Track market-moving stories before they get noisy

Key Takeaways ARM's total revenues increased 20% year over year to $1.49 billion in fiscal Q4 2026.Licensing and other revenues surged 29% to $819 million.Royalty revenues grew 11% to $671 million on Armv9 adoption, Arm CSS and expanding data center deployments. Arm Holdings (ARM - Free Report) continues to capitalize on robust demand for its semiconductor intellectual property, with its latest quarterly results highlighting licensing as a key growth engine.

In the fourth quarter of fiscal 2026, total revenues climbed 20% year over year to $1.49 billion. While the royalty business remained a significant contributor, licensing and other revenues once again delivered the strongest growth, underscoring sustained customer demand for ARM’s technology.

The company continues to benefit from rising investments in artificial intelligence, cloud computing, mobile devices and custom silicon. As chipmakers increasingly design specialized processors for AI workloads and high-performance computing, ARM’s architecture has become an essential foundation for product development, supporting a healthy pipeline of new licensing agreements and long-term customer relationships.

Licensing and other revenues surged 29% year over year to $819 million, making it the primary driver of ARM’s top-line expansion during the quarter. Growth was supported by previously signed agreements, as well as the timing of several high-value licensing contracts.

Meanwhile, ARM’s royalty business continued to provide a stable stream of recurring revenues. Royalty revenues increased 11% year over year to $671 million, driven by broader adoption of Armv9, increasing deployment of Arm Compute Subsystems (CSS), and the growing use of Arm-based processors in data center infrastructure.

For investors, the takeaway is straightforward: strong licensing demand continues to strengthen Arm Holdings’ competitive position. As customers accelerate investments in AI infrastructure and next-generation computing, ARM appears well-positioned to benefit from a growing pipeline of licensing opportunities while simultaneously expanding its high-margin royalty base, providing multiple long-term drivers of sustainable growth.

How Arm Holdings Stacks Up Against Key U.S. PeersNVIDIA (NVDA - Free Report) dominates the AI accelerator market with its GPUs and networking platforms. Unlike Arm Holdings, which primarily generates revenue through licensing and royalties, NVIDIA designs and sells complete hardware and software solutions. While NVIDIA's growth is driven by direct chip sales, ARM benefits as more semiconductor companies adopt its CPU architecture to develop AI-optimized processors, making the two companies complementary in many AI deployments rather than direct competitors.

Advanced Micro Devices (AMD - Free Report) competes in CPUs, GPUs and data center processors, focusing on designing and selling semiconductor products. ARM, in contrast, licenses its processor architecture to a broad ecosystem of chipmakers. As demand for custom AI chips and energy-efficient computing grows, AMD competes through product innovation, while ARM benefits from broader adoption of its intellectual property across multiple customers and end markets.

ARM’s Price Performance, Valuation and EstimatesThe stock has surged a massive 175% year to date, significantly underperforming the industry’s 46% rally.

                                                         Image Source: Zacks Investment Research

From a valuation standpoint, ARM trades at a forward price-to-sales ratio of 49.11X, well above the industry’s 9.13X. It carries a Value Score of F.

                                                              Image Source: Zacks Investment Research

The Zacks Consensus Estimate for the company’s fiscal 2027 earnings has declined over the past 30 days.

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

First-of-its-kind system combines flight display, IFR GPS, NAV/COMM and audio panel capability into a single display for certified, experimental and LSA (MOSAIC) aircraft

, /PRNewswire/ -- Garmin (NYSE: GRMN) today announced AXIS™, an all-new family of flight displays, designed from the ground up to offer a highly integrated and flexible cockpit display solution. AXIS brings Garmin's latest avionics technology to certified piston-powered single and twin1 engine aircraft via an expansive AML STC covering hundreds of models, as well as experimental and LSA aircraft. In an industry-first, AXIS flight displays come in a variety of models that can include a built-in IFR GPS, NAV/COMM radio, and audio panel capability – creating an integrated solution that enhances the user experience, reduces aircraft weight, and simplifies installation. Also compatible with many of the same navigators, radios, modules and sensors as Garmin's popular G3X Touch™ flight displays, AXIS features an easy upgrade path, including leveraging the same panel cutouts and mounting points.

Garmin unveils AXIS, a new generation of highly integrated flight displays "AXIS redefines Garmin's flight display portfolio and brings industry-first capability to a single flight display. This game-changing flight display system delivers a modern, highly capable cockpit experience while significantly reducing time, complexity and cost of installation through integration of navigation, communication and audio functions into a single flight display. The visual design elements and crisp user interface bring together decades of Garmin innovation in a familiar yet modern design. AXIS sets the new standard for what pilots can expect from an integrated flight display system." 
–Carl Wolf, Garmin Vice President Aviation Sales, Marketing, Programs & Support 

A next-level flight display system

The AXIS family of flight displays features three display sizes — 11.6-inch landscape, 8-inch portrait1 and 8-inch landscape1— that include highly responsive touchscreen displays as well as physical controls for quick access to key functions. Each display can be configured as a primary flight display (PFD) or multi-function display (MFD) with an optional engine indication system (EIS). Pilots can maximize their situational awareness with full-screen or split-screen options, leveraging a familiar yet modernized user interface. The flight displays are configurable for both experimental and certified aircraft and provide incredible flexibility for installation across many aircraft types.

First-of-its-kind integration

AXIS 11.6-inch displays are optionally available with a TSO certified IFR GPS, COMM radio, NAV radio and audio panel all built into a single display. This combined capability from a single display creates a highly integrated panel experience and enables a simpler and more cost-effective installation. The VHF COMM radio offers 10 watts of transmit power, supports 8.33khz frequency tuning and standby COMM monitoring, allowing pilots to monitor a standby frequency while tuned to the active ATC frequency. Pilots can access the flight plan across displays and easily load waypoints or VORs, holds, GPS and ILS procedures and more. The built-in 4-place intercom audio panel includes dual-comm switching with support for one external radio, comm playback and Bluetooth capability for music and phone calls. Available in three certified (TSO) variants, the base version offers a PFD/MFD, while the GPS/COMM and GPS/NAV/COMM models include an IFR GPS and integrated audio panel. Experimental and LSA aircraft can leverage both certified and non-TSO versions of the 11.6-inch displays.

Enhanced situational awareness

Important information is easily accessible on the PFD including primary flight data, as well as the horizontal situation indicator (HSI) which can include an embedded map or traffic view. Widgets provide additional situational awareness on the PFD by displaying three compact views of MFD functions including map, flight plan, weather, traffic and more. Enhanced Synthetic Vision Technology (SVT™) provides 3D depictions of terrain, obstacles, runway and taxiway markings and more, allowing for pilots to clearly interpret their surroundings. Pathway rectangles will help pilots to visualize the highway in the sky, depicting their flight path including enroute legs, flight track, course intercepts and more. Additionally, 3D SafeTaxi® provides pilots with a three-dimensional, exocentric view of the airport environment directly on their PFD, reducing potential confusion by giving a clear, localized picture of taxiways, runways, hangars and surrounding buildings.

The MFD features dynamic mapping, ADS-B traffic2, weather2, waypoint information (including terminal charts) and expanded EIS. Additionally, an HDMI video input on each display allows for live-camera video monitoring.

Innovative safety tools

AXIS supports many of Garmin's award-winning safety enhancing technologies. A dedicated emergency button is located on the display bezel, allowing pilots to quickly access emergency procedure options if needed. Smart Glide™ – a Garmin Autonomí™ technology – helps pilots in loss of engine power emergencies by efficiently navigating to an airport in range and, if the aircraft is equipped with either a GFC™ 500 or GFC 600, the system can auto-engage to fly the aircraft enroute.

Terminal safety solutions include award-winning Runway Occupancy Awareness (ROA), a solution that uses ADS-B traffic to alert the crew of potential runway incursions caused by nearby airborne aircraft, taxiing aircraft and ground vehicles. Additionally, optional SurfaceWatch™ runway monitoring technology provides general situational awareness in airport environments as well as visual and aural cues to help prevent pilots from taking off or landing on a taxiway.

Advanced engine monitoring

The EIS within AXIS provides aircraft with real-time data to help better manage engine operation and protect aircraft engines. Large, prominent engine gauges provide color-coded pointers and data bands that indicate normal operating ranges, cautions and exceedances. Bar gauges display numerical values for additional precision. With an interface adapter and sensors, AXIS can serve as the primary EIS display in piston-powered aircraft equipped with most normally aspirated or turbocharged 4- to 6-cylinder engines, plus radial and turbine-powered experimental aircraft3. Upon landing, flight and engine data logs can be automatically uploaded to flyGarmin.com via the Garmin Pilot™ app or the GDL® 60 datalink1 and PlaneSync™ service. Pilots can optionally choose to share these logs with analysis services such as FlySto or SavvyAviation to gain deeper insights on engine health, maintenance updates, flight analysis and more.

Stay connected

Advanced connectivity options allow pilots to stay more connected than ever before. Built-in Wi-Fi and Bluetooth allow pilots to connect with Garmin Pilot in-flight as well as share GPS, traffic, weather, flight plans and more. PlaneSync, powered by the GDL 60 datalink1, will support automatic database downloads3, remote aircraft status4 as well as automatic flight log uploading. A built-in USB-C data port supports data transfer capabilities like downloading databases and offloading flight logs. The USB-C port will also support device charging up to 27W. Additionally, Database Concierge allows pilots to download updates to their Garmin Pilot app and wirelessly transfer to their compatible avionics via a compatible mobile device.

Team X simplifies installations

Team X – the experimental aircraft specialists at Garmin – were the voice for experimental builders and pilots throughout the development of AXIS. Composed of engineers, pilots and aircraft builders, they understand the flexibility and affordability needed to execute an experimental aircraft build. That's why AXIS features a streamlined, easy upgrade path from G3X Touch that utilizes most existing sensors, LRUs and even the same panel cutout and existing mounting holes. Simplified wiring, configuration and additional built-in I/O makes AXIS an even faster and more scalable system. Team X is committed to providing support throughout AXIS upgrades for experimental aircraft builders.

Available for certified and experimental aircraft

The AXIS 11.6-inch flight displays have achieved FAA/EASA Technical Standard Order (TSO) and will be available in July. The 8-inch displays are expected to be available in early 2027. The FAA Supplemental Type Certificate (STC) will cover hundreds of models of certified Part 23 Class I/II piston singles and twins1. STC approvals with other civil aviation authorities are expected in the near future. For more information, visit Garmin.com/AXIS.

Garmin products and services have revolutionized flight and become essential to the lives of pilots and aircraft owners and operators around the world. A leading provider of solutions to general aviation, business aviation, rotorcraft, advanced air mobility, government and defense, and commercial air carrier customers, Garmin believes every day is an opportunity to innovate. Recipient of the prestigious Robert J. Collier Trophy for Garmin Autoland, Garmin developed the world's first certified autonomous system that activates during an emergency to control and land an aircraft without human intervention. Visit the Garmin Newsroom, email our media team, connect with @garminaviation on social, or follow our blog.

1 Certified Twin EIS, 8-inch displays and GFC 600 compatibility coming soon.
2 Compatible datalink required; sold separately.
3 Active PlaneSync and database subscriptions required for automatic database updates. Active PlaneSync subscription plan required for flight log uploading. Features are available on-ground only and requires GDL 60 to have active LTE or Wi-Fi connectivity; signal strength and other factors may apply. See Garmin.com/PlaneSyncCoverage for LTE coverage details.
4 Remote aircraft status requires active PlaneSync subscription. User's smart device must have internet connectivity. Feature is available on-ground only and requires GDL 60 to have LTE connectivity; signal strength and other factors may apply. See Garmin.com/PlaneSyncCoverage for coverage details.

About Garmin International, Inc. Garmin International, Inc. is a subsidiary of Garmin Ltd. (NYSE: GRMN). Garmin Ltd. is incorporated in Switzerland, and its principal subsidiaries are located in the United States, Taiwan and the United Kingdom. Garmin, SafeTaxi and GDL are registered trademarks and AXIS, G3X Touch, SVT, Smart Glide, Autonomí, GFC, SurfaceWatch, Garmin Pilot and PlaneSync are trademarks of Garmin Ltd. or its subsidiaries. All other brands, product names, company names, trademarks and service marks are the properties of their respective owners. All rights reserved.

Notice on Forward-Looking Statements:
This release includes forward-looking statements regarding Garmin Ltd. and its business. Such statements are based on management's current expectations. The forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of known and unknown risk factors and uncertainties affecting Garmin, including, but not limited to, the risk factors listed in the Annual Report on Form 10-K for the year ended December 27, 2025, filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983). Copies of such Form 10-K are available at https://www.garmin.com/en-US/investors/sec/. No forward-looking statement can be guaranteed. Forward-looking statements speak only as of the date on which they are made and Garmin undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Media Contact: Mikayla Rudolph // 913-397-8200 // [email protected]

SOURCE Garmin International, Inc.

Key Takeaways SPCX fell 6.8% on its Nasdaq-100 debut, closing at $149.47, its lowest level since IPO.Starlink, Starship and AI infrastructure plans are key growth engines for SpaceX's long-term story.SpaceX's $2T valuation and 36X forward sales multiple leave little room for execution missteps. Shares of Space Exploration Technologies (SPCX - Free Report) fell 6.8% yesterday on their first day as part of the Nasdaq-100 Index, closing at $149.47. The stock is now trading at its lowest level since its June 12 IPO and well below its closing high of $211.39.

SpaceX became one of the fastest companies to join the Nasdaq-100, but the milestone failed to provide the boost many investors had expected. Instead, the stock came under pressure as a broad technology selloff weighed on the sector.

The weakness was due to growing concerns over heavy AI-related spending, rising U.S. bond yields, higher oil prices and escalating tensions in the Middle East. Several technology stocks, including Marvell Technology (MRVL - Free Report) , Micron Technology (MU - Free Report) and Advanced Micro Devices (AMD - Free Report) , also declined sharply yesterday.

Yesterday’s Price Decline  Image Source: Zacks Investment Research

With SpaceX now trading near its post-IPO lows, the key question is whether the recent pullback offers a compelling buying opportunity or signals further downside ahead.

Multiple Growth Engines Support SPCX’s Long-Term StorySpaceX's long-term growth story remains compelling, supported by multiple high-growth businesses.

The biggest growth driver is Starlink, SpaceX’s satellite Internet arm. It is benefiting from rising demand for broadband connectivity in underserved regions and is positioned to offer text, voice and data services directly to standard smartphones. The business generated more than $11.4 billion in revenues and $4.4 billion in operating income in fiscal 2025, highlighting its ability to generate meaningful profits while expanding globally.

Another major catalyst is Starship. Following its 12th successful test flight in May 2026, the next-generation launch vehicle is expected to carry much heavier payloads than Falcon 9. This would enable the deployment of larger Starlink satellites while significantly reducing the cost of delivering satellite bandwidth, improving the economics of the Starlink business over time.

SpaceX is also transforming into an AI infrastructure company following the acquisitions of xAI and X earlier this year. By combining AI models, large-scale computing infrastructure and satellite connectivity, the company is building an integrated platform that few competitors can match. It plans to launch AI compute satellites by 2028, paving the way for space-based data centers.

The company's growing presence in AI is already attracting major customers. Multi-billion-dollar computing agreements with Alphabet's Google and Anthropic provide long-term revenue visibility, while the planned acquisition of Anysphere, the company behind the AI coding assistant Cursor, strengthens its position in the fast-growing enterprise AI software market.

But Can We Look Past the Valuation Concerns?While SpaceX's long-term opportunities are significant, its valuation leaves little room for disappointment.

The company is currently valued at around $2 trillion despite generating just $4.69 billion in first-quarter revenues and incurring a net loss of $4.28 billion. On a forward 12-month basis, the stock trades at roughly 36 times sales, a rich premium even among high-growth technology companies.

Image Source: Zacks Investment Research

Investors are paying for what SpaceX could become rather than what it is today. That optimism rests on Starlink's continued expansion, AI infrastructure, space-based data centers and Elon Musk's vision of building a company capable of generating $100 billion in annual revenues by 2028.

However, reaching that milestone will require flawless execution across multiple capital-intensive businesses. Also, history suggests that investors should treat Musk's timelines with caution. We know that many of Tesla's ambitious projects, including robotaxis and humanoid robots, have taken longer than initially projected. Likewise, many of SpaceX's biggest growth initiatives are still years away from making a meaningful financial contribution and will require huge investment before they begin generating attractive returns.

Is SpaceX Stock a Buy?SpaceX remains one of the most compelling long-term growth stories in the market. Few companies have leadership positions across commercial space, satellite connectivity and AI infrastructure, giving SPCX multiple avenues for expansion over the coming decade.

That said, much of this optimism already appears reflected in the stock's premium valuation. Even after the recent pullback, investors are still paying a steep price for future growth that will take years to materialize.

Having said that, for existing shareholders, the recent decline does not change the long-term investment thesis, making the stock worth holding through near-term volatility. Wall Street's average price target still implies roughly 35% upside from current levels.

Image Source: Zacks Investment Research

However, new investors may be better served by waiting for a more attractive entry point. While SpaceX's long-term prospects remain attractive, the current valuation still offers a limited margin of safety, leaving little room for execution missteps or broader market weakness.

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

Key Takeaways Uber's gross bookings rose 25% to $53.7B in Q1, topping the consensus estimate of $52.9B. Uber expects Q2 gross bookings of $56.25B-$57.75B, up 18-22% on a constant-currency basis. Uber benefits from strong Mobility and Delivery demand, Uber One growth and ongoing app improvements. Gross bookings at Uber Technologies (UBER - Free Report) , the San Francisco-based ride-hailing giant, continue to grow despite geopolitical tensions because demand for its services remains strong. Notwithstanding the current turbulent scenario, people need rides to go to work, airports, restaurants and events, while food and grocery delivery continues to be part of everyday life. Uber also benefits from operating in many countries, so weaknesses in one market are often offset by strengths in others. 

In addition, the company's Uber One membership program, expanding delivery business and ongoing improvements in its app are encouraging customers to use the platform more often and spend more, helping drive higher gross bookings.

Higher gross bookings are benefiting Uber by increasing both revenues and profitability. As more customers use the platform, Uber earns more fees while keeping costs under control, allowing profits and free cash flow to grow faster. Strong booking growth also attracts more drivers and merchants to the platform, making the service more reliable and improving the customer experience. 

Despite the crisis in the Middle East, UBER’s Mobility business saw impressive demand in first-quarter 2026, with segmental revenues increasing 5% year over year on a reported basis and 1% on a constant currency basis to $8.2 billion.

Gross bookings from the unit were highly impressive, aiding the first-quarter results. Gross bookings from the Mobility segment in the March quarter increased 20% year over year on a constant-currency basis to $26.4 billion. Uber’s Delivery business also performed well in the quarter, with segmental revenues growing 23% year over year on a constant-currency basis. Gross bookings from the Delivery segment in the first quarter rose 23% year over year on a constant-currency basis to $26 billion. Total gross bookings jumped 25% to $53.7 billion, ahead of the Zacks Consensus Estimate of $52.9 billion.

The gross bookings forecast for the second quarter of 2026 is also very impressive, highlighting the bullishness surrounding the key metric. Despite the ongoing tensions in the Middle East and the resultant fuel price spike, gross bookings are projected in the range of $56.25-$57.75 billion, highlighting growth of 18% to 22% year over year on a constant-currency basis. The outlook assumes a roughly 2 percentage-point currency tailwind to total reported year-over-year growth.

Comparable Metrics of Other Ride-Hailing EntitiesGross bookings are strong at rival Lyft (LYFT - Free Report) as well, mainly owing to the growing active rider base, expansion into new markets and the success of its customer-friendly "Price Lock" feature. In the March quarter, gross bookings increased 19% year over year to $4.9 billion at Lyft. This was the 20th consecutive quarter where Lyft demonstrated double-digit year-on-year growth in the key metric, demonstrating the resilience and momentum of its customer-friendly strategy. Active Riders increased 17% year over year to 28.3 million.

For the second quarter of 2026, Lyft anticipates gross bookings to grow 18-21% year over year, reaching $5.3-$5.43 billion.

Singapore-based Grab (GRAB - Free Report) is benefiting from strong growth in its On-Demand Gross Merchandise Value (“GMV”). On-Demand GMV refers to the sum of GMV of the mobility and deliveries segments. In the first quarter of 2026, On-Demand GMV increased 21% year over year (on a constant currency basis) at Grab. Grab expects 2026 revenues between $4.04 billion and $4.1 billion, indicating 20-22% year-over-year growth.

UBER’s Share Price Performance, Valuation and EstimatesShares of UBER have declined in double digits over the past six months. Courtesy of the downbeat performance, UBER’s shares have underperformed the Zacks Internet-Services industry over the same time frame.

6-Month Price ComparisonImage Source: Zacks Investment Research

From a valuation standpoint, UBER trades at a 12-month forward price-to-sales of 2.42X. UBER is inexpensive compared with its industry.

Image Source: Zacks Investment Research

See how the Zacks Consensus Estimate for Uber’s earnings has been revised over the past 90 days.

Image Source: Zacks Investment Research

Uber’s Zacks RankUber currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Alibaba Group (NYSE:BABA)'s US-listed shares jumped almost 11% on Tuesday, supported by a temporary legal reprieve in the United States and growing optimism ahead of the company's upcoming earnings report.

Investor sentiment improved after a US federal judge temporarily blocked restrictions tied to the Pentagon's designation of Alibaba under its Section 1260H list while the company's legal challenge proceeds, according to Bloomberg.

The order allows Alibaba to continue working with US lobbying firms during the court process, preserving its ability to engage with US policymakers on issues related to its cloud computing, e-commerce and capital markets businesses.

The legal challenge stems from the US Department of Defense's June decision to add Alibaba, along with several other Chinese companies, to its list of entities identified as having ties to China's military. The broader review of the designation remains ongoing.

Also supporting the stock was growing optimism ahead of Alibaba's June-quarter earnings, expected in late August or early September. 

Jefferies expects Alibaba to deliver "strong execution despite macro headwinds," with combined EBITA from its China e-commerce and Alibaba International Digital Commerce businesses remaining roughly flat year over year.

The firm believes that weakness in industry gross merchandise value growth is already reflected in the stock price and reaffirmed Alibaba as its top pick on its artificial intelligence investment theme.

The analysts forecast total June-quarter revenue to increase 9% year over year to about RMB270 billion, in line with market consensus. They expect Cloud Intelligent Group revenue to grow 45% from a year earlier, above consensus estimates, driven by demand for artificial intelligence services and model-as-a-service offerings. Jefferies also expects cloud margins to improve sequentially and forecasts Alibaba International Digital Commerce Group will return to profit during the quarter.

The analysts wrote that stronger cloud performance and improving fundamentals in Alibaba's Quick Commerce business should help offset softer trends in China's broader online retail market, where industry online shopping gross merchandise value growth slowed during April and May.

Few stocks have destroyed as much shareholder value as Canopy Growth (CGC +0.81%). Since its 2018 peak, shares of the cannabis producer have lost more than 99% of its value as the industry struggled with oversupply, regulatory delays, and years of unprofitable growth. That kind of collapse naturally raises a question: Is this finally a buying opportunity?

Moving in the right direction To be fair, Canopy Growth is a much healthier company now than it was a few years ago. Fiscal 2026 revenue increased 6% to $200.4 million, while cannabis revenue climbed 15%. Canadian medical cannabis revenue reached a record level, international cannabis sales rebounded sharply in the fourth quarter, and management continues targeting positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) during fiscal 2027. The balance sheet has also improved.

Image source: Getty Images.

Canopy ended fiscal 2026 with approximately $256.5 million in cash and a net cash position of $92 million, a dramatic improvement from the prior year. The company has also spent the past year reducing costs, integrating its MTL Cannabis acquisition, and narrowing operating losses. Still, despite those improvements, Canopy remains unprofitable.

Better company, better stock? Revenue growth has been relatively unimpressive, free cash flow remains negative, and the investment thesis still depends heavily on broader cannabis reform and continued execution in Canada and international medical markets. None of those outcomes is guaranteed.

There's also the issue of dilution. Over the years, Canopy has repeatedly issued new shares to strengthen its balance sheet and fund operations. Existing shareholders have paid a steep price for that financing, and future capital raises can't be ruled out if profitability takes longer than expected.

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To be sure, Canopy is certainly a stronger business than the one investors abandoned several years ago. Management deserves credit for improving the balance sheet and stabilizing operations. But a better marijuana company doesn't automatically make a better marijuana stock.

Until the company demonstrates consistent profitability and positive free cash flow, I'd view the recent progress as encouraging rather than conclusive. For now, there are simply too many execution risks to call the stock a confident buy.

Key Takeaways Mastercard launched Click to Pay with stc pay Bahrain on eligible cards to simplify online purchases.MA uses tokenization and payment passkeys to strengthen security with biometric authentication.Mastercard is expanding its presence in Middle East digital payments through the Bahrain rollout. Mastercard Incorporated (MA - Free Report) is expanding its Click to Pay footprint through a partnership with stc pay Bahrain, making stc pay among the first in the country to offer the feature as a core capability on eligible cards. The move simplifies online shopping by allowing users to complete purchases with a single click using biometric authentication and passkeys instead of manually entering card details.

The rollout supports MA's broader effort to make digital payments faster, safer and more convenient. Click to Pay uses tokenization to replace sensitive card information with secure digital tokens, reducing fraud risks during online transactions. Combined with Mastercard Payment Passkeys, the solution enables password-free authentication through fingerprints or facial recognition, helping deliver a smoother checkout experience while strengthening payment security.

The partnership also advances MA's long-term strategy of expanding value-added payment services beyond its traditional card network. Mastercard aims to enable fully tokenized e-commerce transactions, and wider adoption of Click to Pay could support higher digital transaction volumes while strengthening relationships with fintech partners and merchants.

The Bahrain launch further reinforces MA's presence in fast-growing digital payments markets across the Middle East. As governments and financial institutions continue promoting cashless transactions, partnerships with innovative fintech companies like stc pay can accelerate the adoption of secure digital payment solutions. Expanding Click to Pay across more issuers and merchants should help MA deepen engagement in digital commerce and create additional long-term payment opportunities.

How Are Competitors Faring?Some of MA’s competitors in the payments space include Visa Inc. (V - Free Report) and American Express Company (AXP - Free Report) .

Visa is expanding frictionless online payments through Click to Pay while advancing tokenization and passkey-based authentication across its network. V is also investing in digital identity and AI-powered fraud prevention, helping merchants deliver faster, more secure checkouts and strengthening its position in the growing e-commerce payments market.

American Express is enhancing its digital payments capabilities by integrating tokenization, biometric authentication and digital wallet support across its network. AXP continues to improve online checkout experiences while expanding partnerships with merchants and fintechs, helping deliver secure, seamless transactions and encouraging greater customer engagement in digital commerce.

Mastercard’s Price Performance, Valuation & EstimatesOver the past year, MA’s shares have dropped 6% compared with the industry’s fall of 19.1%.

Image Source: Zacks Investment Research

From a valuation standpoint, MA trades at a forward price-to-earnings ratio of 25.07, above the industry average of 18.17. MA carries a Value Score of D.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Mastercard’s 2026 earnings implies 15.3% growth from the year-ago period.

Image Source: Zacks Investment Research

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

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

The earnings report, which is expected to be released on July 15, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

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

Zacks Consensus EstimateThis airline is expected to post quarterly earnings of $1.89 per share in its upcoming report, which represents a year-over-year change of -51.2%.

Revenues are expected to be $17.69 billion, up 16.1% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 17.87% 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 United?For United, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.26%.

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

So, this combination indicates that United 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 United would post earnings of $1.08 per share when it actually produced earnings of $1.19, delivering a surprise of +10.19%.

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

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

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

United appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsAnother stock from the Zacks Transportation - Airline industry, United Airlines (UAL - Free Report) , is soon expected to post earnings of $1.89 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -51.2%. Revenues for the quarter are expected to be $17.69 billion, up 16.1% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for United has been revised 17.9% up to the current level. Nevertheless, the company now has an Earnings ESP of +1.26%, reflecting a higher Most Accurate Estimate.

This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that United will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

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

Beverage and food giant PepsiCo (NASDAQ:PEP) is set to report second-quarter financial results Thursday before market open.

• PepsiCo stock is showing downward pressure. Where is PEP stock headed?

Here are the earnings estimates, analyst ratings and key items to watch.

Pepsi Q2 Earnings EstimatesAnalysts expect PepsiCo to report second-quarter revenue of $23.94 billion, up from $22.73 billion in last year’s second quarter, according to data from Benzinga Pro.

The company has beaten analyst estimates for revenue in five straight quarters and in six of the past 10 quarters overall.

Analysts expect PepsiCo to report second-quarter earnings per share of $2.21, up from $2.12 in last year’s second quarter.

The company has beaten analyst estimates for earnings per share in four straight quarters and in nine of the past 10 quarters overall.

Pepsi Analyst RatingsAnalysts have been lowering their price targets on PepsiCo stock ahead of the financial results. Here are some of the latest analyst ratings and price targets on the stock.

Key Items to WatchCelsius beat analyst estimates for revenue and earnings per share, with overall revenue up 138% year-over-year to a record $782.6 million. The company was helped by the addition of the Alani Nu brand, which saw record first-quarter revenue of $368.1 million.

Pepsi, which is an investor and key distribution partner, was credited with helping the record results as Alani Nu grew its distribution in the quarter.

While energy drinks are only part of the PepsiCo portfolio, they could be one of the bright spots.

Investors will be watching to see if other beverages and snack foods also saw strength in the quarter.

Pepsi has in the past highlighted changes in prices and sizes for some food products like chips as it fights off inflation and tries to win back consumers who thought prices were too high.

Pepsi’s report comes ahead of rival Coca-Cola Co (NYSES:KO), which reported earnings on July 28. Coca-Cola has beaten analyst estimates for earnings in nine straight quarters and beaten revenue estimates in seven of the past 10 quarters, more consistent beats than Pepsi.

The other big difference is guidance. Pepsi lowered its full-year guidance for sales and earnings per share after first-quarter results. Coca-Cola raised its guidance.

Pepsi shares are up 1% year-to-date in 2026, underperforming Coca-Cola’s gain of 21.6% and the 8.9% gain of the SPDR S&P 500 ETF Trust (NYSE:SPY), which tracks the S&P 500.

Investors and analysts will likely be expecting a strong report, a double beat and updated positive guidance. A miss and/or cut guidance could put further pressure on shares.

Pepsi Stock Price ActionPepsi stock is down 0.9% to $143.64 on Wednesday, versus a 52-week trading range of $132.96 to $171.48.

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Shopify Inc (TSX:SH., NYSE:SHOP) has been awarded a ‘Buy’ rating and a $150 price target in reinstated coverage, citing the company’s potential to benefit from the evolution of AI-driven “agentic commerce,” as well as ongoing international expansion and enterprise adoption.

The firm’s price target is based on a valuation of 22 times estimated calendar 2027 enterprise value to gross profit. Bank of America wrote that Shopify could become a key beneficiary of AI-native commerce as its payments and checkout infrastructure become increasingly important to transactions conducted through artificial intelligence-powered shopping experiences.

The analyst noted that concerns over AI disrupting Shopify’s position in the commerce ecosystem have weighed on investor sentiment, but argued that the company is positioned to benefit from the shift rather than be bypassed.

“We believe Shopify could be a core beneficiary of the shift toward AI-driven, agentic commerce rather than being disintermediated by it,” Bank of America wrote.

The firm expects agentic commerce to become a meaningful part of e-commerce over the coming years and believes value will increasingly concentrate around transaction and infrastructure layers, where Shopify has an established presence.

Bank of America also highlighted international growth and expansion into larger merchants as additional long-term growth drivers. The firm noted that international gross merchandise volume grew 45% year over year in the first quarter of fiscal 2026, while payments volume outside the U.S. increased more than 70%. Non-U.S. revenue currently represents 37% of Shopify’s total revenue.

The analyst also pointed to continued momentum among enterprise customers, noting that merchants with more than $25 million in gross merchandise volume are growing at the fastest pace and that Shopify Plus revenue increased 20% year over year.

Bank of America forecasts Shopify revenue growth of 24% to 28% from fiscal 2026 through fiscal 2028, with gross margins expected to remain in the mid-to-high 40% range. The firm expects operating margins to expand from 17.1% in 2025 to 20.5% in 2028, while free cash flow margins are forecast to increase from 17.4% to 20.3% over the same period.

The firm noted that Shopify’s payments-focused business model results in structurally lower gross margins, making enterprise value to gross profit a more relevant valuation measure. Its 22-times target multiple is above the peer group average of 18.1 times, reflecting Shopify’s growth outlook and expected margin expansion.

Shares of Shopify were down 5% at $115 in Wednesday trading.

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SummaryMicron Technology, Inc. delivered an extraordinary Q3, prompting a rating upgrade to buy as AI-driven demand fuels record revenue and margin growth.MU Q3 revenues soared 346% y/y to $41.46B, with gross margins at 84.6% and operating margins at 80.4%, surpassing even leading fabless peers.Management guided Q4 revenues to $50B and gross margins to 86%, with $100B in minimum contracted revenue de-risking future capex.Despite recent market jitters and a 30% pullback from highs, MU’s structural AI demand and take-or-pay contracts support a bullish long-term thesis. JHVEPhoto/iStock Editorial via Getty Images

I wanted to go over Micron Technology, Inc.'s (MU) Q3 earnings, which reignited my confidence in the company and, given the recent drop in its share price, allowed me to change my rating back

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of MU either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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

Key Takeaways Eli Lilly reached a record high as a higher analyst price target reinforced long-term growth expectations. LLY's Mounjaro and Zepbound posted strong prescription growth, while oral Foundayo expands beyond injectables.LLY may benefit from broader Medicare access as the GLP-1 Bridge program improves affordability. Eli Lilly (LLY - Free Report) shares climbed to another all-time high of $1,235.56, pushing the drugmaker's market capitalization to roughly $1.13 trillion. The rally gained further support after a J.P. Morgan analyst reportedly raised the target price for LLY from $1,300 to $1,400, implying roughly 13% upside from current levels despite the stock already trading at record highs. The revision reflects growing confidence that Lilly's leadership in obesity and diabetes treatments can continue driving earnings growth over the long term.

The bullish outlook is underpinned by Eli Lilly’s continued dominance in the rapidly expanding GLP-1 market. Lilly's blockbuster therapies Mounjaro and Zepbound [for type II diabetes (T2D) and obesity, respectively] continue to post strong prescription growth. Its newly approved oral obesity therapy, Foundayo (orforglipron), extends Lilly's obesity franchise beyond injectable treatments following its U.S. launch. The drug adds another long-term growth lever for the company, with additional global regulatory filings expected to further expand its commercial opportunity.

The investment thesis also reflects confidence that the obesity market remains significantly underpenetrated. Lilly is well-positioned to benefit as awareness rises, treatment adoption accelerates and reimbursement improves across major markets. The company has steadily expanded its presence internationally while continuing to gain U.S. market share, supporting the view that its growth runway remains far from exhausted.

A major near-term catalyst is the Medicare GLP-1 Bridge program, which became effective on July 1. The program allows eligible Medicare Part D beneficiaries to obtain Lilly's Zepbound and Foundayo for $50 per month through the end of 2027, substantially improving affordability for millions of eligible patients who previously had limited access to obesity medicines. While the program also covers competing GLP-1 therapies, it expands the overall addressable market by lowering one of the biggest barriers to treatment.

The reimbursement expansion, however, does not hand Lilly an exclusive advantage. Rival company Novo Nordisk's (NVO - Free Report) Wegovy injection and oral formulation for obesity are also available under the same Medicare program at the identical monthly copay. Instead of reimbursement determining market winners, competition is increasingly shifting toward product differentiation. Lilly arguably enters this phase from a position of strength. Zepbound has demonstrated superior weight-loss efficacy versus Wegovy in head-to-head studies. At the same time, Foundayo offers a simpler once-daily oral dosing regimen without food or drink restrictions, potentially improving patient convenience and adherence.

After an exceptional rally, valuation naturally becomes a big consideration for investors. Yet, premium valuations often persist when earnings continue to outpace expectations. With multiple blockbuster GLP-1 products, an expanding obesity market, improving reimbursement and a growing international opportunity, Lilly's long-term fundamentals remain compelling. While near-term volatility is always possible after such a strong run, the latest price-target increase suggests many on Wall Street still see meaningful upside, indicating the stock may be expensive — but not necessarily overpriced — for investors with a long-term horizon.

Lilly's GLP-1 Franchise Faces Rising Competitive PressureEli Lilly and Novo Nordisk remain the two dominant players in the fast-growing obesity market. Competition is also intensifying in the oral obesity segment, where Lilly's Foundayo challenges Novo Nordisk's Wegovy pill. While the Wegovy pill has surpassed three million U.S. prescriptions within six months of launch, demonstrating strong early adoption, Foundayo's simpler dosing regimen could help it narrow the gap.

Smaller biotech firms, like Viking Therapeutics (VKTX - Free Report) and Structure Therapeutics (GPCR - Free Report) , are also advancing GLP-1–based therapies to challenge the incumbents. Viking Therapeutics’ dual GIPR/GLP-1 receptor agonist, VK2735, is being developed as both oral and subcutaneous formulations for the treatment of obesity. Viking Therapeutics plans to advance oral VK2735 into phase III development for obesity in the fourth quarter of 2026.

Structure Therapeutics’ phase II ACCESS study on its orally administered GLP-1 RA, aleniglipron, demonstrated significant weight loss across all doses. Structure Therapeutics expects to initiate the late-stage program of aleniglipron in obesity in the second half of 2026.

LLY’s Stock Price, Valuation and EstimatesShares of Eli Lilly have gained 15% year to date compared with the industry’s 11.8% growth. During the same time frame, the company has also outperformed the sector and the S&P 500, as seen in the chart below.

LLY Stock Price MovementImage Source: Zacks Investment Research

From a valuation standpoint, LLY stock is expensive. Going by the price/earnings ratio, the company’s shares currently trade at 30.70 forward earnings, higher than 18.77 for the industry. However, the stock is trading below its five-year mean of 34.56.

LLY Stock ValuationImage Source: Zacks Investment Research

Estimates for Eli Lilly’s 2026 earnings have deteriorated from $35.67 to $35.60 per share in the past 60 days, and estimates for 2027 earnings have improved from $44.48 to $44.58 per share over the same time frame.

LLY Estimate MovementImage Source: Zacks Investment Research

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

Plug Power stock extended its sharp sell-off this week, falling to its lowest level since April 2. The shares have plunged 45% from their highest level this year and have slipped below the 200-day moving average, while short interest remains elevated despite the company's ongoing turnaround efforts.

Plug Power, a top player in the hydrogen energy industry, has been in a rollercoaster this year. It initially jumped to a multi-month high of $4.32 in May as investors cheered its turnaround efforts, and then erased most of those gains, and the situation is worsening. 

The ongoing sell-off has coincided with the rising short interest. Benzinga data shows that its short interest jumped to 27.4%, a sign that many investors still expect it to continue falling in the near future.

The company has made some major changes this year, with the management suggesting that it has a path towards profitability in the future. It has also made some customer wins in the past few months. For example, it secured a new 50 MW electrolyzer order from Australia, which is being developed by Orica, a top player in the mining and infrastructure solutions.

Before that, the company completed the commissioning of 5 MW electrolyzer system at Måde Power-to-X (PtX) facility in Esbjerg, Denmark. 

Plug Power’s financial statements have also demonstrated that its business was making progress. The results showed that its revenue jumped by 22% in the first quarter to $163 million, helped by its material handling and electrolyzer businesses. It attributed this growth to its relationship with Amazon and Walmart, which use its solutions in their warehouses.

At the same time, the company said that its gross margins improved to minus 13% from minus 55% in the same period last year, a 71% increase. It attributed the margin growth to its measures to improve service execution, sales growth, and fuel sourcing efficiencies.

Plug Power also noted that it had already deployed 320 MW of electrolyzer globally and that it had an $8 billion pipeline across sectors like industrial and energy. Also, its hydrogen fuel sales rose by 22%, helped by customer growth, higher prices, and reduced warrant charges. Its hydrogen fuel margin rose by 54%.

Wall Street analysts are optimistic about Plug Power, with the average estimate for this year’s annual revenue being $813 million, up by 14.5% YoY. Also, they expect the revenue to jump to $964 million next year.

Therefore, the stock is falling as investors focus on its balance sheet. It ended the quarter with $802 million in cash, with $223 million being unrestricted. The rest is in the form of restricted cash that will be released $50 million per quarter for the next few years. With its cash burn still continuing, chances are that it may raise cash again this year.

PLUG stock chart | Source: TradingView

The daily chart shows that the PLUG stock price has been in a strong downward trend in the past few weeks as the recent momentum stalled. It has dropped below the 50-day and 200-day Exponential Moving Averages (EMA).

The stock moved below the key support level of $2.66, its highest point in January this year. At the same time, the Relative Strength Index (RSI) has dropped and is approaching the oversold level of 30. 

Therefore the most likely scenario is that it continues falling as investors wait for more clarity about its business when it releases its earnings, possibly on August 10.

Key Takeaways Coty will return the Gucci Beauty license early in a deal worth about $400 million.COTY plans to use the proceeds to reduce debt and invest in its core prestige fragrance and beauty brands.Coty will manage Gucci Beauty through at least June 30, 2027, while both firms resolve pending litigation. Coty Inc. (COTY - Free Report) is making a strategic move to simplify its business and strengthen financial position. The beauty company has agreed to return the Gucci Beauty license to Kering about a year before the original contract was set to expire. In return, Coty will receive around $400 million, giving it more flexibility to reduce debt and invest in the core brands.

Under the agreement, Coty will continue managing Gucci Beauty through at least June 30, 2027. The company will receive $250 million upfront, with another $150 million due by Sept. 30, 2027, although up to $30 million of that amount depends on certain conditions being met. Coty will also sell enough Gucci Beauty inventory to Kering to support the transition and expects to incur about $30 million in cash taxes related to the transaction. Both companies have also agreed to resolve all pending litigation related to the Gucci Beauty license, removing a legal overhang ahead of the transition.

This move marks the end of a successful chapter for Coty, which has managed the Gucci Beauty business since 2016. Gucci Beauty sales have grown more than 60% since 2019, driven by popular fragrance lines such as Gucci Flora, Bloom, Guilty and Alchemist Garden. While the license will end earlier than originally planned, the agreement gives Coty greater financial flexibility to focus on its long-term priorities.

The transaction also aligns with Coty's broader strategic direction. Management has repeatedly emphasized that deleveraging remains its top capital allocation priority while focusing investments on fewer, higher-impact brands under the Coty.Curated strategy. The company is also working to simplify the business, reduce costs and improve cash flow. This agreement supports those goals by strengthening Coty's balance sheet and giving it greater flexibility to invest in the core prestige brands.

Coty’s Zacks Rank & Share Price PerformanceShares of this Zacks Rank #3 (Hold) company have gained 14.9% in the past month compared with the broader Consumer Staples sector, the industry and the S&P 500 index’s rise of 3.9%, 4.5% and 1.6%, respectively.

COTY Stock's Past Month Performance
Image Source: Zacks Investment Research

Is COTY a Value Play Stock?Coty currently trades at a forward 12-month P/E ratio of 6.31, below the industry and the sector’s average of 19.33 and 17.11, respectively. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector.

COTY P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research

Stocks to ConsiderThe Estee Lauder Companies Inc. (EL - Free Report) manufactures, markets and sells skin care, makeup, fragrance and hair care products worldwide. It currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Estee Lauder’s current fiscal-year sales and earnings calls for growth of 4.5% and 59.6%, respectively, from the year-ago reported numbers. EL delivered a trailing four-quarter average earnings surprise of 39.1%.

Five Below, Inc. (FIVE - Free Report) operates as a specialty value retailer in the United States and currently flaunts a Zacks Rank #1. FIVE delivered a trailing four-quarter earnings surprise of 70.1%, on average.

The Zacks Consensus Estimate for Five Below’s current fiscal-year sales and earnings calls for growth of 14.7% and 34.3%, respectively, from the year-ago reported numbers.

Dollar Tree, Inc. (DLTR - Free Report) is an operator of discount variety stores offering a broad assortment of everyday consumables and discretionary merchandise. DLTR currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter average earnings surprise of 32.1%.

The Zacks Consensus Estimate for Dollar Tree’s current fiscal-year earnings and sales indicates growth of 21.4% and 6.5%, respectively, from the year-ago actuals.

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

The earnings report, which is expected to be released on July 15, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

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

Zacks Consensus EstimateThis health insurer is expected to post quarterly earnings of $6.18 per share in its upcoming report, which represents a year-over-year change of -30.1%.

Revenues are expected to be $48.45 billion, down 2% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.05% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

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

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. 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 Elevance Health?For Elevance Health, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.42%.

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

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

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

For the last reported quarter, it was expected that Elevance Health would post earnings of $10.68 per share when it actually produced earnings of $12.58, delivering a surprise of +17.79%.

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.

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

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

Key Takeaways Zscaler expects fiscal 2026 capex to reach high single digits of revenues as hardware costs rise.Zscaler raised branch appliance prices and is buying equipment early to lock in current prices.Zscaler revenues rose 25% to $850M in fiscal Q3, with annual recurring revenues above $3.5B. Zscaler, Inc. (ZS - Free Report) is facing rising infrastructure costs as demand for artificial intelligence (AI)-powered cybersecurity services increases. Higher prices for memory, storage and processors are expected to raise spending on data center equipment and Zero Trust Branch appliances. However, the company believes its growing scale, pricing actions and operational discipline can help offset these cost pressures over time.

Management expects capital expenditures to reach the high single digits as a percentage of revenues in fiscal 2026 compared with its earlier expectation of the mid-single digits. It also anticipates fiscal 2027 capital expenditures as a percentage of revenues to rise by as much as 200 basis points from the 2026 level because of higher hardware costs. To reduce the impact, Zscaler has already increased prices for its branch appliances and is purchasing equipment early to lock in current prices.

Despite these near-term challenges, the company continues to deliver strong financial performance. In the third quarter of fiscal 2026, revenues increased 25% year over year to $850 million, while annual recurring revenues exceeded $3.5 billion. Remaining performance obligations reached roughly $6.5 billion, providing strong visibility into future revenues.

Profitability also remains healthy. Zscaler’s third-quarter non-GAAP gross margin expanded 40 basis points year over year to 80.7%, while non-GAAP operating margin increased by 140 basis points to 23%. Year to date, the company generated a free cash flow margin of 29%, highlighting its ability to fund growth while maintaining financial discipline.

As its customer base expands and long-term contracts grow, Zscaler's larger revenue scale should help absorb higher infrastructure costs. Continued demand for AI security and Zero Trust solutions could further strengthen its operating leverage over the long run. The Zacks Consensus Estimate for fiscal 2026 is currently pegged at $3.33 billion, indicating a year-over-year increase of approximately 25%.

How Are ZS’ Rivals Managing Rising Infrastructure Costs?Zscaler’s major competitors, including Palo Alto Networks, Inc. (PANW - Free Report) and CrowdStrike Holdings, Inc. (CRWD - Free Report) , are also investing heavily in AI infrastructure to strengthen their cybersecurity capabilities.

Palo Alto Networks is investing heavily in AI, cloud security and platform integration while using its large scale to protect margins. In the third quarter of fiscal 2026, revenues increased 31% year over year to $3 billion, and next-generation security ARR surpassed $8 billion. Palo Alto Networks continues to consolidate multiple security products into one platform, helping spread infrastructure costs across a larger customer base and supporting long-term profitability.

CrowdStrike is also expanding AI-powered capabilities while keeping profitability strong. In the first quarter of fiscal 2027, revenues rose 26% year over year to approximately $1.39 billion, while annual recurring revenues reached about $5.51 billion, up 24%. Its cloud-native Falcon platform reduces the need for on-premise hardware, allowing the company to scale efficiently even as AI workloads increase.

Zscaler’s Price Performance, Valuation & EstimatesZS shares have plunged 33.5% year to date against the Zacks Security industry’s surge of 72.3%.

Zscaler YTD Price Return Performance
Image Source: Zacks Investment Research

From a valuation standpoint, ZS trades at a forward price-to-sales ratio of 6.25, significantly below the industry’s average of 19.33.

Zscaler Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Zscaler’s fiscal 2026 and 2027 earnings implies year-over-year increases of 26.2% and 10.6%, respectively. Estimates for fiscal 2026 and 2027 have been revised upward over the past 60 days.

Image Source: Zacks Investment Research

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

Key Takeaways Insulet launched Omnipod 5 and Omnipod Discover in Spain, expanding its global footprint.Spain is the 20th Omnipod 5 country and 26th Omnipod market for the company.Omnipod 5 is approved in Spain for type 1 diabetes patients aged two years and older. Insulet Corporation (PODD - Free Report) has commercially launched its Omnipod 5 Automated Insulin Delivery (AID) system and the Omnipod Discover data management platform in Spain, further expanding its international footprint. Spain becomes the 20th country where Omnipod 5 is available and the 26th market where the company sells its Omnipod products, marking another step in Insulet’s ongoing global expansion strategy.

From an investor’s perspective, the launch reinforces Insulet’s commitment to broadening the reach of its flagship automated insulin delivery platform across international markets. Spain’s sizable population of people living with diabetes presents a meaningful long-term growth opportunity, while the addition of the Omnipod Discover platform enhances the company’s digital care ecosystem and strengthens its value proposition for patients and healthcare providers. The continued rollout of Omnipod 5 is expected to support international revenue growth and deepen Insulet’s competitive position in the global diabetes technology market.

Likely Trend of PODD Stock Following the NewsShares of PODD have traded flat since the announcement on July 6. In the year-to-date period, shares of the company have lost 43.2% compared with the industry’s 20.8% decline. The S&P 500 increased 10.4% in the same time frame.

The Spain launch is expected to strengthen Insulet’s long-term growth trajectory by expanding the addressable market for its Omnipod 5 platform and reinforcing its leadership in the global insulin delivery market. As reimbursement coverage broadens across Spain’s autonomous regions, the company stands to benefit from a growing base of recurring, high-margin Pod sales.

Moreover, the introduction of the Omnipod Discover platform enhances Insulet’s connected diabetes care ecosystem, improving patient engagement and supporting stronger relationships with healthcare providers. Continued international expansion of its automated insulin delivery platform is likely to drive sustained revenue growth, increase market penetration and diversify the company’s geographic revenue base over the long run.

PODD currently has a market capitalization of $11.1 billion.

Image Source: Zacks Investment Research

More on the NewsOmnipod 5 is a tubeless AID system designed to simplify diabetes management by automatically adjusting insulin delivery every five minutes based on continuous glucose monitoring (CGM) readings. The waterproof, wearable Pod proactively corrects high glucose levels while helping protect against hypoglycemia, reducing the need for multiple daily insulin injections.

In Spain, the system is approved for individuals aged two years and older with type 1 diabetes and is compatible with Abbott’s FreeStyle Libre 2 Plus and Dexcom’s G7 CGM sensors. According to the company, Spain is home to more than 4.6 million adults living with diabetes, including an estimated 189,000 people and over 18,500 children and adolescents with type 1 diabetes who rely on insulin therapy, underscoring the significant market opportunity for Omnipod 5. Insulet also noted that it is working closely with health authorities, reimbursement agencies and Spain’s autonomous communities to facilitate broader and equitable access to the technology over time.

Alongside Omnipod 5, Insulet introduced Omnipod Discover, its proprietary web-based retrospective data analytics and reporting platform, to the Spanish market. Designed for Omnipod 5 users, caregivers and healthcare professionals, the platform converts diabetes data into clear, actionable insights that can support more personalized treatment decisions and informed therapy discussions. Featuring an intuitive interface and easy-to-understand reports, Omnipod Discover is intended to improve patient engagement while streamlining diabetes management for healthcare providers.

The platform was initially launched in five Middle Eastern countries earlier this year and is set to expand across additional Omnipod 5 markets over the coming year, reflecting Insulet’s broader strategy of complementing its hardware portfolio with digital health capabilities to enhance the overall diabetes care experience.

Favorable Industry Prospect for PODDGoing by the data provided by Grand View Research, the CGM devices market was valued at $15.47 billion in 2026 and is expected to witness a CAGR of 15.1% through 2033.

Factors like the growing cases of diabetes, the increasing adoption of CGM devices, growing clinical needs, technological innovation and shifting care models are boosting the market’s growth. 

A Recent Development by PODDRecently, PODD unveiled positive clinical data for its next-generation Omnipod 6 and investigational fully closed-loop automated insulin delivery systems at the American Diabetes Association's 86th Scientific Sessions. Results from the STRIVE pivotal trial and EVOLUTION 3 feasibility study demonstrated improved glucose control, reduced user effort and enhanced automation, reinforcing the company’s innovation pipeline and long-term leadership in diabetes technology.

PODD’s Zacks Rank & Key PicksCurrently, PODD carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , West Pharmaceutical (WST - Free Report) and Intuitive Surgical (ISRG - Free Report) .

Globus Medical, currently carrying a Zacks Rank #2 (Buy), reported a first-quarter 2026 adjusted earnings per share (EPS) of $1.12, which surpassed the Zacks Consensus Estimate by 22.1%. Revenues of $759.9 million beat the Zacks Consensus Estimate by 4.0%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

GMED has an estimated long-term earnings growth rate of 10.2% compared with the industry’s 12.6% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 26.3%.

West Pharmaceutical, currently flaunting a Zacks Rank #1, reported first-quarter 2026 EPS of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%.

WST has an estimated long-term earnings growth rate of 13.9% compared with the industry’s 9.5% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.4%.

Intuitive Surgical, carrying a Zacks Rank #2 at present, reported first-quarter 2026 adjusted EPS of $2.50, which beat the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%.

ISRG has a long-term estimated growth rate of 14.6% compared with the industry’s 12.6% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.

The PNC Financial Services Group, Inc. (NYSE:PNC) will release its second quarter earnings report before the opening bell on Wednesday, July 15.

Analysts expect the Pittsburgh, Pennsylvania-based company to report quarterly earnings of $4.41 per share, up from $3.85 per share in the year-ago period. The consensus estimate for PNC Financial’s quarterly revenue is $6.39 billion. It reported $5.66 billion last year, according to Benzinga Pro.

On June 25, PNC Financial Services announced plans to raise quarterly dividend from $1.70 to $2 per share.

Shares of PNC Financial rose 0.3% to close at $254.01 on Tuesday.

Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.

Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.

Considering buying PNC stock? Here’s what analysts think:

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Key Takeaways MU signed long-term Ford and GM deals as vehicles require more memory and storage content.ON and NXPI are positioned for demand tied to EV powertrains and software-defined vehicles.NVDA is expanding DRIVE partnerships for ADAS and Level 4 autonomous driving applications. Vehicles are becoming increasingly software-defined, requiring far more semiconductors than previous generations. Autonomous driving, electrification, connected features, digital cockpits and zonal vehicle architectures are driving demand for memory, AI processors, sensors, networking chips and power semiconductors. Micron Technology (MU - Free Report) identifies these as five key megatrends reshaping the automotive industry.

These trends are prompting automakers to secure access to critical chip technologies. Recently, Micron signed a long-term agreement with Ford to supply memory and storage solutions for the automaker's future vehicles. The announcement came just days after Micron secured a similar agreement with General Motors. According to Micron CEO Sanjay Mehrotra, vehicles with Level 4 autonomous driving capabilities could eventually require more than 300GB of RAM, pointing to a significant increase in memory content per vehicle.

AI-powered vehicles also require powerful processors to run complex software, image sensors and radar chips to enable advanced safety features and efficient power semiconductors to manage rising computing workloads. As the automotive industry evolves, several semiconductor companies like Micron, ON Semiconductor (ON - Free Report) , NXP Semiconductors N.V. (NXPI - Free Report) , and NVIDIA (NVDA - Free Report) are well-positioned to benefit fromthis shift to the next generation of intelligent vehicles.

MicronMicron is becoming a strategic technology partner for automakers. Under its agreements with Ford and General Motors, the company will provide automotive-grade LPDRAM, NOR flash and UFS NAND storage products while working with customers on future memory platforms and vehicle architectures. This deeper collaboration should strengthen Micron's position as vehicles become increasingly software-defined.

To support long-term demand, Micron is expanding advanced DRAM manufacturing at its Manassas, VA, facility and increasing output of automotive memory solutions designed for long product lifecycles. These investments should improve supply reliability while helping the company capture rising memory content per vehicle. As ADAS, connected features and AV capabilities become more widespread, Micron's growing automotive footprint positions it to benefit from a multi-year increase in demand for high-performance automotive memory and storage.

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

onsemionsemi is benefiting from electrification and software-defined vehicles. The company is a leading supplier of silicon carbide (SiC) power semiconductors, which are increasingly used in EV powertrains to improve energy efficiency, charging speed and driving range. Partnerships with automakers such as Geely and NIO continue to strengthen its presence in the world's largest EV market.

Beyond power chips, onsemi is expanding its role in next-generation vehicle architectures. Its Treo platform is gaining traction in software-defined vehicles, and the company recently began production shipments of Ethernet solutions for a North American automaker's zonal architecture. These chips enable faster in-vehicle communication and centralized computing—key building blocks for connected and autonomous vehicles. As adoption of zonal architectures accelerates, ON appears well-positioned to capture both revenue growth and higher-margin opportunities.

onsemi carries a Zacks Rank #3 (Hold).

NXP SemiconductorsNXP Semiconductors is benefiting from the automotive industry's shift toward software-defined vehicles and centralized computing architectures. The company is seeing rising demand for its S32 processing platforms, automotive Ethernet solutions and imaging radar chips, which enable advanced driver-assistance systems, high-speed in-vehicle communication and real-time data processing.

These next-generation platforms are increasing NXP's semiconductor content per vehicle, allowing the company to capture a larger share of automotive electronics as vehicles become more intelligent. At the same time, deeper engagement in long-term vehicle programs is strengthening relationships with global automakers and improving future revenue visibility. NXP is also gaining traction in China, where rapid adoption of advanced vehicle architectures is creating additional demand for its automotive processors, networking and connectivity solutions. With software-defined vehicles becoming mainstream, NXP appears well-positioned to benefit.

NXP Semiconductors carries a Zacks Rank #3.

NVIDIANVIDIA is becoming a key technology partner for automakers developing AI-powered and AVs. General Motors has collaborated with NVIDIA to use the company's AI technology for next-generation vehicles and manufacturing, while the automaker will also build future vehicles on NVIDIA's DRIVE AGX platform to accelerate the deployment of autonomous driving capabilities. NVIDIA has also deepened ties with Stellantis, Hyundai Motor and Kia, supplying its DRIVE platform and DRIVE AV software for advanced driver-assistance and Level 4 autonomous driving applications.

These partnerships reinforce NVIDIA's growing role beyond AI data centers. Its DRIVE platform integrates AI computing, perception and autonomous driving software into a single architecture, enabling automakers to build software-defined vehicles with advanced safety and connectivity features. As autonomous driving and in-vehicle AI become more mainstream, NVIDIA is well-positioned to capture a larger share of automotive semiconductor spending.

NVIDIA carries a Zacks Rank #3.

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

The earnings report, which is expected to be released on July 15, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

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

Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.46 per share in its upcoming report, which represents a year-over-year change of -17.9%.

Revenues are expected to be $2.88 billion, up 3.4% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.22% 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 Conagra Brands?For Conagra Brands, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +2.20%.

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

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

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

For the last reported quarter, it was expected that Conagra Brands would post earnings of $0.4 per share when it actually produced earnings of $0.39, delivering a surprise of -2.50%.

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

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

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

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

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

, /PRNewswire/ -- Sterling Infrastructure, Inc. (NasdaqGS: STRL) ("Sterling," "we," "our" or "the Company") today announced that it entered into a second amendment and restatement of its credit agreement, which, among other things, extends the maturity of its credit facility to July 2031, expands the size of the credit facility, and provides additional flexibility for ongoing and future operations.

The amended credit agreement replaces the existing term loan and revolving credit facilities (the "existing credit facilities") and will initially provide for revolving borrowings of up to $1.5 billion. This represents an increase in borrowing capacity of $1.05 billion compared to the existing credit facilities. The credit agreement amendment was led by BMO Capital Markets Corp., as Joint Lead Arranger and Joint Book Runner, and BMO Bank N.A., as Administrative Agent. The syndication process resulted in new and expanded lender participation from a diversified group of leading national and regional financial institutions.

The facility will be used for, among other things, refinancing and prepaying existing indebtedness, capital expenditures, permitted acquisitions, and other general corporate purposes.

Additional features of the amended facility include: (i) an increase in the base amount of the incremental facility from $400 million to $500 million, (ii) a reduction in the interest rate by eliminating the 10-basis point SOFR adjustment and further reducing the overall pricing margins based on our Total Net Leverage Ratio and (iii) generally less restrictive covenants.

CFO Remarks

"The expansion and extension of our credit facility reflects the confidence that our lending partners share in our long-term strategy and outlook," stated Nick Grindstaff, Sterling's CFO. "We appreciate the confidence and support from our lending group, whose partnership is instrumental in supporting our growth."

Mr. Grindstaff continued, "This enhanced credit facility further strengthens our financial flexibility, providing additional capacity to invest in organic growth, pursue strategic M&A, and capitalize on the significant opportunities across our end markets. With our strong balance sheet and ample liquidity, we believe we are well positioned to execute our strategy and continue creating value for our shareholders."

About Sterling

Sterling Infrastructure, Inc., operates through a variety of subsidiaries within three segments specializing in E-Infrastructure, Transportation and Building Solutions in the United States, primarily across the Southern, Northeastern, Mid-Atlantic and Rocky Mountain regions and the Pacific Islands. E-Infrastructure Solutions provides advanced, large-scale site development services and mission-critical electrical services for data centers, semiconductor fabrication, manufacturing, distribution centers, warehousing, power generation and more. Transportation Solutions includes infrastructure and rehabilitation projects for highways, roads, bridges, airports, ports, rail and storm drainage systems. Building Solutions includes residential and commercial concrete foundations for single-family and multi-family homes, parking structures, elevated slabs, other concrete work, plumbing services, and surveys for new single-family residential builds. From strategy to operations, we are committed to sustainability by operating responsibly to safeguard and improve society's quality of life. Caring for our people and our communities, our customers and our investors – that is The Sterling Way.

Joe Cutillo, CEO, "We build and service the infrastructure that enables our economy to run,
our people to move and our country to grow."

Company Contact:
Sterling Infrastructure, Inc.
Noelle Dilts, VP of Investor Relations and Corporate Strategy
281-214-0795
[email protected]

SOURCE Sterling Infrastructure, Inc.

Helen of Troy (NASDAQ:HELE) delivered a surprise first-quarter profit and raised its full-year revenue guidance, pointing to early progress in its multi-year restructuring effort.

The consumer products company posted adjusted earnings per share of $0.17 for the quarter, sharply beating the analyst consensus, which had called for a loss of $0.01 per share.

Net sales climbed 8.2% year-over-year to $402.1 million, topping forecasts of roughly $374.5 million. Growth was broad-based, with the Home & Outdoor segment up 9.5% and Beauty & Wellness rising 7%.

Following the results, management raised its fiscal 2027 revenue guidance to a range of $1.76 billion to $1.83 billion. Adjusted earnings guidance was maintained at $3.25 to $3.75 per share, a level the company said reflects stabilization after steep declines in fiscal 2026.

The results build on Project Pegasus, a multi-year restructuring program aimed at modernizing the business and improving operating margins. As part of that effort, Helen of Troy (NASDAQ:HELE) has been diversifying its supply chain to limit exposure to China-related tariffs, targeting China-sourced products at 25% to 30% of consolidated cost of goods sold by the end of fiscal 2026.

Gross margin fell 110 basis points to 46% in the quarter due to tariff pressure and customer mix, though cost savings from Project Pegasus helped offset the impact.

Management said it is focusing marketing and innovation spending on brands including OXO, Hydro Flask and Osprey, aiming to fund reinvestment through revenue growth.

The company's broader portfolio spans the Home & Outdoor and Beauty & Wellness segments and includes Vicks, Braun, Honeywell, PUR, Hot Tools, Drybar, Curlsmith, Revlon and Olive & June.

Shares of Helen of Troy were down 2.2% on Wednesday morning.

, /PRNewswire/ -- Flagstar Bank, N.A., (NYSE: FLG) (the "Bank") today announced that it plans to issue results for the three and six months ended June 30, 2026 at approximately 6:00 a.m. Eastern Time (ET) on Friday, July 24, 2026. The earnings release and presentation will be posted to the Investor Relations portion of the Bank's website, ir.flagstar.com shortly after issuance. 

The Bank will conduct a conference call at 8:00 a.m. (ET) on the same date, during which Executive Chairman and Chief Executive Officer, Joseph Otting; Co-President, Co-Chief Operating Officer, and Chief Financial Officer, Lee Smith; and Co-President, Co-Chief Operating Officer, and Chief Banking Officer, Richard Raffetto, will discuss the Bank's second quarter 2026 performance.

Conference Call Dial-In Instructions:

Once you dial-in to the call, please enter the conference ID (5857240) and press #.  You will then be prompted to provide your name and company name before being placed directly into the call.  Participants should dial-in at least 15 minutes in advance of the call start time. 

The conference call will be simultaneously webcast at ir.flagstar.com and archived through 5:00 p.m. on August 21, 2026.

Conference Call Details:

    Conference ID:                 5857240

    Dial-in for Live Call:

        Domestic                      (888) 596-4144

        International                 (646) 968-2525

    Dial-in for Replay:

        Availability                     July 24 (11:00 a.m.) – July 28 (11:59 p.m.)

        Domestic                      (800) 770-2030

        International                 (609) 800-9909

Flagstar Bank, N.A.

Flagstar Bank, N.A. is one of the largest regional banks in the country and is headquartered in Hicksville, New York. At March 31, 2026, the Bank had $87.1 billion of assets, $60.7 billion of loans, deposits of $66.8 billion, and total stockholders' equity of $8.1 billion. Flagstar Bank, N.A. operates approximately 340 locations across nine states, with strong footholds in the greater New York/New Jersey metropolitan region and in the upper Midwest, along with a significant presence in fast-growing markets in Florida and the West Coast.

Investor Contact:
Salvatore J. DiMartino
(516) 683-4286

Media Contact:
Jessica Torchia
(248) 312-6451

SOURCE Flagstar Bank, N.A.

Since mid-May, Cathie Wood's Ark Invest has liquidated almost all of its position in Alibaba Group (BABA +8.73%). That included a $54 million sale of the Chinese e-commerce and artificial intelligence (AI) stock in a single day in late June.

Wood, who is both the CEO and the public face of the company, has not publicly commented on this move, which some investors may treat as a sell signal in itself. Nonetheless, investors should probably look more closely at Alibaba's fundamentals and business environment before making such a decision on the consumer discretionary stock.

Image source: The Motley Fool.

A sudden reversal Alibaba stock has lost approximately half of its value since it reached its 52-week peak in October. At that time, Ark Invest owned around 99,000 shares of Alibaba.

As the stock began to correct in November, Wood increased her position in it. However, she began selling the stock aggressively at the beginning of June, and as of the time of this writing, she has sold nearly all of Ark Invest's Alibaba stock.

Today's Change

(

8.73

%) $

8.57

Current Price

$

106.71

The first round of bad news came from its May 13 earnings report. Its loss of 848 million yuan ($123 million) stood in stark contrast to the profit of 28.4 billion yuan ($4.2 billion) it reported in the prior-year quarter.

Moreover, free cash flow (FCF) continues to drop. In the quarter, its FCF was negative $2.5 billion, down from $544 million in FCF 12 months ago. Alibaba is engaging in heavy capital expenditures in its efforts to remain competitive in the AI space; that's likely the reason its free cash flow went negative.

If that were all the bad news, one might be able to discount it, based on the argument that Alibaba's high spending today will benefit the company in the long term. However, rising political tensions may have made the stock too risky to hold.

In May, it was reported that China had imposed travel restrictions on its AI professionals, sparking concern that it was isolating its AI sector and reducing collaboration. And the U.S. and Chinese governments remain at odds on AI hardware. In early June, the U.S. Defense Department listed Alibaba as a "Chinese military company," and not surprisingly, that designation has apparently impacted its stock.

Although Alibaba trades at a price-to-earnings ratio (P/E) of just 16, the combination of all of these factors has left many investors with the view that it's too risky to touch -- including, apparently, Cathie Wood and her team.

Is it time to sell Alibaba stock? Knowing Alibaba's situation, investors who don't have a huge tolerance for risk should probably sell the stock.

Admittedly, the 16 P/E ratio makes it a tempting option. If its AI investments eventually pay off and the Chinese and U.S. governments start to make moves that reassure investors, the stock price could surge. That by itself is a good argument for holding a speculative position.

Nonetheless, the two governments seem intent on imposing trade restrictions on each other, and that political risk alone could sink the Alibaba investment thesis, regardless of its financial metrics. Given the uncertainties around the company's business environment, it probably makes sense to follow Ark Invest's lead and avoid holding a large position in Alibaba stock.

The race to challenge Nvidia's dominance in artificial intelligence chips is entering a new chapter, with startups attracting billions of dollars in funding, Big Tech accelerating in-house chip development, and investors betting that the next phase of AI computing may not belong exclusively to graphics processing units.

While Nvidia continues to dominate the market for AI hardware, attention is increasingly shifting from training massive AI models to running them efficiently in real-world applications, known as AI inference.

That transition has opened the door for a new generation of chipmakers promising faster performance, lower power consumption, and significantly lower operating costs.

The latest reminder came on Wednesday when AI chip startup SambaNova raised $1 billion in fresh financing, highlighting investors' willingness to back companies seeking to carve out a share of one of the world's fastest-growing technology markets.

The funding round values SambaNova at $11 billion and was led by General Atlantic, with participation from Seligman Ventures, T. Rowe Price, and Capital Group.

The latest investment follows a separate funding round earlier this year in which the company raised more than $350 million from investors including Intel, alongside a strategic partnership.

According to a CNBC report published in April, AI chip startups raised $8.3 billion globally in 2026.

Unless funding markets experience a sharp downturn, investment in the sector is expected to reach record levels this year.

Source: CNBC

Nvidia built its dominance on graphics processing units originally designed for gaming but later adapted for AI model training.

Those chips remain the industry standard for building large language models.

However, as enterprises increasingly deploy AI applications rather than train new foundation models, the industry is paying greater attention to inference, the process through which trained AI models respond to user queries.

Many startups argue that GPUs, while exceptionally powerful, were never purpose-built for AI workloads.

Instead, they believe specialized processors designed specifically for inference can dramatically reduce costs while consuming less electricity.

SambaNova is far from the only company trying to loosen Nvidia's grip on AI infrastructure.

Cerebras, which recently debuted on public markets after raising $5.5 billion, has long positioned itself as one of Nvidia's strongest competitors.

Morgan Stanley has argued that the company enjoys a first-mover advantage in certain AI computing segments.

Another closely watched player is Groq, whose inference-focused architecture attracted so much attention that Nvidia agreed to license some of its chip technology and hired away its chief executive last December.

CNBC later reported that Nvidia had agreed to acquire Groq for $20 billion in cash, although neither company confirmed the report.

Groq has said it would continue operating independently under chief executive Simon Edwards.

Interestingly, Nvidia later introduced its own language processing unit at its annual GTC conference in March, suggesting that it is incorporating ideas emerging from newer competitors rather than ignoring them.

Another startup attracting attention is D-Matrix, founded in 2019.

The company says its processors can execute inference workloads up to 10 times faster while consuming five times less energy than standalone Nvidia GPUs, provided workloads remain relatively small.

D-Matrix has raised around $500 million to date, reaching an estimated valuation of roughly $2 billion.

Microsoft participated in its funding through its venture arm M12.

The competitive pressure is not coming solely from startups.

Many of Nvidia's largest customers are simultaneously becoming rivals as they invest heavily in designing proprietary AI chips.

The rationale is straightforward. Developing custom silicon reduces dependence on Nvidia, lowers long-term infrastructure costs, and enables tighter integration between hardware and software.

Reuters reported this week that Chinese AI startup DeepSeek is developing its own AI chip in an effort to reduce reliance on Nvidia and Huawei processors used to train and deploy its models.

Earlier this month, The Information reported that Anthropic had held discussions with Samsung about collaborating on a future chip, although key decisions regarding its specifications and intended use remain unresolved.

OpenAI, last month, unveiled its first custom AI processor, named Jalapeño, developed alongside Broadcom.

Broadcom chief executive Hock Tan told Reuters that the processor performs on par with Nvidia's Blackwell chips and Google's tensor processing units.

Google itself is moving aggressively to reduce its reliance on Nvidia.

Rather than using the same processors for both AI training and inference, the company is separating those workloads into dedicated chips under the eighth generation of its tensor processing unit family.

Its TPU 8t and TPU 8i processors are expected to become available later this year.

Amazon is following a similar strategy.

Its AI chief, Peter DeSantis, recently told Bloomberg that Amazon Web Services is discussing the possibility of selling its Trainium AI chips to external customers, potentially creating one of the strongest alternatives to Nvidia in data centre infrastructure.

Such discussions remain at an early stage, but they follow Amazon chief executive Andy Jassy's comments that demand for the company's internally developed AI chips has been so strong that commercializing them is now under consideration.

Meta is also investing aggressively in custom AI hardware through an expanded partnership with Broadcom.

The company's Meta Training and Inference Accelerator (MTIA) programme has already produced its first chip, the MTIA 300, which powers ranking and recommendation systems across Meta's platforms.

Three additional generations are expected through 2027, with the later versions designed specifically for inference workloads that power AI assistants and respond to user queries.

Like Google and Amazon, Meta's objective is to reduce dependence on Nvidia while tailoring chips to its own software stack and AI infrastructure.

The shift illustrates a broader trend across hyperscalers.

Rather than relying entirely on off-the-shelf GPUs, technology giants are increasingly building application-specific integrated circuits (ASICs) optimized for their own workloads.

Unlike many startups, AMD and Broadcom have already established themselves as meaningful competitors in AI infrastructure.

AMD's transformation has mirrored Nvidia's in several ways.

Originally known for gaming graphics cards and PC processors, the company shifted its focus toward data centre accelerators and AI chips, allowing it to emerge as the second-largest public player in the AI accelerator market.

The strategy has paid off handsomely for investors.

AMD shares have surged more than 460% over the past five years, giving the company a market value exceeding $840 billion.

Broadcom, meanwhile, has become one of the most strategically important companies in custom AI silicon.

Rather than competing directly with Nvidia through merchant chips, Broadcom designs custom processors for some of the world's biggest AI developers.

Melius Research analysts recently said Broadcom has visibility into about 10 gigawatts of AI demand by 2027 from customers including Anthropic and Meta Platforms.

The company's influence expanded further on Wednesday after it signed a semiconductor agreement worth more than $30 billion with Apple.

Under the deal, Broadcom will design and manufacture "custom silicon components and cutting-edge wireless connectivity technologies" for Apple's products.

Despite the growing number of competitors, most analysts believe Nvidia's leadership remains overwhelming.

"Nvidia is definitely going to see more competition compared to a year ago," said KinNgai Chan, a managing director at Summit Insights Group, in comments to Reuters in March.

"Nvidia still has over 90% market share in both training and inference markets today."

However, Chan expects that dominance to gradually erode over the coming years.

"We think Nvidia will begin to see share loss starting in 2027, once in-house ASIC programs gain some scale, especially in the inference market," he said, referring to application-specific integrated circuits that are designed for dedicated workloads and offer higher efficiency than general-purpose GPUs.

Morningstar shares a similar long-term outlook.

"In the long term, we think it's inevitable that Google and AWS will push to bring more chips and AI gear in-house, to Nvidia's detriment," Morningstar analyst Brian Colello wrote.

"We expect Nvidia to lose market share to Google's TPUs and Amazon's Trainium (especially if Anthropic and/or Google Gemini emerge as dominant frontier models), but we think Nvidia's share should level out at 68% in 2030 (versus 80% today) within a much larger pie of AI spending," he added.

However, all said and done, Nvidia is not standing still.

The company spent more than $18 billion on research and development during the financial year ended January 2026 as it accelerated work on next-generation AI processors, networking products and photonics technology.

During the latest conference call in May, Huang said Nvidia's new "Vera" central processors give it access to a new $200 billion market.

Nvidia expects its Vera chips to generate $20 billion in revenue by the end of the current fiscal year.

Huang said those sales were not included in the company's earlier projection of $1 trillion in revenue from its Blackwell and Rubin AI chip platforms between 2025 and 2027.

Perhaps more significantly, Nvidia is increasingly choosing collaboration over confrontation.

Instead of competing head-on with every emerging AI chip startup, Nvidia is increasingly choosing to collaborate with companies developing specialized inference processors.

Acquiring assets from AI inference startup Groq in December for $20 billion and announcing investments worth $4 billion in two photonics companies earlier this year were part of this strategy.

Also, by integrating some rival chips alongside its own GPUs in AI server racks, Nvidia is broadening its ecosystem while ensuring it continues to benefit from AI infrastructure spending regardless of which inference technologies gain the most traction.

That strategy allows Nvidia to participate in multiple AI hardware ecosystems while continuing to generate revenue even if customers adopt specialized inference chips alongside its GPUs.

On Wednesday, inference cloud provider Parasail announced it would deploy D-Matrix's Corsair inference accelerators alongside Nvidia Hopper and Blackwell systems to deliver "up to 10x faster, more cost-efficient inference services" for customers.

Further, SambaNova's products are designed to complement Nvidia hardware rather than replace it outright.

Rodrigo Liang, SambaNova's chief executive officer, said its SN40 and SN50 chips can run the so-called decode portion of inference, unpacking the query from the model five to 10 times faster, which helps free up the same number of Nvidia chips for other tasks such as training.

Nvidia's latest financial results suggest competition has yet to meaningfully dent its business.

Its data centre division, which remains the company's primary growth engine, reported revenue of a record $75.2 billion, up 92% year over year.

Chief executive Jensen Huang sought to reassure investors that demand remains broad-based and that new products would help the company surpass the $1 trillion revenue opportunity it has projected for its flagship AI platforms.

Even so, NVDA shares fell 1.6% following the earnings release despite stronger-than-expected revenue guidance and the announcement of an $80 billion share repurchase programme.

The market reaction suggested investors are increasingly looking beyond current earnings and focusing on whether Nvidia can defend its dominant position as competitors multiply.

The stock has gained a relatively modest 4% this year and just over 23% over the past 12 months, a sharp moderation compared with its extraordinary gains during the early stages of the AI boom.