Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.
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Also included in Zacks Premium is the Focus List. This is a long-term portfolio of top stocks that have all the traits to beat the market.
Breaking Down the Zacks Focus ListIf you could get access to a curated list of stocks to kickstart your investment portfolio, wouldn't you jump at the chance to take a peek?
Enter the Zacks Focus List. It's a portfolio made up of 50 stocks that are set to beat the market over the next 12 months; each company selected serves as a foundation for long-term investors looking to create an individual portfolio.
What makes the Focus List even more helpful is that each selection is accompanied by a full Zacks Analyst Report, which explains the reasoning behind every stock's selection and why we believe it's a good pick for the long-term.
The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.
Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Brokerage analysts are in charge of determining a company's growth and profitability expectations, or earnings estimates. These analysts work together with company management to evaluate all factors that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
What a company will earn down the road also needs to be taken into consideration, and this is why earnings estimate revisions are so important.
Stocks that receive upward earnings estimate revisions are more likely to receive even more upward changes in the future. For example, if an analyst raised their estimates last month, they're more likely to do it again this month, and other analysts are likely to do the same.
Utilizing the power of earnings estimate revisions is when the Zacks Rank joins the party. A unique, proprietary stock-rating model, the Zacks Rank uses changes to quarterly earnings expectations to help investors create a winning portfolio.
The Zacks Rank consists of four main pillars: Agreement, Magnitude, Upside, and Surprise. Each one is given a raw score, which is recalculated every night and compiled into the Rank. Then, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell," using this data.
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
Because stock prices react to revisions, buying stocks with rising earnings estimates can be very profitable. Focus List stocks offer investors a great opportunity to get into companies whose future earnings estimates will be raised, potentially leading to price momentum.
Focus List Spotlight: Microsoft (MSFT - Free Report) Redmond, WA-based Microsoft Corporation is one of the largest broad-based technology providers in the world. The company holds the leading position in the PC software market with its Windows operating system.
MSFT, a #3 (Hold) stock, was added to the Focus List on February 1, 2016 at $55.09 per share. Since then, shares have increased 845.87% to $521.08.
Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.04 to $19.65. MSFT also boasts an average earnings surprise of 9.3%.
Earnings for MSFT are forecasted to see growth of 9.5% for the current fiscal year as well.
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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.82% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Advanced Micro Devices (AMD - Free Report) Advanced Micro Devices has strengthened its position in the semiconductor market on the back of its strong product portfolio. Santa Clara, CA-based AMD generated revenues of $34.64 billion in 2025. The company reports operations under three segments – Data Center, Client and Gaming, and Embedded – which accounted for 48%, 42%, and 10% of revenues, respectively.
AMD is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. AMD has a Growth Style Score of A, forecasting year-over-year earnings growth of 81.1% for the current fiscal year.
Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.00 to $7.55 per share. AMD boasts an average earnings surprise of +6.7%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, AMD should be on investors' short list.
AMD has surged 156% this year as AI contracts rolled in, but one unproven product cycle could either justify a run past $689 or expose just how much faith is already baked into the stock.
Advanced Micro Devices (NASDAQ:AMD | AMD Price Prediction) shares are trading at $549.35 this morning. Our 24/7 Wall St. price target for AMD is $546.06 over the next 12 months. That implies 0.6% downside, so our model rates the stock a hold. Confidence is high, at 90%.
24/7 Wall St. Price Target Summary Metric Value Current Price $549.35 Price Target from 24/7 Wall St. $546.06 Upside/Downside -0.6% Recommendation HOLD Confidence Level 90% The stock is up 156.51% year to date as the AI accelerator story moved from plans to signed contracts. Our model says most of that good news is already in the price.
One growth opportunity, the Helios rack-scale AI ramp, is the swing factor that could push shares well past our target.
Why We Could Be Wrong The 24/7 Wall St. price target sits just below where AMD trades today. Real upside could come from Helios shipments ramping faster than planned, or from server CPU demand that management says is exceeding supply.
Consider our target one datapoint among many. A detailed bull case appears below.
A 9% Pullback Interrupts a 156% Rally AMD fell 9.28% over the past week and 1.87% over the past month. Shares now sit 16.6% below the 52-week high of $658.52, though still far above the $188.22 low.
Fundamentals support much of the run. Second-quarter revenue rose 50.1% to $11.54 billion, beating the $11.31 billion consensus, and non-GAAP EPS of $1.66 exceeded the $1.61 estimate. Data Center revenue jumped 107% to $6.72 billion. Third-quarter guidance calls for about $13 billion, plus or minus $300 million.
Helios Could Drive a Run to $689 AMD holds gigawatt-scale commitments from OpenAI (6 gigawatts), Meta Platforms (NASDAQ:META) (up to 6 GW) and Anthropic (up to 2 gigawatts of MI450 GPUs, starting in the first half of 2027). Microsoft (NASDAQ:MSFT) plans Helios at scale on Azure.
CEO Lisa Su said in August that “customer pull for Helios is very strong and tracking ahead of our initial forecast,” with revenue per gigawatt in the “double-digit billions.”
Management expects Data Center revenue to more than double in 2027 and projects the AI accelerator market reaching about $1.4 trillion by 2030. Analysts agree: 45 rate AMD a buy or strong buy, none rate it a sell, and the consensus target is $627.65. Our bull scenario reaches $689.35.
Valuation Leaves Little Margin for Stumbles At 137x trailing earnings, AMD needs clean execution. Management noted supply limits on wafers, packaging and HBM, plus early Helios yields. Gaming revenue fell 31%, and Q2 free cash flow slipped 9.89% as capex jumped 186.52%. Export controls already cost an $800M MI308 charge.
Counterpoint: that capex funds the Helios ramp, and the 40x forward P/E looks far more reasonable. Our bear scenario lands at $433.06.
How AMD Compares to NVIDIA and Broadcom NVIDIA (NASDAQ:NVDA) is AMD’s direct AI accelerator rival. Its latest quarterly revenue rose 105.85% to $96.22 billion, yet it trades at just 44x earnings. Faster growth at a lower multiple caps how much premium AMD deserves.
Broadcom (NASDAQ:AVGO) competes for the same hyperscaler budgets with custom accelerators. AI semiconductor revenue grew 221% to $16.7 billion, showing how the market rewards proven AI scale.
Company Trailing P/E Latest Quarter Revenue Growth AMD 137x 50.1% NVIDIA 44x 105.85% Broadcom n/a 85.5% Against this group, our target looks reasonable.
Our HOLD Rating Stands, With Helios as the Trigger The 24/7 Wall St. price target of $546.06 and hold rating carry 90% confidence. Valuation tips the scale.
I would turn more positive if Q3 results confirm the Helios step-up and guidance tops $13 billion. I would stay cautious if supply or yield problems push the ramp further into 2027. Today, AMD is fairly valued.
Year Price Target (Base) from 24/7 Wall St. Bull Case 2026 $557.08 $565.62 2027 $546.06 $689.35 2028 $580.42 $768.63 2029 $601.18 $833.38 2030 $606.62 $889.79 The projections rest on AMD continuing to execute on its current AI strategy. A faster MI500 ramp would move results toward the bull column, while tighter export controls or HBM shortages could pull them lower.
The accelerator story also keeps pulling in the companies that power and cool the racks, which is why we put together a report on seven AI infrastructure suppliers that aren’t chipmakers.
Contact [email protected] for any questions or corrections.
Key Takeaways Nokia's Q3 earnings call signaled 25-30% Optical and IP Networks growth in 2027, driven by AI demand.AI and cloud sales surged 123%, while supply constraints drove NOK to expand optical manufacturing capacity.Nokia upheld its 2026 profit outlook despite margin pressures, cash outflows and higher restructuring costs.
Nokia Oyj (NOK - Free Report) emphasized accelerating AI infrastructure demand, improving operating leverage and capacity expansion during its third-quarter 2026 earnings call. Management outlined stronger growth expectations for Optical and IP Networks in 2027 while acknowledging supply constraints and near-term profitability pressures.
Nokia’s third-quarter 2026 comparable profit from continuing operations was $0.10 per share, which beat the Zacks Consensus Estimate of $0.08. Net sales of $5.93 billion also surpassed the consensus estimate of $5.80 billion. Management maintained its full-year operating profit outlook despite increased restructuring and working capital requirements.
NOK Sees Stronger AI and Cloud DemandPresident and CEO Justin Hotard highlighted AI and cloud as Nokia's fastest-growing customer segment, with sales increasing 123% year over year and representing 12% of group revenues. Gross order intake climbed 118% to €1.5 billion.
IP Networks revenues grew 43%, while Optical Networks expanded 18%, reflecting hyperscaler demand and increasing investment in data center connectivity.
Hotard expects combined Optical and IP Networks growth of 25-30% in 2027. During discussions with Raymond James, he emphasized that demand extends beyond 2027, although the company's formal projection covers next year.
Nokia Expands Optical Capacity Amid Supply ConstraintsHotard acknowledged that demand continues to exceed supply across Optical and IP Networks. Shipments of 800-gig coherent pluggables more than doubled sequentially, supported by design wins involving 29 customers.
Nokia's San Jose indium phosphide manufacturing facility remains scheduled to begin production before year-end. Management reported completing 90% of process development, with production yields and output becoming important milestones during 2027.
Responding to BNP Paribas, Hotard described the planned Chandler manufacturing facility as a longer-term capacity investment targeting a 2029 timeframe. Its production capabilities will depend on emerging customer requirements.
NOK Targets Margin Recovery as New Products ScaleChief financial officer Marco Wiren attributed Network Infrastructure's gross margin decline to product mix and initial costs associated with ramping AI-focused IP products. Segment gross margin fell 150 basis points to 41.2%.
During questioning from Danske Bank, Wiren characterized these pressures as temporary, expecting improvement in the fourth quarter as production volumes increase and pricing discipline supports profitability.
Comparable group operating margin nevertheless expanded 220 basis points to 11.7%. Management emphasized that scaling AI infrastructure revenues should generate additional operating leverage despite near-term manufacturing costs.
Nokia Faces Higher Cash RequirementsWiren reported negative free cash flow of €99 million, reflecting restructuring payments, higher receivables and inventory accumulation.
Management plans an additional €400 million working capital investment during 2026 to secure supplies and support anticipated growth next year. Consequently, Nokia lowered its free cash flow conversion assumption to 35-55%.
Restructuring charges are now expected to reach approximately €1.1 billion, with associated cash outflows of €800-€900 million. Accelerated restructuring and integration efforts aim to establish a more efficient operating cost structure.
NOK Maintains Caution on Mobile InfrastructureMobile Infrastructure sales increased 5%, supported by 10% growth in Radio Networks. However, management clarified that some deliveries originally expected in the fourth quarter occurred earlier.
Responding to DNB Carnegie, Hotard rejected the characterization of these deliveries as customer prebuying. He reiterated that Nokia does not anticipate an imminent broader telecom investment cycle.
Management expects the overall telecom market to remain broadly flat. Hotard also highlighted increasing component costs and supply shortages, while Wiren emphasized ongoing mitigation through commercial discipline and operational improvements.
Nokia Remains Focused on Execution and ProfitabilityManagement maintained its 2026 comparable operating profit outlook of €2.1 billion to €2.6 billion, expecting performance above the midpoint. Fourth-quarter revenues are projected to increase sequentially by 20-24%.
Hotard emphasized continued portfolio simplification and the Infinera integration, with €200 million in synergies targeted by year-end, one year ahead of schedule.
The overarching message centered on converting AI-driven demand into profitable growth while addressing capacity limitations, working capital pressures and restructuring requirements.
What NOK's Zacks Rank & Style Scores IndicateNOK currently carries a Zacks Rank #3 (Hold), indicating a neutral near-term earnings estimate revision outlook. Its Value Score of B reflects favorable valuation characteristics, while its Momentum Score of A indicates strong price momentum. However, its Growth Score of F signals comparatively weak growth characteristics. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock's VGM Score of C reflects a mixed overall assessment across value, growth and momentum. Although favorable individual scores highlight certain strengths, the combined ratings fall short of the highest-ranked Zacks combinations. The Zacks Rank remains subject to change as analysts revise earnings estimates following the latest quarterly results.
CMH Wealth Management LLC raised its stake in The Boeing Company (NYSE:BA – Free Report) by 3.9% during the third quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 74,324 shares of the aircraft producer’s stock after purchasing an additional 2,766 shares during the quarter. Boeing comprises approximately 2.1% of CMH Wealth Management LLC’s holdings, making the stock its 15th biggest holding. CMH Wealth Management LLC’s holdings in Boeing were worth $13,828,000 at the end of the most recent reporting period.
A number of other hedge funds also recently made changes to their positions in the stock. Jupiter Topco LLC acquired a new stake in shares of Boeing during the 2nd quarter worth $911,878,000. Bank of New York Mellon Corp purchased a new position in shares of Boeing in the 2nd quarter worth $747,763,000. Legal & General Group Plc acquired a new position in Boeing in the second quarter valued at $710,816,000. Deutsche Bank AG acquired a new position in Boeing in the second quarter valued at $539,456,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in Boeing in the second quarter valued at $441,997,000. Institutional investors and hedge funds own 64.82% of the company’s stock.
Wall Street Analysts Forecast Growth BA has been the subject of a number of research reports. BNP Paribas Exane raised Boeing from an “underperform” rating to an “outperform” rating and boosted their price target for the company from $230.00 to $300.00 in a research report on Monday, August 3rd. JPMorgan Chase & Co. reiterated a “buy” rating on shares of Boeing in a research note on Sunday, September 27th. Wolfe Research raised shares of Boeing from a “hold” rating to a “strong-buy” rating in a research report on Thursday, September 24th. Rothschild & Co Redburn increased their price objective on shares of Boeing from $260.00 to $285.00 and gave the stock a “buy” rating in a research report on Thursday, July 30th. Finally, DZ Bank reissued a “buy” rating on shares of Boeing in a research note on Thursday, August 6th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, three have assigned a Hold rating and four have issued a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $266.96.
Get Our Latest Stock Report on BA Boeing Trading Down 2.5% NYSE BA opened at $187.46 on Friday. The company’s fifty day simple moving average is $201.61 and its 200-day simple moving average is $215.33. The Boeing Company has a 52 week low of $176.77 and a 52 week high of $254.35. The company has a current ratio of 1.14, a quick ratio of 0.33 and a debt-to-equity ratio of 6.77. The stock has a market cap of $148.17 billion, a P/E ratio of 81.15 and a beta of 1.26.
Boeing (NYSE:BA – Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The aircraft producer reported ($0.76) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.34) by ($0.42). The firm had revenue of $24.56 billion for the quarter, compared to analyst estimates of $24.26 billion. Boeing had a net margin of 2.41% and a negative return on equity of 346.82%. Boeing’s revenue for the quarter was up 8.0% on a year-over-year basis. During the same period in the previous year, the business posted ($1.24) earnings per share. Equities research analysts predict that The Boeing Company will post -1.08 EPS for the current fiscal year.
Key Boeing News Here are the key news stories impacting Boeing this week:
Positive Sentiment: The FAA granted final certification to the 737 MAX 10, clearing the way for deliveries of an aircraft with approximately 1,555 orders. The approval could help Boeing compete more effectively with Airbus’ A321neo and ease a key delivery bottleneck. Boeing 737 MAX 10 certification Positive Sentiment: Analysts said MAX 10 approval could support more stable production and deliveries as aircraft demand builds in 2027 and 2028, potentially improving Boeing’s cash flow and turnaround prospects. Boeing wins FAA certification Neutral Sentiment: Boeing is scheduled to report third-quarter results before the market opens on October 27. Analysts are focused on aircraft deliveries, services demand, production rates and other operating metrics, with some forecasts calling for double-digit earnings growth. Boeing earnings preview Negative Sentiment: Investors still face execution concerns ahead of earnings, including supply-chain delays, the need to ramp 737 MAX production and Boeing’s negative return on invested capital. These issues could limit the benefit of the MAX 10 certification if deliveries and profitability do not improve. Boeing stock before earnings Negative Sentiment: The certification news has not translated into sustained buying, likely because approval was widely expected. With Boeing trading at a high earnings multiple and carrying substantial leverage, investors may be demanding clearer evidence of improving cash generation before bidding the shares higher. Boeing receives FAA approval About Boeing (Free Report)
The Boeing Company (NYSE: BA) is a global aerospace company that designs, manufactures and supports commercial airplanes, military aircraft, satellites, space systems and related products and services. Its offerings serve airlines, government agencies, defense organizations and other customers worldwide.
Boeing operates through three principal business areas: Commercial Airplanes, which develops and produces passenger and cargo aircraft; Defense, Space & Security, which provides military aircraft, weapons systems, satellites and space-related platforms; and Global Services, which offers parts, maintenance, training, engineering and other lifecycle support.
Founded in 1916 by William Boeing, the company has grown into one of the world’s major aerospace manufacturers.
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Key Takeaways C's 30-day and 90-day card delinquencies rose sequentially in September, while receivables fell to $18.7B.The annualized net principal loss rate climbed to 2.18% in September from 2.03% in August.Citigroup expects a 4%-4.5% U.S. card net credit loss rate in 2026 amid ongoing consumer credit pressures.
Citigroup Inc. (C - Free Report) continues to navigate credit-quality challenges amid an uncertain economic environment. According to its latest SEC filing, its subsidiary, Citibank N.A., reported higher credit card delinquencies and net principal losses in September 2026, while outstanding principal receivables declined during the month.
For the period ended Sept. 25, 2026, the Citibank Credit Card Master Trust I reported principal receivables of $18.7 billion, down from $19.1 billion at the beginning of the period. Receivables delinquent for 30 days or more increased to 1.35% in September from 1.29% in August, while those delinquent for 90 days or more rose to 0.65% from 0.63%. The Citibank Credit Card Issuance Trust’s annualized net principal loss rate climbed to 2.18% from 2.03% in August and 1.90% in July, signaling a pickup in credit losses.
The detailed filing also showed that 97.3% of receivables were current in September. However, balances delinquent for 31-60 days were $80.7 million, while those delinquent for 151-180 days totaled $37.4 million. The portfolio's annualized gross yield was 25.03%, while the principal payment rate was 41.45%. Although the high portfolio yield provides a revenue cushion against credit losses, the increase in delinquencies and net principal losses warrants monitoring. These figures relate to the securitized credit card portfolios and should not be interpreted as representing Citigroup's entire loan portfolio.
Citigroup’s broader asset-quality picture remains a concern. Although provisions for credit losses declined 2% year over year to $7.91 billion in the first nine months of 2026, the metric recorded a compound annual growth rate (CAGR) of 24.5% from 2022 to 2025. However, credit quality showed improvement in the third quarter, with the U.S. Cards net credit loss rate declining to 3.6% from 4.0% a year earlier. Management’s earlier 2026 guidance projected a U.S. card net credit loss rate of 4-4.5%, highlighting continued credit risks.
Citigroup's organizational overhaul, business simplification initiatives and focus on operational efficiency could support profitability over the longer term. However, persistent inflation, pressure on borrowers' repayment capacity and rising card losses could weigh on asset quality. Any sustained deterioration in credit trends may lead to higher provisions and constrain earnings growth, even as the company benefits from resilient net interest income and a stronger focus on core businesses.
How Citigroup Stacks Up Against Peers in Card DelinquencyU.S. credit card metrics were mixed in September 2026, with delinquency rates increasing at both Bank of America (BAC - Free Report) and JPMorgan Chase (JPM - Free Report) , although the latter's rate remained relatively low. Both issuers reported lower outstanding receivables, while net charge-off and loss rates improved compared with the previous month.
Bank of America reported that the BA Master Credit Card Trust II delinquency rate increased to 1.37% in September 2026 from 1.28% in August. However, its net charge-off rate declined to 2.09% from 2.15% in August, indicating some improvement in credit losses. Total receivables fell to $14.53 billion from $14.63 billion at the beginning of the month.
JPMorgan Chase reported a delinquency rate of 0.81% for the Chase Issuance Trust in September 2026, with $95.1 million in delinquent receivables against a pool balance of $11.81 billion. Its annualized net loss rate was 1.52%. Principal receivables declined to $11.65 billion from $11.84 billion at the beginning of the month.
Citigroup’s Price Performance & Zacks RankShares of Citigroup have gained 26.7% over the past year compared with the industry’s growth of 8.7%.
One-Year Performance
Image Source: Zacks Investment Research
Currently, C carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Corient Private Wealth LP lessened its stake in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 17.4% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 9,069,030 shares of the computer hardware maker’s stock after selling 1,907,428 shares during the quarter. NVIDIA makes up 2.5% of Corient Private Wealth LP’s holdings, making the stock its 5th biggest position. Corient Private Wealth LP’s holdings in NVIDIA were worth $1,795,911,000 as of its most recent filing with the Securities and Exchange Commission.
Several other hedge funds and other institutional investors have also made changes to their positions in the company. Formuepleje A S lifted its holdings in NVIDIA by 0.7% during the 2nd quarter. Formuepleje A S now owns 460,938 shares of the computer hardware maker’s stock valued at $92,229,000 after purchasing an additional 3,410 shares during the last quarter. Tucker Asset Management LLC increased its holdings in shares of NVIDIA by 2.8% in the second quarter. Tucker Asset Management LLC now owns 108,000 shares of the computer hardware maker’s stock valued at $21,610,000 after purchasing an additional 2,930 shares during the last quarter. HORAN Wealth LLC increased its holdings in shares of NVIDIA by 5.6% in the second quarter. HORAN Wealth LLC now owns 57,377 shares of the computer hardware maker’s stock valued at $11,480,000 after purchasing an additional 3,018 shares during the last quarter. Wellington Grp LLC increased its holdings in shares of NVIDIA by 8.7% in the second quarter. Wellington Grp LLC now owns 29,558 shares of the computer hardware maker’s stock valued at $5,914,000 after purchasing an additional 2,376 shares during the last quarter. Finally, Brown Financial Advisors raised its position in shares of NVIDIA by 21.3% in the second quarter. Brown Financial Advisors now owns 42,229 shares of the computer hardware maker’s stock valued at $8,450,000 after purchasing an additional 7,404 shares during the period. 65.27% of the stock is owned by institutional investors.
Wall Street Analyst Weigh In Several brokerages have recently weighed in on NVDA. Morgan Stanley set a $230.00 price objective on shares of NVIDIA in a research report on Friday, October 2nd. Zacks Research raised shares of NVIDIA from a “hold” rating to a “strong-buy” rating in a report on Monday, September 21st. Truist Financial boosted their price objective on NVIDIA from $307.00 to $346.00 and gave the stock a “buy” rating in a report on Thursday, August 27th. Mizuho set a $315.00 target price on NVIDIA and gave the company an “outperform” rating in a research report on Thursday, August 27th. Finally, KeyCorp reiterated an “overweight” rating and set a $330.00 target price on shares of NVIDIA in a research note on Monday, August 24th. Five investment analysts have rated the stock with a Strong Buy rating, forty-nine have given a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Buy” and a consensus price target of $321.47.
Check Out Our Latest Stock Analysis on NVIDIA Key Headlines Impacting NVIDIA Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: AI infrastructure demand remains robust. CEO Jensen Huang said neocloud demand is “off the charts,” while Super Micro’s significantly higher revenue outlook and SpaceX’s plans to add substantial computing capacity provided evidence that customers continue expanding AI infrastructure. Nvidia CEO Jensen Huang says neocloud demand is off the charts but capital is scarce Positive Sentiment: GTC Berlin expanded NVIDIA’s addressable market. The company introduced DSX POD modular Vera Rubin AI factories, designed to reduce deployment timelines from roughly six months to as little as 14 days. Its DSX platform also targets up to 30% lower power consumption and near-zero cooling-water usage, potentially easing customers’ power and permitting constraints. NVIDIA introduces DSX POD AI factories Positive Sentiment: Platform expansion supports the long-term bull case. New partnerships involving AI-agent security, robotics, autonomous vehicles, telecom networks, quantum-computing interfaces and industrial AI reinforce NVIDIA’s strategy of selling a broader full-stack computing ecosystem rather than only GPUs. Neutral Sentiment: Quantum news is strategically relevant but not yet a material earnings driver. Quantum X Labs reported improved error-correction results using NVIDIA CUDA-Q, illustrating ecosystem adoption, although the announcement does not provide meaningful near-term revenue information for NVIDIA. Negative Sentiment: Investors are questioning AI-spending sustainability and financing. Concerns that hyperscalers, neoclouds and other customers may struggle to fund massive data-center buildouts are weighing on the entire AI trade. Rising-rate risk adds pressure to high-growth technology valuations. Negative Sentiment: Semiconductor-sector pressure compounded the decline. Chip stocks weakened after Lam Research cited supply-chain constraints, while broader technology indexes also fell. NVIDIA’s high valuation and upcoming earnings raise the risk of a “sell-the-news” reaction even if results exceed expectations. Insider Activity In related news, CFO Colette Kress sold 34,918 shares of the business’s stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $219.05, for a total value of $7,648,787.90. Following the completion of the sale, the chief financial officer directly owned 765,103 shares in the company, valued at approximately $167,595,812.15. The trade was a 4.36% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Timothy Teter sold 30,460 shares of the business’s stock in a transaction that occurred on Monday, September 21st. The shares were sold at an average price of $222.80, for a total value of $6,786,488.00. Following the completion of the sale, the executive vice president owned 2,687,660 shares of the company’s stock, valued at approximately $598,810,648. This trade represents a 1.12% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 1,766,118 shares of company stock worth $399,450,353. Corporate insiders own 3.94% of the company’s stock.
NVIDIA Price Performance NASDAQ:NVDA opened at $212.21 on Friday. NVIDIA Corporation has a 52 week low of $164.27 and a 52 week high of $243.37. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59. The firm’s 50-day simple moving average is $222.86 and its 200 day simple moving average is $212.57. The firm has a market cap of $5.11 trillion, a price-to-earnings ratio of 26.83, a P/E/G ratio of 1.71 and a beta of 2.22.
NVIDIA (NASDAQ:NVDA – Get Free Report) last posted its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.09 by $0.13. The firm had revenue of $96.22 billion during the quarter, compared to the consensus estimate of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The business’s revenue for the quarter was up 105.9% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.05 EPS. As a group, sell-side analysts predict that NVIDIA Corporation will post 9.30 earnings per share for the current year.
NVIDIA Announces Dividend The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th were issued a dividend of $0.25 per share. The ex-dividend date of this dividend was Thursday, September 10th. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. NVIDIA’s dividend payout ratio (DPR) is currently 12.64%.
NVIDIA declared that its board has approved a share buyback plan on Monday, September 28th that authorizes the company to repurchase $150.00 billion in outstanding shares. This repurchase authorization authorizes the computer hardware maker to reacquire up to 2.8% of its shares through open market purchases. Share repurchase plans are typically a sign that the company’s board of directors believes its shares are undervalued.
NVIDIA Company Profile (Free Report)
NVIDIA Corporation (NASDAQ: NVDA) is a technology company that designs graphics processing units (GPUs), accelerated computing platforms, networking products and related software. Its technologies support artificial intelligence, machine learning, scientific computing, data analytics, professional visualization and computer graphics.
The company’s products include GeForce GPUs for gaming and personal computing, data center GPUs and systems for AI and high-performance computing, and networking solutions used to connect and manage large-scale computing infrastructure.
Featured Stories Five stocks we like better than NVIDIA Is Texas Instruments Setting Up for Its Next Big Breakout? Pegasystems’ Q3 Miss Exposed the Problem Standing Between AI and Cash Flow Lam Research’s Earnings Beat Wasn’t the Real Story—Its 2027 Outlook Was Tesla’s Flying-Car Hype Hits an Earnings Reality Check
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Groupe la Francaise grew its stake in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 4.3% during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 2,618,791 shares of the computer hardware maker’s stock after acquiring an additional 107,074 shares during the quarter. NVIDIA accounts for 6.2% of Groupe la Francaise’s portfolio, making the stock its biggest holding. Groupe la Francaise’s holdings in NVIDIA were worth $520,898,000 as of its most recent filing with the Securities and Exchange Commission.
Several other hedge funds have also added to or reduced their stakes in NVDA. Longview Financial Advisors Inc. purchased a new position in shares of NVIDIA in the 1st quarter worth about $27,000. Montgomery Financial Services LLC purchased a new stake in NVIDIA during the 2nd quarter valued at about $28,000. Langley Wealth Management LLC purchased a new stake in NVIDIA during the 2nd quarter valued at about $34,000. Phillip James Consulting Co. purchased a new stake in NVIDIA during the 1st quarter valued at about $40,000. Finally, Bard Associates Inc. grew its position in NVIDIA by 8,866.7% during the 2nd quarter. Bard Associates Inc. now owns 269 shares of the computer hardware maker’s stock valued at $54,000 after purchasing an additional 266 shares during the last quarter. 65.27% of the stock is owned by institutional investors.
Insiders Place Their Bets In other news, EVP Timothy S. Teter sold 30,460 shares of the stock in a transaction on Monday, September 21st. The stock was sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the transaction, the executive vice president directly owned 2,687,660 shares of the company’s stock, valued at $598,810,648. This represents a 1.12% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Colette Kress sold 34,918 shares of the firm’s stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $219.05, for a total value of $7,648,787.90. Following the completion of the transaction, the chief financial officer owned 765,103 shares in the company, valued at approximately $167,595,812.15. This trade represents a 4.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 1,766,118 shares of company stock valued at $399,450,353. Company insiders own 3.94% of the company’s stock.
Trending Headlines about NVIDIA Here are the key news stories impacting NVIDIA this week: Positive Sentiment: AI infrastructure demand remains robust. CEO Jensen Huang said neocloud demand is “off the charts,” while Super Micro’s significantly higher revenue outlook and SpaceX’s plans to add substantial computing capacity provided evidence that customers continue expanding AI infrastructure. Nvidia CEO Jensen Huang says neocloud demand is off the charts but capital is scarce Positive Sentiment: GTC Berlin expanded NVIDIA’s addressable market. The company introduced DSX POD modular Vera Rubin AI factories, designed to reduce deployment timelines from roughly six months to as little as 14 days. Its DSX platform also targets up to 30% lower power consumption and near-zero cooling-water usage, potentially easing customers’ power and permitting constraints. NVIDIA introduces DSX POD AI factories Positive Sentiment: Platform expansion supports the long-term bull case. New partnerships involving AI-agent security, robotics, autonomous vehicles, telecom networks, quantum-computing interfaces and industrial AI reinforce NVIDIA’s strategy of selling a broader full-stack computing ecosystem rather than only GPUs. Neutral Sentiment: Quantum news is strategically relevant but not yet a material earnings driver. Quantum X Labs reported improved error-correction results using NVIDIA CUDA-Q, illustrating ecosystem adoption, although the announcement does not provide meaningful near-term revenue information for NVIDIA. Negative Sentiment: Investors are questioning AI-spending sustainability and financing. Concerns that hyperscalers, neoclouds and other customers may struggle to fund massive data-center buildouts are weighing on the entire AI trade. Rising-rate risk adds pressure to high-growth technology valuations. Negative Sentiment: Semiconductor-sector pressure compounded the decline. Chip stocks weakened after Lam Research cited supply-chain constraints, while broader technology indexes also fell. NVIDIA’s high valuation and upcoming earnings raise the risk of a “sell-the-news” reaction even if results exceed expectations. NVIDIA Price Performance NVDA opened at $212.21 on Friday. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59. The stock has a market capitalization of $5.11 trillion, a P/E ratio of 26.83, a P/E/G ratio of 1.71 and a beta of 2.22. The company’s 50-day simple moving average is $222.86 and its two-hundred day simple moving average is $212.57. NVIDIA Corporation has a 52-week low of $164.27 and a 52-week high of $243.37.
NVIDIA (NASDAQ:NVDA – Get Free Report) last announced its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, topping analysts’ consensus estimates of $2.09 by $0.13. The firm had revenue of $96.22 billion during the quarter, compared to analyst estimates of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The business’s revenue for the quarter was up 105.9% on a year-over-year basis. During the same period in the previous year, the business posted $1.05 earnings per share. As a group, analysts predict that NVIDIA Corporation will post 9.30 EPS for the current year.
NVIDIA announced that its board has approved a share repurchase plan on Monday, September 28th that permits the company to repurchase $150.00 billion in outstanding shares. This buyback authorization permits the computer hardware maker to reacquire up to 2.8% of its shares through open market purchases. Stock buyback plans are generally a sign that the company’s board of directors believes its shares are undervalued.
NVIDIA Announces Dividend The business also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were given a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend was Thursday, September 10th. NVIDIA’s payout ratio is 12.64%.
Analyst Upgrades and Downgrades A number of research firms have weighed in on NVDA. Rosenblatt Securities restated a “buy” rating and set a $390.00 price objective on shares of NVIDIA in a research note on Tuesday, September 29th. Zacks Research upgraded shares of NVIDIA from a “hold” rating to a “strong-buy” rating in a research note on Monday, September 21st. Rothschild & Co Redburn increased their price target on shares of NVIDIA from $300.00 to $325.00 in a report on Thursday, August 27th. Cantor Fitzgerald reissued an “overweight” rating and set a $350.00 price target on shares of NVIDIA in a research report on Thursday, October 1st. Finally, Evercore set a $465.00 price target on shares of NVIDIA and gave the company an “outperform” rating in a research report on Thursday, August 27th. Five research analysts have rated the stock with a Strong Buy rating, forty-nine have issued a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, NVIDIA has an average rating of “Buy” and a consensus target price of $321.47.
Check Out Our Latest Research Report on NVIDIA
NVIDIA Profile (Free Report)
NVIDIA Corporation (NASDAQ: NVDA) is a technology company that designs graphics processing units (GPUs), accelerated computing platforms, networking products and related software. Its technologies support artificial intelligence, machine learning, scientific computing, data analytics, professional visualization and computer graphics.
The company’s products include GeForce GPUs for gaming and personal computing, data center GPUs and systems for AI and high-performance computing, and networking solutions used to connect and manage large-scale computing infrastructure.
Read More Five stocks we like better than NVIDIA Is Texas Instruments Setting Up for Its Next Big Breakout? Pegasystems’ Q3 Miss Exposed the Problem Standing Between AI and Cash Flow Lam Research’s Earnings Beat Wasn’t the Real Story—Its 2027 Outlook Was Tesla’s Flying-Car Hype Hits an Earnings Reality Check Want to see what other hedge funds are holding NVDA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NVIDIA Corporation (NASDAQ:NVDA – Free Report).
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Empirical Finance LLC increased its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 3.5% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 844,676 shares of the computer hardware maker’s stock after acquiring an additional 28,693 shares during the period. NVIDIA makes up 7.0% of Empirical Finance LLC’s investment portfolio, making the stock its largest holding. Empirical Finance LLC’s holdings in NVIDIA were worth $169,011,000 as of its most recent SEC filing.
A number of other hedge funds and other institutional investors have also bought and sold shares of NVDA. Longview Financial Advisors Inc. bought a new stake in shares of NVIDIA in the 1st quarter worth approximately $27,000. Montgomery Financial Services LLC purchased a new stake in shares of NVIDIA in the 2nd quarter worth approximately $28,000. Langley Wealth Management LLC bought a new position in NVIDIA during the 2nd quarter valued at approximately $34,000. Phillip James Consulting Co. bought a new position in NVIDIA during the 1st quarter valued at approximately $40,000. Finally, Bard Associates Inc. increased its position in NVIDIA by 8,866.7% during the 2nd quarter. Bard Associates Inc. now owns 269 shares of the computer hardware maker’s stock valued at $54,000 after buying an additional 266 shares in the last quarter. Hedge funds and other institutional investors own 65.27% of the company’s stock.
Wall Street Analyst Weigh In
A number of brokerages have issued reports on NVDA. JPMorgan Chase & Co. lifted their price objective on NVIDIA from $280.00 to $320.00 and gave the company an “overweight” rating in a research note on Thursday, August 27th. Jefferies Financial Group reissued a “buy” rating on shares of NVIDIA in a research note on Wednesday, August 26th. Truist Financial raised their price target on NVIDIA from $307.00 to $346.00 and gave the company a “buy” rating in a report on Thursday, August 27th. Evercore set a $465.00 price target on NVIDIA and gave the stock an “outperform” rating in a research report on Thursday, August 27th. Finally, KeyCorp reaffirmed an “overweight” rating and issued a $330.00 price target on shares of NVIDIA in a research report on Monday, August 24th. Five investment analysts have rated the stock with a Strong Buy rating, forty-nine have given a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat, NVIDIA currently has a consensus rating of “Buy” and an average price target of $321.47.
Check Out Our Latest Stock Analysis on NVIDIA
NVIDIA Price Performance
Shares of NASDAQ NVDA opened at $212.21 on Friday. The firm has a market cap of $5.11 trillion, a P/E ratio of 26.83, a PEG ratio of 1.71 and a beta of 2.22. NVIDIA Corporation has a twelve month low of $164.27 and a twelve month high of $243.37. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14. The company has a 50 day moving average of $222.86 and a 200 day moving average of $212.57.
NVIDIA (NASDAQ:NVDA – Get Free Report) last issued its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, beating the consensus estimate of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The business had revenue of $96.22 billion for the quarter, compared to the consensus estimate of $92.27 billion. During the same period last year, the business posted $1.05 EPS. The company’s revenue was up 105.9% compared to the same quarter last year. As a group, research analysts expect that NVIDIA Corporation will post 9.30 EPS for the current fiscal year.
NVIDIA Dividend Announcement
The firm also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th were paid a $0.25 dividend. The ex-dividend date was Thursday, September 10th. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. NVIDIA’s payout ratio is currently 12.64%.
NVIDIA announced that its Board of Directors has approved a share repurchase program on Monday, September 28th that authorizes the company to repurchase $150.00 billion in shares. This repurchase authorization authorizes the computer hardware maker to repurchase up to 2.8% of its shares through open market purchases. Stock repurchase programs are typically an indication that the company’s board believes its shares are undervalued.
Key NVIDIA News
Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: AI infrastructure demand remains robust. CEO Jensen Huang said neocloud demand is “off the charts,” while Super Micro’s significantly higher revenue outlook and SpaceX’s plans to add substantial computing capacity provided evidence that customers continue expanding AI infrastructure. Nvidia CEO Jensen Huang says neocloud demand is off the charts but capital is scarce
Positive Sentiment: GTC Berlin expanded NVIDIA’s addressable market. The company introduced DSX POD modular Vera Rubin AI factories, designed to reduce deployment timelines from roughly six months to as little as 14 days. Its DSX platform also targets up to 30% lower power consumption and near-zero cooling-water usage, potentially easing customers’ power and permitting constraints. NVIDIA introduces DSX POD AI factories
Positive Sentiment: Platform expansion supports the long-term bull case. New partnerships involving AI-agent security, robotics, autonomous vehicles, telecom networks, quantum-computing interfaces and industrial AI reinforce NVIDIA’s strategy of selling a broader full-stack computing ecosystem rather than only GPUs.
Neutral Sentiment: Quantum news is strategically relevant but not yet a material earnings driver. Quantum X Labs reported improved error-correction results using NVIDIA CUDA-Q, illustrating ecosystem adoption, although the announcement does not provide meaningful near-term revenue information for NVIDIA.
Negative Sentiment: Investors are questioning AI-spending sustainability and financing. Concerns that hyperscalers, neoclouds and other customers may struggle to fund massive data-center buildouts are weighing on the entire AI trade. Rising-rate risk adds pressure to high-growth technology valuations.
Negative Sentiment: Semiconductor-sector pressure compounded the decline. Chip stocks weakened after Lam Research cited supply-chain constraints, while broader technology indexes also fell. NVIDIA’s high valuation and upcoming earnings raise the risk of a “sell-the-news” reaction even if results exceed expectations.
Insider Activity
In related news, CFO Colette Kress sold 34,918 shares of the stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $219.05, for a total transaction of $7,648,787.90. Following the sale, the chief financial officer directly owned 765,103 shares of the company’s stock, valued at $167,595,812.15. This trade represents a 4.36% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Stevens sold 622,239 shares of the stock in a transaction on Friday, September 4th. The shares were sold at an average price of $231.62, for a total value of $144,122,997.18. Following the sale, the director directly owned 2,336,531 shares in the company, valued at $541,187,310.22. This trade represents a 21.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,766,118 shares of company stock valued at $399,450,353 over the last ninety days. 3.94% of the stock is currently owned by corporate insiders.
NVIDIA Company Profile
(Free Report)
NVIDIA Corporation (NASDAQ: NVDA) is a technology company that designs graphics processing units (GPUs), accelerated computing platforms, networking products and related software. Its technologies support artificial intelligence, machine learning, scientific computing, data analytics, professional visualization and computer graphics.
The company’s products include GeForce GPUs for gaming and personal computing, data center GPUs and systems for AI and high-performance computing, and networking solutions used to connect and manage large-scale computing infrastructure.
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Formuepleje A S boosted its position in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 0.7% during the 2nd quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 460,938 shares of the computer hardware maker’s stock after purchasing an additional 3,410 shares during the period. NVIDIA accounts for 7.2% of Formuepleje A S’s investment portfolio, making the stock its biggest holding. Formuepleje A S’s holdings in NVIDIA were worth $92,229,000 at the end of the most recent reporting period.
Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Retirement Wealth Solutions LLC grew its holdings in shares of NVIDIA by 1.2% during the second quarter. Retirement Wealth Solutions LLC now owns 4,121 shares of the computer hardware maker’s stock valued at $825,000 after buying an additional 47 shares in the last quarter. LightSquare Wealth Management LLC raised its position in NVIDIA by 0.3% during the second quarter. LightSquare Wealth Management LLC now owns 18,695 shares of the computer hardware maker’s stock valued at $3,741,000 after buying an additional 49 shares during the period. Defender Capital LLC. lifted its stake in NVIDIA by 0.7% in the 2nd quarter. Defender Capital LLC. now owns 7,534 shares of the computer hardware maker’s stock worth $1,507,000 after acquiring an additional 50 shares in the last quarter. Kooman & Associates lifted its stake in NVIDIA by 0.6% in the 2nd quarter. Kooman & Associates now owns 8,464 shares of the computer hardware maker’s stock worth $1,694,000 after acquiring an additional 50 shares in the last quarter. Finally, Roof Eidam Maycock Peralta LLC lifted its stake in NVIDIA by 0.3% in the 2nd quarter. Roof Eidam Maycock Peralta LLC now owns 18,827 shares of the computer hardware maker’s stock worth $3,767,000 after acquiring an additional 50 shares in the last quarter. 65.27% of the stock is currently owned by hedge funds and other institutional investors.
Wall Street Analysts Forecast Growth NVDA has been the subject of a number of research reports. Stifel Nicolaus set a $315.00 price objective on NVIDIA in a research report on Thursday, August 27th. Royal Bank Of Canada upped their target price on NVIDIA from $300.00 to $330.00 and gave the company an “outperform” rating in a report on Thursday, August 27th. Cantor Fitzgerald reiterated an “overweight” rating and issued a $350.00 target price on shares of NVIDIA in a report on Thursday, October 1st. Wells Fargo & Company set a $210.00 price target on shares of NVIDIA in a report on Friday, October 2nd. Finally, Yorkville Ives started coverage on shares of NVIDIA in a research report on Tuesday, October 6th. They set an “outperform” rating and a $300.00 price objective on the stock. Five investment analysts have rated the stock with a Strong Buy rating, forty-nine have issued a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, NVIDIA presently has a consensus rating of “Buy” and a consensus target price of $321.47.
Get Our Latest Report on NVIDIA Insider Buying and Selling In related news, EVP Timothy Teter sold 30,460 shares of the stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $222.80, for a total value of $6,786,488.00. Following the transaction, the executive vice president owned 2,687,660 shares in the company, valued at approximately $598,810,648. This represents a 1.12% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Stevens sold 622,239 shares of the firm’s stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the transaction, the director directly owned 2,336,531 shares in the company, valued at approximately $541,187,310.22. The trade was a 21.03% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 1,766,118 shares of company stock worth $399,450,353. Insiders own 3.94% of the company’s stock.
Key Headlines Impacting NVIDIA Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: AI infrastructure demand remains robust. CEO Jensen Huang said neocloud demand is “off the charts,” while Super Micro’s significantly higher revenue outlook and SpaceX’s plans to add substantial computing capacity provided evidence that customers continue expanding AI infrastructure. Nvidia CEO Jensen Huang says neocloud demand is off the charts but capital is scarce Positive Sentiment: GTC Berlin expanded NVIDIA’s addressable market. The company introduced DSX POD modular Vera Rubin AI factories, designed to reduce deployment timelines from roughly six months to as little as 14 days. Its DSX platform also targets up to 30% lower power consumption and near-zero cooling-water usage, potentially easing customers’ power and permitting constraints. NVIDIA introduces DSX POD AI factories Positive Sentiment: Platform expansion supports the long-term bull case. New partnerships involving AI-agent security, robotics, autonomous vehicles, telecom networks, quantum-computing interfaces and industrial AI reinforce NVIDIA’s strategy of selling a broader full-stack computing ecosystem rather than only GPUs. Neutral Sentiment: Quantum news is strategically relevant but not yet a material earnings driver. Quantum X Labs reported improved error-correction results using NVIDIA CUDA-Q, illustrating ecosystem adoption, although the announcement does not provide meaningful near-term revenue information for NVIDIA. Negative Sentiment: Investors are questioning AI-spending sustainability and financing. Concerns that hyperscalers, neoclouds and other customers may struggle to fund massive data-center buildouts are weighing on the entire AI trade. Rising-rate risk adds pressure to high-growth technology valuations. Negative Sentiment: Semiconductor-sector pressure compounded the decline. Chip stocks weakened after Lam Research cited supply-chain constraints, while broader technology indexes also fell. NVIDIA’s high valuation and upcoming earnings raise the risk of a “sell-the-news” reaction even if results exceed expectations. NVIDIA Stock Performance Shares of NASDAQ NVDA opened at $212.21 on Friday. The business’s 50-day moving average price is $222.86 and its two-hundred day moving average price is $212.57. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85. NVIDIA Corporation has a one year low of $164.27 and a one year high of $243.37. The company has a market capitalization of $5.11 trillion, a P/E ratio of 26.83, a price-to-earnings-growth ratio of 1.71 and a beta of 2.22.
NVIDIA (NASDAQ:NVDA – Get Free Report) last posted its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, topping analysts’ consensus estimates of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The company had revenue of $96.22 billion during the quarter, compared to the consensus estimate of $92.27 billion. During the same period last year, the business earned $1.05 EPS. The business’s quarterly revenue was up 105.9% on a year-over-year basis. Analysts anticipate that NVIDIA Corporation will post 9.30 earnings per share for the current fiscal year.
NVIDIA Announces Dividend The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, September 10th were issued a $0.25 dividend. The ex-dividend date was Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. NVIDIA’s dividend payout ratio is currently 12.64%.
NVIDIA announced that its board has initiated a stock repurchase plan on Monday, September 28th that allows the company to repurchase $150.00 billion in outstanding shares. This repurchase authorization allows the computer hardware maker to reacquire up to 2.8% of its stock through open market purchases. Share repurchase plans are often a sign that the company’s board of directors believes its stock is undervalued.
About NVIDIA (Free Report)
NVIDIA Corporation (NASDAQ: NVDA) is a technology company that designs graphics processing units (GPUs), accelerated computing platforms, networking products and related software. Its technologies support artificial intelligence, machine learning, scientific computing, data analytics, professional visualization and computer graphics.
The company’s products include GeForce GPUs for gaming and personal computing, data center GPUs and systems for AI and high-performance computing, and networking solutions used to connect and manage large-scale computing infrastructure.
Featured Stories Five stocks we like better than NVIDIA Is Texas Instruments Setting Up for Its Next Big Breakout? Pegasystems’ Q3 Miss Exposed the Problem Standing Between AI and Cash Flow Lam Research’s Earnings Beat Wasn’t the Real Story—Its 2027 Outlook Was Tesla’s Flying-Car Hype Hits an Earnings Reality Check
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HighTower Advisors LLC lessened its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 4.0% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 7,407,961 shares of the computer hardware maker’s stock after selling 305,188 shares during the period. NVIDIA makes up 1.4% of HighTower Advisors LLC’s holdings, making the stock its 11th biggest position. HighTower Advisors LLC’s holdings in NVIDIA were worth $1,482,259,000 as of its most recent SEC filing.
Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Kirkwood Financial Services acquired a new stake in NVIDIA during the second quarter worth about $864,000. Tobias Financial Advisors Inc. raised its position in NVIDIA by 50.0% during the second quarter. Tobias Financial Advisors Inc. now owns 29,786 shares of the computer hardware maker’s stock valued at $5,960,000 after acquiring an additional 9,924 shares in the last quarter. Groupe la Francaise raised its position in NVIDIA by 4.3% during the second quarter. Groupe la Francaise now owns 2,618,791 shares of the computer hardware maker’s stock valued at $520,898,000 after acquiring an additional 107,074 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in NVIDIA in the second quarter valued at approximately $1,036,586,000. Finally, Financial Insights Inc. lifted its holdings in NVIDIA by 1.3% in the second quarter. Financial Insights Inc. now owns 16,681 shares of the computer hardware maker’s stock valued at $3,338,000 after acquiring an additional 219 shares during the period. 65.27% of the stock is currently owned by institutional investors and hedge funds.
Insider Activity at NVIDIA In related news, Director Mark Stevens sold 622,239 shares of the business’s stock in a transaction on Friday, September 4th. The shares were sold at an average price of $231.62, for a total value of $144,122,997.18. Following the completion of the sale, the director owned 2,336,531 shares of the company’s stock, valued at approximately $541,187,310.22. The trade was a 21.03% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Timothy Teter sold 30,460 shares of the company’s stock in a transaction on Monday, September 21st. The stock was sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the transaction, the executive vice president owned 2,687,660 shares of the company’s stock, valued at $598,810,648. This represents a 1.12% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 1,766,118 shares of company stock valued at $399,450,353. 3.94% of the stock is owned by company insiders.
NVIDIA Stock Down 4.4% Shares of NVDA opened at $212.21 on Friday. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14. NVIDIA Corporation has a 12 month low of $164.27 and a 12 month high of $243.37. The stock’s 50 day moving average is $222.86 and its two-hundred day moving average is $212.57. The firm has a market cap of $5.11 trillion, a P/E ratio of 26.83, a PEG ratio of 1.71 and a beta of 2.22. NVIDIA (NASDAQ:NVDA – Get Free Report) last posted its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, beating analysts’ consensus estimates of $2.09 by $0.13. The business had revenue of $96.22 billion during the quarter, compared to analysts’ expectations of $92.27 billion. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The business’s revenue was up 105.9% compared to the same quarter last year. During the same period in the previous year, the business earned $1.05 earnings per share. Analysts predict that NVIDIA Corporation will post 9.30 earnings per share for the current fiscal year.
NVIDIA declared that its board has authorized a stock repurchase program on Monday, September 28th that authorizes the company to repurchase $150.00 billion in outstanding shares. This buyback authorization authorizes the computer hardware maker to reacquire up to 2.8% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s management believes its stock is undervalued.
NVIDIA Dividend Announcement The business also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, September 10th were paid a $0.25 dividend. The ex-dividend date of this dividend was Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. NVIDIA’s dividend payout ratio (DPR) is currently 12.64%.
Key NVIDIA News Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: AI infrastructure demand remains robust. CEO Jensen Huang said neocloud demand is “off the charts,” while Super Micro’s significantly higher revenue outlook and SpaceX’s plans to add substantial computing capacity provided evidence that customers continue expanding AI infrastructure. Nvidia CEO Jensen Huang says neocloud demand is off the charts but capital is scarce Positive Sentiment: GTC Berlin expanded NVIDIA’s addressable market. The company introduced DSX POD modular Vera Rubin AI factories, designed to reduce deployment timelines from roughly six months to as little as 14 days. Its DSX platform also targets up to 30% lower power consumption and near-zero cooling-water usage, potentially easing customers’ power and permitting constraints. NVIDIA introduces DSX POD AI factories Positive Sentiment: Platform expansion supports the long-term bull case. New partnerships involving AI-agent security, robotics, autonomous vehicles, telecom networks, quantum-computing interfaces and industrial AI reinforce NVIDIA’s strategy of selling a broader full-stack computing ecosystem rather than only GPUs. Neutral Sentiment: Quantum news is strategically relevant but not yet a material earnings driver. Quantum X Labs reported improved error-correction results using NVIDIA CUDA-Q, illustrating ecosystem adoption, although the announcement does not provide meaningful near-term revenue information for NVIDIA. Negative Sentiment: Investors are questioning AI-spending sustainability and financing. Concerns that hyperscalers, neoclouds and other customers may struggle to fund massive data-center buildouts are weighing on the entire AI trade. Rising-rate risk adds pressure to high-growth technology valuations. Negative Sentiment: Semiconductor-sector pressure compounded the decline. Chip stocks weakened after Lam Research cited supply-chain constraints, while broader technology indexes also fell. NVIDIA’s high valuation and upcoming earnings raise the risk of a “sell-the-news” reaction even if results exceed expectations. Analyst Upgrades and Downgrades Several research firms have commented on NVDA. Sanford C. Bernstein restated a “buy” rating on shares of NVIDIA in a research report on Monday, September 21st. BMO Capital Markets set a $340.00 target price on shares of NVIDIA and gave the company an “outperform” rating in a report on Thursday, August 20th. China Renaissance boosted their target price on shares of NVIDIA from $319.00 to $330.00 and gave the company a “buy” rating in a research note on Monday, August 31st. UBS Group reissued a “buy” rating on shares of NVIDIA in a report on Friday, October 9th. Finally, Zacks Research upgraded shares of NVIDIA from a “hold” rating to a “strong-buy” rating in a research report on Monday, September 21st. Five investment analysts have rated the stock with a Strong Buy rating, forty-nine have given a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus target price of $321.47.
Read Our Latest Stock Report on NVIDIA
About NVIDIA (Free Report)
NVIDIA Corporation (NASDAQ: NVDA) is a technology company that designs graphics processing units (GPUs), accelerated computing platforms, networking products and related software. Its technologies support artificial intelligence, machine learning, scientific computing, data analytics, professional visualization and computer graphics.
The company’s products include GeForce GPUs for gaming and personal computing, data center GPUs and systems for AI and high-performance computing, and networking solutions used to connect and manage large-scale computing infrastructure.
Read More Five stocks we like better than NVIDIA Is Texas Instruments Setting Up for Its Next Big Breakout? Pegasystems’ Q3 Miss Exposed the Problem Standing Between AI and Cash Flow Lam Research’s Earnings Beat Wasn’t the Real Story—Its 2027 Outlook Was Tesla’s Flying-Car Hype Hits an Earnings Reality Check
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HORAN Wealth LLC boosted its position in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 5.6% in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 57,377 shares of the computer hardware maker’s stock after purchasing an additional 3,018 shares during the period. NVIDIA comprises 1.4% of HORAN Wealth LLC’s investment portfolio, making the stock its 15th biggest position. HORAN Wealth LLC’s holdings in NVIDIA were worth $11,480,000 at the end of the most recent reporting period.
Several other hedge funds and other institutional investors have also recently bought and sold shares of NVDA. Jupiter Topco LLC purchased a new position in shares of NVIDIA in the second quarter valued at $16,156,076,000. Van ECK Associates Corp raised its stake in shares of NVIDIA by 34.7% during the 2nd quarter. Van ECK Associates Corp now owns 75,849,721 shares of the computer hardware maker’s stock worth $15,176,771,000 after buying an additional 19,522,304 shares during the last quarter. Amundi boosted its position in shares of NVIDIA by 10.4% in the 1st quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock worth $23,329,141,000 after buying an additional 12,575,177 shares in the last quarter. Nykredit A S purchased a new stake in shares of NVIDIA in the 2nd quarter worth about $2,315,956,000. Finally, SEB Asset Management AB purchased a new stake in shares of NVIDIA in the 1st quarter worth about $1,692,807,000. 65.27% of the stock is owned by institutional investors and hedge funds.
Insiders Place Their Bets In related news, Director Mark A. Stevens sold 622,239 shares of the company’s stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the transaction, the director owned 2,336,531 shares of the company’s stock, valued at approximately $541,187,310.22. This represents a 21.03% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Timothy S. Teter sold 30,460 shares of the company’s stock in a transaction that occurred on Monday, September 21st. The shares were sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the transaction, the executive vice president directly owned 2,687,660 shares in the company, valued at $598,810,648. The trade was a 1.12% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,766,118 shares of company stock valued at $399,450,353 in the last ninety days. Insiders own 3.94% of the company’s stock.
Analysts Set New Price Targets NVDA has been the topic of a number of research reports. Deutsche Bank Aktiengesellschaft reissued a “buy” rating on shares of NVIDIA in a research note on Monday, August 31st. DA Davidson restated a “buy” rating and set a $300.00 target price on shares of NVIDIA in a research report on Thursday, August 27th. Wells Fargo & Company set a $210.00 price target on shares of NVIDIA in a report on Friday, October 2nd. Melius Research set a $420.00 price target on shares of NVIDIA in a research report on Thursday, August 27th. Finally, DZ Bank reiterated a “buy” rating on shares of NVIDIA in a research report on Wednesday, August 26th. Five investment analysts have rated the stock with a Strong Buy rating, forty-nine have assigned a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Buy” and an average price target of $321.47. Read Our Latest Analysis on NVDA
Trending Headlines about NVIDIA Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: AI infrastructure demand remains robust. CEO Jensen Huang said neocloud demand is “off the charts,” while Super Micro’s significantly higher revenue outlook and SpaceX’s plans to add substantial computing capacity provided evidence that customers continue expanding AI infrastructure. Nvidia CEO Jensen Huang says neocloud demand is off the charts but capital is scarce Positive Sentiment: GTC Berlin expanded NVIDIA’s addressable market. The company introduced DSX POD modular Vera Rubin AI factories, designed to reduce deployment timelines from roughly six months to as little as 14 days. Its DSX platform also targets up to 30% lower power consumption and near-zero cooling-water usage, potentially easing customers’ power and permitting constraints. NVIDIA introduces DSX POD AI factories Positive Sentiment: Platform expansion supports the long-term bull case. New partnerships involving AI-agent security, robotics, autonomous vehicles, telecom networks, quantum-computing interfaces and industrial AI reinforce NVIDIA’s strategy of selling a broader full-stack computing ecosystem rather than only GPUs. Neutral Sentiment: Quantum news is strategically relevant but not yet a material earnings driver. Quantum X Labs reported improved error-correction results using NVIDIA CUDA-Q, illustrating ecosystem adoption, although the announcement does not provide meaningful near-term revenue information for NVIDIA. Negative Sentiment: Investors are questioning AI-spending sustainability and financing. Concerns that hyperscalers, neoclouds and other customers may struggle to fund massive data-center buildouts are weighing on the entire AI trade. Rising-rate risk adds pressure to high-growth technology valuations. Negative Sentiment: Semiconductor-sector pressure compounded the decline. Chip stocks weakened after Lam Research cited supply-chain constraints, while broader technology indexes also fell. NVIDIA’s high valuation and upcoming earnings raise the risk of a “sell-the-news” reaction even if results exceed expectations. NVIDIA Stock Down 4.4% NVDA opened at $212.21 on Friday. The firm has a market cap of $5.11 trillion, a P/E ratio of 26.83, a PEG ratio of 1.71 and a beta of 2.22. The business’s fifty day simple moving average is $222.86 and its 200 day simple moving average is $212.57. NVIDIA Corporation has a 52 week low of $164.27 and a 52 week high of $243.37. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14.
NVIDIA (NASDAQ:NVDA – Get Free Report) last announced its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, beating the consensus estimate of $2.09 by $0.13. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The firm had revenue of $96.22 billion during the quarter, compared to the consensus estimate of $92.27 billion. During the same quarter in the previous year, the company posted $1.05 EPS. The firm’s revenue for the quarter was up 105.9% on a year-over-year basis. As a group, equities research analysts anticipate that NVIDIA Corporation will post 9.30 EPS for the current fiscal year.
NVIDIA declared that its Board of Directors has authorized a stock buyback plan on Monday, September 28th that allows the company to repurchase $150.00 billion in shares. This repurchase authorization allows the computer hardware maker to repurchase up to 2.8% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board of directors believes its stock is undervalued.
NVIDIA Announces Dividend The company also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. The ex-dividend date of this dividend was Thursday, September 10th. NVIDIA’s dividend payout ratio (DPR) is currently 12.64%.
NVIDIA Profile (Free Report)
NVIDIA Corporation (NASDAQ: NVDA) is a technology company that designs graphics processing units (GPUs), accelerated computing platforms, networking products and related software. Its technologies support artificial intelligence, machine learning, scientific computing, data analytics, professional visualization and computer graphics.
The company’s products include GeForce GPUs for gaming and personal computing, data center GPUs and systems for AI and high-performance computing, and networking solutions used to connect and manage large-scale computing infrastructure.
Read More Five stocks we like better than NVIDIA Is Texas Instruments Setting Up for Its Next Big Breakout? Pegasystems’ Q3 Miss Exposed the Problem Standing Between AI and Cash Flow Lam Research’s Earnings Beat Wasn’t the Real Story—Its 2027 Outlook Was Tesla’s Flying-Car Hype Hits an Earnings Reality Check
Receive News & Ratings for NVIDIA Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for NVIDIA and related companies with MarketBeat.com's FREE daily email newsletter.
Wall Street already sees more than 50% upside in NVIDIA, but one analyst thinks even that target is too conservative. Here is the specific combination of catalysts that could push shares well beyond what most investors are pricing in.
Jensen Huang put it simply in August: “AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue.” That line explains why NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) remains the center of the AI expansion.
Shares are up 15.08% year-to-date at $214.13, even after a 6.61% drop last week tied to a global tech rout on AI funding worries. Over five years, the stock has gained 883.76%. I think that decline sets up the next leg. Here’s what NVIDIA needs to do to hit $350 in 2027.
Wall Street Already Sees More Than 50% Upside
The consensus price target sits at $328.72, roughly 54% above today’s price. Analysts are nearly unanimous, with 10 Strong Buy and 49 Buy ratings against 1 Sell.
Estimates keep climbing. Fiscal 2028 EPS forecasts rose from $12.7636 90 days ago to $15.9146, with 7 upward revisions and 0 downward over the last 30 days. In the latest quarter, EPS of $2.22 topped the $2.09 consensus, marking a fifth consecutive earnings beat, on revenue up 105.8%.
Here’s What It Takes for NVIDIA to Reach $350
At $214.13, NVIDIA changes hands at about 13x fiscal 2028 earnings estimates. At $350, that multiple would be roughly 22x, close to a market-average valuation for a company projected to grow EPS about 71% from fiscal 2027’s $9.3124 estimate.
How might NVIDIA reach $350?
Vera Rubin: Management expects the fastest product ramp in company history, lifting revenue opportunity per gigawatt from $25 billion with Blackwell to $40 billion.
Hyperscaler capex: Top-five hyperscaler spending is expected to reach $1.3 trillion in 2027, and AWS is deploying an additional 2 million GPUs.
Untapped demand: Management guided to roughly 70% fiscal 2028 revenue growth while noting “Customers’ forecasts point to our growth doubling next year.” Supply, rather than demand, is the limiting factor.
Beat streak: Five straight beats suggest actual results may outrun forecasts again.
All of that expansion has to be powered, cooled, and networked by somebody other than NVIDIA, which is why we rounded up seven non-chip AI infrastructure names in a free report you can grab here.
NVIDIA’s History Says a 63% Gain Is Within Reach
Hitting $350 requires a 63% gain. NVIDIA has posted triple-digit annual returns in 2016, 2021, 2023, and 2024, and shares are up 13002.9% over ten years.
With a market cap near $5.17 trillion, repeating those moves is harder, but a beta of 2.216 means big swings remain part of this stock’s character.
Is $350 Realistic? Here’s My Take
Reaching $350 asks for a 63% gain, but Wall Street already projects about 54% upside and estimates are rising. The challenges are real: guidance assumes zero China data center compute revenue, supply commitments reached $279 billion, and AI funding worries could weigh on the group.
A 22x multiple on next year’s earnings looks reasonable, assuming Vera Rubin ramps as planned and NVIDIA keeps beating expectations. Such returns shouldn’t be expected every year, but we’ve outlined the blueprint for how NVIDIA could see outsized returns in 2027.
Contact [email protected] for any questions or corrections.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Nvidia (NVDA - Free Report) .
Nvidia currently has an average brokerage recommendation (ABR) of 1.13, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 53 brokerage firms. An ABR of 1.13 approximates between Strong Buy and Buy.
Of the 53 recommendations that derive the current ABR, 49 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 92.5% and 5.7% of all recommendations.
Brokerage Recommendation Trends for NVDA
Check price target & stock forecast for Nvidia here>>>
While the ABR calls for buying Nvidia, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is NVDA Worth Investing In?Looking at the earnings estimate revisions for Nvidia, the Zacks Consensus Estimate for the current year has increased 0.6% over the past month to $9.3.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Nvidia. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Nvidia may serve as a useful guide for investors.
Every time NVIDIA pulls back, the same question resurfaces: is the selloff a warning sign or a rare entry point into the most entrenched platform in AI computing? The answer depends on one software layer that almost nobody talks about.
I have bought NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) on dip after dip, and this latest slide put the stock back at the top of my research list. Shares fell 4.4% in the most recent session and 7.28% over the past month, closing at $212.21. That pullback stands out given NVIDIA’s position in AI computing.
Why I Keep Coming Back to NVIDIA
My thesis comes down to one point. AI models run on NVIDIA, and the CUDA software layer makes leaving expensive. On the August call, CEO Jensen Huang said “Our position in open models is very good because the CUDA ecosystem is literally everywhere.” Developers write for CUDA, clouds rent CUDA, and each new chip generation inherits that installed base. That lock-in strengthens with each chip generation.
Three Reasons My Conviction Keeps Growing
First, growth at scale. Revenue for the second quarter of fiscal 2027 reached $96.22B, up 105.8% year over year. Data Center revenue hit $89.02B, up 117%, and networking grew 138%. That tells me customers buy the whole AI factory, chips and connections together. Guidance calls for $108.0B ±2% next quarter.
Second, profitability. NVIDIA runs a 71.07% gross margin, a 60.38% operating margin, and a 101.49% return on equity. Fiscal 2026 free cash flow came in at $96.58B.
The balance sheet and capital return also look strong. Its debt-to-equity stands at 0.073, and interest coverage at 503.42x. NVIDIA returned about $26.0B in Q2 and holds $99.0B of remaining buyback authorization. The 0.019% yield pays me little, so I own this for compounding, and a P/E of 43 looks reasonable for that growth rate.
Why AMD and Broadcom Trail NVIDIA in My Analysis
Advanced Micro Devices (NASDAQ:AMD) grew Data Center revenue 107% last quarter. Still, it trades at a P/E of 191, with a gross margin near 49.5%, and its Q2 free cash flow fell 9.89%. AMD itself lists ROCm’s competition with established developer ecosystems as a risk.
Broadcom (NASDAQ:AVGO) posted AI semiconductor revenue of $16.70 billion, up 221%. Its own filings flag dependence on a limited number of AI customers and significant indebtedness. I prefer NVIDIA’s near-debt-free platform.
Risks I Track Every Quarter
Supply commitments rose to $279.0B from $119.0B one quarter earlier, mostly linked to Vera Rubin memory. Days sales outstanding extended to 60 days from 45, and guidance excludes China Data Center compute. If AI spending stalls, those commitments could hurt margins and cash flow.
Demand still exceeds supply. Huang said “Even though our demand is much greater than 70%, our supply allows us to confidently deliver 70%.” NVIDIA holds Vera Rubin purchase orders from every major hyperscaler, AI cloud and system OEM. Those orders make the commitments look like preparation to me.
What Keeps NVIDIA at the Top of My Watchlist
NVIDIA’s revenue opportunity per gigawatt rises to $40 billion with Vera Rubin from $25 billion with Blackwell. Top hyperscaler capex should reach nearly $800 billion in 2026 and $1.3 trillion in 2027. The stock has returned 837.87% over five years, and my long-term view remains the same. The expansion also needs power, cooling, and networking suppliers that rarely make the headlines, which we profiled in a free report on seven AI infrastructure stocks that aren’t chipmakers.
Contact [email protected] for any questions or corrections.
Short sellers piled into AI data center stocks and walked away with billions in October gains, but a $76 billion funding gap and bond yields near 15% suggest the pain for these companies may have only just started.
Short sellers in U.S. neocloud and AI data center stocks held about $6 billion in October paper profits through October 22, 2026, by ORTEX’s estimate. These gains are unrealized and get marked again at every close, so they can disappear quickly.
CoreWeave (NASDAQ:CRWV) fell 10.06% to $55.60 on October 22, leaving it with a $30.67 billion market value. During the session it reached $53.50, which is now the bottom of a 52-week range that tops out at $141.79. About 79.7 million shares changed hands, roughly 122% above the three-month average.
Nebius Group (NASDAQ:NBIS | NBIS Price Prediction) fell 7.23% to $159.17, a $43.63 billion market value, on the same day it announced new financing from Citi. Demand for AI computing looks strong, but investors doubt these companies can pay for the expansion that demand requires.
What Short Sellers Actually Won in October Nebius shorts made the most in October, $2.94 billion, but for 2026 as a whole they still show a $3.33 billion paper loss. That is because the stock is still up 90.16% year-to-date.
CoreWeave shorts made close to $1.7 billion. Shorts in IREN (NASDAQ:IREN) and Applied Digital (NASDAQ:APLD) made $1.2 billion-plus between them. CoreWeave is the clearer win for shorts, since the stock is down 22.36% for 2026.
From September 30 to October 22, CoreWeave fell about 36% from $87.12. Nebius fell about 33% from $235.88 over that span.
How Crowded the Short Trade Has Become Across the group’s five most-shorted names, short interest runs about 20% to 26% of free float. Free float refers to the shares actually available to trade. CoreWeave’s figure is 23.7%, up from 19.6% at the start of October and 22.7% in January. Nebius rose to 20% from 15.4%.
About $17 billion of stock is sold short across those names, and borrowing the shares is still cheap. Low fees let shorts hold their positions for months. The risk is that a crowded trade can reverse fast. If good news forces many shorts to buy shares back at the same time, the price jumps, and that is called a short squeeze.
Debt Math Driving the Selloff Bernstein kept its Underperform rating on CoreWeave and cut its price target to $51 from $74. The firm estimates CoreWeave needs about $85 billion to deliver on its existing contracts. Current facilities cover about $9 billion of that, leaving roughly $76 billion to raise from outside. If the company sells stock to fill that gap, existing shareholders get diluted.
CoreWeave’s unsecured bonds recently yielded around 15%, and its 2032 notes yielded near 14.8%. Double-digit yields mean lenders see real default risk, and the bond market often signals trouble before the stock market does.
Nearly half of the data center bonds sold in 2026 are junk-rated, meaning rated below investment grade. That junk total is more than four times last year’s. Bonds linked to data centers that CoreWeave rents yield about 11% on average.
New Money That Didn’t Calm the Market Nebius’s $3.5 billion senior secured facility from Citi will pay for data center development and GPU purchases. It charges Term SOFR, a benchmark lending rate, plus 2.75%, and that margin can rise to a maximum of 3.50%. The company’s COO, Ophir Nave, said, “This facility provides additional financing to support our near-term capacity build-out.”
The stock fell anyway. The loan matures in 364 days, so Nebius will face the refinancing question again within a year.
Can AI Data Center Stocks Close Their Funding Gap? The most bullish voices have a stake in the result. NVIDIA (NASDAQ:NVDA) CEO Jensen Huang said at GTC Berlin that “the demand for the neoclouds is off the charts” and that the capital shortage is “going to get solved.” NVIDIA sells the GPUs these companies borrow to buy, and its own stock fell 4.40% to $212.21 on October 22.
Blackstone President and COO Jon Gray said “the underlying business is actually quite strong” and thinks CoreWeave can get through its financing pressure. He also claims compute pricing is up 50% for neoclouds that make it through. That figure is his opinion and has not been verified. Whatever happens to the neoclouds, the power, cooling, and networking suppliers behind the data centers keep collecting checks, which is why we pulled seven of them into a free report on the AI buildout.
For now, the bear case is stronger. Strong demand still leaves a $76 billion funding gap at CoreWeave, and bond yields near 15% show lenders are worried too. NVIDIA gets paid for its chips without carrying the neoclouds’ funding gap.
The next test comes with third-quarter reports, which are expected but not confirmed by the companies: IREN around November 5, CoreWeave around November 9, and Nebius around November 10. If CoreWeave closes below $53.50, or its unsecured bond yields stay near 15% after it reports, the short sellers’ case holds.
Contact [email protected] for any questions or corrections.
Axxcess Wealth Management LLC lowered its holdings in shares of AT&T Inc. (NYSE:T – Free Report) by 22.5% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 100,210 shares of the technology company’s stock after selling 29,056 shares during the quarter. Axxcess Wealth Management LLC’s holdings in AT&T were worth $2,445,000 at the end of the most recent reporting period.
Other institutional investors also recently bought and sold shares of the company. Albion Financial Group UT grew its holdings in AT&T by 32.5% in the third quarter. Albion Financial Group UT now owns 2,301 shares of the technology company’s stock valued at $56,000 after purchasing an additional 565 shares during the period. Inlet Private Wealth LLC raised its stake in shares of AT&T by 22.1% during the 3rd quarter. Inlet Private Wealth LLC now owns 20,178 shares of the technology company’s stock worth $492,000 after buying an additional 3,650 shares during the period. Ellis Investment Partners LLC lifted its position in shares of AT&T by 3.8% during the 3rd quarter. Ellis Investment Partners LLC now owns 21,076 shares of the technology company’s stock valued at $514,000 after buying an additional 776 shares in the last quarter. Physician Wealth Advisors Inc. lifted its position in shares of AT&T by 11.5% during the 3rd quarter. Physician Wealth Advisors Inc. now owns 12,158 shares of the technology company’s stock valued at $297,000 after buying an additional 1,254 shares in the last quarter. Finally, Carnegie Investment Counsel grew its stake in AT&T by 27.0% in the 3rd quarter. Carnegie Investment Counsel now owns 142,506 shares of the technology company’s stock valued at $3,477,000 after acquiring an additional 30,302 shares during the period. 57.10% of the stock is owned by institutional investors and hedge funds.
Key Stories Impacting AT&T Here are the key news stories impacting AT&T this week:
Positive Sentiment: AT&T reported third-quarter adjusted EPS of $0.65 and revenue of $32.32 billion, exceeding analyst estimates. Revenue increased roughly 5.2% year over year, supported by fiber and wireless growth. AT&T quarterly earnings results Positive Sentiment: Record Advanced Connectivity additions included 769,000 internet customers, 442,000 fiber additions and 379,000 postpaid phone additions. Management raised its 2026 adjusted EPS outlook to approximately $2.40 and plans roughly $10 billion in share repurchases. AT&T third-quarter results Positive Sentiment: Argus reaffirmed its buy rating with a $30 price target, while JPMorgan and KeyCorp maintained positive ratings despite reducing their targets to $31 and $33, respectively. Analyst ratings Neutral Sentiment: AT&T plans to reduce annual capital spending by about $1 billion in 2027–2028 while retaining its goal of reaching more than 60 million fiber locations by 2030. The lower spending supports cash flow but could raise questions about growth investment and fiber execution. AT&T fiber spending strategy Negative Sentiment: Investors are concerned that debt reduction is taking longer than expected. Net debt rose following the EchoStar spectrum transaction, and management now expects to return to its targeted net-debt-to-EBITDA range in 2029. A $2.6 billion noncash impairment tied to the Mexico wireless business also weighed on sentiment. AT&T debt and impairment analysis Negative Sentiment: Potential competition from SpaceX’s Starlink Mobile service is amplifying concerns about wireless subscriber growth, pricing and the need for additional customer incentives. Fiber introductory promotions are also pressuring pricing. Telecom stocks and Starlink concerns AT&T Stock Up 3.7% T stock opened at $22.73 on Friday. The firm has a market cap of $155.72 billion, a PE ratio of 9.17, a PEG ratio of 1.04 and a beta of 0.25. The company has a debt-to-equity ratio of 1.22, a quick ratio of 0.93 and a current ratio of 0.87. The firm’s 50 day moving average price is $24.86 and its 200-day moving average price is $24.25. AT&T Inc. has a one year low of $19.89 and a one year high of $29.43. AT&T (NYSE:T – Get Free Report) last announced its quarterly earnings results on Wednesday, October 21st. The technology company reported $0.65 EPS for the quarter, beating the consensus estimate of $0.60 by $0.05. The business had revenue of $32.32 billion for the quarter, compared to analyst estimates of $31.69 billion. AT&T had a return on equity of 13.41% and a net margin of 10.19%. The company’s quarterly revenue was up 5.2% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.54 EPS. On average, equities research analysts anticipate that AT&T Inc. will post 2.39 EPS for the current year.
AT&T Announces Dividend The business also recently announced a quarterly dividend, which will be paid on Monday, November 2nd. Shareholders of record on Monday, October 12th will be paid a dividend of $0.2775 per share. This represents a $1.11 annualized dividend and a yield of 4.9%. The ex-dividend date of this dividend is Friday, October 9th. AT&T’s dividend payout ratio (DPR) is 36.75%.
Analyst Ratings Changes Several research firms have issued reports on T. Sanford C. Bernstein downgraded shares of AT&T from an “outperform” rating to a “market perform” rating and set a $24.00 price objective on the stock. in a report on Tuesday, October 13th. KeyCorp cut their target price on shares of AT&T from $36.00 to $33.00 and set an “overweight” rating for the company in a research note on Thursday. Royal Bank Of Canada reduced their price target on shares of AT&T from $31.00 to $27.00 and set an “outperform” rating for the company in a research report on Monday, July 20th. Scotiabank decreased their price target on shares of AT&T from $27.50 to $26.50 and set a “sector perform” rating on the stock in a research note on Friday, October 9th. Finally, Weiss Ratings upgraded AT&T from a “hold (c+)” rating to a “buy (b-)” rating in a report on Monday, August 3rd. Twelve investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $28.55.
Read Our Latest Stock Report on T
AT&T Company Profile (Free Report)
AT&T Inc (NYSE: T) is a telecommunications company that provides wireless communications, broadband, and related connectivity services. Its offerings include mobile voice and data plans, internet access, fiber broadband, fixed wireless services, and business communications solutions.
The company serves consumers, businesses, government agencies, and other organizations primarily in the United States. AT&T’s business operations include wireless network services, wireline connectivity, fiber-optic internet, voice services, and networking solutions designed to connect locations, devices, and applications.
AT&T traces its history to the Bell System and has operated under its current corporate name since 2005, following the acquisition of AT&T Corp.
Featured Articles Five stocks we like better than AT&T Is Texas Instruments Setting Up for Its Next Big Breakout? Pegasystems’ Q3 Miss Exposed the Problem Standing Between AI and Cash Flow Lam Research’s Earnings Beat Wasn’t the Real Story—Its 2027 Outlook Was Tesla’s Flying-Car Hype Hits an Earnings Reality Check Want to see what other hedge funds are holding T? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for AT&T Inc. (NYSE:T – Free Report).
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Telecom stocks are tumbling on news that SpaceX is aiming to secure 80,000 cell sites across the US, raising the specter of fierce competition between the industry's big three and Starlink Mobile.
AT&T Inc. (NYSE:T) shares are sliding Thursday after a report that SpaceX wants access to at least 80,000 cell sites across the U.S., a prospect that is stoking competition fears for wireless carriers.
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Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.82% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
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As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
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Stock to Watch: AT&T (T - Free Report) Based in Dallas, TX, AT&T Inc. is the second largest wireless service provider in North America and one of the world’s leading communications service carriers. It provides wireless, local exchange, long-distance, broadband, Internet, video, managed networking, wholesale and cloud-based services.
T is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 9.62; value investors should take notice.
For fiscal 2026, seven analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.02 to $2.36 per share. T boasts an average earnings surprise of +8.4%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, T should be on investors' short list.
Carnegie Investment Counsel lessened its position in Netflix, Inc. (NASDAQ:NFLX – Free Report) by 45.3% during the third quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 14,002 shares of the Internet television network’s stock after selling 11,617 shares during the quarter. Carnegie Investment Counsel’s holdings in Netflix were worth $974,000 as of its most recent filing with the SEC.
Several other institutional investors have also recently bought and sold shares of NFLX. American Capital Advisory LLC raised its holdings in shares of Netflix by 0.8% in the first quarter. American Capital Advisory LLC now owns 13,990 shares of the Internet television network’s stock valued at $1,345,000 after purchasing an additional 109 shares during the last quarter. CWS Financial Advisors LLC boosted its holdings in Netflix by 3.2% during the first quarter. CWS Financial Advisors LLC now owns 3,612 shares of the Internet television network’s stock worth $347,000 after purchasing an additional 112 shares during the last quarter. Warner Group LLC boosted its holdings in Netflix by 2.2% during the first quarter. Warner Group LLC now owns 5,230 shares of the Internet television network’s stock worth $503,000 after purchasing an additional 114 shares during the last quarter. Financial Avengers Inc. grew its position in Netflix by 9.8% in the first quarter. Financial Avengers Inc. now owns 1,290 shares of the Internet television network’s stock valued at $124,000 after purchasing an additional 115 shares in the last quarter. Finally, PAX Financial Group LLC grew its position in Netflix by 2.5% in the first quarter. PAX Financial Group LLC now owns 4,847 shares of the Internet television network’s stock valued at $466,000 after purchasing an additional 116 shares in the last quarter. Institutional investors own 80.93% of the company’s stock.
Analysts Set New Price Targets Several brokerages have issued reports on NFLX. Guggenheim lowered their price target on shares of Netflix from $80.00 to $78.00 and set a “buy” rating on the stock in a research note on Wednesday. Pivotal Research restated a “hold” rating and set a $65.00 price objective (down from $70.00) on shares of Netflix in a research note on Wednesday. Loop Capital reduced their price objective on shares of Netflix from $115.00 to $95.00 and set a “buy” rating for the company in a research note on Friday, July 24th. DZ Bank restated a “buy” rating on shares of Netflix in a report on Monday, July 20th. Finally, Wolfe Research downgraded Netflix from an “outperform” rating to a “peer perform” rating in a research report on Thursday. Three investment analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, seventeen have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $89.59.
Get Our Latest Research Report on NFLX Netflix Stock Performance Shares of NASDAQ NFLX opened at $67.05 on Friday. The company has a current ratio of 1.07, a quick ratio of 1.14 and a debt-to-equity ratio of 0.43. The company has a market capitalization of $279.19 billion, a P/E ratio of 19.38, a P/E/G ratio of 0.92 and a beta of 1.62. Netflix, Inc. has a 12 month low of $64.10 and a 12 month high of $116.73. The stock has a 50 day moving average of $74.52 and a 200-day moving average of $79.74.
Netflix (NASDAQ:NFLX – Get Free Report) last announced its quarterly earnings results on Tuesday, October 20th. The Internet television network reported $0.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.82 by $0.05. Netflix had a return on equity of 42.69% and a net margin of 29.69%. The business had revenue of $12.87 billion during the quarter, compared to the consensus estimate of $12.87 billion. During the same quarter last year, the firm posted $0.59 EPS. The company’s quarterly revenue was up 11.9% on a year-over-year basis. As a group, equities research analysts predict that Netflix, Inc. will post 3.58 EPS for the current year.
Insider Buying and Selling In other news, CFO Spencer Neumann sold 9,248 shares of the stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $75.79, for a total value of $700,905.92. Following the transaction, the chief financial officer directly owned 73,787 shares of the company’s stock, valued at $5,592,316.73. This represents a 11.14% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Theodore Sarandos sold 105,850 shares of the firm’s stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $73.03, for a total transaction of $7,730,225.50. Following the sale, the chief executive officer owned 206,266 shares of the company’s stock, valued at approximately $15,063,605.98. This represents a 33.91% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 179,045 shares of company stock valued at $13,132,194. 1.24% of the stock is currently owned by insiders.
Key Stories Impacting Netflix Here are the key news stories impacting Netflix this week:
Positive Sentiment: Investors are treating the sell-off as a potential buying opportunity. Netflix beat third-quarter EPS expectations, generated $12.87 billion in revenue, and increased operating income 34.6% year over year. Several analysts—including UBS, JPMorgan, Bank of America, and TD Cowen—retained positive ratings despite lowering price targets. Stock Market Today, Oct. 22: Netflix Rises as Investors Capitalize on Post-Earnings Sell-Off Positive Sentiment: Netflix’s valuation has become more attractive after the decline, with investors emphasizing rising profits, more than 300 million subscribers, pricing power, and potential long-term growth from advertising, live events, and international content. The company’s buybacks are substantial, although management appears to follow a systematic rather than opportunistic repurchase strategy. The Truth About Netflix’s Massive Stock Buybacks Neutral Sentiment: Management continues to target double-digit revenue growth and expects advertising revenue to grow more than 80% in 2026. Netflix is investing in original programming, theatrical releases, live sports, and events such as NFL games, but executives acknowledge that viewer-hour growth and content execution need to improve. Negative Sentiment: The principal pressure is Netflix’s fourth-quarter outlook: EPS guidance of $0.67 trails the $0.73 consensus, while projected revenue of $13.4 billion is below the $13.5 billion estimate. Full-year revenue guidance was also slightly reduced. ETFs in Focus as Netflix Shares Tumble Amid Q3 Earnings Beat, Guidance Cut Negative Sentiment: Netflix cut its 2026 advertising-revenue forecast from approximately $3 billion to $2.7 billion, reinforcing concerns about slower growth, delayed ad execution, weaker engagement, and competition from YouTube, TikTok, and lower-cost streaming options. Multiple analysts consequently lowered price targets, while Needham downgraded the stock to Hold. Why Netflix Stock Dropped Today Netflix Company Profile (Free Report)
Netflix, Inc (NASDAQ:NFLX) is a global entertainment company that provides subscription-based streaming services. Its platform offers a broad selection of television series, films, documentaries, stand-up specials and other programming, including content produced by Netflix and licensed from third-party studios and creators.
The company also develops and distributes original productions under the Netflix brand and has expanded into additional entertainment offerings, including mobile and cloud-based games in select markets and live programming.
See Also Five stocks we like better than Netflix Is Texas Instruments Setting Up for Its Next Big Breakout? Pegasystems’ Q3 Miss Exposed the Problem Standing Between AI and Cash Flow Lam Research’s Earnings Beat Wasn’t the Real Story—Its 2027 Outlook Was Tesla’s Flying-Car Hype Hits an Earnings Reality Check
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Compass Wealth Management LLC grew its stake in Netflix, Inc. (NASDAQ:NFLX – Free Report) by 26.5% in the third quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 89,926 shares of the Internet television network’s stock after acquiring an additional 18,836 shares during the quarter. Netflix comprises approximately 1.2% of Compass Wealth Management LLC’s investment portfolio, making the stock its 25th biggest position. Compass Wealth Management LLC’s holdings in Netflix were worth $6,257,000 at the end of the most recent reporting period.
Several other institutional investors have also modified their holdings of the stock. Royal Fund Management LLC lifted its stake in shares of Netflix by 1.5% in the 3rd quarter. Royal Fund Management LLC now owns 34,593 shares of the Internet television network’s stock valued at $2,407,000 after purchasing an additional 528 shares during the last quarter. WP Advisors LLC lifted its position in Netflix by 7.3% in the third quarter. WP Advisors LLC now owns 141,341 shares of the Internet television network’s stock valued at $9,835,000 after buying an additional 9,611 shares during the last quarter. Strategic Planning Group LLC boosted its stake in Netflix by 4.1% during the third quarter. Strategic Planning Group LLC now owns 152,979 shares of the Internet television network’s stock worth $10,644,000 after buying an additional 6,082 shares during the period. Indiana Trust & Investment Management Co boosted its stake in Netflix by 120.2% during the third quarter. Indiana Trust & Investment Management Co now owns 1,145 shares of the Internet television network’s stock worth $80,000 after buying an additional 625 shares during the period. Finally, Benin Management CORP boosted its stake in Netflix by 12.9% during the third quarter. Benin Management CORP now owns 5,690 shares of the Internet television network’s stock worth $396,000 after buying an additional 650 shares during the period. Hedge funds and other institutional investors own 80.93% of the company’s stock.
Wall Street Analysts Forecast Growth A number of equities research analysts have weighed in on NFLX shares. Itau BBA Securities dropped their price target on shares of Netflix from $151.40 to $96.00 and set an “outperform” rating for the company in a research report on Wednesday, August 5th. New Street Research upped their price objective on shares of Netflix from $96.00 to $102.00 and gave the stock a “neutral” rating in a report on Friday, July 17th. Deutsche Bank Aktiengesellschaft set a $93.00 price objective on shares of Netflix in a research report on Wednesday. KGI Securities downgraded shares of Netflix from an “outperform” rating to a “neutral” rating and set a $75.00 target price for the company. in a report on Friday, July 17th. Finally, Daiwa Securities Group cut their target price on Netflix from $102.00 to $76.00 and set an “outperform” rating on the stock in a research report on Wednesday, July 22nd. Three research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, seventeen have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Netflix has a consensus rating of “Moderate Buy” and a consensus price target of $89.59.
Read Our Latest Report on Netflix Key Headlines Impacting Netflix Here are the key news stories impacting Netflix this week:
Positive Sentiment: Investors are treating the sell-off as a potential buying opportunity. Netflix beat third-quarter EPS expectations, generated $12.87 billion in revenue, and increased operating income 34.6% year over year. Several analysts—including UBS, JPMorgan, Bank of America, and TD Cowen—retained positive ratings despite lowering price targets. Stock Market Today, Oct. 22: Netflix Rises as Investors Capitalize on Post-Earnings Sell-Off Positive Sentiment: Netflix’s valuation has become more attractive after the decline, with investors emphasizing rising profits, more than 300 million subscribers, pricing power, and potential long-term growth from advertising, live events, and international content. The company’s buybacks are substantial, although management appears to follow a systematic rather than opportunistic repurchase strategy. The Truth About Netflix’s Massive Stock Buybacks Neutral Sentiment: Management continues to target double-digit revenue growth and expects advertising revenue to grow more than 80% in 2026. Netflix is investing in original programming, theatrical releases, live sports, and events such as NFL games, but executives acknowledge that viewer-hour growth and content execution need to improve. Negative Sentiment: The principal pressure is Netflix’s fourth-quarter outlook: EPS guidance of $0.67 trails the $0.73 consensus, while projected revenue of $13.4 billion is below the $13.5 billion estimate. Full-year revenue guidance was also slightly reduced. ETFs in Focus as Netflix Shares Tumble Amid Q3 Earnings Beat, Guidance Cut Negative Sentiment: Netflix cut its 2026 advertising-revenue forecast from approximately $3 billion to $2.7 billion, reinforcing concerns about slower growth, delayed ad execution, weaker engagement, and competition from YouTube, TikTok, and lower-cost streaming options. Multiple analysts consequently lowered price targets, while Needham downgraded the stock to Hold. Why Netflix Stock Dropped Today Insider Activity In other Netflix news, CEO Theodore A. Sarandos sold 27,312 shares of the business’s stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $73.35, for a total value of $2,003,335.20. Following the completion of the transaction, the chief executive officer owned 178,954 shares in the company, valued at $13,126,275.90. The trade was a 13.24% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Richard N. Barton sold 720 shares of the business’s stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $75.27, for a total transaction of $54,194.40. Following the completion of the transaction, the director owned 2,460 shares of the company’s stock, valued at approximately $185,164.20. This trade represents a 22.64% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 179,045 shares of company stock worth $13,132,194 over the last 90 days. Company insiders own 1.24% of the company’s stock.
Netflix Stock Up 3.1% Shares of NASDAQ:NFLX opened at $67.05 on Friday. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.07 and a quick ratio of 1.14. The firm has a market capitalization of $279.19 billion, a PE ratio of 19.38, a price-to-earnings-growth ratio of 0.92 and a beta of 1.62. The firm’s 50-day moving average is $74.52 and its two-hundred day moving average is $79.74. Netflix, Inc. has a 1 year low of $64.10 and a 1 year high of $116.73.
Netflix (NASDAQ:NFLX – Get Free Report) last issued its quarterly earnings results on Tuesday, October 20th. The Internet television network reported $0.87 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.82 by $0.05. Netflix had a net margin of 29.69% and a return on equity of 42.69%. The business had revenue of $12.87 billion for the quarter, compared to analysts’ expectations of $12.87 billion. During the same quarter in the prior year, the company earned $0.59 earnings per share. The business’s quarterly revenue was up 11.9% on a year-over-year basis. Analysts predict that Netflix, Inc. will post 3.58 EPS for the current year.
Netflix Company Profile (Free Report)
Netflix, Inc (NASDAQ:NFLX) is a global entertainment company that provides subscription-based streaming services. Its platform offers a broad selection of television series, films, documentaries, stand-up specials and other programming, including content produced by Netflix and licensed from third-party studios and creators.
The company also develops and distributes original productions under the Netflix brand and has expanded into additional entertainment offerings, including mobile and cloud-based games in select markets and live programming.
Featured Articles Five stocks we like better than Netflix Is Texas Instruments Setting Up for Its Next Big Breakout? Pegasystems’ Q3 Miss Exposed the Problem Standing Between AI and Cash Flow Lam Research’s Earnings Beat Wasn’t the Real Story—Its 2027 Outlook Was Tesla’s Flying-Car Hype Hits an Earnings Reality Check Want to see what other hedge funds are holding NFLX? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Netflix, Inc. (NASDAQ:NFLX – Free Report).
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Adams Diversified Equity Fund Inc. reduced its position in shares of Netflix, Inc. (NASDAQ:NFLX – Free Report) by 30.4% in the third quarter, according to its most recent filing with the SEC. The fund owned 146,520 shares of the Internet television network’s stock after selling 64,000 shares during the quarter. Adams Diversified Equity Fund Inc.’s holdings in Netflix were worth $10,195,000 at the end of the most recent reporting period.
Other institutional investors and hedge funds have also recently modified their holdings of the company. BlackRock Inc. bought a new stake in Netflix in the second quarter worth $24,902,221,000. Bank of New York Mellon Corp purchased a new stake in Netflix in the 2nd quarter worth about $1,906,482,000. Legal & General Group Plc purchased a new stake in Netflix in the 2nd quarter worth about $1,886,526,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in Netflix in the second quarter worth about $1,481,303,000. Finally, Assenagon Asset Management S.A. lifted its stake in Netflix by 194.9% in the third quarter. Assenagon Asset Management S.A. now owns 16,111,438 shares of the Internet television network’s stock worth $1,121,034,000 after purchasing an additional 10,647,803 shares during the last quarter. 80.93% of the stock is owned by hedge funds and other institutional investors.
More Netflix News Here are the key news stories impacting Netflix this week:
Positive Sentiment: Investors are treating the sell-off as a potential buying opportunity. Netflix beat third-quarter EPS expectations, generated $12.87 billion in revenue, and increased operating income 34.6% year over year. Several analysts—including UBS, JPMorgan, Bank of America, and TD Cowen—retained positive ratings despite lowering price targets. Stock Market Today, Oct. 22: Netflix Rises as Investors Capitalize on Post-Earnings Sell-Off Positive Sentiment: Netflix’s valuation has become more attractive after the decline, with investors emphasizing rising profits, more than 300 million subscribers, pricing power, and potential long-term growth from advertising, live events, and international content. The company’s buybacks are substantial, although management appears to follow a systematic rather than opportunistic repurchase strategy. The Truth About Netflix’s Massive Stock Buybacks Neutral Sentiment: Management continues to target double-digit revenue growth and expects advertising revenue to grow more than 80% in 2026. Netflix is investing in original programming, theatrical releases, live sports, and events such as NFL games, but executives acknowledge that viewer-hour growth and content execution need to improve. Negative Sentiment: The principal pressure is Netflix’s fourth-quarter outlook: EPS guidance of $0.67 trails the $0.73 consensus, while projected revenue of $13.4 billion is below the $13.5 billion estimate. Full-year revenue guidance was also slightly reduced. ETFs in Focus as Netflix Shares Tumble Amid Q3 Earnings Beat, Guidance Cut Negative Sentiment: Netflix cut its 2026 advertising-revenue forecast from approximately $3 billion to $2.7 billion, reinforcing concerns about slower growth, delayed ad execution, weaker engagement, and competition from YouTube, TikTok, and lower-cost streaming options. Multiple analysts consequently lowered price targets, while Needham downgraded the stock to Hold. Why Netflix Stock Dropped Today Wall Street Analysts Forecast Growth NFLX has been the topic of several recent analyst reports. UBS Group set a $90.00 price target on Netflix in a report on Wednesday. The Goldman Sachs Group set a $84.00 price target on shares of Netflix in a report on Wednesday. HSBC lowered Netflix from a “buy” rating to a “hold” rating and lowered their target price for the stock from $96.00 to $76.00 in a report on Tuesday, September 22nd. Wolfe Research cut Netflix from an “outperform” rating to a “peer perform” rating in a research report on Thursday. Finally, DZ Bank reiterated a “buy” rating on shares of Netflix in a report on Monday, July 20th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, seventeen have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $89.59. Get Our Latest Stock Analysis on Netflix
Insider Buying and Selling at Netflix In related news, CEO Theodore A. Sarandos sold 27,312 shares of the stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $73.35, for a total value of $2,003,335.20. Following the completion of the transaction, the chief executive officer directly owned 178,954 shares of the company’s stock, valued at $13,126,275.90. This trade represents a 13.24% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Richard N. Barton sold 720 shares of Netflix stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $75.27, for a total transaction of $54,194.40. Following the completion of the sale, the director owned 2,460 shares of the company’s stock, valued at $185,164.20. This trade represents a 22.64% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 179,045 shares of company stock valued at $13,132,194. Insiders own 1.24% of the company’s stock.
Netflix Trading Up 3.1% Shares of NASDAQ:NFLX opened at $67.05 on Friday. The business’s 50-day moving average is $74.52 and its 200 day moving average is $79.74. Netflix, Inc. has a 1 year low of $64.10 and a 1 year high of $116.73. The firm has a market capitalization of $279.19 billion, a P/E ratio of 22.20, a P/E/G ratio of 0.92 and a beta of 1.62. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.07 and a quick ratio of 1.14.
Netflix (NASDAQ:NFLX – Get Free Report) last released its quarterly earnings results on Tuesday, October 20th. The Internet television network reported $0.87 EPS for the quarter, beating analysts’ consensus estimates of $0.82 by $0.05. The company had revenue of $12.87 billion during the quarter, compared to analysts’ expectations of $12.87 billion. Netflix had a return on equity of 42.69% and a net margin of 29.69%. The firm’s revenue was up 11.9% compared to the same quarter last year. During the same period last year, the business posted $0.59 earnings per share. On average, research analysts predict that Netflix, Inc. will post 3.58 earnings per share for the current fiscal year.
Netflix Profile (Free Report)
Netflix, Inc (NASDAQ:NFLX) is a global entertainment company that provides subscription-based streaming services. Its platform offers a broad selection of television series, films, documentaries, stand-up specials and other programming, including content produced by Netflix and licensed from third-party studios and creators.
The company also develops and distributes original productions under the Netflix brand and has expanded into additional entertainment offerings, including mobile and cloud-based games in select markets and live programming.
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AMF Tjanstepension AB trimmed its position in shares of Netflix, Inc. (NASDAQ:NFLX – Free Report) by 4.1% in the third quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 1,215,346 shares of the Internet television network’s stock after selling 52,511 shares during the period. AMF Tjanstepension AB’s holdings in Netflix were worth $84,564,000 as of its most recent SEC filing.
Several other large investors have also made changes to their positions in the company. BlackRock Inc. acquired a new position in Netflix in the second quarter valued at $24,902,221,000. State Street Corp increased its stake in Netflix by 4.9% during the second quarter. State Street Corp now owns 180,129,582 shares of the Internet television network’s stock worth $12,861,252,000 after acquiring an additional 8,474,820 shares during the last quarter. Bank of America Corp DE increased its stake in Netflix by 4.3% during the first quarter. Bank of America Corp DE now owns 57,942,812 shares of the Internet television network’s stock worth $5,571,201,000 after acquiring an additional 2,376,349 shares during the last quarter. Bank of New York Mellon Corp acquired a new stake in Netflix during the second quarter worth about $1,906,482,000. Finally, Legal & General Group Plc purchased a new position in shares of Netflix in the 2nd quarter worth about $1,886,526,000. 80.93% of the stock is owned by hedge funds and other institutional investors.
Insider Transactions at Netflix In other Netflix news, Director Richard Barton sold 2,160 shares of the stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $75.10, for a total value of $162,216.00. Following the completion of the sale, the director owned 246 shares of the company’s stock, valued at $18,474.60. This trade represents a 89.78% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider David Hyman sold 5,723 shares of Netflix stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $72.85, for a total transaction of $416,920.55. Following the sale, the insider owned 316,100 shares in the company, valued at $23,027,885. This represents a 1.78% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 179,045 shares of company stock worth $13,132,194 over the last 90 days. 1.24% of the stock is owned by corporate insiders.
Analyst Ratings Changes Several equities analysts have recently weighed in on NFLX shares. KeyCorp reduced their price objective on Netflix from $92.00 to $85.00 and set an “overweight” rating on the stock in a research note on Tuesday, October 13th. UBS Group set a $90.00 target price on shares of Netflix in a research report on Wednesday. DZ Bank reissued a “buy” rating on shares of Netflix in a research report on Monday, July 20th. BMO Capital Markets restated an “outperform” rating and issued a $125.00 price target (down from $135.00) on shares of Netflix in a report on Friday, October 16th. Finally, Wells Fargo & Company cut shares of Netflix from a “neutral” rating to an “underweight” rating and reduced their price target for the company from $80.00 to $57.00 in a research report on Friday, September 18th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, seventeen have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $89.59. View Our Latest Report on NFLX
Netflix Price Performance Shares of NASDAQ NFLX opened at $67.05 on Friday. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.07 and a quick ratio of 1.14. Netflix, Inc. has a 1-year low of $64.10 and a 1-year high of $116.73. The company has a market capitalization of $279.19 billion, a price-to-earnings ratio of 19.38, a PEG ratio of 0.92 and a beta of 1.62. The business has a 50-day moving average of $74.52 and a 200-day moving average of $79.74.
Netflix (NASDAQ:NFLX – Get Free Report) last announced its earnings results on Tuesday, October 20th. The Internet television network reported $0.87 EPS for the quarter, beating the consensus estimate of $0.82 by $0.05. The business had revenue of $12.87 billion for the quarter, compared to the consensus estimate of $12.87 billion. Netflix had a return on equity of 42.69% and a net margin of 29.69%. The company’s revenue was up 11.9% on a year-over-year basis. During the same period last year, the business posted $0.59 EPS. On average, equities analysts anticipate that Netflix, Inc. will post 3.58 EPS for the current fiscal year.
Key Netflix News Here are the key news stories impacting Netflix this week:
Positive Sentiment: Investors are treating the sell-off as a potential buying opportunity. Netflix beat third-quarter EPS expectations, generated $12.87 billion in revenue, and increased operating income 34.6% year over year. Several analysts—including UBS, JPMorgan, Bank of America, and TD Cowen—retained positive ratings despite lowering price targets. Stock Market Today, Oct. 22: Netflix Rises as Investors Capitalize on Post-Earnings Sell-Off Positive Sentiment: Netflix’s valuation has become more attractive after the decline, with investors emphasizing rising profits, more than 300 million subscribers, pricing power, and potential long-term growth from advertising, live events, and international content. The company’s buybacks are substantial, although management appears to follow a systematic rather than opportunistic repurchase strategy. The Truth About Netflix’s Massive Stock Buybacks Neutral Sentiment: Management continues to target double-digit revenue growth and expects advertising revenue to grow more than 80% in 2026. Netflix is investing in original programming, theatrical releases, live sports, and events such as NFL games, but executives acknowledge that viewer-hour growth and content execution need to improve. Negative Sentiment: The principal pressure is Netflix’s fourth-quarter outlook: EPS guidance of $0.67 trails the $0.73 consensus, while projected revenue of $13.4 billion is below the $13.5 billion estimate. Full-year revenue guidance was also slightly reduced. ETFs in Focus as Netflix Shares Tumble Amid Q3 Earnings Beat, Guidance Cut Negative Sentiment: Netflix cut its 2026 advertising-revenue forecast from approximately $3 billion to $2.7 billion, reinforcing concerns about slower growth, delayed ad execution, weaker engagement, and competition from YouTube, TikTok, and lower-cost streaming options. Multiple analysts consequently lowered price targets, while Needham downgraded the stock to Hold. Why Netflix Stock Dropped Today Netflix Profile (Free Report)
Netflix, Inc (NASDAQ:NFLX) is a global entertainment company that provides subscription-based streaming services. Its platform offers a broad selection of television series, films, documentaries, stand-up specials and other programming, including content produced by Netflix and licensed from third-party studios and creators.
The company also develops and distributes original productions under the Netflix brand and has expanded into additional entertainment offerings, including mobile and cloud-based games in select markets and live programming.
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Billionaire investor Bill Ackman lost more than $400 million on Netflix Inc. (NASDAQ:NFLX) in 2022 after deciding its future was too difficult to predict. Four years later, he’s back, forecasting annualized investment returns above 20% despite another disappointing earnings reaction.
“We expect our go-forward IRR to be well into the 20s,” Ackman told CNBC Thursday.
From a $400 Million Loss to a ‘High-Growth Utility’Ackman’s Pershing Square sold its entire Netflix stake in April 2022, just three months after buying it. Subscriber losses and uncertainty over advertising and password-sharing plans had shaken his confidence.
“We have lost confidence in our ability to predict the company’s future prospects with a sufficient degree of certainty,” he wrote to investors.
Now Ackman calls Netflix a “high-growth utility,” citing subscriber loyalty, pricing power and earnings growth he expects to remain in the high teens to 20% for years.
“They’ve won the streaming wars. I don’t know who displaces Netflix,” he said.
Ackman even welcomed this week’s results, despite the post-earnings selloff.
“We actually view the quarter very favorably,” he said.
Netflix’s third-quarter operating income climbed 37% to $4.46 billion, while subscriber cancellations declined globally and in the United States despite recent price increases.
Why Ackman Welcomes Cheaper SharesNetflix generated $2.9 billion in quarterly free cash flow and spent a record $4.8 billion repurchasing shares, its latest results showed.
Ackman believes falling share prices could benefit long-term investors by allowing Netflix to buy back more stock for the same money.
“We’ll make more money over time if the stock is cheaper in the short to intermediate term because they’re going to cancel a lot more shares as a result,” he said.
He described Netflix as trading at roughly 18 times earnings, although trailing profits include a one-time $2.8 billion payment received earlier this year following the failed Warner Bros. Discovery deal.
But Netflix’s growth is showing signs of strain. The company cut its advertising revenue forecast by $300 million to $2.7 billion, while its U.S. programming has reportedly struggled to produce major hits.
Netflix is bringing in a new content chief to turn things around, even as YouTube captures a growing share of Americans’ viewing time.
Investor and YouTube commentator Joseph Carlson pushed back on the YouTube threat in a video Wednesday.
“People do not necessarily cancel Netflix because they watch more YouTube,” Carlson said.
Ackman also said Meta Platforms Inc. (NASDAQ:META) could finance its ambitious AI expansion with additional borrowing, pointing to its $82 billion in cash and securities.
On Polymarket, traders gave Netflix a roughly 10% chance of reaching $75 by October’s end, about 12% above Thursday’s $67.05 close. The market had approximately $35,000 traded.
While prediction-market traders focus on the next few trading sessions, Ackman’s return to Netflix reflects a longer-term bet that rising profits and aggressive buybacks can deliver exceptional returns even as revenue growth slows.
Image: Shutterstock
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Key Takeaways Netflix's operating margin rose to 34.6% from 28.2%, as operating income climbed 37% to $4.46 billion.Content asset additions surged 24% to $14.93B in 9 months, while Netflix reaffirmed its 31.5% margin target.NFLX cut ad revenue and free cash flow outlooks, while ad-tier expansion offer growth opportunities. Netflix (NFLX - Free Report) is testing whether its margin gains can withstand a steadily rising content bill. Third-quarter 2026 results showed operating margin expanding to 34.6% from 28.2% a year ago, even as additions to content assets climbed 10.9% year over year to $5.16 billion. Content amortization rose just 5.8% to $4.24 billion, while revenues grew 11.8% to $12.87 billion, lifting operating income 37% to $4.46 billion.
Spending is not flattening, however. Nine-month additions to content assets totaled $14.93 billion, up 24%, while amortization grew 9.5%. Netflix expects an annual cash content spend-to-amortization ratio of about 1.1x and reaffirmed its 2026 operating margin target of 31.5%, up from 29.5% in 2025. Third-quarter outperformance partly reflected expense timing, shifting some costs into the final quarter.
Netflix projects revenues of $13.4 billion, suggesting a 12% increase, and a 26% operating margin, including about 120 basis points of drag from headcount reductions. The holiday quarter carries its biggest live slate yet, with the NFL’s Thanksgiving Eve game, a Christmas Day doubleheader and the Tyson Fury vs. Anthony Joshua bout. Films include The Further Mis-Adventures of Cliff Booth, Animals and animated titles Steps and Ray Gunn, while series include East of Eden, The Diplomat Season 4, Lupin: Part 4 and Emily in Paris’ final season. Early 2027 brings Blue Eye Samurai Season 2 and Sakamoto Days Season 2 in January, along with the live reality series Will You Marry Me? on Netflix.
Mixed signals persist. Netflix cut its 2026 ad revenue outlook to about $2.7 billion from roughly $3 billion and trimmed free cash flow guidance to roughly $12 billion from $12.5 billion. Positively, licensing deals with Disney and TF1 and ad-tier launches in 15 new countries from March 2027 broaden engagement cost-effectively. Sustaining margins hinges on revenues keeping pace with content outlay.
Disney and Paramount Skydance Navigate Similar Trade-OffsDisney (DIS - Free Report) and Skydance Corporation (SKYD - Free Report) are also balancing content outlays with streaming profitability. Disney’s direct-to-consumer business posted third-quarter fiscal 2026 operating income of $712 million, reflecting a 12.9% margin, and Disney remains on track for double-digit streaming margins in fiscal 2026. Disney plans about $24 billion in companywide content spending this fiscal year, up modestly. Paramount Skydance’s second-quarter 2026 direct-to-consumer revenues grew 9% to $2.5 billion, with Paramount+ reaching 81.6 million subscribers. However, Paramount Skydance expects a year-over-year decline in second-half streaming profit due to higher sports and original content amortization. Paramount Skydance guides 2026 adjusted EBITDA of $3.8-$3.9 billion.
NFLX’s Price Performance, Valuation & EstimatesNetflix’s shares have plunged 28.5% year to date, underperforming the Zacks Broadcast Radio and Television industry and Zacks Consumer Discretionary sector’s decline of 23.5% and 10%, respectively.
NFLX’s YTD Price Performance
Image Source: Zacks Investment Research
Netflix’s valuation remains elevated, with the stock trading at a forward 12-month price/sales ratio of 4.99X versus the industry’s 4.06X. NFLX carries a Value Score of D.
NFLX’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NFLX’s 2026 earnings is pegged at $3.59 per share and has remained unchanged over the past 30 days. This indicates a 41.9% increase from the previous year.
NFLX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Walmart is on pace for its best month in over two decades while a trillion-dollar milestone sits just out of reach, but the real question is whether the buying surge reflects the retailer's strength or something more fragile hiding behind…
Walmart (NASDAQ:WMT | WMT Price Prediction) rose 2.82% on Thursday, October 22, 2026, and closed at $121.12. On the same day, the Nasdaq Composite fell 2.60% to 26,008.86, its worst day since June.
That close left Walmart’s market value at $960.94 billion. That is about $39 billion, or 4.1%, short of $1 trillion. The shares added 0.42% after hours to $121.63.
From a September 30 close of $103.92, Walmart is up 16.6% in October with six trading sessions left, which puts it on pace for its best month since 1999. A discount retailer is trading like a growth stock because money is leaving AI and tech, so a buyer at this price is paying as much for the sector rotation as for Walmart’s business.
What Getting Back to $1 Trillion Requires Walmart first passed $1 trillion on February 3, 2026, the first retailer to do so. It hit an intraday record of about $126 a share two weeks after it joined the Nasdaq-100.
With 7.93 billion shares outstanding, a return to breakeven requires roughly $126.05 a share. That is still below the 52-week high of $135.16, so the milestone means recovering lost ground.
Thursday’s gain came with no new contract, filing, or guidance change. The most recent reported results are from the second quarter of fiscal 2027, when adjusted EPS of $0.81 beat the $0.7413 consensus.
Walmart’s Lead Over Staples Is Narrower Than It Looks For October as a whole, Walmart is ahead of the State Street Consumer Staples Select Sector SPDR ETF (NYSEARCA:XLP), which is up 11.7% from $80.60. The fund is close to its best month since it launched in December 1998.
On Thursday, though, XLP rose 3.31% to $89.99 and beat Walmart. Procter & Gamble (NYSE:PG) rose 5.58% after its fiscal first-quarter results, while Costco (NASDAQ:COST) gained 1.99%.
The S&P staples sector gained 11.1% over October’s first 16 trading days, its third-best start to a month since 1990. It now trails its February 27 record close by 0.26%.
Bank of America clients sold a record $14.8 billion of individual U.S. stocks in the week through October 16. Staples were among the few sectors those clients bought.
Valuation and Crowding Risks Behind a Defensive Label Walmart trades at 44 times earnings, and its $0.99 annual dividend yields 0.82%. That income does little to pay you for waiting. Bank of America also placed staples among the highest readings on its Bubble Risk Indicator.
Five of the seven earlier months with similar staples gains came in 2000 and 2001, before the recession that began in March 2001. In February 2026, however, XLP rose 7.8% while the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) fell 0.9%, and SPY was up 11.8% six months later.
Prediction-market traders put the odds of a recession by the end of 2026 at 7.5%. Those odds rise to 35% by the end of 2027. If AI concerns ease before then, the money that moved into staples can move back out, which is the whole question our free bubble survivor’s handbook is built around: riding the move while planning the exit.
What Could Change the Case for WMT Stock The risk outweighs the reward at this price. The business is strong, but Thursday’s move followed sector flows, and at 44 times earnings, the current price already assumes those flows will last.
For investors who want staples exposure, XLP offers a wider alternative worth exploring. Walmart made up 10.80325246068% of the fund’s net assets as of June 30, so you still own some Walmart with far less risk linked to a single stock’s valuation.
Walmart’s next earnings report is scheduled for November 19, 2026, before the market opens, although the company has not yet confirmed the date. The third-quarter adjusted EPS guidance is $0.62-$0.64. A close above $126.05 before then, followed by results above that range, would prove this view wrong. The next ex-dividend date is December 11, 2026.
Contact [email protected] for any questions or corrections.
Procter & Gamble (PG -1.93%) gave investors something to celebrate with its latest earnings report. Shares of the consumer household products giant jumped more than 5% after it delivered stronger-than-expected sales growth.
However, while demand for its products is improving, earnings growth remains sluggish. That raises an important question for investors: Is P&G's recovery gaining enough momentum to justify buying the stock after its recent earnings-driven rally?
Image source: The Motley Fool.
P&G is showing encouraging signs of a turnaroundP&G's organic sales grew 4% in its fiscal 2027 first quarter. That's a notable improvement from the fourth quarter of its 2026 fiscal year when organic sales only grew 1%. The primary growth drivers were volume (2.4%) and mix (1.1%), not price increases (0.4%). That's an important distinction because it shows that demand for its products is largely improving.
Fabric and home care delivered the strongest volume growth at 4.3%, followed by baby, feminine, and family care at 2.3% and beauty at 2.2%, offsetting declines in healthcare (-2.9%) and grooming (-0.4%). The company noted that innovation-based pricing in certain markets helped drive volume growth. It also benefited from a more favorable premium product mix.
Despite the strong start to its fiscal year, P&G didn't change its full-year organic sales guidance, which it still expects will be between 1% and 3%. That suggests the company isn't yet fully confident that it's seeing a sustained recovery.
$161.33-$3.17 (-1.93%)
NYSE · As of 11:45 AM ET 10/23/26
Higher costs are weighing on earningsWhile its organic sales growth rate accelerated, its margins remain under pressure. P&G's core adjusted earnings per share (EPS) only increased 1% to $2.00. While that is better than the 3% decline in core EPS it reported in the fourth quarter, it's far below its long-term target of delivering mid-to-high single-digit core EPS growth. The company is battling cost pressures, including higher commodity costs and the impact of tariffs.
P&G expects these headwinds will continue to impact its results this year. That's driving its rather tepid outlook of 0% to 3% adjusted EPS growth ($6.89-$7.11). The company noted that higher commodity costs, interest expenses, and other headwinds will impact EPS by $0.79 this year, or an 11% drag. So, while the company's growth strategy is starting to drive volume improvement, continued margin pressures will weigh on EPS.
Is P&G stock attractively valued?All that brings us back to the central question: is P&G a buy after its mixed earnings report?
With the recent spike in the share price, P&G currently trades at around $165 a share. With the company reaffirming its full-year adjusted EPS outlook at $7.00 (at the midpoint), it trades at about 23.5 times forward earnings. That's not as cheap as it was earlier this year when it traded at less than 21 times forward earnings. However, its valuation is still well off its peak of more than 26x in late 2024. The recent move higher has also lowered P&G's dividend yield from around 3% to 2.7%.
Investors are paying a premium because P&G owns a laundry list of durable consumer brands like Tide, Mr. Clean, and Pampers. It also generates very resilient cash flows. During the first fiscal quarter, the company generated $5.8 billion in operating cash flow and $4.4 billion in free cash flow. That supported continued strong shareholder cash returns ($2.6 billion of dividend payments and $1.3 billion of share repurchases). The company expects to return over $15 billion to shareholders this year (more than $10 billion in dividends and $5 billion in share repurchases).
The issue is that P&G now requires its earnings growth to accelerate and its valuation multiple to expand further to deliver a compelling total return from here. For example, it would need to grow its earnings per share at a 5% to 6% compound annual rate, and its valuation multiple would need to expand to 25x-26x to generate a 10% annualized total return over the next five years, including its dividend. That's certainly possible, as P&G has traded at a premium valuation in the past and aims to deliver that growth rate again. However, the margin of safety is razor-thin after its post-earnings pop.
Is Procter & Gamble a buy?P&G remains a high-quality defensive dividend stock. However, it's not as attractive an investment as it was before its post-earnings pop. It could still deliver a solid total return over the next five years if it can execute its turnaround. The risk is that it can't return to mid-single-digit EPS growth. That would cause the company to lose some of its valuation premium, resulting in lackluster returns. I think it's better to wait for a more favorable entry point than to buy P&G after earnings.
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.
Please do your own due diligence and consult with your financial advisor, if you have one, before making any investment decisions. The author is not acting in an investment adviser capacity. The author's opinions expressed herein address only select aspects of potential investment in securities of the companies mentioned and cannot be a substitute for comprehensive investment analysis. The author recommends that potential and existing investors conduct thorough investment research of their own, including a detailed review of the companies' SEC filings. Any opinions or estimates constitute the author's best judgment as of the date of publication and are subject to change without notice.
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Key Takeaways PG's Q1 earnings rose 1% to $2.00 per share, while revenues grew 4% to $23.28 billion, beating estimates.PG maintained its fiscal 2027 outlook despite a $1.9 billion earnings headwind from costs and currency.PG's organic sales rose 4%, driven by 2.4% volume growth, with gains across all categories and regions.
The Procter & Gamble Company (PG - Free Report) emphasized improving sales momentum, stronger consumer demand and disciplined execution during its first-quarter fiscal 2027 earnings call. Management highlighted broad-based organic growth while cautioning that rising commodity costs could pressure profitability.
Chief financial officer Andre Schulten said targeted interventions across products, pricing and retail execution were gaining traction. However, management maintained its full-year outlook, citing economic volatility and uncertainty surrounding consumer spending.
PG reported first-quarter core earnings of $2.00 per share, up 1% year over year, surpassing the Zacks Consensus Estimate of $1.89. Revenues increased 4% to $23.28 billion, exceeding the Zacks Consensus Estimate of $22.71 billion.
Procter & Gamble Company (The) Price, Consensus and EPS Surprise
PG Maintains Outlook Despite Escalating CostsP&G reaffirmed its fiscal 2027 organic sales growth guidance of 1% to 3%, while updating reported sales growth expectations to 2-4% following the Thorne acquisition.
Schulten maintained core earnings growth guidance of 0% to 3%, representing $6.89-$7.11 per share.
However, management raised its projected combined earnings headwind from commodities, currency and nonoperating items to $1.9 billion after tax, equivalent to $0.79 per share.
P&G Faces Intensifying Margin PressureHigher commodity, energy and transportation expenses remain central concerns. Schulten projected a $1.4 billion after-tax commodity headwind, assuming Brent crude prices of $100 per barrel.
During questioning from UBS, Schulten clarified that commodity inflation would intensify in the second quarter, with additional pressure potentially emerging later in fiscal 2027.
PG Sees Broad-Based Volume-Led RecoveryOrganic sales increased 4%, supported by 2.4% volume growth, 0.4% pricing growth and 1.1% favorable mix.
Schulten reported growth across all 10 product categories and six geographic regions. Greater China posted 8% organic growth, while North America advanced 3%.
Management also noted that more than 70% of its leading U.S. retail customers maintained or increased market share, reflecting improving execution across distribution channels.
P&G Defends Its Cautious Growth AssumptionsDeutsche Bank and Jefferies analysts questioned why management anticipated slower second-quarter growth despite stronger business momentum.
Schulten reiterated expectations for approximately 3% first-half organic growth, followed by modest acceleration during the second half.
He attributed the conservative stance to consumer uncertainty, promotional shipment timing and rising fuel prices. Management emphasized that quarterly performance would remain uneven despite improving underlying trends.
PG Prioritizes Innovation and Pricing DisciplineResponding to Morgan Stanley's questions about recovering higher commodity costs, Schulten emphasized productivity, innovation-backed pricing and gradual cost recovery.
The company highlighted premium innovations, including Pampers AMORE and Pantene Abundant & Strong, alongside improvements in Tide and Gain offerings.
Schulten indicated that pricing decisions would remain closely tied to product improvements and consumer value. Management aims to protect volume momentum rather than pursue aggressive price increases.
P&G Advances Productivity and Portfolio ChangesSchulten highlighted manufacturing automation, digitization and restructuring initiatives as critical productivity drivers.
The company generated approximately $500 million to $550 million in productivity benefits during the quarter. Management expects savings to become more pronounced during the fiscal second half.
Regarding Thorne, Schulten emphasized preserving its existing capabilities while leveraging P&G's international distribution, supply-chain expertise and marketing resources to support expansion.
PG Balances Recovery With Execution RisksManagement's overarching message emphasized sustained consumer-led growth rather than extrapolating first-quarter strength across the year.
Schulten expressed confidence in ongoing operational improvements but maintained that inflation, competitive dynamics and consumer volatility would require flexible execution.
P&G's Zacks Rank and Style ScoresPG currently carries a Zacks Rank #3 (Hold), indicating a neutral near-term earnings-revision outlook. Its Growth and Momentum Scores of B indicate relatively favorable characteristics, while its Value Score of D reflects weaker valuation appeal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock's VGM Score of C signals a mixed combination of value, growth and momentum characteristics. Although the Growth and Momentum Scores provide some support, the overall configuration warrants a balanced assessment. The Zacks Rank may change as analysts revise earnings estimates following the latest quarterly results.
Diversify Advisory Services LLC cut its holdings in Johnson & Johnson (NYSE:JNJ – Free Report) by 2.8% during the third quarter, according to its most recent Form 13F filing with the SEC. The fund owned 92,125 shares of the company’s stock after selling 2,609 shares during the period. Diversify Advisory Services LLC’s holdings in Johnson & Johnson were worth $23,333,000 at the end of the most recent reporting period.
Several other hedge funds also recently added to or reduced their stakes in JNJ. Wellington Management Group LLP raised its holdings in Johnson & Johnson by 12.5% in the 2nd quarter. Wellington Management Group LLP now owns 22,588,696 shares of the company’s stock valued at $5,736,851,000 after buying an additional 2,513,321 shares during the period. Deutsche Bank AG lifted its position in Johnson & Johnson by 8.5% in the second quarter. Deutsche Bank AG now owns 15,661,323 shares of the company’s stock valued at $3,977,506,000 after buying an additional 1,225,676 shares during the last quarter. Amundi lifted its position in Johnson & Johnson by 17.5% in the first quarter. Amundi now owns 13,406,820 shares of the company’s stock valued at $3,277,163,000 after buying an additional 2,001,139 shares during the last quarter. Janus Henderson Group PLC boosted its stake in Johnson & Johnson by 1.9% during the first quarter. Janus Henderson Group PLC now owns 7,872,478 shares of the company’s stock worth $1,924,323,000 after buying an additional 148,497 shares during the period. Finally, Jupiter Topco LLC purchased a new position in Johnson & Johnson during the second quarter worth about $1,967,399,000. 69.55% of the stock is currently owned by hedge funds and other institutional investors.
Johnson & Johnson News Roundup
Here are the key news stories impacting Johnson & Johnson this week:
Positive Sentiment: Positive sector rotation: JNJ is benefiting from fresh demand for defensive healthcare stocks, alongside gains in Procter & Gamble and Coca-Cola. Investors appear to be favoring companies with relatively stable demand and cash flows amid broader market pressure. Procter & Gamble Jumps as Defensive Buyers Enter
Positive Sentiment: Medical-device progress: Johnson & Johnson reported real-world data for its VARIPULSE Pro platform and 12-month outcomes for the OMNYPULSE platform in atrial-fibrillation treatment. The results could support adoption of its electrophysiology portfolio and provide another growth avenue beyond pharmaceuticals. Johnson & Johnson Reports VARIPULSE and OMNYPULSE Data
Positive Sentiment: Drug growth and guidance: Recent coverage highlights stronger pharmaceutical performance and Johnson & Johnson’s higher 2026 outlook, with projected sales of approximately $101.2 billion at the midpoint. The company also maintains a 64-year record of annual dividend increases, reinforcing its appeal to income-focused investors. Johnson & Johnson Drugs Lift Guidance
Neutral Sentiment: Mixed business outlook: One business is advancing strongly while another has stalled, leaving investors focused on whether new growth can justify JNJ’s premium valuation relative to competitors such as Merck and AbbVie. JNJ Stock Has a New Growth Story
Negative Sentiment: Analyst caution and valuation risk: Erste Group Bank downgraded JNJ from “buy” to “hold.” Commentary also notes that the stock’s elevated valuation could constrain returns, particularly as Treasury yields near 5% make government bonds more competitive with dividend stocks. Erste Group Bank Ratings
Johnson & Johnson Stock Up 3.8%
Shares of NYSE:JNJ opened at $267.67 on Friday. The company has a debt-to-equity ratio of 0.44, a current ratio of 1.09 and a quick ratio of 0.81. The firm has a market capitalization of $645.05 billion, a PE ratio of 40.56, a price-to-earnings-growth ratio of 2.55 and a beta of 0.21. The firm’s 50-day moving average is $265.57 and its two-hundred day moving average is $250.11. Johnson & Johnson has a 1 year low of $184.66 and a 1 year high of $281.07.
Johnson & Johnson (NYSE:JNJ – Get Free Report) last issued its quarterly earnings results on Tuesday, October 13th. The company reported $2.59 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.53 by $0.06. Johnson & Johnson had a net margin of 16.20% and a return on equity of 31.54%. The business had revenue of $25.40 billion for the quarter, compared to analysts’ expectations of $25.38 billion. During the same quarter in the prior year, the company earned $2.80 earnings per share. The business’s quarterly revenue was up 5.9% on a year-over-year basis. Johnson & Johnson has set its FY 2026 guidance at 11.050-11.150 EPS. Analysts predict that Johnson & Johnson will post 11.12 EPS for the current year.
Johnson & Johnson Dividend Announcement
The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 8th. Shareholders of record on Tuesday, November 24th will be issued a dividend of $1.34 per share. The ex-dividend date is Tuesday, November 24th. This represents a $5.36 dividend on an annualized basis and a yield of 2.0%. Johnson & Johnson’s dividend payout ratio is 81.21%.
Insiders Place Their Bets
In other Johnson & Johnson news, EVP Timothy Schmid sold 33,597 shares of the stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $274.74, for a total transaction of $9,230,439.78. Following the sale, the executive vice president directly owned 25,447 shares in the company, valued at $6,991,308.78. This represents a 56.90% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, EVP Jennifer Taubert sold 15,000 shares of the firm’s stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $263.36, for a total transaction of $3,950,400.00. Following the completion of the transaction, the executive vice president directly owned 194,451 shares of the company’s stock, valued at $51,210,615.36. This represents a 7.16% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 64,515 shares of company stock worth $17,271,766 in the last ninety days. 0.16% of the stock is owned by corporate insiders.
Wall Street Analysts Forecast Growth
Several equities analysts have recently commented on the stock. Leerink Partners decreased their price objective on shares of Johnson & Johnson from $276.00 to $272.00 and set an “outperform” rating on the stock in a report on Wednesday, October 14th. HSBC lifted their target price on shares of Johnson & Johnson from $290.00 to $320.00 and gave the company a “buy” rating in a report on Thursday, September 10th. Citigroup boosted their target price on Johnson & Johnson from $298.00 to $303.00 and gave the company a “buy” rating in a research report on Monday, October 5th. Wall Street Zen cut Johnson & Johnson from a “buy” rating to a “hold” rating in a research note on Saturday, August 1st. Finally, Freedom Capital upgraded Johnson & Johnson from a “hold” rating to a “strong-buy” rating in a research report on Thursday, July 16th. One analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $275.92.
Read Our Latest Report on Johnson & Johnson
Johnson & Johnson Company Profile
(Free Report)
Johnson & Johnson (NYSE: JNJ) is a global healthcare company headquartered in New Brunswick, New Jersey. Founded in 1886, the company develops and markets products and services for patients, healthcare professionals and institutions worldwide.
Johnson & Johnson operates through two principal segments: Innovative Medicine and MedTech. Innovative Medicine focuses on pharmaceuticals for areas such as immunology, oncology, neuroscience, infectious diseases and cardiovascular conditions.
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J&J stock reclaims its 50-day SMA, but falling earnings estimates, a premium valuation and MedTech weakness raise questions about its near-term outlook.
Target (TGT - 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 retailer have returned +1.3%, compared to the Zacks S&P 500 composite's -1.2% change. During this period, the Zacks Retail - Discount Stores industry, which Target falls in, has gained 10.3%. 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 RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
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.
Target is expected to post earnings of $2.08 per share for the current quarter, representing a year-over-year change of +16.9%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of $10.43 for the current fiscal year indicates a year-over-year change of +37.8%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $9.44 indicates a change of -9.5% from what Target 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, Target 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
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Target, the consensus sales estimate of $26.37 billion for the current quarter points to a year-over-year change of +4.3%. The $110.11 billion and $113.56 billion estimates for the current and next fiscal years indicate changes of +5.1% and +3.1%, respectively.
Last Reported Results and Surprise HistoryTarget reported revenues of $26.54 billion in the last reported quarter, representing a year-over-year change of +5.3%. EPS of $2.46 for the same period compares with $2.05 a year ago.
Compared to the Zacks Consensus Estimate of $26.13 billion, the reported revenues represent a surprise of +1.57%. The EPS surprise was +6.96%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates two times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Target 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 Target. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Surging oil prices are threatening to erase every gain airlines earned from a blockbuster earnings season, and the carrier carrying the heaviest debt load has the most to lose.
Climbing oil prices are unwinding the relief rally in airline shares that followed American Airlines Group‘s (NASDAQ:AAL | AAL Price Prediction) record quarter. American Airlines stock is at $12.06, down 4%, wiping out the previous session’s rebound.
At the same time, Delta Air Lines (NYSE:DAL) stock is at $76.80, down 3%. Similarly, United Airlines Holdings (NASDAQ:UAL) stock is trading at $98.62, down 3%, leaving American Airlines stock as the laggard among these three big legacy carriers.
For sector context, the U.S. Global Jets ETF (NYSEARCA:JETS) is at $26, down 3%. Meanwhile, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is at $759.82, down 0.5%, highlighting airlines as a weak spot within the broad market.
Oil’s Five-Month High Undercuts American Airlines’ Fuel Plan Under its plan for Q4 2026, American Airlines assumes jet fuel at approximately $4.70 per gallon, already meaning a $2.8 billion year-over-year increase in fourth-quarter fuel costs. Oil prices climbed to a five-month high on concerns that the U.S. conflict with Iran could flare up again, so any further climb raises the odds that expenses run past guidance.
American Airlines posted record Q3 2026 revenue of $16.3 billion in the previous session, up 19.3%, according to its SEC filings, yet swung its full-year outlook to an adjusted loss of $1 to $1.60 per diluted share as fuel costs climbed. CEO Robert Isom stated, “We produced a loss in the quarter that, but for this fuel spike, would have been solidly profitable.”
Heavier Debt Leaves American Airlines More Exposed A heavier debt load than Delta and United Airlines carry leaves American Airlines more exposed to fuel. The company reported $29.6 billion in debt and finance leases and negative stockholders’ equity of $4.2 billion. Chief Financial Officer Devon May stated “the real key unlock for leverage improvement is on the earnings side,” and fuel is the largest drag on those earnings.
Jet fuel expense at American Airlines reached $4.63 billion in Q3, up 67.5%, as the average price climbed to $3.85 per gallon from $2.37. May called fuel “a significant headwind in the fourth quarter.”
Delta stock, which closed 2025 at $68.68, holds above that mark, while United Airlines stock, which ended 2025 at $111.82, trades below it. American Airlines stock, at $15.33 when 2025 ended, has fallen furthest.
Within the U.S. Global Jets ETF, American Airlines is the largest holding at 11.3% of net assets as of June 30, ahead of United Airlines at 11.1% and Delta at 10.5%. That weighting ties the fund closely to how American Airlines handles the fuel squeeze.
What to Watch Now American Airlines guided its Q4 revenue up 19.5% to 22.5%, a demand environment that could buffer the cost hit if crude stops climbing. The company’s premium sales rose 22.9% in Q3, while managed corporate revenue climbed 27.6%.
Traders can watch for whether the oil price retreats or keeps climbing. American Airlines’ management expects 2027 growth to “decelerate considerably,” and plans to adjust capacity while high fuel costs persist. Investors weighing their AAL stock exposure should size their positions conservatively given the carrier’s fuel sensitivity and debt load.
Contact [email protected] for any questions or corrections.
Wall Street expects a year-over-year increase in earnings on higher revenues when Exxon Mobil Holdings (XOM - 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 stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 30. 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 oil and natural gas company is expected to post quarterly earnings of $3.96 per share in its upcoming report, which represents a year-over-year change of +110.6%.
Revenues are expected to be $102.74 billion, up 20.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 18.67% 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 Exxon?For Exxon, 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 +5.37%.
On the other hand, the stock currently carries a Zacks Rank of #1.
So, this combination indicates that Exxon 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 Exxon would post earnings of $3.68 per share when it actually produced earnings of $3.52, delivering a surprise of -4.35%.
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.
Exxon appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
In its upcoming report, Ford Motor Company (F - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $0.39 per share, reflecting a decline of 13.3% compared to the same period last year. Revenues are forecasted to be $45.67 billion, representing a year-over-year decrease of 3.2%.
The consensus EPS estimate for the quarter has undergone an upward revision of 8.8% 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 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.
That said, let's delve into the average estimates of some Ford Motor metrics that Wall Street analysts commonly model and monitor.
Based on the collective assessment of analysts, 'Revenues- Ford Pro' should arrive at $17.56 billion. The estimate indicates a year-over-year change of +1%.
The consensus estimate for 'Revenues- Ford Credit' stands at $3.35 billion. The estimate points to a change of +0.1% from the year-ago quarter.
The consensus among analysts is that 'Revenues- External Revenues- Ford Blue' will reach $26.30 billion. The estimate indicates a year-over-year change of -6.1%.
Analysts predict that the 'Revenues- External Revenues- Ford Model e' will reach $1.25 billion. The estimate points to a change of -29.9% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Wholesale Units - Ford Pro' of 381.79 thousand. The estimate is in contrast to the year-ago figure of 373.00 thousand.
According to the collective judgment of analysts, 'Wholesale Units - Ford Blue' should come in at 679.71 thousand. Compared to the current estimate, the company reported 733.00 thousand in the same quarter of the previous year.
It is projected by analysts that the 'Wholesale Units - Ford Model e' will reach 35.21 thousand. The estimate compares to the year-ago value of 50.00 thousand.
Analysts expect 'Adjusted EBIT- Ford Pro' to come in at $1.81 billion. The estimate is in contrast to the year-ago figure of $1.99 billion.
The average prediction of analysts places 'Adjusted EBIT- Ford Credit' at $592.37 million. The estimate is in contrast to the year-ago figure of $631.00 million.
Analysts' assessment points toward 'Adjusted EBIT- Ford Blue' reaching $1.28 billion. The estimate is in contrast to the year-ago figure of $1.54 billion.
View all Key Company Metrics for Ford Motor here>>>
Shares of Ford Motor have demonstrated returns of -5.2% over the past month compared to the Zacks S&P 500 composite's -1.2% change. With a Zacks Rank #4 (Sell), F is expected to lag the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Ford's grip on global auto markets is slipping faster than most realize, and the places it once counted on for growth are now closing the door on the American automaker.
Ford’s (NYSE: F | F Price Prediction) only remaining fortress is its home market. And it is not doing well here. Toyota (NYSE: TM) has passed it to become the second-largest selling brand in the US. Its third-quarter figures were weak in America. For the first nine months of the year, sales fell 8.6% to 1,519,279.
China has become a challenge for most car companies based outside the country. BYD, the world’s largest EV company, still tops the market. VW and Toyota do well. No US car companies are near the top of the list.
For US car companies, the EU is the area for expansion. Sales in the region are measured by “registrations” according to the ACEA. EU registrations in the first nine months were 10,555,361, up 6.2% from the previous year.
Local car companies lead EU registrations. The VW group has 27% of the market. Stellantis had 15%. Renault Group had 11%.
Among car companies based outside the EU, Hyundai topped the list with 7.1% market share, about the same as Toyota.
Ford is struggling in the EU. Its market share was less than 3% in the first three quarters. Unit registrations fell 17.6% to 191,896. That was behind China EV giant BYD, which registered 206,002 cars, up 154.4%.
While Ford has not run out of runway in its home market, it appears to be losing ground. It also has no chance to gain ground elsewhere.
Contact [email protected] for any questions or corrections.
Douglas A. McIntyre
Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.
His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.
A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.
Stellantis shares are cratering ahead of a quarterly report that management already warned would be seasonally weak, and Ford and General Motors are getting dragged down with it. Whether next week's results steady the sector or deepen the rout depends…
Selling is sweeping through automaker stocks, and Stellantis N.V. (NYSE:STLA | STLA Price Prediction) shares are taking the biggest damage as the company’s Q3 2026 report approaches next week. Stellantis shares have dropped 8%, recently at $3.94, leaving the stock 64% lower year to date (YTD).
Meanwhile, Ford Motor (NYSE:F) stock is down 4% to $11.47. General Motors (NYSE:GM) shares are down 3% to $74.91, showing the pressure spans the automakers.
The Consumer Discretionary Select Sector SPDR ETF (NYSEARCA:XLY) is down 2% to $113.07, while the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.7% to $758.94. Thus, the aforementioned automotive stocks are trailing both the consumer discretionary sector and the overall market.
Stellantis Bears the Brunt of the Auto Selloff Stellantis hasn’t issued a guidance change or operational update that would account for the decline. Recent company releases center on product and brand news for Jeep, Dodge and Mopar, along with a Q3 sales report. With peers falling and earnings approaching, the move fits a sector pullback heading into results.
A day earlier, Stellantis and Alumobility, an aluminum industry association, presented a joint study finding that an aluminum-intensive design could cut vehicle weight and allow a smaller battery with the same driving range. The findings are theoretical.
Stellantis Carries a Different Risk Profile Than Ford and General Motors Stellantis earns much of its profit from Jeep and Ram in North America, and it also runs a large European business. Ford and General Motors are more concentrated in the U.S. market, which leaves Stellantis managing a wider set of regional challenges. Management highlighted pricing pressure in Europe on the Q2 2026 earnings call, and the region posted an adjusted operating loss for the quarter.
Stellantis’s margins remain the weak spot. In Q2, the automaker posted a 1.8% adjusted operating margin. Progress showed up elsewhere, with Stellantis swinging to a net profit from a year-earlier loss and North America sales growing 6% in a fourth consecutive quarter of gains.
As of June 30, the consumer discretionary fund held Ford at 1.4% and General Motors at 1.7% of net assets. Stellantis didn’t appear among its disclosed holdings, so the fund’s drop draws on a much wider mix of retail, travel and restaurant stocks.
On the upside, management expects Stellantis’s savings program to deliver €6 billion of annual run-rate cost reductions by 2028. The downside case centers on its credit profile, after S&P downgraded Stellantis to BBB- and Moody’s cut it to Baa3.
Stellantis Turnaround Heads Into Its Q3 Test Stellantis’s third-quarter report next week may show whether its turnaround plan is gaining working. Joao Laranjo, the finance chief at the time of the Q2 call, stated that “Q3 will be impacted by the summer shutdown and continued raw material inflation.” Management expects Q4 2026 to benefit from higher volume and a stronger ramp of cost-saving initiatives, and it has reaffirmed full-year 2026 guidance for mid-single-digit revenue growth along with positive industrial free cash flow in 2027.
An open variable for Ford and General Motors is the tone of automaker trading once Stellantis reports. The question is whether the XLY consumer discretionary fund keeps lagging the SPDR S&P 500 ETF Trust as earnings season moves through the sector.
A large YTD loss already weighs on Stellantis heading into a quarter management called seasonally weaker. Solid results could ease that pressure, while another soft quarter might extend the slide. Investors should consider keeping their position sizes modest until sentiment turns positive on STLA stock.
Contact [email protected] for any questions or corrections.
AMF Tjanstepension AB decreased its position in GE Aerospace (NYSE:GE – Free Report) by 1.8% in the 3rd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 431,402 shares of the company’s stock after selling 7,948 shares during the quarter. AMF Tjanstepension AB’s holdings in GE Aerospace were worth $134,723,000 at the end of the most recent quarter.
A number of other hedge funds also recently made changes to their positions in the company. Pinnacle Bancorp Inc. boosted its stake in shares of GE Aerospace by 17.8% during the 3rd quarter. Pinnacle Bancorp Inc. now owns 1,986 shares of the company’s stock valued at $620,000 after buying an additional 300 shares during the last quarter. Signature Wealth Management Partners LLC grew its position in shares of GE Aerospace by 2.5% during the third quarter. Signature Wealth Management Partners LLC now owns 2,378 shares of the company’s stock worth $742,000 after buying an additional 58 shares in the last quarter. Bender Robert & Associates acquired a new stake in shares of GE Aerospace during the third quarter worth approximately $314,000. Magnus Financial Group LLC increased its stake in shares of GE Aerospace by 2.6% in the third quarter. Magnus Financial Group LLC now owns 3,840 shares of the company’s stock worth $1,199,000 after buying an additional 97 shares during the last quarter. Finally, AMG Asset Management Group Inc. increased its stake in shares of GE Aerospace by 23.4% in the third quarter. AMG Asset Management Group Inc. now owns 1,456 shares of the company’s stock worth $455,000 after buying an additional 276 shares during the last quarter. Hedge funds and other institutional investors own 74.77% of the company’s stock.
Wall Street Analysts Forecast Growth GE has been the topic of several recent analyst reports. BNP Paribas Exane cut their price target on shares of GE Aerospace from $305.00 to $280.00 and set an “underperform” rating on the stock in a report on Wednesday. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $378.00 price objective on shares of GE Aerospace in a report on Wednesday. Sanford C. Bernstein reissued an “outperform” rating on shares of GE Aerospace in a report on Friday, October 16th. Royal Bank Of Canada dropped their target price on shares of GE Aerospace from $400.00 to $375.00 and set an “outperform” rating for the company in a research report on Wednesday. Finally, Wells Fargo & Company cut their target price on shares of GE Aerospace from $390.00 to $380.00 and set an “overweight” rating on the stock in a research note on Wednesday, September 30th. Seventeen analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $375.62.
Check Out Our Latest Stock Analysis on GE Aerospace Key Headlines Impacting GE Aerospace Here are the key news stories impacting GE Aerospace this week:
Positive Sentiment: GE Aerospace reported third-quarter earnings of $2.25 per share, above the $2.01 analyst consensus, while revenue increased approximately 25% year over year to $13.29 billion. The company also raised its fiscal 2026 adjusted EPS outlook to $8.00-$8.10, above the $7.92 consensus. GE Aerospace earnings beat article Positive Sentiment: Management expects low-double-digit services growth in 2027, supported by a $170 billion services backlog, strong engine-maintenance demand and constrained spare-parts availability. GE also says it expects to deliver more than 3,200 engines over the next decade, reinforcing its long-term commercial aerospace outlook. GE Aerospace Q3 earnings call highlights Positive Sentiment: Several analysts remain constructive: UBS raised its price target to $380 and maintained a Buy rating, while JPMorgan, RBC and Susquehanna continue to see substantial upside despite trimming their targets. Neutral Sentiment: Options activity was unusually heavy in both directions, with put volume roughly 157% above normal and separate reports of elevated call buying. The activity signals increased trading interest but does not establish a clear consensus. Negative Sentiment: Investors are concerned that the GE9X engine production ramp will generate transition costs in 2027, while supply-chain delays, fuel-price pressure and Boeing-related costs could weigh on near-term margins. Concern behind GE earnings beat Negative Sentiment: Valuation remains a headwind after GE Aerospace’s strong run: analysts note that the stock trades at a premium despite underperforming the broader market, making investors less willing to reward earnings beats. BNP Paribas Exane lowered its target to $280 and assigned an Underperform rating, adding to the caution. GE Aerospace Stock Performance GE Aerospace stock opened at $293.49 on Friday. The company has a market cap of $303.28 billion, a PE ratio of 38.43, a P/E/G ratio of 2.11 and a beta of 1.38. The company has a fifty day moving average price of $324.60 and a two-hundred day moving average price of $329.04. The company has a debt-to-equity ratio of 0.96, a current ratio of 0.98 and a quick ratio of 0.67. GE Aerospace has a 12 month low of $268.91 and a 12 month high of $388.84.
GE Aerospace (NYSE:GE – Get Free Report) last released its earnings results on Tuesday, October 20th. The company reported $2.25 earnings per share for the quarter, beating the consensus estimate of $2.01 by $0.24. The firm had revenue of $13.29 billion during the quarter, compared to analyst estimates of $12.88 billion. GE Aerospace had a net margin of 17.31% and a return on equity of 44.43%. The firm’s revenue for the quarter was up 24.7% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.66 earnings per share. Research analysts expect that GE Aerospace will post 8.10 earnings per share for the current year.
GE Aerospace Announces Dividend The firm also recently declared a quarterly dividend, which will be paid on Monday, October 26th. Stockholders of record on Monday, October 5th will be issued a $0.47 dividend. The ex-dividend date of this dividend is Monday, October 5th. This represents a $1.88 annualized dividend and a dividend yield of 0.6%. GE Aerospace’s payout ratio is 22.14%.
About GE Aerospace (Free Report)
GE Aerospace (NYSE: GE) is a global aerospace company that designs, develops, manufactures and services aircraft engines and related systems. Its products support commercial air transport, business and general aviation, military aircraft, and other defense applications. The company also provides engine components, avionics, mechanical systems, digital solutions and maintenance, repair and overhaul services.
GE Aerospace serves airlines, aircraft operators, leasing companies, airframers and government customers worldwide.
See Also Five stocks we like better than GE Aerospace Is Texas Instruments Setting Up for Its Next Big Breakout? Pegasystems’ Q3 Miss Exposed the Problem Standing Between AI and Cash Flow Lam Research’s Earnings Beat Wasn’t the Real Story—Its 2027 Outlook Was Tesla’s Flying-Car Hype Hits an Earnings Reality Check
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GE Aerospace is well positioned for multi-year earnings growth, driven by robust commercial and defense demand. Expanding LEAP and GEnx engine installed bases, improved repair economics, and strong aftermarket growth underpin GE's bullish outlook. Manufacturing productivity gains, supply chain improvements, and the CPP acquisition should alleviate bottlenecks and support faster revenue growth.
Key Takeaways GE's Defense & Propulsion Technologies revenues rose 7% to $3.47 billion in third-quarter 2026.Defense & systems revenues grew 5%, while propulsion & additive technologies revenues surged 10%.GE expects low-double-digit adjusted revenue growth in the segment for 2026, supported by defense demand.
GE Aerospace (GE - Free Report) is poised to gain from strength in its Defense & Propulsion Technologies segment. In third-quarter 2026, revenues from the segment increased 7% year over year to $3.47 billion and orders grew 18%. The company’s defense & systems business’ revenues grew 5% year over year and engine deliveries within the business increased 4%. In the same period, propulsion & additive technologies business’ revenues surged 10%. Revenue growth was driven by strong demand for GE’s propulsion & additive technologies, critical aircraft systems and aftermarket services in the defense market.
It is worth noting that in the first nine months of 2026, the company secured a contract from Naval Air Systems Command (NAVAIR) to supply T408-GE-400 engines for the U.S. Marine Corps’ Sikorsky CH-53K King Stallion helicopters. GE secured a five-year contract to provide ongoing support for F414 engines powering the U.S. Navy's F/A-18 and EA-18G aircraft fleet.
It also secured a contract from Turkish Aerospace Industries (“TAI”) to continue integrating its F404 engine into Türkiye's Hurjet jet trainer. The company also clinched a $1.4 billion deal for T408 engines to support the U.S. Marine Corps’ CH-53K helicopter fleet in the same period.
Rising U.S. & international defense budgets and heightened geopolitical tensions, along with growing demand for military propulsion systems and aftermarket services, are expected to bode well for the Defense & Propulsion Technologies segment in the quarters ahead. For 2026, the company expects adjusted revenues to increase in low double digits within the Defense & Propulsion Technologies segment.
GE's Peers in the Defense MarketAmong its major peers, Textron Inc. (TXT - Free Report) enjoys solid demand for its defense products as well. In the second quarter of 2026, revenues from Textron’s Bell segment increased 6% year over year, driven largely by higher H-1 and MV-75 volume and an increase in commercial helicopter deliveries. Textron Systems revenues increased 7% on armored vehicles and ATAC services.
Another peer of GE, RTX Corporation (RTX - Free Report) , is witnessing solid bookings and backlog levels. RTX’s strong backlog supports a positive outlook for revenue growth in its defense business, which is expected to strengthen profits over the long term. RTX secured more than $81 billion in new commercial and defense awards during the third quarter of 2026. Its total backlog reached a record $340 billion, comprising $164 billion of defense orders, providing strong visibility into future production requirements.
GE's Price Performance, Valuation and EstimatesShares of GE Aerospace have gained 3.1% in the past six months against the industry’s 8.9% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 33.22X, above the industry’s average of 27.35X. GE Aerospace carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GE’s 2026 earnings has gone up 1.9% over the past 60 days.
Image Source: Zacks Investment Research
The company currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Both telecom giants just raised guidance, but retirees collecting dividend checks face a stark choice between a yield that keeps climbing and one frozen after a painful cut. The math behind each payout tells a very different story about which…
Verizon (NYSE:VZ | VZ Price Prediction) and AT&T (NYSE:T) both raised guidance in their latest earnings reports. Retirees, however, get very different checks. Verizon offers a forward yield near 6.26% and keeps raising it. AT&T yields about 4.88% on a payout frozen since its 2022 cut. Income durability now matters more than headline yield.
Verizon Raises the Check While AT&T Holds It Flat Verizon raised its quarterly dividend to $0.7075 from $0.69 this year, extending a record that began at $0.565 in 2016. That steady ladder helps a retiree keep pace with inflation.
AT&T paid $0.52 per quarter until early 2022, then cut to $0.2775, where it has stayed. Management plans to hold $1.11 annualized through 2028. Predictable, yes. Yet a flat check loses purchasing power every year.
Income Lens Verizon AT&T Quarterly Dividend $0.7075 $0.2775 Forward Yield 6.26% 4.88% Track Record 19 consecutive yearly raises Flat since 2022 cut Leverage 2.5x 3.13x 2026 Free Cash Flow Outlook $21.94B to $22.14B $18B+ Fewer Subsidies Fund Verizon’s Payout Verizon paid $5.9 billion in first-half dividends against $10.2 billion of free cash flow, about 58% of free cash flow. The source is operational: equipment revenue fell nearly 20% as subsidies shrank, while EBITDA margin hit 40.1%. Customers still came, with 184,000 postpaid phone net adds. Management summed it up: “We’re growing our dividend, and we are paying down our debt.”
AT&T’s dividend used about 40% of third-quarter free cash flow, a smaller load. The pressure sits elsewhere. AT&T targets ~$10B of 2026 buybacks and $23-24B of capex, and leverage rose after the $23 billion EchoStar (NASDAQ:SATS) spectrum purchase. The growth engine works: a record 769,000 Advanced Connectivity internet net adds and fiber reaching 39M+ locations.
Verizon’s Upcoming Report Tests the Momentum Verizon reports again soon, and I’ll focus on fixed wireless, where net adds fell 30.6%. Account revenue also slipped 1.4%, a crack worth monitoring. For AT&T, Barron’s highlighted Starlink fears weighing on shares, and fiber ARPU dropped 4%. Deleveraging back to 2.5x does not arrive until 2029.
Why Verizon’s Income Profile Stands Out for Retirees For income investors, Verizon holds the edge on the data in this comparison: a higher yield, a payout that still increases, lower leverage, and comfortable cash coverage built on cheaper customer acquisition. That edge would weaken if leverage falls short of the 2027 target range or subscriber gains stall without subsidies. Total-return investors who value heavy buybacks and fiber expansion may prefer AT&T and its $24B+ repurchase plan through 2028. Retirees leaning on these checks should think in ladder terms rather than single names, the approach we laid out in a free guide on building lifetime income without selling shares: here.
Contact [email protected] for any questions or corrections.
AI stocks cracked on Thursday and spooked investors sent billions pouring into Treasuries, but the bond rally now faces a Fed meeting, a fresh inflation report, and December rate hike odds that could erase every gain.
The 10-year Treasury yield fell 19.3 basis points to 4.953% on Thursday, October 22, 2026. Measured before the final close, it was on track for its largest daily drop since March 10, 2023. A basis point is one hundredth of a percentage point.
The buying came from investors leaving AI stocks. Meta Platforms (NASDAQ:META | META Price Prediction) fell 7% after its results because its plan to issue non-voting stock to fund AI revived concerns about its capital commitments.
The Philadelphia semiconductor index dropped 6.7%, its biggest decline since June 23. The Nasdaq Composite lost 2.6% to 26,008.86, its biggest one-day percentage drop since early June. The S&P 500 fell about 1.2% to 7,663.43, while the Dow edged up 11.89 points to 52,867.98.
Invesco QQQ Trust (NASDAQ:QQQ) fell 2.86% to $704.47, and iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) gained 1.87% to $81.74. Fear drove that bond rally, and the Federal Reserve is still raising rates.
Safety Demand Outweighed Strong Economic Data
Treasury’s official par yield curve shows the 10-year closing at 4.96%, down from 5.13% on October 21. It was the first close below 5% since September 22, and on that occasion the yield jumped to 5.11% the next day.
In market trading, the yield had topped out at 5.3645% on October 7, its highest since April 2002. The two-year fell 18.5 basis points to 4.638%, its biggest drop since August 2025, and the 30-year fell 15 basis points to 5.287%.
Jobless claims fell by 6,000 to 194,000, and inflation stayed persistent. Both figures normally push yields up. “They are rotating out of techs, out of the AIs, and into the more safety trades,” said Joe Saluzzi, co-head of equity trading at Themis Trading.
Thomas Urano, co-chief investment officer of Sage Advisory, said: “The flight-to-quality trade is winning in the Treasury space.” A rally that runs against the data can reverse quickly once the fear passes.
December Hike Odds Still Threaten Long Bonds
CME FedWatch odds of a hike of at least 25 basis points at the October 27 and 28 meeting fell to 7.2%, from 27.7% a week earlier and 55.4% a month earlier. Odds of a December hike slipped from around 86% at noon Thursday to about 78% later in the day.
TLT holds Treasuries maturing in 20 years or more, and long bonds lose more of their price than short ones when yields rise. That sensitivity is why the fund is down 7.08% over the year ended October 22.
Mortgage Rates Barely Moved Despite the Bond Rally
Freddie Mac’s 30-year average fell to 7.32% from 7.40%, the level it held on October 8 and October 15. It was the first weekly decline since at least early September, and the rate was 6.71% on September 3 and 6.19% a year earlier.
The 15-year average slid to 6.68% from 6.71%. Mortgage rates follow the 10-year with a delay and a spread, so yields need to stay lower for weeks before home buyers see real relief.
iShares U.S. Home Construction ETF (BATS:ITB) jumped 5.39% to $91.24, and Home Depot (NYSE:HD) rose 4.33% to $327.73. Those gains are large for a market where mortgage rates stay above 7%, and existing home sales ran at an annualized 3.99 million in September.
Why TLT’s Rally Faces a December Test
TLT’s gain assumes Fed help that hasn’t come, and December hike odds near 78% leave room for long yields to rise again. If AI fears ease, money that left QQQ can go back into tech, and the demand for safety that raised Treasuries would fade.
Home Depot offers a different risk profile. It pays a 2.80% dividend yield, grew comparable sales 1.7% in its fiscal second quarter as customers took on smaller projects, and kept its fiscal 2026 guidance despite housing affordability pressure.
The real test comes when the FOMC meets on October 27 and 28, and PCE inflation data arrives on October 29. If the 10-year closes back above 5.13% on Treasury’s par curve, the whole fear rally will have reversed.
Contact [email protected] for any questions or corrections.
Key Takeaways Goldman's Equities revenues surged 72% y/y to $6.44B, its second-highest quarterly result.Equities financing revenues jumped 96% to a record $3.37B, while intermediation revenues rose 52%.Combined FICC and Equities financing revenues hit $12.7B in nine months, exceeding 40% of total revenues. The Goldman Sachs Group, Inc. (GS - Free Report) delivered robust performance in its Equities business in the third quarter of 2026, benefiting from strong client activity, rising financing demand and strength in derivatives. Third-quarter Equities net revenues surged 72% year over year to $6.44 billion, marking the company's second-highest quarterly performance in this business. For the first nine months of 2026, Equities revenues increased 57% year over year to $19.18 billion, reflecting sustained business momentum.
Goldman continues to benefit from robust demand for prime brokerage, portfolio financing and risk intermediation services. Management noted that demand for Equities financing exceeds available industry capacity, supporting attractive pricing and allowing the company to remain selective in capital deployment.
Multi-year investments in its global franchise, particularly in Asia, have strengthened its financing capabilities and supported higher client activity. These efforts, along with elevated average prime balances and strong activity across Asia, drove a 96% year-over-year surge in Equities financing revenues to a record $3.37 billion in the third quarter of 2026. Diversified client relationships and disciplined capital allocation further reinforce its competitive position.
Financing activities are also becoming an increasingly important growth driver for Goldman's trading business. In the first nine months of 2026, combined Fixed Income, Currencies and Commodities (“FICC”) and Equities financing revenues reached a record $12.7 billion, accounting for more than 40% of total FICC and Equities revenues. This growing contribution is expected to enhance revenue stability and reduce the dependence on transactional trading activity.
Overall, growing equity financing demand, expanding tradable assets and rising institutional financing needs should support Goldman's Equities business. However, market volatility, weaker trading activity, elevated interest rates and geopolitical uncertainties could weigh on revenues. Nonetheless, Goldman's strong market position, diversified financing platform and expanding client relationships position it well for long-term growth.
How Are Goldman's Peers Performing?Similar to Goldman, major Wall Street banks like Morgan Stanley (MS - Free Report) and JPMorgan (JPM - Free Report) also witnessed strong Equities performance.
Morgan Stanley reported Equity revenues of $5.80 billion in the third quarter of 2026, up 41% year over year, driven by strong client engagement and broad-based growth across Morgan Stanley’s businesses and regions, particularly Asia.
Similarly, JPMorgan reported Equity Markets revenues of $5 billion, up 49% year over year, driven by strong performance across products, particularly prime brokerage and derivatives. Strong client demand for financing and risk management solutions supported trading performance, highlighting continued momentum in JPMorgan’s Equities franchise.
Goldman’s Price Performance, Valuation & EstimatesGS shares have gained 13.7% in the past year compared with the industry’s growth of 6.4%.
Price Performance
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From a valuation standpoint, Goldman trades at a forward price-to-earnings (P/E) ratio of 12.37X, above the industry’s average of 12.31X.
Price-to-Earnings F12M
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The Zacks Consensus Estimate for GS’s 2026 and 2027 earnings implies year-over-year rallies of 38% and 4.3%, respectively. Estimates for both years have been revised upward over the past week.
Estimate Revision Trend
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Goldman currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Based on nothing more than the most basic of numbers, Starbucks (SBUX -0.74%) is a decent dividend stock. Shares of the chain of coffee shops boast a forward-looking dividend yield of 2.6%, and better still, its quarterly dividend's not only been reliably paid for years, but been raised every year for the past 16 years. And by more than a little. You could certainly do worse.
But could you do better? The $395,000 stake (3,968 shares) you'd need to own in Starbucks just to generate $10,000 in annual dividend income is a lot of money to tie up that could be put to work in ways that make more sense for you, perhaps like the purchase of super-safe 10-year Treasuries, which are currently yielding around 5.1%.
Here's some food for thought.
It's still a stake in a for-profit company Most blue chip dividend stocks are safe enough in the sense that there's no real risk of a complete wipeout of your money. Starbucks in no exception. Every dividend-paying stock is still also an equity stake in a particular company, however, and participation in that organization's fiscal performance.
That's where Starbucks and its stock have let investors down for the better part of the past five years. While it's technically continued growing its top line, the rate of this growth is markedly slower than its pre-pandemic pace. Profits have also stagnated, not to mention been erratic.
SBUX data by YCharts
Blame a combination of leadership turnover, labor woes, and market saturation, much of which is due to Starbucks' own overwhelming presence. As of the latest count, the company was operating 41,304 stores worldwide, with 16,933 of those units found in the United States alone. That doesn't leave a great deal of room for healthy continued expansion.
This doesn't necessarily make Starbucks a horrible income investment. As was noted, it's not only still paying a respectable dividend, but reliably growing it. We're also seeing glimmers of hope that its profit-crimping struggle since 2024 may finally be coming to a close. Last quarter's overall same-store sales were up 7.9%, capping off four consecutive quarters of such growth.
Image source: Getty Images.
There are still lingering concerns, though, like last quarter's slight 1% decline in revenue. It's going to take several quarters of total top-line progress to confirm that Starbucks is capable of making sustained net growth again. Until then, most interested investors are content to remain on the sidelines.
Better options are out there In answer to the titular question, then, no, buying nearly $400,000 worth of Starbucks stock (that's far from guaranteed to perform) just to plug into its dividend isn't worth it.
That's even more so the case given all the other, safer options, like Coca-Cola (KO -2.04%). Despite this stock's 36% rally to record highs over the past 12 months, it's currently yielding a comparable 2.3% and has increased its dividend for 64 consecutive years.
Or there's the aforementioned option of longer-term Treasuries, which -- thanks to recent rate hikes -- now sport yields in excess of 5%. Although these instruments don't offer any capital growth potential, with yields twice those of Coca-Cola shares or an uncertain Starbucks, they might still make more near-term sense to income-minded investors.
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Focus List Spotlight: Starbucks (SBUX - Free Report) Starbucks is a global roaster, marketer and retailer of specialty coffee, operating in 90 markets worldwide. As of March 29, 2026, the company had 41,129 company-operated and licensed stores. The United States and China represented 61% of the global portfolio, with 16,944 stores in the United States and 7,991 in China.
On August 16, 2019, SBUX was added to the Focus List at $95.93 per share. Shares have increased 6.23% to $101.91 since then, and the company is a #2 (Buy) on the Zacks Rank.
For fiscal 2026, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $2.65. SBUX boasts an average earnings surprise of 8.4%.
Earnings for SBUX are forecasted to see growth of 24.4% for the current fiscal year as well.
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Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.82% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Starbucks (SBUX - Free Report) Starbucks is a global roaster, marketer and retailer of specialty coffee, operating in 90 markets worldwide. As of March 29, 2026, the company had 41,129 company-operated and licensed stores. The United States and China represented 61% of the global portfolio, with 16,944 stores in the United States and 7,991 in China.
SBUX is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Retail-Wholesale stock. SBUX has a Momentum Style Score of B, and shares are up 8.8% over the past four weeks.
For fiscal 2026, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $2.65 per share. SBUX boasts an average earnings surprise of +8.4%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, SBUX should be on investors' short list.
Wall Street expects a year-over-year increase in earnings on higher revenues when Colgate-Palmolive (CL - 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 stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 30. 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 $0.92 per share in its upcoming report, which represents a year-over-year change of +1.1%.
Revenues are expected to be $5.33 billion, up 3.9% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.02% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Colgate-Palmolive?For Colgate-Palmolive, 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 +0.01%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Colgate-Palmolive will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Colgate-Palmolive would post earnings of $0.95 per share when it actually produced earnings of $0.99, delivering a surprise of +4.21%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Colgate-Palmolive appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
