook.Server segment strength—48% ASP growth and 61% revenue gain—offsets PC weakness; volume growth is the next key lever.14A process milestone and customer traction are critical forward catalysts, while PC market softness poses near-term risk for INTC shareholders. JHVEPhoto/iStock Editorial via Getty Images

Intel Corporation (INTC) shares have been on quite a ride over the past month, even though the company has been pretty quiet. When I last wrote about Intel on Sept. 10, the stock was

5.19K Followers

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.

Cisco Systems (CSCO - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this seller of routers, switches, software and services have returned -0.2%, compared to the Zacks S&P 500 composite's -1.2% change. During this period, the Zacks Computer - Networking industry, which Cisco falls in, has lost 1.6%. The key question now is: What could be the stock's future direction?

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.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Cisco is expected to post earnings of $1.33 per share for the current quarter, representing a year-over-year change of +33%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.8%.

The consensus earnings estimate of $5.11 for the current fiscal year indicates a year-over-year change of +18%. This estimate has changed +0.1% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $5.59 indicates a change of +9.4% from what Cisco is expected to report a year ago. Over the past month, the estimate has remained unchanged.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Cisco is rated Zacks Rank #2 (Buy).

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

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of Cisco, the consensus sales estimate of $18.09 billion for the current quarter points to a year-over-year change of +21.5%. The $73.03 billion and $77.87 billion estimates for the current and next fiscal years indicate changes of +15.3% and +6.6%, respectively.

Last Reported Results and Surprise HistoryCisco reported revenues of $17.25 billion in the last reported quarter, representing a year-over-year change of +17.6%. EPS of $1.22 for the same period compares with $0.99 a year ago.

Compared to the Zacks Consensus Estimate of $16.85 billion, the reported revenues represent a surprise of +2.36%. The EPS surprise was +4.27%.

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

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

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.

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

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Cisco. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.

Key Takeaways PSX can process light, medium and heavy crude grades to capture feedstock discounts across markets.PSX benefits from Canadian and Venezuelan crude supplies and optimized sourcing to boost refining margins.Every $1 widening in the WTI/WCS differential adds an estimated $140 million to Phillips 66's annual EBITDA.
Phillips 66’s (PSX - Free Report) refining system benefits from a flexible crude slate that enables the company to process a wide range of light, medium and heavy crude grades. Its refineries hold a peer-leading position in bottoms upgrading capacity, supporting greater use of medium and heavy barrels while retaining the flexibility to shift toward lighter crude when economics favor that mix. This flexibility gives PSX more options to capture favorable feedstock discounts across changing crude markets. The company sources low-cost hydrocarbons from the United States, Canada and Latin America and converts them into higher-value refined products.

PSX’s commercial network strengthens the advantage by optimizing crude sourcing across its refining system. Management highlighted the company's ability to replace costlier international crude with cheaper domestic grades at its U.S. refineries while marketing higher-priced barrels elsewhere, thereby strengthening refining margins. Phillips 66 has expanded its exposure to advantaged Canadian and Venezuelan crude supplies, providing additional opportunities when heavy crude differentials widen.

Please note that every $1-per-barrel widening in the West Texas Intermediate (“WTI”)/Western Canadian Select (“WCS”) differential adds an estimated $140 million to PSX’s annual EBITDA, highlighting the earnings leverage from discounted heavy crude. This feedstock flexibility complements improving refinery utilization, clean product yields and cost discipline, with crude utilization reaching 96% and realized refining margin at $24.08 per barrel in the second quarter of 2026. Therefore, Phillips 66’s ability to switch among crude grades, source advantaged barrels and optimize flows across its integrated network strengthens its refining margins and supports more resilient downstream earnings.

Flexible Feedstocks Aid Refining Margin for MPC & VLOAmong Phillips 66’s refining peers, Marathon Petroleum Corporation (MPC - Free Report) benefits from a highly flexible refining network that provides access to abundant, advantaged North American crude. MPC highlights the flexibility of its refining system as a key margin driver, while the Garyville Feedstock Optimization project is designed to improve the feedstock slate and raise crude throughput by 30,000 barrels per day by year-end 2027. For MPC, this combination of complex refining assets and feedstock optimization strengthens its ability to capture favorable crude differentials and lift refining economics.

Valero Energy Corporation (VLO - Free Report) operates a large refining network with 14 refineries and nearly 3 million barrels per day of throughput capacity, giving it significant flexibility in feedstock selection and product optimization. VLO processes a broad range of feedstocks, including heavy sour crude at its Port Arthur refinery, giving the company exposure to discounted crude grades when market spreads are favorable. This flexibility, combined with extensive pipelines, storage and dock infrastructure, helps VLO direct advantaged feedstocks across its system and support stronger margin capture.

Together, MPC and VLO demonstrate that feedstock flexibility and access to discounted crude grades remain key competitive advantages for complex U.S. refiners.

PSX’s Price Performance, Valuation & EstimatesPhillips 66 shares have gained 109.1% over the past year compared with the industry’s 128.7% growth.

Image Source: Zacks Investment Research

From a valuation standpoint, PSX trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 12.46X. This is above the broader industry average of 6.38X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for PSX's 2026 earnings has seen upward revisions over the past seven days.

Image Source: Zacks Investment Research

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

Chord Energy NASDAQ: CHRD may not be a household name, but the oil producer has delivered impressive returns to shareholders in 2026.

CHRD shares have rallied more than 70% year to date, supported by higher oil prices and strong cash generation. But after such a substantial gain, can the company continue delivering attractive returns to investors?

Chord Energy Corporation (CHRD) Price Chart for Monday, October, 26, 2026

The company's preliminary third-quarter results, released Oct. 19, showed production exceeding guidance while capital spending remained within expectations. With full third-quarter earnings scheduled for Nov. 4, investors will soon get a clearer picture of whether that operating strength can support continued shareholder returns.

Get Chord Energy alerts:

Higher Oil Prices Drive Strong EarningsHigher oil prices have helped fuel Chord's earnings growth so far this year, with crude recently fluctuating around $100 per barrel.

That strength was evident in Chord's second-quarter 2026 results, released Aug. 5, which were strong on nearly every metric that matters to an oil-and-gas producer.

Total revenues reached $2.17 billion. Net income swung to $525.2 million from a loss of $389.9 million a year earlier, and earnings per share (EPS) of $6.44 more than tripled from $1.79 in the second quarter of 2025. Adjusted EBITDA reached $923.5 million, while adjusted net income totaled $361.7 million

The improvement was driven by a combination of higher realized oil prices and production growth. The company said it realized $93.99 per barrel of oil before hedges, compared with $61.62 a year ago and $70.05 from the first quarter.

Total output reached 286,400 barrels of oil equivalent per day, with crude oil making up the majority of that production.

Free Cash Flow Fuels Shareholder ReturnsChord Energy Today

$157.51 -0.62 (-0.39%)

As of 11:28 AM Eastern

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

$84.25▼

$159.963.30%

10.53

$174.54

Chord's preliminary third-quarter results suggest its cash-generation momentum has continued. The company reported production of 290,500 to 290,900 barrels of oil equivalent per day, exceeding its previous guidance range of 277,700 to 284,000. Capital spending remained within expectations, helping adjusted free cash flow exceed management's projections.

That performance builds on a strong second quarter, when Chord generated $414.1 million of adjusted free cash flow and repurchased more than $147 million of its shares. Together with its $1.30-per-share base dividend, the buybacks brought total shareholder returns to 54% of second-quarter adjusted free cash flow.

Management previously said it expected to increase shareholder returns to 75% of adjusted free cash flow in the third quarter. In line with that strategy, Chord repurchased $205 million of its shares during Q3, followed by another $44.3 million during the fourth quarter (through Oct. 19), demonstrating its continued commitment to returning cash to shareholders.

For the full year, management previously guided to adjusted EBITDA of roughly $3 billion and adjusted free cash flow of about $1.3 billion.

Asset Sale Sharpens Focus on Williston BasinChord operates primarily in the Williston Basin in North Dakota and Montana, where it holds a substantial portfolio of oil-producing assets. The company has spent the past year sharpening its focus on those operations.

In September, Chord announced an agreement to sell its entire non-operated position in the Marcellus shale to POSCO International for $550 million, with an expected close in the fourth quarter of 2026.

The divestiture would concentrate Chord's operations exclusively in the Williston Basin while strengthening its balance sheet and giving management greater flexibility in allocating capital.

Even After Chord's Rally, Analysts See 10% UpsideChord Energy Stock Forecast Today12-Month Stock Price Forecast:
$174.54
10.38% Upside

Moderate Buy
Based on 17 Analyst Ratings

Current Price$158.13High Forecast$197.00Average Forecast$174.54Low Forecast$128.00Chord Energy Stock Forecast Details

Although rated a consensus Moderate Buy by analysts, recommendations are strongly weighted to Buy. Of the 17 analysts following the stock, 14 rate the company a Buy, including two at a Strong Buy. Only three analysts recommend a Hold.

With an average price target of $174.54, the upside sits at about 10%. The highest price target is $197, while the lowest is $128.

After such a substantial rally, investors should consider how much of Chord's strong operating performance is already reflected in its share price. The stock could be vulnerable if oil prices retreat or the upcoming earnings report fails to meet expectations.

Oil Price Volatility Threatens Future ReturnsDespite Chord's strong operating performance, the central risk here is that its earnings and shareholder returns remain highly sensitive to oil prices.

Chord's full-year financial guidance, issued with its second-quarter results, assumed West Texas Intermediate (WTI) crude prices of $75 per barrel for the second half of 2026. A sustained decline in oil prices could reduce free cash flow and limit the amount available for share repurchases and dividends.

The company also carries meaningful exposure to international oil policy, global demand growth, and the possibility that U.S. shale production growth outpaces demand. A further risk is the rising cost of doing business in the basin, with management noting an expected increase in lease operating expenses.

And while the Marcellus sale simplifies the story, it also reduces the company's natural-gas diversification, leaving it more dependent on oil prices and production from the Williston Basin.

Can Chord Keep Rewarding Shareholders?For income investors comfortable with oil-price volatility, Chord offers dividend income alongside the potential for additional returns through share repurchases. The shares have already had a strong year, but the cash-return story remains intact.

Chord's stronger-than-expected production and disciplined capital spending support its ability to continue generating cash for shareholders. However, after a rally of more than 70% this year, investors must consider how much of that strength is already reflected in the stock price.

That consideration is particularly important for oil producers, which can experience sharp swings in profitability during commodity downturns, making shareholder returns less certain.

The upcoming earnings report will provide an important test of Chord's investment case, particularly whether stronger production is translating into enough free cash flow to support continued dividends and buybacks. For investors considering a position, the key question is whether the potential returns justify the risks of oil price volatility after such a substantial rally.

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

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Have you looked into how Dover Corporation (DOV - Free Report) performed internationally during the quarter ending September 2026? Considering the widespread global presence of this company, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.

In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.

Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.

While analyzing DOV's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.

The company's total revenue for the quarter amounted to $2.23 billion, showing rise of 7.5%. We will now explore the breakdown of DOV's overseas revenue to assess the impact of its international operations.

A Look into DOV's International Revenue StreamsAsia generated $260.14 million in revenues for the company in the last quarter, constituting 11.7% of the total. This represented a surprise of +6.44% compared to the $244.4 million projected by Wall Street analysts. Comparatively, in the previous quarter, Asia accounted for $243.87 million (11.1%), and in the year-ago quarter, it contributed $222.1 million (10.7%) to the total revenue.

Of the total revenue, $447.32 million came from Europe during the last fiscal quarter, accounting for 20%. This represented a surprise of -7% as analysts had expected the region to contribute $480.97 million to the total revenue. In comparison, the region contributed $458.21 million, or 20.9%, and $464.23 million, or 22.3%, to total revenue in the previous and year-ago quarters, respectively.

During the quarter, Other International contributed $83.79 million in revenue, making up 3.8% of the total revenue. When compared to the consensus estimate of $97.69 million, this meant a surprise of -14.23%. Looking back, Other International contributed $88.31 million, or 4%, in the previous quarter, and $83.47 million, or 4%, in the same quarter of the previous year.

Other Americas accounted for 7.6% of the company's total revenue during the quarter, translating to $170.12 million. Revenues from this region represented a surprise of -10.79%, with Wall Street analysts collectively expecting $190.69 million. When compared to the preceding quarter and the same quarter in the previous year, Other Americas contributed $182.24 million (8.3%) and $182.03 million (8.8%) to the total revenue, respectively.

International Revenue PredictionsIt is projected by analysts on Wall Street that Dover will post revenues of $2.22 billion for the ongoing fiscal quarter, an increase of 5.9% from the year-ago quarter. The expected contributions from Asia, Europe, Other International and Other Americas to this revenue are 11.1%, 21.6%, 3.9%, and 8.6%, translating into $247.45 million, $479.79 million, $87.33 million, and $190.77 million, respectively.

For the full year, the company is projected to achieve a total revenue of $8.66 billion, which signifies a rise of 7% from the last year. The share of this revenue from various regions is expected to be: Asia at 11% ($951.8 million), Europe at 21.6% ($1.87 billion), Other International at 3.9% ($340.91 million), and Other Americas at 8.5% ($733.28 million).

Concluding RemarksDover's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.

In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.

Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.

Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.

At the moment, Dover has a Zacks Rank #3 (Hold), signifying that its performance may align with the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Assessing Dover Corporation's Stock Price Movement in Recent TimesThe stock has increased by 3.8% over the past month compared to the 1.2% fall of the Zacks S&P 500 composite. Meanwhile, the Zacks Industrial Products sector, which includes Dover,has decreased 5.4% during this time frame. Over the past three months, the company's shares have experienced a loss of 2.7% relative to the S&P 500's 2.5% increase. Throughout this period, the sector overall has witnessed a 6.1% decrease.

Key Takeaways KGC reports Q3 results on Oct. 28, after the closing bell, following four straight earnings beats.Higher gold prices and strong output at Tasiast and Paracatu are likely to lift quarterly performance.Higher fuel, royalty and labor costs may pressure Kinross Gold's third-quarter margins.
Kinross Gold Corporation (KGC - Free Report) is slated to report third-quarter 2026 results after the closing bell on Oct. 28.

KGC beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters. In this timeframe, it delivered an earnings surprise of 11.7%, on average. The benefits of higher gold prices and strong production are expected to reflect on its third-quarter performance amid cost headwinds.

KGC’s shares have declined 2% in a year, underperforming the Zacks Mining – Gold industry’s 13.7% rise.

Image Source: Zacks Investment Research

Let’s see how things are shaping up for this announcement.

What do KGC’s Revenue Estimates Indicate?The Zacks Consensus Estimate for KGC’s third-quarter consolidated sales is currently pegged at $2,080.6 million, calling for an increase of 15.5% from the year-ago quarter’s tally.

Factors Shaping KGC’s Q3 ResultsHigher gold prices are likely to have supported the company’s performance in the third quarter. Although gold prices have retreated sharply from their January 2026 peak, they remain at supportive levels. Gold came under renewed pressure after reaching a more than three-month high near $4,650 per ounce in late August 2026. Bullion prices fell toward $4,300 an ounce following the U.S. Federal Reserve’s interest rate hike, its first in more than three years, and expectations of another increase before the year-end. 

A stronger U.S. dollar and inflation worries stemming from an uptick in oil prices amid concerns over supply disruptions put pressure on gold in September. Bullion closed the third quarter at around $4,150 per ounce, roughly 8% higher year over year.

The strength in gold prices is expected to have allowed KGC to maintain strong margin performance in the September quarter. Our estimate for the third-quarter average realized gold price per ounce for KGC is pegged at $4,138, suggesting a 19.6% rise from the prior-year quarter.

Meanwhile, Tasiast and Paracatu remain the anchor assets in Kinross’ portfolio and continue to provide lower-cost production. They remain the key contributors to KGC's cash flow generation and account for more than half of its production. Both Tasiast and Paracatu are expected to have delivered solid production performance in the third quarter.

Kinross, however, is expected to have faced headwinds from higher production costs in the quarter to be reported. Its attributable production cost of sales was $1,336 per gold equivalent ounce in the second quarter, up from $1,074 a year ago, while the first-half figure rose to $1,358 from $1,056 in the prior-year period. The increase reflected higher fuel, royalty and labor costs. It saw second-quarter attributable all-in-sustaining costs (AISC) of $1,821 per ounce, marking a 22% increase from the year-ago quarter.  AISC is expected to have been adversely impacted by cost inflation from elevated crude oil prices in the September quarter.

What Our Model Unveils for KGC StockOur proven model does not conclusively predict an earnings beat for Kinross this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.

Earnings ESP: Earnings ESP for KGC is -3.73%. The Most Accurate Estimate is pegged at 45 cents, while the Zacks Consensus Estimate is pinned at 47 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: KGC currently carries a Zacks Rank #4 (Sell).

Basic Materials Stocks That Warrant a LookHere are some companies in the basic materials space you may want to consider, as our model shows they have the right combination of elements to post an earnings beat this quarter:

Freeport-McMoRan Inc. (FCX - Free Report) , scheduled to release earnings on Oct. 27, has an Earnings ESP of +0.63% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for FCX’s earnings for the third quarter is currently pegged at 80 cents.

DuPont de Nemours, Inc. (DD - Free Report) , scheduled to release earnings on Nov. 3, has an Earnings ESP of +1.35%.

The Zacks Consensus Estimate for DD’s earnings for the third quarter is currently pegged at $1.86. DD currently carries a Zacks Rank #3.

Huntsman Corporation (HUN - Free Report) , slated to release earnings on Nov. 2, has an Earnings ESP of +36.14% and carries a Zacks Rank #3 at present.

The consensus mark for HUN’s third-quarter earnings is currently pegged at 7 cents.

Wall Street expects a year-over-year increase in earnings on higher revenues when Clorox (CLX - Free Report) reports results for the quarter ended September 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 November 2, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis consumer products maker is expected to post quarterly earnings of $0.97 per share in its upcoming report, which represents a year-over-year change of +14.1%.

Revenues are expected to be $1.87 billion, up 31% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.79% 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 Clorox?For Clorox, 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 +4.31%.

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

So, this combination makes it difficult to conclusively predict that Clorox 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 Clorox would post earnings of $1.64 per share when it actually produced earnings of $1.66, delivering a surprise of +1.22%.

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

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Clorox doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsAmong the stocks in the Zacks Consumer Products - Staples industry, Church & Dwight (CHD - Free Report) , is soon expected to post earnings of $0.9 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +11.1%. This quarter's revenue is expected to be $1.58 billion, down 0.2% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for Church & Dwight has been revised 0.2% down to the current level. Nevertheless, the company now has an Earnings ESP of +0.06%, reflecting a higher Most Accurate Estimate.

When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Church & Dwight will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.

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

What goes up must come down -- and boy, oh, boy is StoneCo (STNE -29.40%) stock ever coming down fast today!

Shares of the Brazilian e-commerce software companytook off like a rocket earlier this month after conservative candidate Flávio Bolsonaro outpolled incumbent President Luiz Inácio Lula da Silva 47.3% to 44.8% in the first round of voting in Brazil's presidential election. But the more important run-off election wrapped up last night, and Lula pulled off an upset, winning 51.8% of votes cast to Bolsonaro's 48.2%.

Investors are furious, and they're taking out their ire on every Brazil-related stock they can find. StoneCo stock is down 30.5% as of 10:15 a.m. ET.

Image source: Getty Images.

Election Brazil 2026This news gets worse -- because the election may not even be over. Bolsonaro is refusing to concede defeat and is challenging the election results, alleging abuse of power to suppress voting in key Bolsonaro-leaning districts. While this raises the slight chance that conservatives may still win, the opposite result still seems likely, and various South American heads of state have already made their calls to congratulate the incumbent on his victory.

STNE StoneCo$8.11-$3.38 (-29.40%)

NASDAQ · As of 11:03 AM ET 10/26/26

What does any of this have to do with StoneCo?Although incorporated in the Cayman Islands, StoneCo is a Brazilian company. Investors had hoped a change in administration might help shore up Brazilian finances, lower debt and tax costs, and generally improve the business climate. That could still happen under a Lula administration -- which will now last into 2030 -- but investors don't seem optimistic.

Keep fingers crossed, though. It wouldn't take much improvement -- by anyone -- to turn this stock into a buy. StoneCo stock costs a cheap 4.2 times earnings, and Wall Street analysts expect it to grow earnings more than 16% annually over the next five years.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Analysts on Wall Street project that Pinterest (PINS - Free Report) will announce quarterly earnings of $0.50 per share in its forthcoming report, representing an increase of 31.6% year over year. Revenues are projected to reach $1.2 billion, increasing 14.5% from the same quarter last year.

The current level reflects no revision 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.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.

That said, let's delve into the average estimates of some Pinterest metrics that Wall Street analysts commonly model and monitor.

Based on the collective assessment of analysts, 'Geographic Revenue- Europe' should arrive at $215.64 million. The estimate indicates a year-over-year change of +11.7%.

Analysts expect 'Geographic Revenue- Rest of World' to come in at $108.15 million. The estimate indicates a change of +54.5% from the prior-year quarter.

Analysts predict that the 'Geographic Revenue- U.S. and Canada' will reach $875.97 million. The estimate indicates a change of +11.5% from the prior-year quarter.

The combined assessment of analysts suggests that 'Monthly Active Users - Global' will likely reach 653 . Compared to the present estimate, the company reported 600 in the same quarter last year.

The average prediction of analysts places 'Monthly Active Users - Rest of World' at 385 . The estimate compares to the year-ago value of 347 .

According to the collective judgment of analysts, 'Monthly Active Users - U.S. and Canada' should come in at 107 . The estimate compares to the year-ago value of 103 .

The consensus among analysts is that 'Monthly Active Users - Europe' will reach 160 . Compared to the present estimate, the company reported 150 in the same quarter last year.

The collective assessment of analysts points to an estimated 'ARPU - U.S. and Canada' of $8.36 . The estimate compares to the year-ago value of $7.64 .

View all Key Company Metrics for Pinterest here>>>

Over the past month, shares of Pinterest have returned +18.1% versus the Zacks S&P 500 composite's -1.2% change. Currently, PINS carries a Zacks Rank #4 (Sell), suggesting that it may underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

On Sept. 30, Micron Technology (MU +3.43%) reported a monster fiscal fourth-quarter earnings report. The company set records across revenue, profitability, and cash generation. Ordinarily, blowout earnings results give investors plenty of reasons to celebrate.

However, Micron stock has been moving in the opposite direction over the last month. As of market close on Oct. 22, shares declined roughly 20% since Micron reported earnings and were trading nearly 29% below their all-time high.

What's important to understand is that Micron's sell-off isn't a reflection of a deteriorating business. Rather, investors are concerned about the sustainability of artificial intelligence (AI) spending, elevated valuations, and the likelihood that the memory industry's unusually high profitability won't last forever. Here's what smart investors need to know.

MU Micron Technology$907.64+$30.09 (+3.43%)

NASDAQ · As of 11:05 AM ET 10/26/26

Micron's earnings report was a blowout
For the fiscal fourth quarter (period ended Sept. 3), Micron generated $54.2 billion in revenue, representing nearly 380% growth year over year and a 31% increase sequentially. Profitability was even more impressive. The company's gross margin reached 87%, compared with 45% in the prior-year period. Meanwhile, earnings per share (EPS) surged to $32.87, compared with just $2.83 a year earlier.

The company's Core Data Center unit generated $18 billion in revenue, up from $1.6 billion last year. Moreover, the Cloud Memory segment contributed another $16.3 billion, nearly 4x bigger than the fourth quarter of 2025.

Micron also produced nearly $44 billion in operating cash flow and $33 billion in adjusted free cash flow, underscoring that earnings growth is translating into robust cash generation. Management expects the momentum to continue. For fiscal Q1 2027, Micron guided for $61.5 billion in revenue and EPS of $37.84. So, why are investors selling the stock like there's no tomorrow?

Image source: Getty Images.

3 reasons Micron stock is cratering
The first explanation behind Micron's sell-off is that the company is not alone. Over the last month, there has been a broader sell-off among semiconductor stocks. The iShares Semiconductor ETF (SOXX +2.95%) has declined 15% since Micron reported earnings. This demonstrates that weakness in the chip market extends beyond Micron itself.

SOXX data by YCharts

Second, investors are increasingly concerned about the cost and sustainability of AI capital expenditures (capex). Hyperscalers such as Amazon, Microsoft, Alphabet, and Meta Platforms are budgeting hundreds of billions of dollars annually to data centers and advanced processors.

These investments require substantial financing beyond organic cash flow generation. Bond yields are elevated as companies increasingly tap the debt markets, making investors question how long AI infrastructure spending can realistically continue to accelerate.

Recent developments have reinforced some of these concerns. For instance, Tesla recently reduced its projected 2026 capex by 20%, from more than $25 billion to roughly $20 billion. Although this decision doesn't establish a broader framework for hyperscaler spending trends, it illustrates how some of the most ambitious AI developers are forced to balance infrastructure investments with financial discipline.

The third concern is the most obvious: investors remain wary of the durability of the memory supercycle given the industry's cyclical nature. If demand eventually exceeds today's scarce supply of high-bandwidth memory (HBM), average selling prices will normalize and profit margins will erode.

Micron stock: Buy the dip or value trap?
At approximately $887 per share, Micron trades at a forward price-to-earnings (P/E) ratio of 7. That's a modest valuation for a company experiencing Micron's level of revenue and profit growth supported by secular demand for its infrastructure.

Against this backdrop, I think Micron is a compelling opportunity to buy the dip rather than a value trap. At 7 times forward earnings, I think investors have already priced in considerable downside risk into Micron stock. For this reason, I see Micron as a compelling AI stock to buy and hold.

Adam Spatacco has positions in Alphabet, Amazon, Microsoft, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Micron Technology, Microsoft, Tesla, and iShares Trust-iShares Semiconductor ETF. The Motley Fool has a disclosure policy.

AMC Entertainment (AMC - 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.

Over the past month, shares of this movie theater operator have returned -1.4%, compared to the Zacks S&P 500 composite's -1.2% change. During this period, the Zacks Leisure and Recreation Services industry, which AMC Entertainment falls in, has gained 9.6%. The key question now is: What could be the stock's future direction?

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, AMC Entertainment is expected to post earnings of $0.10 per share, indicating a change of +147.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -73.3% over the last 30 days.

For the current fiscal year, the consensus earnings estimate of -$0.08 points to a change of +91.7% from the prior year. Over the last 30 days, this estimate has changed +71.3%.

For the next fiscal year, the consensus earnings estimate of $0.06 indicates a change of +175% from what AMC Entertainment is expected to report a year ago. Over the past month, the estimate has changed -278.6%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for AMC Entertainment.

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

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of AMC Entertainment, the consensus sales estimate of $1.64 billion for the current quarter points to a year-over-year change of +26.1%. The $5.76 billion and $5.82 billion estimates for the current and next fiscal years indicate changes of +18.8% and +1%, respectively.

Last Reported Results and Surprise HistoryAMC Entertainment reported revenues of $1.6 billion in the last reported quarter, representing a year-over-year change of +14.2%. EPS of $0.14 for the same period compares with $0 a year ago.

Compared to the Zacks Consensus Estimate of $1.51 billion, the reported revenues represent a surprise of +5.78%. The EPS surprise was +1300%.

Over the last four quarters, AMC Entertainment surpassed consensus EPS estimates two times. The company topped consensus revenue estimates each time over this period.

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

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

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

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

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AMC Entertainment. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.

Powered by whole-genome sequencing and MAESTRO* technology, the next-generation Oncodetect test takes a distinct approach to MRD, tracking up to 5,000 patient-specific variants with a limit of detection below one part per million under high-end inputs 1, 2, 3The next-generation Oncodetect test builds on more than 20 years of trusted leadership in using genomic information to personalize cancer care Modeling estimates more than 3 million U.S. patients with solid tumors could potentially benefit from MRD testing†, /PRNewswire/ -- For many people with cancer, completing treatment can bring a new uncertainty: Is my cancer really gone?

Even after treatment, small amounts of cancer may remain in the body at levels that can be difficult to detect. Molecular residual disease (MRD) testing looks for traces of circulating tumor DNA (ctDNA) in the blood, providing additional information that can help physicians understand recurrence risk, monitor treatment response, and inform decisions about what comes next.4,5

To help address this need, Abbott (NYSE: ABT) today announced the commercial availability of its next-generation Oncodetect® MRD test, a personalized, tumor-informed, whole-genome sequencing test designed to provide molecular insights during and after cancer treatment.1,2 

For more than 20 years, the Oncotype DX Breast Recurrence Score® test has helped physicians use genomic information to personalize breast cancer treatment and is recognized as a standard of care in early-stage breast cancer.6 The next-generation Oncodetect test builds on that foundation, expanding Abbott's ability to provide molecular insights across the cancer care continuum. Abbott's broad cancer diagnostics portfolio spans cancer screening, hereditary cancer testing, genomic profiling, recurrence risk assessment, and MRD testing.

The personalized test uses a sample of each patient's tumor to identify its unique DNA markers, then looks for those same signals in the blood. At the heart of the next-generation Oncodetect test is MAESTRO, a technology developed at the Gerstner Center for Cancer Diagnostics at the Broad Institute of MIT and Harvard and enhanced by Abbott. Combined with whole-genome sequencing, this approach expands variant discovery from up to 200 variants in the first-generation test up to as many as 5,000 patient-specific variants.1,5 MAESTRO technology enriches tumor DNA from blood up to 1,000-fold before sequencing, making cancer signals easier to detect.1,2 Together, these advances achieve a 30-fold improvement in limit of detection to below one part per million.‡,3,7,8 This ultrasensitive performance is designed to identify residual disease when ctDNA levels are especially low, including in early-stage disease and post-treatment settings.9,10

Importantly, MAESTRO enables cost-efficient sequencing, allowing Abbott to offer the whole-genome Oncodetect test to all new patients from day one, rather than reserving the technology for select cases.

"For many people affected by cancer, finishing treatment does not mean the uncertainty ends," said Maimah Karmo, a triple-negative breast cancer survivor and president of the Tigerlily Foundation, a national women's health and oncology patient advocacy organization. "Waiting for the next scan and wondering whether cancer may return can take an emotional toll. New tools that give care teams more information about recurrence risk can support more meaningful conversations about what comes next."

Designed to detect when disease is hardest to find

MRD tests differ in how they identify and track tumor-specific DNA. The next-generation Oncodetect test takes a distinct approach, combining broad whole-genome variant tracking with MAESTRO technology that enriches tumor DNA from blood to create many opportunities to detect ctDNA when very little is present.

Broad variant tracking: Whole-genome sequencing tracks up to 5,000 patient-specific variants, expanding opportunities to detect residual disease at critical clinical decision points.1,2Tumor DNA enrichment: MAESTRO enriches tumor DNA detection up to ~1,000-fold 1,2Ultrasensitive detection: A limit of detection below one part per million‡, while maintaining >99% analytical specificity.3,7,8 This ultrasensitive performance is designed to identify residual disease when ctDNA levels are especially low, including in early-stage cancers, low-shedding cancers such as prostate, lung, kidney, and HR+ breast, and post-treatment settings.9-11

Building the evidence behind next-generation MRD

Clinical studies are evaluating the performance of the next-generation Oncodetect test across multiple solid tumors. In patients with locally advanced esophageal cancer, longitudinal testing detected ctDNA before recurrence in all 14 patients who experienced recurrence, achieving 100% sensitivity.12 In the PARTNER triple-negative breast cancer study, the next-generation test identified 90% of patients who later experienced distant recurrence within five years from a single post-surgery blood draw, a three-fold improvement over the first-generation test.13

New Beta-CORRECT data presented at the European Society of Medical Oncology (ESMO) congress showed a 30% absolute improvement in sensitivity for recurrence within two years with the next-generation Oncodetect test, compared with the first-generation test, at a single post-surgical time point in patients with stage II–IV colorectal cancer.14

"We've spent decades getting better at treating cancer once we find it. The next chapter is about understanding what may be happening at the molecular level during and after treatment," said Dr. Rick Baehner, divisional vice president, chief medical officer, precision oncology, Abbott's cancer diagnostics business. "MRD represents an important evolution in precision oncology, helping move cancer care beyond waiting for signs of recurrence toward more informed decisions throughout a patient's care. Our next-generation Oncodetect test reflects that evolution, bringing together whole-genome sequencing and MAESTRO technology to help detect residual disease when the molecular signal is extremely low."

Advancing MRD in cancer care

Abbott's precision oncology tests are fully integrated into leading electronic health record systems, making it easier for physicians to order tests and access results within their existing clinical workflows.

Abbott continues to build clinical evidence for MRD testing through more than 20 ongoing studies evaluating the next-generation Oncodetect test across tumor types, academic collaborations, and real-world research. The company is also working to broaden patient access through payor coverage and international expansion.

Frequently asked questions

Who is MRD testing for and how does it work?
The Oncodetect test is available for patients with solid tumors and must be ordered by a healthcare provider. The personalized, tumor-informed test uses a sample of the patient's tumor, typically from a patient's biopsy or surgery, to identify DNA changes unique to their cancer to create a molecular "fingerprint." A blood sample is then collected and tested for those same tumor-specific signals, with additional blood draws over time providing a molecular view of how disease may be changing.

What is the next-generation Oncodetect test?
The next-generation Oncodetect test is a tumor-informed molecular residual disease (MRD) blood test designed to detect extremely low levels of circulating tumor DNA (ctDNA) during and after cancer treatment. Powered by whole-genome sequencing and MAESTRO technology, the test has a low limit of detection below one part per million,‡ while maintaining >99% analytical specificity. 1-3,8

How does the next-generation Oncodetect test improve on the first-generation Oncodetect test?
The next-generation Oncodetect test moves from whole-exome to whole-genome sequencing, significantly expanding the number of tumor-specific signals it can track and improving its ability to detect extremely low levels of ctDNA. Key advancements include:

More opportunities to detect residual disease: Tracks up to 5,000 patient-specific variants, compared with up to 200 with the first-generation test.1,5Greater sensitivity: A low limit of detection below one part per million‡, a 30-fold improvement over the first-generation test.3,7,8Deeper detection: MAESTRO technology enriches tumor signals up to ~1,000-fold, helping identify ctDNA when extremely low amounts are present.1Why does detecting ctDNA at low levels matter?
Circulating tumor DNA (ctDNA) is genomic material shed by tumors into the bloodstream. ctDNA positivity in patients who have received treatment is strongly prognostic of cancer recurrence, even at very low levels.13 Detecting ctDNA at low levels can help identify patients at higher risk of recurrence and provide information to support treatment and surveillance decisions.5

About the Oncodetect® test 
The next-generation Oncodetect test is a whole-genome sequencing-based tumor-informed molecular residual disease (MRD) test designed to provide a personalized approach to detecting and monitoring residual cancer in patients with solid tumors. The test analyzes circulating tumor DNA (ctDNA) shed into the bloodstream by tumors, offering insights into changes in ctDNA levels over time. This quantitative assessment of ctDNA (measured as MTM/mL) helps healthcare providers better understand a patient's MRD status and make informed treatment decisions.

The Oncodetect® test was developed, and its performance characteristics determined by Genomic Health, Inc. Performance characteristics may not apply in tumor types not included in this test's clinical validation. The test has not been cleared or approved by the US Food and Drug Administration. The test is performed at Genomic Health Inc. The Genomic Health Inc. lab performing this test is certified under CLIA regulations and qualified to perform high-complexity clinical laboratory testing.

About Abbott
Abbott is a global healthcare leader that helps people live more fully at all stages of life. Our portfolio of life-changing technologies spans the spectrum of healthcare, with leading businesses and products in diagnostics, medical devices, nutritionals and branded generic medicines. Our 122,000 colleagues serve people in more than 160 countries.

Connect with us at abbott.com and on LinkedIn, Facebook, Instagram, X and YouTube.

 *MAESTRO = minor allele enriched sequencing through recognition oligonucleotides
MAESTRO was developed by researchers at the Broad Institute of MIT and Harvard. Abbott enhanced the technology for use in the next-generation Oncodetect test.
† Internal estimate for addressable patient populations based on solid tumors amenable to MRD testing.
‡ Under high-end inputs

Tsvetanova B, et al. Association for Molecular Pathology 2025 Annual Meeting Abstracts. J Mol Diagn. 2025;27 Suppl:S113.Gydush G, Nguyen E, Bae JH, et al. Massively parallel enrichment of low-frequency alleles enables duplex sequencing at low depth. Nat Biomed Eng. 2022;6:257–266. doi:10.1038/s41551-022-00855-9.Abbott Cancer Diagnostics. LoD and Precision Results from MRD v2 AV. Internal presentation. August 3, 2026.Kotani, D., Oki, E., Nakamura, Y. et al. Molecular residual disease and efficacy of adjuvant chemotherapy in patients with colorectal cancer. Nat Med 29, 127-134 (2023). https://doi.org/10.1038/s41591-022-02115-4Diergaarde B, Young G, Hall DW, et al. Circulating Tumor DNA as a Marker of Recurrence Risk in Stage III Colorectal Cancer: The α-CORRECT Study. J Surg Oncol. 2025;132(1):175-186. doi:10.1002/jso.27989Exact Sciences. Oncotype DX Breast Recurrence Score® Test Surpasses 2 Million Patients Worldwide. February 3, 2026.LoBello J, et al. Poster 2025. Exact Sciences Corporation; Madison, WI. Abbott Cancer Diagnostics. Oncodetect v2 Analytical Specificity. Internal presentation. August 25, 2026.Boukouris, A.E., Michaelidou, K., Joosse, S.A. et al. A comprehensive overview of minimal residual disease in the management of early-stage and locally advanced non-small cell lung cancer. npj Precis. Onc. 9, 178 (2025). https://doi.org/10.1038/s41698-025-00984-9Hashimoto T, Nakamura Y, Oki E, et al. Bridging horizons beyond CIRCULATE-Japan: a new paradigm in molecular residual disease detection via whole genome sequencing-based circulating tumor DNA assay. Int J Clin Oncol. 2024;29(5):495-511. doi:10.1007/s10147-024-02493-4Bettegowda C, Sausen M, Lear y RJ, et al. Detection of circulating tumor DNA in early- and late-stage human malignancies. Sci Transl Med. 2014;6(224):224ra24.Rhoades J, Patel A, Xiong K, Blewett T, Li R, Walsh L, Crnjac A, Ratty JH, Limbo O, Hannigan A, Remland J, Brais L, Jain P, Sridhar S, Gilligan K, Carnes M, Shin KY, Catalano P, Wiener D, Papke DJ Jr, Ramesh A, Fu Y, Garces J, Mazloom A, Costa GL, Hu J, Makrigiorgos GM, Culver BP, Adalsteinsson VA, Enzinger P, Mamon H. Ultrasensitive circulating tumor DNA analysis improves detection of molecular residual disease in locally advanced esophageal cancer. Clin Cancer Res. 2026. In press.Dooley A, et al. Evaluation of whole-exome and whole-genome sequencing tumor-informed circulating tumor DNA MRD assays in patients with early triple-negative breast cancer (TNBC) receiving neoadjuvant chemotherapy (NAC) with or without olaparib: A prospective sub-study of the PARTNER trial. Poster presented at: American Society of Clinical Oncology (ASCO) Annual Meeting; May 29–June 2, 2026; Chicago, IL. J Clin Oncol. 2026;44(16_suppl):570. DOI:10.1200/JCO.2026.44.16_suppl.570.Hashimoto, T. et al. Validation of the ultrasensitive tumor-informed WGS MAESTRO MRD assay in β-CORRECT. Poster 4426P presented at ESMO 2026; October 23-27, 2026; Madrid, Spain.
SOURCE Abbott

In its upcoming report, Anheuser-Busch Inbev (BUD - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $1.14 per share, reflecting an increase of 15.2% compared to the same period last year. Revenues are forecasted to be $16.24 billion, representing a year-over-year increase of 7.3%.

The current level reflects an upward revision of 0.7% 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 announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.

Given this perspective, it's time to examine the average forecasts of specific Anheuser-Busch Inbev metrics that are routinely monitored and predicted by Wall Street analysts.

Analysts expect 'Revenue- Global Export & Holding Companies' to come in at $195.04 million. The estimate indicates a change of +5.4% from the prior-year quarter.

It is projected by analysts that the 'Revenue- Middle Americas' will reach $4.97 billion. The estimate points to a change of +15% from the year-ago quarter.

The consensus estimate for 'Revenue- North America' stands at $3.78 billion. The estimate indicates a change of +0.5% from the prior-year quarter.

The collective assessment of analysts points to an estimated 'Revenue- Asia Pacific' of $1.46 billion. The estimate points to a change of -4.6% from the year-ago quarter.

The average prediction of analysts places 'Revenue- EMEA' at $2.63 billion. The estimate points to a change of +4.3% from the year-ago quarter.

According to the collective judgment of analysts, 'Volume in Hectoliters - Middle America' should come in at 38377 thousands of hectoliters. Compared to the current estimate, the company reported 36915 thousands of hectoliters in the same quarter of the previous year.

Analysts predict that the 'Volume in Hectoliters - South America' will reach 38264 thousands of hectoliters. Compared to the present estimate, the company reported 36922 thousands of hectoliters in the same quarter last year.

The combined assessment of analysts suggests that 'Volume in Hectoliters - EMEA' will likely reach 24166 thousands of hectoliters. Compared to the present estimate, the company reported 24149 thousands of hectoliters in the same quarter last year.

Analysts forecast 'AB InBev Worldwide - Total Volume' to reach 142191 thousands of hectoliters. The estimate is in contrast to the year-ago figure of 142319 thousands of hectoliters.

Analysts' assessment points toward 'Volume in Hectoliters - Global Export and Holding Companies' reaching 126 thousands of hectoliters. Compared to the present estimate, the company reported 136 thousands of hectoliters in the same quarter last year.

The consensus among analysts is that 'Volume in Hectoliters - North America' will reach 21150 thousands of hectoliters. The estimate is in contrast to the year-ago figure of 21896 thousands of hectoliters.

Based on the collective assessment of analysts, 'Volume in Hectoliters - Asia Pacific' should arrive at 20108 thousands of hectoliters. Compared to the present estimate, the company reported 22301 thousands of hectoliters in the same quarter last year.

View all Key Company Metrics for Anheuser-Busch Inbev here>>>

Anheuser-Busch Inbev shares have witnessed a change of +8% in the past month, in contrast to the Zacks S&P 500 composite's -1.2% move. With a Zacks Rank #3 (Hold), BUD is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

The upcoming report from Stryker (SYK - Free Report) is expected to reveal quarterly earnings of $3.56 per share, indicating an increase of 11.6% compared to the year-ago period. Analysts forecast revenues of $6.58 billion, representing an increase of 8.6% year over year.

The consensus EPS estimate for the quarter has undergone a downward revision of 0.6% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during 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 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.

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

The combined assessment of analysts suggests that 'Net Sales by Geography- Orthopaedics' will likely reach $2.88 billion. The estimate indicates a change of +28% from the prior-year quarter.

Analysts forecast 'Net Sales by Business- MedSurg and Neurotechnology' to reach $3.70 billion. The estimate suggests a change of -2.7% year over year.

Analysts' assessment points toward 'Net Sales by Business- MedSurg and Neurotechnology- Medical' reaching $1.13 billion. The estimate indicates a year-over-year change of +14.4%.

According to the collective judgment of analysts, 'Net Sales by Geography- Orthopaedics- Knees' should come in at $647.78 million. The estimate suggests a change of +3.2% year over year.

Based on the collective assessment of analysts, 'Net Sales by Geography- Orthopaedics- Trauma and Extremities' should arrive at $1.09 billion. The estimate indicates a year-over-year change of +13.1%.

Analysts expect 'Net Sales by Business- MedSurg and Neurotechnology- Instruments' to come in at $1.04 billion. The estimate suggests a change of +36.6% year over year.

Analysts predict that the 'Net Sales by Business- MedSurg and Neurotechnology- Endoscopy' will reach $1.02 billion. The estimate indicates a change of +13.9% from the prior-year quarter.

The average prediction of analysts places 'Net Sales by Geography- Orthopaedics- Hips' at $459.46 million. The estimate suggests a change of +0.5% year over year.

It is projected by analysts that the 'Net Sales by Geography- International' will reach $1.73 billion. The estimate points to a change of +16.4% from the year-ago quarter.

The consensus among analysts is that 'Net Sales by Geography- United States' will reach $4.85 billion. The estimate suggests a change of +6.1% year over year.

View all Key Company Metrics for Stryker here>>>

Over the past month, Stryker shares have recorded returns of +12.8% versus the Zacks S&P 500 composite's -1.2% change. Based on its Zacks Rank #4 (Sell), SYK will likely underperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Agreement makes Kalshi a preferred prediction market platform for S&P DJI index contracts, and S&P DJI a preferred index provider for Kalshi event contract data

, /PRNewswire/ -- S&P Dow Jones Indices ("S&P DJI") and Kalshi today announced a strategic collaboration that brings the world's most trusted benchmarks to prediction markets, pairing the world's leading index provider with the world's largest prediction market platform.  

Under the agreement, Kalshi becomes a preferred prediction market platform licensed for event contracts tied to S&P DJI indices. In addition, S&P DJI becomes a preferred provider for constructing indices from Kalshi event contract data.

Forthcoming Kalshi event contracts will settle against official index values published by S&P DJI, the same reference standard that professional markets rely on every day. For users, that means contracts built on transparent methodologies, quality data, independent calculation and governance, and a name the world's financial institutions trust.

"Kalshi's aspiration is to be the next great financial exchange," said Tarek Mansour, co-founder and CEO of Kalshi. "S&P DJI is the gold standard for benchmarks. Bringing that standard to Kalshi is an important step toward accelerating retail and institutional demand."

"Our collaboration extends S&P DJI's role as the world's leading benchmark provider into one of the fastest-growing categories in financial markets," said Cathy Clay, CEO of S&P Dow Jones Indices. "Robust indices help to define markets: what they are, how to measure them and rules for monitoring their evolution. With benchmarks spanning every major asset class, S&P DJI's breadth, independence, and trust make us the index provider of choice as prediction markets mature."

The collaboration will also bring together Kalshi's market data and S&P DJI's expertise to open the door for indices, such as indices on economics, politics, and sports, built from the underlying markets on Kalshi. Event contracts turn expectations about real-world outcomes into prices. Applying S&P DJI's index methodologies to Kalshi data will enable the creation of indices that reflect those expectations, offering market participants a new way to observe and assess signals stemming from prediction markets.

The S&P 500 is a product of S&P Dow Jones Indices LLC ("S&P DJI").  "S&P®", "S&P 500®", "The 500®" and "US 500™" are trademarks of Standard & Poor's Financial Services LLC; "Dow Jones®" is a trademark of Dow Jones Trademark Holdings LLC.  Kalshi's contracts based on the S&P 500 and other S&P Indices are not sponsored, sold or endorsed by S&P DJI, and S&P DJI makes no representation regarding the advisability of trading in such contracts nor does it have any liability for any errors, omissions, or interruptions of the Indices.

About S&P Dow Jones Indices
S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets. S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence. For more information, visit: www.spglobal.com/spdji. 

About Kalshi
Founded in 2018, Kalshi is the world's next-generation financial exchange. Prediction markets provide accurate, real-time information on the likelihood of events, making humanity more informed about the future. As the first regulated exchange for events, Kalshi is credited with legalizing and establishing prediction markets as a financial asset class. It's the leading safe and regulated platform, trusted by millions of people and a growing number of institutions in America. To learn more about Kalshi, visit www.kalshi.com. 

FOR MORE INFORMATION: 

Silke McGuinness 
Global Head of Communications, S&P DJI  
(+1) 628 628 6806
[email protected]  

SOURCE S&P Dow Jones Indices

New protection capabilities block unwanted actions and let you decide what AI can see and do

, /PRNewswire/ -- Norton, a consumer Cyber Safety brand of Gen (NASDAQ: GEN), today announced Safe AI, a new set of protections inside Norton 360 that keeps an eye on what AI chat apps like ChatGPT or Claude do on your device. It blocks AI actions you did not intend, lets you decide which personal files AI tools can open, and helps you avoid risky links. Instead of relying on AI tools to recognize every threat, Norton Safe AI provides an additional layer of protection to help people use AI with greater confidence and control.

Norton Launches Safe AI to Help You Use AI Without Giving Up Control

Why AI assistants create new risks
AI assistants are making it easier than ever to find information and get things done. But that same convenience can invite new risks. A seemingly helpful AI response could contain a dangerous link, an AI tool could be tricked into taking actions that put your personal information in jeopardy, or your personal files could be accessed in ways you never intended.

Research from Gen Threat Labs underscores just how real these risks have become. There has been a 54% increase in malicious content served to Gen users through AI chatbots such as ChatGPT and Claude in the last 90 days. And these risks are weighing on people. According to Gen research, more than two-thirds of people are concerned about privacy, data breaches, or losing control when using an autonomous AI assistant that can act on their behalf.

Safe AI is designed to help address these emerging risks and people's concerns while extending Norton's protection into the AI experiences people are increasingly using every day.

"Most of the AI tools people are using today should really come with a warning label that safety isn't included. The tools were designed around how to get the job done and not necessarily how to get the job done right, or even safely, despite the best intentions," said Dagim Girma, GM for Norton. "That's where we come in. People shouldn't have to become AI security experts to benefit from AI tools. With Safe AI, we're helping people stay in control of their information and embrace the possibilities of AI with greater confidence."

Multi-layer Protection for the AI Era
Built into Norton 360's advanced scam protection1, Safe AI introduces three capabilities designed to help make using AI tools safer:

Protects against unwanted AI actions. As AI tools become more capable of performing tasks, malicious instructions and prompt injections can introduce new security risks. Action Shield helps stop unwanted AI actions and potentially harmful prompt injections before they run.Gives people more control over AI file access. As people connect AI tools to their personal files and content, understanding what those tools can access becomes increasingly important. Safe Zone lets you choose which connected files and content AI can access, with options for full, read-only or blocked permissions.Spots risky links before you click. AI assistants can surface links that appear useful or trustworthy, even when they lead to unsafe destinations. Safe Links helps identify potentially harmful links shared through ChatGPT and Claude before people open them.Together, these capabilities help address risks at different points in the AI experience, from the links people encounter to the actions AI tools may take and the information they can access.  

Helping People Live Fearless in an AI-Powered World
As AI reshapes the digital landscape, Gen is working to help people navigate emerging risks with greater confidence. Through its Agent Trust Hub, Gen is advancing the understanding of AI-related threats and the security challenges emerging as AI tools become more capable and autonomous. Combined with the research and expertise of Gen Threat Labs, this intelligence helps inform innovations like Safe AI in Norton 360, translating insights into practical protection for people everywhere. Together, these efforts reflect Gen's broader Fearless commitment: helping people understand what's changing, protect what matters and embrace the possibilities of an AI-powered world without fear.

Safe AI is available in Norton 360 on Windows and Mac. To learn more, visit our Safe AI blog.

About Norton, part of Gen
Norton is a leader in Cyber Safety and empowers millions of individuals and families with award-winning protection for their devices, online privacy, and identity.  Norton is part of Gen (NASDAQ: GEN), a global company dedicated to powering Digital Freedom with a family of trusted consumer brands that help people protect and take control of their digital and financial lives. As AI reshapes how people discover, decide and transact, Gen is building the security and trust layer to empower people and their agents to navigate digital life more safely. Gen empowers nearly 500 million users in more than 150 countries through its products and services that span cybersecurity, online privacy, identity protection and financial wellness. Learn more at Norton.com and GenDigital.com. 

Media Contact
Brittany Posey
Gen
[email protected] 

1 Safe AI is available on Windows and Mac. Within Safe AI, Safe Zone is available on Windows only; Safe Links currently supports ChatGPT and Claude in browser versions; and Action Shield currently supports Claude, Cursor, OpenClaw, and VS Code.

SOURCE Norton

Easterly Government Properties (DEA - Free Report) came out with quarterly funds from operations (FFO) of $0.78 per share, missing the Zacks Consensus Estimate of $0.79 per share. This compares to FFO of $0.76 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an FFO surprise of -1.27%. A quarter ago, it was expected that this property management company would post FFO of $0.79 per share when it actually produced FFO of $0.78, delivering a surprise of -1.27%.

Over the last four quarters, the company has not been able to surpass consensus FFO estimates.

Easterly Government Properties, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $93.61 million for the quarter ended September 2026, missing the Zacks Consensus Estimate by 0.96%. This compares to year-ago revenues of $86.15 million. The company has topped consensus revenue estimates just once over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.

Easterly Government Properties shares have added about 7% since the beginning of the year versus the S&P 500's gain of 11.4%.

What's Next for Easterly Government Properties?While Easterly Government Properties has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Easterly Government Properties was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus FFO estimate is $0.77 on $93.45 million in revenues for the coming quarter and $3.09 on $371.93 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Other is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

COPT Defense (CDP - Free Report) , another stock in the same industry, has yet to report results for the quarter ended September 2026. The results are expected to be released on October 29.

This real estate investment trust specializing in suburban office properties is expected to post quarterly earnings of $0.69 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

COPT Defense's revenues are expected to be $196.88 million, up 4.3% from the year-ago quarter.

Cameco has missed earnings estimates five quarters straight while trading at a valuation that assumes near-perfection, and its October 30 report arrives just as mine shutdowns and processing problems cloud what the Street expects to be a massive rebound quarter.

Cameco (NYSE:CCJ | CCJ Price Prediction) reports third-quarter results on Thursday, October 30. The uranium producer has missed estimates five quarters in a row, and its shares sit near a 52-week low. This report will test whether a premium valuation can survive more operational issues.

A Rough Q2 Collides With Record Uranium Prices
In Q2, Cameco posted EPS of $0.13, missing the $0.26 consensus. Westinghouse, where Cameco holds a 49% interest, recorded a $10 million net loss on purchase price amortization and financing costs.

In the July release, CEO Tim Gitzel said the results “reflect normal quarterly variability.” He kept the annual production outlook unchanged even though flooding disrupted northern Saskatchewan supply routes.

The market has shown less patience. Shares trade at $79.39, down 12.57% over the past month and 13.23% year to date. That leaves the stock just above its 52-week low of $76.92, even as the long-term uranium contract price rose to a record $96.50/lb.

Consensus Expects a Sharp Rebound From a Weak Comparison

Metric
Consensus
Prior-Year Actual
YoY Growth

Q3 2026 Normalized EPS
$0.2727
$0.0502
443.2%

Q3 2026 Revenue
$753.9M
$440.8M
71.0%

FY2026 EPS
$1.4467
$1.0328
40.1%

FY2026 Revenue
$3.48B
$2.497B
39.5%

Key Lake, Cigar Lake and Westinghouse Will Set the Tone
Analysts have already cut their numbers. The Q3 EPS consensus of $0.2727 compares with $0.3521 90 days ago, and individual estimates run from $0.0800 to $0.3800. A spread that wide tells me the Street has limited visibility into operations.

First, I’ll be watching mine performance. Key Lake ran an extended Q3 maintenance shutdown to install new infrastructure. Cigar Lake only recently resumed shipping stockpiled ore after acid plant problems at Orano’s McClean Lake mill. Management has to show that the 19.5M to 21.5M lb production range still holds.

Second, Westinghouse. Management guided for a weak first half followed by a stronger second half, so Q3 should start to show that recovery. Progress on the $120 billion U.S.-South Korea framework for up to eight Westinghouse reactors would carry real weight. So would follow-through on the Energy Department’s conditional commitment to support AP1000 deployment. The reactor restart trade reaches well beyond Cameco, and we picked five ways to play it, utilities and fuel included, in a free nuclear report.

Third, you should look at pricing. Market-related contracts made up 69% of Q1 revenue, compared with 51% a year earlier. With 230M lbs already committed under long-term contracts, any new deals signed at record term prices would strengthen the outlook for 2027.

Performance Has to Catch Up to an 89x Multiple
Cameco trades around 89x trailing earnings, 52x forward earnings and 68x EV/EBITDA. Analysts remain bullish, with 8 Strong Buy ratings, 11 Buy ratings and a $125.60 average target. Still, the shares fell on each of the last five earnings days. A clean quarter with guidance intact would give the nuclear story fresh credibility. Another miss would show how much patience that premium can still buy.

Contact [email protected] for any questions or corrections.

The market expects Marriott International (MAR - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on November 2, 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 hotel company is expected to post quarterly earnings of $2.86 per share in its upcoming report, which represents a year-over-year change of +15.8%.

Revenues are expected to be $7.04 billion, up 8.4% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.21% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

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

Price, Consensus and EPS Surprise

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

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

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

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

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

How Have the Numbers Shaped Up for Marriott?For Marriott, 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 +2.52%.

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

So, this combination indicates that Marriott 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 Marriott would post earnings of $3.06 per share when it actually produced earnings of $3.19, delivering a surprise of +4.25%.

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

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Marriott 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 PlayerCiveo (CVEO - Free Report) , another stock in the Zacks Hotels and Motels industry, is expected to report loss per share of $0.27 for the quarter ended September 2026. This estimate points to a year-over-year change of -575%. Revenues for the quarter are expected to be $174.05 million, up 2.1% from the year-ago quarter.

The consensus EPS estimate for Civeo has been revised 6.6% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -37.20%.

When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Civeo will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.

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

 | Source: Nano Dimension

Expands Customer Engagement and Support Capabilities Across North America

Supports Growing Demand Across Leading Aerospace and Defense Customers

Provides Access to Advanced Manufacturing Solutions, Application Development and Process Evaluation

WALTHAM, Mass., Oct. 26, 2026 (GLOBE NEWSWIRE) -- Nano Dimension Ltd. (Nasdaq: NNDM) (“Nano Dimension,” “Nano”, or the “Company”) today announced that its Essemtec business unit has relocated its U.S. headquarters to a new facility in Woburn, Massachusetts, reinforcing its established presence in the United States and supporting its continued business growth.

The relocation comes amid strong operating momentum at Essemtec, with accelerating revenue growth, expanding customer relationships and demand for its advanced electronics manufacturing solutions.

Essemtec has developed a significant presence in the aerospace and defense industries, serving leading customers with demanding requirements for precision, reliability, and manufacturing performance. The business also engages with leading global electronics manufacturing services companies serving large-scale customers, including in AI-related manufacturing applications, and has expanded deployments with leading space and satellite companies.

Accelerating Growth and Strong Market Position

Essemtec continues to deliver strong business performance, supported by growing demand across its core markets, particularly aerospace and defense.

The new U.S. headquarters strengthens customer engagement and provides customers across North America with access to equipment demonstrations, application development, and process evaluation, supporting Essemtec’s established position in the North American market and its continued growth opportunities.

Moshe Rozenbaum, Interim Chief Executive Officer of Nano Dimension, commented, “Essemtec is performing exceptionally well. We are seeing accelerating revenue growth, strong commercial momentum, and increasing demand from leading customers in the aerospace and defense industries. The quality of Essemtec's customer base is a testament to the strength of its technology and its ability to meet the demanding standards of these industries. The new U.S. headquarters reflects our confidence in the business and its growth opportunities, strengthening our ability to support customers and build on Essemtec’s commercial momentum. We believe Essemtec is well positioned to continue delivering strong operating performance and creating value for our shareholders.”

About Essemtec

Essemtec is renowned for its adaptive, highly flexible SMT pick-and-place equipment, sophisticated dispensers suitable for both high-speed and micro-dispensing, and intelligent production material storage and logistic systems. All products are equipped with advanced software packages, ensuring efficient material management and user-friendly operation. Essemtec's solutions are implemented worldwide across various industries, reflecting the company's commitment to quality and innovation.

About Nano Dimension Ltd.

Nano Dimension Ltd. (Nasdaq: NNDM) has historically delivered advanced digital manufacturing technologies, including serving customers across the defense, aerospace, automotive, electronics and medical device industry segments. For more information, please visit www.nano-di.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include expectations regarding Essemtec’s future revenue growth, commercial momentum, customer demand and operating performance; its growth opportunities and market position, including in the aerospace and defense industries; the anticipated benefits of its new U.S. headquarters, including enhanced customer engagement, application development, process evaluation and customer support; and its ability to create shareholder value. Statements other than statements of historical fact may be forward-looking. Forward-looking statements may be identified by words such as “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” “may,” “could,” “will,” “continue,” and similar expressions, although not all forward-looking statements contain these words.

These statements reflect management’s current expectations, beliefs and assumptions and are not guarantees of future performance. Actual results could differ materially due to risks and uncertainties, including changes in customer demand and capital spending, particularly in the aerospace, defense and electronics manufacturing markets; delays, reductions or cancellations in customer orders; competition and technological developments; supply-chain disruptions and changes in component availability or costs; changes in tariffs, trade restrictions and economic conditions; and Essemtec’s ability to realize the anticipated operational and commercial benefits of the new facility. Additional risks and uncertainties are described under “Risk Factors” in Nano Dimension’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the U.S. Securities and Exchange Commission on March 31, 2026, and in subsequent SEC filings.

Forward-looking statements speak only as of the date of this press release. Except as required by applicable law, Nano Dimension undertakes no obligation to update or revise them, whether as a result of new information, future events or otherwise. References and links to websites are provided for convenience; information on those websites is not incorporated by reference into this press release.

Contacts:

Investors:
Purva Sanariya
Director, Investor Relations
[email protected]

Media:
Samuel Manning
Principal Manager, External Communications
[email protected]

Robinhood (HOOD -2.33%) basically forced its competitors in the discount brokerage industry to adopt free trading. And it has pushed quickly into new areas, such as cryptocurrencies and prediction markets. While this has allowed Robinhood to grow materially and meet its customers' demands, it has kept pressure on peers such as Charles Schwab (SCHW -0.07%) and Interactive Brokers (IBKR +0.80%).

But that doesn't mean Robinhood is an attractive investment right now, even after it has lost more than a third of its value from its 2025 high. Here's why you might want to tread with caution.

Image source: Getty Images.

Robinhood remains relatively expensive
Robinhood hit its all-time high of around $152 per share in late 2025. It trades at around $97 as of this writing, a decline of roughly 35%. That's a sizable drop and much larger than the declines in Schwab or Interactive Brokers, which are down roughly 15% and 20%, respectively, from their recent highs. Based on the stock price moves, you might think that this is a value opportunity.

The problem is that Robinhood's price-to-earnings ratio is around 42x. That's still much higher than its competitors, with Schwab at 16x and Interactive Brokers at 31x. Value investors probably won't be interested in Robinhood. And growth investors should probably tread with caution as well.

Robinhood's customers are new and untested
To be fair to Robinhood, the company has experienced rapid growth and managed that growth very well. As noted, it helped transform the discount brokerage industry with its free-trading model. However, the company only went public in 2021. It hasn't been public through a truly deep market downturn, like the Great Recession or the dot-com crash.

HOOD Robinhood Markets$92.86-$2.21 (-2.33%)

NASDAQ · As of 10:43 AM ET 10/26/26

Meanwhile, Robinhood specifically attempts to attract customers who are new to investing, as it looks to "democratize finance for all." That's a laudable goal, but it also means that its customers haven't been tested by a deep and prolonged bear market, either. And the company has been growing in high-risk areas, such as the aforementioned cryptocurrencies and prediction markets.

Younger, risk-taking customers may be shocked by a long-lived and painful market downturn. And that could lead them to exit the markets, perhaps permanently, as they watch their savings vanish. If they are using leverage, which has been a growing part of Robinhood's business (margin balances rose 127% year over year in the second quarter of 2026), they may have no choice but to sell.

Robinhood has done a great job of growing its business, and it is highly likely to survive any market downturn it faces. But the premium it is being afforded relative to peers, even after a deep drawdown, should probably keep most investors on the sidelines until the company and its customers have faced a test on the scale of the Great Recession or the dot-com bubble.

Charles Schwab is an advertising partner of Motley Fool Money. Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Interactive Brokers Group. The Motley Fool recommends Charles Schwab and Robinhood Markets and recommends the following options: long January 2027 $43.75 calls on Interactive Brokers Group, short January 2027 $46.25 calls on Interactive Brokers Group, and short September 2026 $95 calls on Charles Schwab. The Motley Fool has a disclosure policy.