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I keep buying Apple (NASDAQ:AAPL | AAPL Price Prediction), and the more I read about what its Magnificent Seven peers are spending on AI, the harder my conviction gets. Every quarter I look at what this company actually does with the cash a phone business throws off, and I add to the position again.

Here is what pulls me back to the buy button. Apple sells hardware and software that hundreds of millions of people already use every day, and it turns that installed base into recurring cash. 2.5B+ active devices is the moat. Apple monetizes intelligence through the phones and Macs already sitting on desks, so it does not need to build a data center empire to justify an AI story.

The Receipts Three data points anchor the position. First, cash generation. Full fiscal 2025 revenue was $416.16B, net income was $112.01B, and operating cash flow reached $111.48B. Buybacks alone consumed $90.71B of that. Q2 FY26 layered on $111.18B in revenue (up 16.6% YoY), EPS of $2.01 beating by 3.59% (the 8th consecutive quarter of beating expectations), a fresh $100B buyback authorization, and a 4% dividend raise to $0.27 per quarter.

Second, the balance sheet. Return on equity of 171.42%, return on invested capital of 53.35%, operating margin of 31.97%, and $147 billion in cash and marketable securities against $85 billion in debt. Third, capex discipline. Apple’s full FY25 capex was $12.7B, and Q1 FY26 capex ran $2.37B, down 19.29% YoY.

Why Not Microsoft or Alphabet Those are the two names a reader reaches for first when they think “AI winner.” Both sit inside the hyperscaler capex curve I want to avoid. Vanguard’s 2026 outlook projects AI scalers will spend roughly $2.1 trillion on capital investment from Q1 2025 through Q4 2027. Goldman Sachs’ 2026 outlook flags that hyperscaler capex plus buybacks and dividends have consumed ~95% of operating cash flows over the last 12 months vs ~80% in 2019, forcing some of them into credit markets to keep the machine running. That is the trap I do not want retirement money exposed to.

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CFO Kevan Parekh drew the line on the Q2 call: “From the start we have believed AI is a really important investment area for Apple Inc., and we are going to be doing that incrementally on top of what we normally invest in our product roadmap.” Incremental. Inside an existing product framework. Tim Cook backs the product side: “Apple Intelligence is woven into the core of our platforms, powered by Apple silicon and designed from the ground up to deliver intelligence that is fast, personal, and private.”

The Real Risk Valuation. Trailing P/E of 41 and forward P/E of 33 leave little margin for error. If iPhone growth stalls, or if Greater China ($20.497 billion in Q2 FY26) turns on tariff or regulatory pressure, this multiple compresses. I hold that risk clearly. What keeps the thesis intact: Services set an all-time record at $30.98B, Greater China grew 28% in the March quarter, and management guided June quarter revenue growth of 14% to 17%. Growth is still on the right side of that multiple.

The buy button stays active because Apple is turning the AI cycle into cash rather than capex, and every quarter the receipts get thicker.

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Key Takeaways Coca-Cola expects pricing and volume to contribute more evenly to growth throughout 2026.Affordability packs and tailored pricing aim to preserve demand among value-conscious consumers.Revenue growth management and productivity initiatives support margins amid commodity inflation. The Coca-Cola Company's (KO - Free Report) pricing power remains an important growth driver. Still, the company's strategy has clearly evolved from relying primarily on price increases to pursuing a more balanced combination of pricing, affordability and volume growth. Management has emphasized that sustainable top-line expansion depends on maintaining equilibrium between pricing actions and consumer demand rather than maximizing price realization alone.

In the first quarter of 2026, Coca-Cola generated price/mix growth primarily through pricing actions, while offsetting some of that benefit with affordability initiatives and favorable package architecture. Management acknowledged that lower-income consumers continue to face economic pressure and highlighted its focus on offering attractive entry-price packs, multi-serve formats and value offerings across key markets. Rather than sacrificing volumes to protect pricing, Coca-Cola is using sophisticated revenue growth management capabilities to tailor pricing strategies by geography, channel and consumer segment.

Management stressed that pricing remains fully embedded within the company's long-term growth algorithm, but not at the expense of consumer relevance. The company expects pricing and volume to contribute more evenly throughout 2026, with quarterly fluctuations depending on market conditions. This balanced approach reflects Coca-Cola's confidence that its strong brand portfolio, localized execution and digital capabilities allow it to protect margins while preserving demand.

The company also reiterated that its revenue growth management architecture continues to provide a strong foundation for sustaining margins despite commodity inflation. Combined with productivity initiatives and targeted commercial investments, Coca-Cola believes that it can continue navigating macroeconomic uncertainty while maintaining healthy profitability. Management reaffirmed its 2026 organic revenue growth guidance and expressed confidence that balanced pricing, affordability initiatives and consistent volume gains will continue driving durable growth throughout 2026.

Is Pricing Power Driving Growth for PEP & MNST?Like Coca-Cola, pricing power has long been a defining strength for PepsiCo Inc. (PEP - Free Report) and Monster Beverage Corporation (MNST - Free Report) , but as consumers become more value-conscious in 2026.

PepsiCo's pricing power remains an important contributor to growth, but the company is increasingly relying on a balanced strategy that combines effective net pricing with volume expansion and affordability initiatives. Management highlighted that organic revenue growth benefited from pricing while also emphasizing investments in price-pack architecture, value offerings and portfolio innovation to support demand amid tightening consumer budgets. This shift suggests PepsiCo is prioritizing sustainable, volume-led growth rather than depending solely on price increases to drive performance.

Monster Beverage's pricing power remains an important growth lever, but it is complemented by strong category demand, innovation and disciplined revenue growth management. Management noted that pricing actions implemented in late 2025 are performing as expected, with the resilient energy drink category continuing to support volume and revenue growth. The company also continues evaluating selective pricing opportunities while balancing consumer demand, retailer response and category health.

Zacks Rundown for Coca-ColaKO shares have rallied 16.7% in the year-to-date period compared with the industry’s growth of 11.3%.

Image Source: Zacks Investment Research

From a valuation standpoint, Coca-Cola is trading at a forward price-to-earnings ratio of 24.11X, higher than the industry’s 19.04X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for KO’s 2026 and 2027 earnings implies year-over-year growth of 8.7% and 6.8%, respectively. Earnings estimates for 2026 and 2027 have been unchanged in the past seven days.

Image Source: Zacks Investment Research

Amazon.com Today

$252.49 +5.26 (+2.13%)

As of 12:30 PM Eastern

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

52-Week Range$196.00▼

$278.56P/E Ratio30.20

Price Target$312.76

For most of this year, the conversation around Amazon.com Inc. NASDAQ: AMZN has been dominated by one uncomfortable question: Will all that AI spending ever pay off? The company's enormous infrastructure buildout has compressed free cash flow, unsettled the bond market, and left investors waiting for hard evidence that the money is translating into growth.

That wait may be about to end. Ahead of its next earnings report on July 30, some analysts are forecasting a sharp acceleration in AWS revenue growth, comfortably outpacing the wider market expectations. If the numbers land anywhere close to that, it would be exactly the proof point the bulls have been asking for.

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The Forecast That Changes the ConversationIn a note to clients earlier this month, TD Cowen said it expects AWS revenue growth to reach 35.5% year over year in the second quarter, up from 28.4% in the same period last year and several percentage points above consensus estimates. For a business of AWS's scale, that kind of acceleration is remarkable, and it would mark a decisive break from the narrative that cloud growth had plateaued.

The driver capacity is finally catching up with demand. Amazon's heavy investment in AI infrastructure has begun easing the supply constraints that were holding it back, meaning capacity that simply wasn't available before is now coming online and converting directly into revenue from generative AI workloads.

That distinction matters enormously. The bear case has long held that Amazon was spending speculatively into an uncertain future. An AWS acceleration of this magnitude, arriving now rather than in a year or two's time, would suggest the opposite: that the company has been building to meet demand it could already see.

Why This Would Settle a Bigger ArgumentOverall MarketRank™95th Percentile

Analyst RatingModerate Buy

Upside/Downside25.0% Upside

Short Interest LevelHealthy

Dividend StrengthN/A

News Sentiment0.79 Insider TradingSelling Shares

Proj. Earnings Growth30.45%

See Full Analysis

To understand why a single quarter could carry this much weight, it helps to remember what the debate has actually been about. Nobody has seriously questioned whether AI infrastructure demand exists. The question has been whether Amazon specifically can convert its spending into revenue fast enough to justify the pressure it has been putting on the balance sheet.

Free cash flow has taken a visible hit as capital expenditure (CapEx) has climbed, and the company's recent bond raise drew noticeably softer demand than earlier rounds of AI-related debt issuance. Both of those are symptoms of a market that wants to see returns before it extends more patience.

An AWS growth number in the mid-thirties would go a long way toward providing them. It would demonstrate that the capacity being built is consumed almost as quickly as it comes online, reframing the CapEx story from a worrying outflow to an investment with a visible payback.

The Retail Engine Is Quietly Accelerating TooLost in all the focus on cloud is the fact that Amazon's core retail business appears to be picking up pace as well. TD Cowen expects North American revenue growth to come in meaningfully ahead of the first-quarter result, driven by faster delivery speeds and continued strength in everyday essentials.

That matters more than it might first appear. One of the quieter concerns about the AI buildout has been whether it would distract management from the business that actually funds it. An acceleration on the retail side would suggest the opposite: that Amazon is running both playbooks at once without either suffering for it.

It also speaks to the durability of the wider growth opportunity. AWS may be where the excitement sits, but Amazon’s retail and logistics operations remain the foundation on which everything else is built, and evidence that it's strengthening rather than plateauing gives the bulls another reason to be excited ahead of the report.

What Could Still Go Wrong on July 30To be sure, none of this anticipated upside surprise is guaranteed, and the report could still disappoint even with strong AWS numbers. The most obvious is on the spending side. If capital expenditure guidance climbs again, or if management signals that the buildout will run longer and heavier than expected, investors may focus on cash outflows rather than revenue acceleration.

Margins are the other variable. Rapid AWS growth is only bullish if it comes with the profitability the market associates with the segment, and any sign that the cost of serving AI workloads is compressing returns would take the shine off the headline number.

Get both right, though, and the setup is compelling. A market that has spent months worrying about what Amazon is spending would suddenly be confronted with clear evidence of what that spending is buying. After months of frustrating price action, that could easily be enough to push the stock back toward all-time highs.

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Key Takeaways Citigroup targets 14-15% medium-term ROTCE through growth, cost discipline and capital productivity.C expects $2-$2.5B annualized savings by 2026 through restructuring, automation and AI investments.C repurchased $4B of stock in Q2 and plans continued buybacks under its $30B authorization. Citigroup Inc.'s (C - Free Report) second-quarter 2026 results underscore the progress of its multi-year transformation, with stronger profitability signaling that the strategy is beginning to pay off. With this, management targets a medium-term return on tangible common equity (ROTCE) of 14-15%.

Client-driven growth should be a key ROTCE catalyst. C’s second-quarter 2026 revenues rose 14.3%, marking its highest quarterly revenues in a decade, supported by broad-based growth across Services, Markets, Banking and Wealth. Services benefited from higher deposits and cross-border activity, while trading, investment banking and rising client assets supported the other businesses. With Services, Markets, Banking and Wealth generating ROTCE of 30.9%, 17%, 18% and 14.4%, respectively, continued growth in these higher-return franchises should improve Citigroup’s business mix and lift consolidated ROTCE. 

Efficiency represents the second major lever. Citigroup’s organizational overhaul is simplifying governance through workforce reductions, fewer management layers, process standardization and increased automation. Combined with investments in technology and artificial intelligence, these initiatives are expected to generate $2-$2.5 billion in annualized savings by 2026. Management is targeting an efficiency ratio of 60% for 2026 and below 55% over the medium term.

The third driver is capital productivity. Citigroup is reallocating resources toward businesses capable of generating returns above its cost of capital while reducing the drag from lower-return and legacy operations. This should increase earnings generated per dollar of tangible common equity. Share repurchases provide an additional benefit by reducing the equity base and supporting per-share returns. C repurchased $4 billion of its common stock in the second quarter and intends to continue buybacks under its $30-billion authorization.

Overall, achieving a 14-15% medium-term ROTCE will require more than revenue growth alone. C must sustain growth in its higher-return businesses, convert that growth into positive operating leverage and deploy capital more efficiently. The recent improvement indicates progress, but the durability of the gains will depend on continued execution, lower transformation costs and a reduced contribution from underperforming businesses.

ROTCE Targets of Other BanksSimilar to Citigroup, several leading banks, including Bank of America (BAC - Free Report) and Citizens Financial Group, Inc. (CFG - Free Report) , have established medium-term ROTCE targets, supported by growth initiatives and operational improvements.

Citizens Financial expects return on average tangible common shareholders’ equity of 16-18% over the medium term. Citizens Financial expects to achieve this objective through the execution of its strategic initiatives, supported by anticipated net interest income tailwinds between 2025 and 2027.

Bank of America also aims to deliver a medium-term ROTCE of 16-18%. Bank of America’s strategy is underpinned by sustainable revenue growth, disciplined expense management and deeper client engagement, reinforcing a credible path toward achieving its profitability target.

C’s Price Performance, Valuation & EstimatesShares of Citigroup have surged 39.7% in the past year compared with the industry’s growth of 24.3%.

Price Performance

Image Source: Zacks Investment Research

From a valuation standpoint, C trades at a forward price-to-earnings (P/E) ratio of 10.68X, below the industry’s average of 14.10X.

Price-to-Earnings F12M

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for C’s 2026 and 2027 earnings implies year-over-year rallies of 39.9% and 15.7%, respectively. Estimates for both years have been revised upward over the past month.

Estimate Revision Trend

Image Source: Zacks Investment Research

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

News Summary:

NVIDIA Agent Toolkit now includes NVIDIA Omniverse libraries, giving AI agents tools and skills to help software developers integrate physical AI capabilities into their existing applications.New Omniverse libraries for NVIDIA RTX sensor simulation, GPU-accelerated physics simulation and simulation-ready asset validation are openly available on GitHub.SideFX and PTC are integrating Omniverse libraries into 3D applications for physical AI, with support for cloud and local AI systems, from NVIDIA RTX Spark to NVIDIA DGX Station.New NVIDIA blueprint for integrating Omniverse libraries in Blender. LOS ANGELES, July 20, 2026 (GLOBE NEWSWIRE) -- SIGGRAPH -- NVIDIA today announced that NVIDIA Agent Toolkit now includes NVIDIA Omniverse™ libraries — a collection of software components that give AI agents tools and skills to add physical AI capabilities to existing applications and prepare 3D content for simulation.

Robots, factories and autonomous systems need to be designed, tested and trained in simulation before they operate in the real world. Preparing 3D content for simulation takes more than realistic visuals — assets need the right structure, materials, scale, labels, sensors and physical properties. With NVIDIA Omniverse libraries in NVIDIA Agent Toolkit, AI agents have the tools and skills to build workflows, inspect scenes, flag issues and prepare assets, helping developers move faster from 3D content to simulation-ready environments.

“The physical AI era will be built in simulation first,” said Jensen Huang, founder and CEO of NVIDIA. “NVIDIA Agent Toolkit with Omniverse libraries brings AI agents into the 3D tools developers already use, helping build the simulation-ready worlds where robots, factories and autonomous systems are trained and tested long before they reach the real world.”

Software makers including SideFX and PTC are integrating Omniverse libraries for agent-ready sensor simulation, physics and asset validation, helping bring agentic AI into the applications and workflows developers and technical artists already use to prepare 3D content.

Omniverse Libraries Bring Physical AI Skills to NVIDIA Agent Toolkit
NVIDIA Agent Toolkit helps software makers build AI agents that connect tools, skills and data sources. Omniverse libraries extend those agents into 3D and physical AI workflows with callable tools for sensor simulation, GPU-accelerated physics and simulation-ready asset validation inside existing applications.

The new Omniverse libraries — including ovrtx, ovphysx and CAD-to-SimReady skills — are openly available on GitHub, giving AI agents tools to build workflows for inspecting scenes, testing changes and preparing 3D assets for simulation. A new blueprint for integrating Omniverse libraries in Blender is also now available on GitHub.

The libraries’ key capabilities include:

NVIDIA RTX sensor simulation: ovrtx helps applications generate camera, lidar, radar and other sensor outputs from 3D scenes, so developers and AI agents can test how physical AI systems may perceive virtual environments.Physical behavior: ovphysx uses GPU-accelerated physics to bring realistic behavior to 3D scenes using properties such as collisions, mass, friction and motion, so teams can first test how objects and systems interact in simulation.Simulation-ready 3D objects: CAD-to-SimReady skills help convert computer-aided design (CAD) data to SimReady assets built on OpenUSD, giving 3D content the properties needed for physical AI simulation and virtual testing.
Software Makers Build With Omniverse Libraries
Software makers including SideFX and PTC, as well as startups ForgeCAD, Lightwheel, Moonlake AI and Palatial, are among the first to adopt and build with Omniverse libraries, now part of NVIDIA Agent Toolkit.

SideFX is using OpenUSD workflows, as well as ovrtx and ovphysx libraries, to explore how agents can help integrate Omniverse libraries into its Houdini procedural 3D content creation workflows, giving technical artists a path to generate, test physics and prepare content for simulation.

“Procedural 3D creation is essential to building the complex, controllable worlds needed for simulation, robotics and industrial AI,” said Kim Davidson, president and CEO of SideFX. “With NVIDIA Omniverse libraries and OpenUSD, SideFX is exploring how agent-ready tools can support Houdini workflows, helping technical artists review, test and prepare procedural content for simulation while staying in control of the creative process.”

The PTC Onshape CAD and product data management (PDM) platform is using OpenUSD and ovrtx to connect cloud-native design workflows with physical simulation, helping product design content stay connected with CAD, PDM, collaboration and simulation workflows.

“Engineering teams are seeking more connected ways to design, collaborate and simulate throughout the development process,” said Neil Barua, president and CEO of PTC. “PTC’s work with NVIDIA supports that broader vision, while NVIDIA Omniverse libraries help enable simulation-ready workflows that bring validation and testing closer to where products are designed.”

On display at SIGGRAPH, “SimReady” Blender is a sample workflow built in Blender with NVIDIA Omniverse libraries and NVIDIA NemoClaw™, showing how software makers can add agent-ready simulation capabilities — including NVIDIA RTX sensor simulation, physics and validation — into existing 3D applications while keeping creators in control. This is now openly available as a blueprint for integrating Omniverse libraries in Blender.

The demo also previews how these workflows, built with Omniverse libraries as part of NVIDIA Agent Toolkit, can run locally, from compact RTX-powered systems with NVIDIA RTX Spark™ to NVIDIA GB300-powered systems with NVIDIA DGX Station™. RTX Spark systems will be available this fall from ASUS, Dell Technologies, HP, Lenovo, Microsoft Surface and MSI, with models from Acer and GIGABYTE to follow. DGX Station systems are available to order from ASUS, Dell, GIGABYTE, HP, MSI, Supermicro and Exxact.

Startups, including those part of the NVIDIA Inception program, are also using Omniverse libraries and skills to add agent-assisted asset and scene preparation workflows. Palatial is using Omniverse CAD-to-SimReady skills to automate the creation and validation of SimReady assets at scale from CAD inputs. Lightwheel is using Omniverse Content Agents powered by OpenUSD in its SimReadyGen technology to generate physically accurate SimReady assets from text prompts.

ForgeCAD and Moonlake AI are exploring agent-driven 3D content workflows that use Omniverse capabilities to help generate, augment and prepare assets for physical AI simulation.

Watch the NVIDIA keynote at SIGGRAPH. Learn more about NVIDIA Omniverse libraries and explore available samples and documentation.

About NVIDIA
NVIDIA (NASDAQ: NVDA) is the world leader in AI and accelerated computing.

For further information, contact:
Paris Fox
Corporate Communications
NVIDIA Corporation
[email protected]

Certain statements in this press release including, but not limited to, statements as to: expectations with respect to growth, performance, availability, and benefits of NVIDIA’s products, services and technologies, and related trends and drivers; expectations with respect to NVIDIA’s third party arrangements, including with its collaborators and partners; expectations with respect to technology developments, and related trends and drivers; projected market growth and trends; expectations with respect to AI and related industries; and other statements that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections based on management’s beliefs and assumptions and on information currently available to management and are subject to risks and uncertainties that could cause results to be materially different than expectations. Important factors that could cause actual results to differ materially include: global economic and political conditions; NVIDIA’s reliance on third parties to manufacture, assemble, package and test NVIDIA’s products; the impact of technological development and competition; development of new products and technologies or enhancements to NVIDIA’s existing products and technologies; market acceptance of NVIDIA’s products or NVIDIA’s partners’ products; design, manufacturing or software defects; changes in consumer preferences or demands; changes in industry standards and interfaces; unexpected loss of performance of NVIDIA’s products or technologies when integrated into systems; NVIDIA’s ability to realize the potential benefits of business investments or acquisitions; and changes in applicable laws and regulations, as well as other factors detailed from time to time in the most recent reports NVIDIA files with the Securities and Exchange Commission, or SEC, including, but not limited to, its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Copies of reports filed with the SEC are posted on the company’s website and are available from NVIDIA without charge. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.

© 2026 NVIDIA Corporation. All rights reserved. NVIDIA, the NVIDIA logo, DGX Station, NemoClaw, Nemotron, NVIDIA Omniverse, NVIDIA RTX and NVIDIA RTX Spark are trademarks and/or registered trademarks of NVIDIA Corporation in the U.S. and other countries. Other company and product names may be trademarks of the respective companies with which they are associated. Features, pricing, availability and specifications are subject to change without notice.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/1db6fb48-31e7-4ea7-8281-2713208e224e

NVIDIA Launches Omniverse Libraries, Putting AI Agents to Work Building Simulation-Ready Worlds NVIDIA today announced NVIDIA Omniverse libraries — a collection of software components that give AI...

General Motors stock has retreated in recent days, falling from its year-to-date high of $87 in February to about $76 today. The pullback could continue in the near term after the stock formed a bearish double-top pattern ahead of its second-quarter earnings report.

GM stock will be in the spotlight this week as it releases its financial results. These numbers come after the company published a soft deliveries report. It sold 714,896 vehicles in the second quarter, down by 4% from the same period last year.

GM blamed the decline on its decision to deprioritize electric vehicles. It also discontinued some vehicles, including the Chevrolet Blazer and Cadillac XT4. 

Despite the decline, GM maintained the number one market share in the US. It was also the number 2 company in full-size pickup and large SUV sales. Key brands like GMC, Chevrolet, and Cadillac did relatively well.

READ MORE: General Motors posts earnings beat, issues upbeat guidance for 2026

Yahoo Finance data shows that analysts expect its Q2 revenue to come in at $47.09 billion, down modestly from the $47.12 billion it made in the same period last year. For the third quarter, analysts expect that revenue will drop by 0.44% to $48.38 billion. 

On the positive side, analysts are optimistic that GM will return to growth in the next financial year. Also, while its revenue will remain under pressure, analysts believe that its profitability will do well, helped by higher vehicle prices. A recent report by KBB noted that new car prices rose slightly, with the average new car selling for $49,758.

Another positive is that GM's valuation already reflects many of its growth challenges, including tariffs, rising input costs, and slowing earnings momentum. 

The stock trades at a forward price-to-earnings ratio of just 5.95, well below the S&P 500 Index's average multiple of about 20, suggesting much of the pessimism is already priced in. 

By comparison, Ford trades at a forward P/E of 8.68, while Stellantis has a multiple of 7.13, making GM one of the cheapest major automakers despite its strong profitability and cash generation.

Therefore, GM could choose to accelerate its share repurchase program. The company still has $5.5 billion remaining under its existing buyback authorization and may take advantage of its depressed valuation to retire additional shares, further boosting earnings per share and shareholder returns.

Analysts have mixed views about GM stock. RBC’s Tom Narayan lowered his target to $94 from $95, while maintaining an outperform rating. JPMorgan’s Ryan Brinkman hiked his target from $98 to $110, while Citigroup’s Michael Ward boosted from $108 to $131.

GM stock chart | Source: TradingView

The daily chart suggests that the GM stock may drop further in the coming weeks. It has already dropped below the 23.6% Fibonacci Retracement level of $77. Moving below that level may suggest that the stock has more downside to go. 

The stock has also formed a bearish flag pattern, which is made up of a vertical line and an ascending channel. It has also dropped below the 50-day Exponential Moving Average (EMA), a sign that bears have largely prevailed for now.

Therefore, the stock will likely have a bearish breakout after releasing its earnings on Tuesday. If this happens, the next target to watch will be the 38.2% Fibonacci Retracement level of $70. 

Key Takeaways HPE's Private Cloud AI orders grew in Q2 as enterprises expanded on-premises AI deployments.HPE reported a record $5.9B AI Systems backlog, including $1.8B in new AI Systems orders.HPE's GreenLake platform reached 6.7M managed systems, expanding AI cross-sell opportunities. Hewlett Packard Enterprise's (HPE - Free Report) Private Cloud AI business continues to gain momentum as enterprises increasingly deploy AI workloads on their own infrastructure rather than relying solely on public cloud environments. The company's second-quarter fiscal 2026 results indicate that demand remains robust, raising the question of whether this adoption trend can continue over the coming quarters.

Private Cloud AI was one of the standout contributors within HPE's Cloud & AI segment during the quarter. Private Cloud AI orders increased in the second quarter, supported by a growing base of new customer wins. This performance complemented broader strength across the segment, where revenues increased 23% year over year to $7.7 billion, while orders continued to outpace revenues.

Hewlett Packard Enterprise also reported a record AI Systems backlog of $5.9 billion, including $1.8 billion in new AI Systems orders, providing meaningful visibility into future deployments. Customers are increasingly adopting Private Cloud AI alongside investments in the compute infrastructure and unstructured data storage, reflecting growing enterprise preference for secure, on-premises AI environments.

HPE's expanding GreenLake ecosystem further strengthens the Private Cloud AI opportunity. The GreenLake platform now manages more than 6.7 million systems, up from 5.3 million a year earlier, serving approximately 50,000 customers. This growing installed base provides HPE with a large enterprise audience to cross-sell Private Cloud AI solutions as customers modernize their IT environments.

The continuous increases in customer wins across the AI systems backlog, enterprise infrastructure spending and other offerings embedded with Private Cloud features indicate that the company remains on a solid trajectory.

How Competitors Fare Against HPEHewlett Packard Enterprise’s closest competitor in this domain is Dell Technologies (DELL - Free Report) and Cisco (CSCO - Free Report) . Dell AI Factory, combined with NVIDIA, is arguably the most direct alternative for HPE private cloud AI.

Dell provides pre-integrated GPU servers, storage, networking and software for enterprise AI and competes head-to-head with HPE for Fortune 1000 AI deployments. Cisco focuses on AI networking and integrated AI Pods. Cisco has started competing strongly with HPE after acquiring Splunk and through its partnership with NVIDIA.

HPE’s Price Performance, Valuation and EstimatesHPE has gained 90.8% in the year-to-date period. However, the company has underperformed the Zacks Computer - Integrated Systems industry, which has returned 93.2% in the same time frame.

HPE YTD Performance Chart
Image Source: Zacks Investment Research

From a valuation standpoint, HPE trades at a forward price-to-sales ratio of 1.24, below the industry’s 5.3. The discounted valuation is also reflected by the Zacks Value Score of B.

HPE Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for HPE’s fiscal 2026 margin reflects year-over-year growth of 75.8%. Estimates have remained unchanged for the past 30 days.

Image Source: Zacks Investment Research

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

Intel, one of the best-performing stocks in the S&P 500 Index this year, has lost momentum in recent weeks.

The stock has fallen 32% from its year-to-date high and is hovering near its lowest level since May.

That weakness will face a crucial test later this week when the chipmaker reports its quarterly financial results.

INTC stock has enjoyed a remarkable rally this year. Despite its recent pullback, the shares remain up 138% year to date, making Intel one of the best-performing companies in the S&P 500 Index. 

The surge has lifted its market capitalization to more than $477 billion, marking a dramatic turnaround for a company that was struggling with declining market share and weak financial performance just a few years ago.

Intel’s surge has been driven by several factors, including its balance sheet improvements.

The Trump administration and Nvidia took a stake in the company, helping it to shore up its finances.

Intel has also benefited from the ongoing demand for CPUs as AI agents become more popular.

It also boosted investor confidence by reaching a deal with Apollo Global to repurchase the 49% equity interest in its Irish fab joint venture. The deal is valued at $14.2 billion and is funded by cash on hand and new debt. 

Most recently, Intel has inked major deals, including with SpaceX and Tesla. It has become a partner of Elon Musk’s Terafab project.

In it, the company will provide its 14A manufacturing technology to design, fabricate, and package chips. 

Intel is proud to join the Terafab project with @SpaceX, @xAI, and @Tesla to help refactor silicon fab technology.

Our ability to design, fabricate, and package ultra-high-performance chips at scale will help accelerate Terafab’s aim to produce 1 TW/year of compute to power… pic.twitter.com/2vUmXn0YhH

— Intel (@intel) April 7, 2026 Intel will also manufacture some of Apple’s chips in its Texas plant. While the real production is years away, the deal is a validation for Intel’s turnaround. 

In another important development, Google said that it would use Intel’s Xeon processors to power its cloud infrastructure.

While the size of the deal was not revealed, chances are that it will be worth billions of dollars.

Therefore, the upcoming earnings report will provide more information about its turnaround.

Analysts expect these results to show that Intel’s revenue jumped by 12% to $14.42 billion, helped by CPU demand. 

In his statement after the last earnings report, Lip-Bu Tan, the CEO, said: 

“The next wave of AI will bring intelligence closer to the end user, moving from foundational models to inference to agentic. This shift is significantly increasing the need for Intel’s CPUs and wafer and advanced packaging offerings.”

Analysts are largely bullish on Intel despite its hefty valuation. Yahoo Finance data shows that the average target among analysts is $106.70, up modestly from the current $95.

INTC stock chart | Source: TradingView

The daily chart shows that INTC stock has slumped from the year-to-date high of $142.6 to the current $95.

It has formed a double-top pattern at $132.47. This pattern had a false breakout that pushed it to the highest point this year.

It has now moved below the Major S/R pivot point of the Murrey Math Lines tool. Also, it has slipped below $98.93, its lowest level on June 5.

Therefore, the price will likely drop further in the near term, potentially to the strong pivot, reverse level of $75. 

Key Takeaways IBM is expected to report higher Q2 software revenue, led by AI, cloud and product innovation.New Red Hat services and OpenAI collaboration may strengthen IBM's cybersecurity and AI offerings.ServiceNow, Lightedge and Wimbledon initiatives are likely to support IBM's segment revenue growth. International Business Machines Corporation (IBM - Free Report) is scheduled to report second-quarter 2026 earnings after the closing bell on July 22. In the to-be-reported quarter, the company is likely to have recorded higher revenues from the Software segment with a strong focus on product innovation and the growing clout of watsonx.ai across various sectors.

Factors at PlayThe Software segment includes Hybrid Cloud, Automation and Data and Transaction Processing.

During the second quarter, IBM launched two new managed services, Red Hat AI Inference and Red Hat OpenShift Virtualization Service on IBM Cloud. The new solutions are designed to support faster AI adoption while improving the security and efficiency of virtual workloads. IBM formed a collaboration with OpenAI during the quarter. The alliance focuses on taking AI capabilities beyond just improving productivity and efficiency and integrating AI directly into an organization’s cybersecurity operations. This will likely act as a catalyst for IBM’s project Lightwell, which aims to improve security across the open-source software ecosystem. IBM has committed $5 billion to this project. Such investment in innovation and strategic collaboration will likely boost IBM’s commercial prospects in the growing cybersecurity space and are likely to have generated incremental revenues for the Software segment.

In the to-be-reported quarter, IBM extended its partnership with Lightedge for a seamless integration of IBM Power Virtual Server (PowerVS) into the latter’s core hybrid cloud offering. This cloud-based infrastructure service will enable Lightedge to offer customers a wider array of hybrid cloud options for evolving workloads. The integration of PowerVS support has enabled Lightedge to eliminate the complexity organizations face when managing IBM Power environments across multiple providers and platforms. It offers customers a single, trusted partner capable of supporting every tier of a modern hybrid cloud strategy.

IBM strengthened its partnership with ServiceNow, Inc. through a long-term agreement to help businesses overcome fragmented data across enterprise systems and outdated legacy technology, the two major barriers to AI adoption. The deal enables IBM to provide customers with an open, secure and flexible platform for large-scale AI usage. Per the agreement, IBM will combine its advanced AI, automation and data management capabilities with ServiceNow’s AI platform to help enterprises deploy AI at scale. It helps organizations modernize existing systems, reduce costs and complexity and address the challenges of outdated infrastructure that limits flexibility and efficiency. These are likely to have generated higher segment revenues.

In the second quarter, IBM launched new AI-powered features for Wimbledon 2026 to improve the fan experience. Using its watsonx AI platform, IBM has enhanced the Wimbledon app and website to help fans enjoy matches in a more interactive and personalized way. IBM introduced Key Moments, an advanced feature designed to help fans better understand crucial moments during a tennis match. Using live and historical match data, the feature identifies key rallies, shots and turning points that influence momentum and a player’s chances of winning. By providing real-time insights and explanations, it makes the match easier and more exciting to watch. The company also upgraded Match Chat, an AI assistant that answers fan questions instantly using live match data, past statistics and AI insights, with some responses including photos and videos.

Overall ExpectationsThe Zacks Consensus Estimate for Software revenues is pegged at $8.04 billion, indicating an improvement from $7.39 billion recorded in the year-ago quarter.

The Zacks Consensus Estimate for total revenues for the company stands at $17.59 billion. It generated revenues of $16.98 billion in the prior-year quarter. The consensus mark for earnings is currently pegged at $3.00 per share, indicating growth from $2.8 in the year-earlier quarter.

Earnings WhispersOur proven model does not conclusively predict an earnings beat for IBM for the second quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

IBM currently has an ESP of -0.76% with a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to ConsiderHere are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:

Pinterest, Inc. (PINS - Free Report) is set to release quarterly numbers on Aug. 4. It has an Earnings ESP of +1.65% and carries a Zacks Rank #3.

The Earnings ESP for Arista Networks, Inc. (ANET - Free Report) is +0.84% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Aug. 4.

The Earnings ESP for Silicon Motion Technology Corporation (SIMO - Free Report) is +7.68% and it sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on July 29.

IBM (NYSE:IBM | IBM Price Prediction) currently trades at $212.67, while the average Wall Street price target sits at $273.75, leaving a gap of roughly 29% between current levels and analyst consensus.

That gap widened sharply this week. IBM runs the mainframes, hybrid cloud stack, and consulting practice most Fortune 500 companies depend on. Wall Street had treated it as a durable AI beneficiary through Red Hat and watsonx, making the past few trading sessions a shock.

Wedbush’s Dan Ives maintains a $350 target that implies more than 64% upside, roughly double consensus.

A Preannounced Miss Triggered the Worst Session Since 1968 IBM plunged more than 26% in one week after management preannounced Q2 results well below consensus. CEO Arvind Krishna attributed the shortfall to customers redirecting IT budgets toward AI servers and memory amid a global shortage, with additional pressure from the z17 mainframe program launch.

The reaction was severe. IBM had beaten estimates for four consecutive quarters, and trailing free cash flow for Q1 2026 had softened to $2.22 billion, down 44.15% year over year. A Wall Street Zen downgrade to sell accelerated the selling.

Software peers Salesforce and ServiceNow sold off alongside IBM on the same news, while semiconductor names rallied.

Why Ives and Most of the Street Are Not Blinking The bull thesis treats this as an execution stumble, not structural decay. Ives views IBM as a core holding on his “IVES AI 30” list and is betting the Q2 miss is isolated rather than evidence of lost enterprise AI runway anchored by watsonx, automated AI agents, and consulting. Wedbush has chosen to freeze active adjustments and hold the $350 line until the formal Q2 call on July 22.

Fundamentals support this view. IBM Z mainframe revenue grew 51% year over year in Q1 2026, and the generative AI book of business crossed $12.5 billion inception-to-date by Q4 2025. Management reaffirmed FY2026 guidance for more than 5% constant currency revenue growth and roughly $1 billion of free cash flow improvement.

The sell side remains constructive. Alpha Vantage’s tracker shows 3 Strong Buy, 12 Buy, 7 Hold, 0 Sell, and 1 Strong Sell ratings across 23 analysts. With implied upside north of 40% to the Ives call, the July 22 earnings report is the next real test.

How the Enterprise IT Peer Group Compares The peer set diverged sharply. IBM and Oracle got crushed, Accenture is deep in a bear market, and HPE rallied on AI networking demand.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and IBM didn't make the cut. Grab the names FREE today.

Oracle (NYSE:ORCL) trades at $126.41 after a 30.88% one-month drawdown, versus a $251.85 average target. That is nearly 99% implied upside with a 8 Strong Buy, 29 Buy, 5 Hold, 1 Sell posture. It carries the largest analyst-implied gap in the group.

Accenture (NYSE:ACN) sits at $143.57, down 45.07% year to date, against a $179.13 target, implying roughly 25% upside. Ratings tilt neutral at 2 Strong Buy, 12 Buy, and 13 Hold, with recent revisions trimming rather than raising.

Hewlett Packard Enterprise (NYSE:HPE) is the outlier, up 92.46% year to date at $45.82, versus a $64.13 target for about 40% upside. Ratings sit at 4 Strong Buy, 8 Buy, 10 Hold.

Oracle carries the widest upside, but IBM’s setup is cleaner: less capex burn, an existing free cash flow machine, and a target reflecting a return toward its $332.46 52-week high rather than uncharted territory.

IBM’s Current Valuation and Setup IBM trades at $212.67 with a market cap of roughly $200 billion. Consensus $273.75 target across 23 analysts implies about 29% upside, while Ives’ $350 print target pushes that to roughly 65%. The stock is down 27.26% year to date, against a 9% gain for the S&P 500 over the same window.

Valuation looks reasonable at a forward P/E of 17, backed by a 3.07% dividend yield and a 31st consecutive year of dividend increases. Polymarket is pricing 82.6% odds of an earnings miss on July 22.

The Path Forward The bull case strengthens if the July 22 call reframes the preannouncement as a mainframe timing issue rather than lost enterprise wallet share, if Krishna reaffirms the $1 billion FCF improvement and 5%+ constant currency growth, and if the AI book of business shows sequential improvement. That path gets the stock toward $273 and gives Ives’ $350 legitimate runway.

The bear case strengthens if consulting growth stalls further, if memory-driven capex crowding-out proves durable through FY2027, and if shrinking free cash flow becomes the trend. A dividend aristocrat with weakening cash generation is how a value trap starts. The setup looks cautiously constructive at these levels, though the July 22 earnings report remains the key catalyst to watch.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and IBM didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

Key Takeaways SAP reports Q2 2026 results on July 23 as cloud growth, AI progress and margins remain in focus.SAP is seeing strong demand for cloud ERP, AI offerings and S/4HANA migrations supporting growth.SAP faces slower cloud tailwinds, geopolitical risks and declining software support revenue. SAP SE (SAP - Free Report) is scheduled to post results for the second quarter of 2026 on July 23, after market close.

The Zacks Consensus Estimate for second-quarter earnings is $2 per share, indicating a 17.6% increase from the year-ago reported number. The Zacks Consensus Estimate for revenues is currently pinned at $11.4 billion, implying a 11.4% jump from the year-ago figure.

SAP's earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 6.5%. Shares of the company have plunged 48.2% in the past year compared with the Computers - Software industry's loss of 29.4%.

Image Source: Zacks Investment Research

Cloud Momentum, AI Strategy & Margins Under the SpotlightSAP’s cloud-first strategy, successful migration of customers to subscription-based offerings and disciplined cost management are likely to have cushioned its performance in the second quarter. The rapid adoption of Rise with SAP and Grow with SAP solutions is driving sales, while SAP Business AI, Business Data Cloud and Sovereign Cloud are gaining solid traction. In the first quarter, the cloud backlog rose 25% and cloud revenue increased 27%. Cloud ERP Suite revenue accelerated 30%, driven by strong demand, with more than 70% of order entry coming from public cloud solutions.

Another major focus will be customer adoption of SAP S/4HANA, the company's next-generation ERP platform. Every successful migration not only increases cloud revenue but also creates opportunities to cross-sell additional SAP products. Key indicators include the number of S/4HANA customers, cloud migration rates, new enterprise wins and expansion within existing customers. AI monetization strategy is also paying off. SAP believes broader adoption of its AI-powered autonomous suite across industries will accelerate long-term growth. It is leveraging AI across engineering, customer support and sales to boost productivity and streamline operations, targeting €2 billion in efficiencies by 2028 through AI-driven transformation.

In May, SAP made plans to make its sustainability AI agents generally available by the end of 2026. Currently in beta, the agents have delivered strong results, including a 50% reduction in packaging compliance review time, scenario simulations cut from a day to 20 minutes, up to 80% less manual GHS classification effort and more than 20% fewer packaging compliance errors.

SAP's frequent acquisitions strengthen its master data governance capabilities across SAP and non-SAP environments, while its open-platform strategy protects proprietary expertise and enables partner and customer innovation. In May, SAP agreed to acquire Prior Labs to strengthen its leadership in Tabular Foundation Models. As part of the deal, SAP will invest more than €1 billion over the next four years to help Prior Labs grow into a leading AI research lab focused on structured business data, while continuing to operate independently. SAP also agreed to acquire Dremio to strengthen SAP Business Data Cloud with faster, real-time analytics and AI capabilities by better integrating SAP and non-SAP data. Financial details were not disclosed, and the deal is awaiting regulatory approval.

Profitability has become an equally important investment theme. SAP has undertaken significant restructuring efforts over the past two years aimed at improving operational efficiency while reallocating resources toward high-growth cloud and AI initiatives. In the first quarter, non-IFRS cloud gross profit increased 20% year over year, while operating profit rose 17%, boosting the margin to 30%.

However, quarter-specific cloud revenue tailwinds may lead to slower growth in the second quarter. Additionally, geopolitical tensions, especially the Middle East conflict, could disrupt supply chains, delay customer spending decisions and adversely impact deal activity. While SAP is not fully protected from these disruptions, the increased economic uncertainty also makes it more difficult to accurately predict the company’s quarterly performance. 

Although SAP maintains a strong position and pipeline in this area, these more complex, regulated deals—particularly in government, defense and sensitive industries—take longer to negotiate, deploy and scale compared to standard cloud offerings. Some of its businesses also rely on an operational cyberspace, which exposes them to issues resulting from cybersecurity breaches, affecting both their reputation and the time and resources needed to resolve legal claims. Meanwhile, complex data integration, hybrid ERP environments and strict compliance demands make AI implementation more difficult, potentially slowing enterprise adoption.

Furthermore, software support revenue is likely to decline faster as more customers shift to the cloud.

What Our Model Predicts for SAPOur proven model does not predict an earnings beat for SAP this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.

SAP has an Earnings ESP of -1.25% and a Zacks Rank #4 (Sell) at present. You can uncover the best stocks to buy or sell before they’re reported with our  Earnings ESP Filter.

Stocks With Favorable CombinationHere are some companies with the right combination of elements to post an earnings beat in their upcoming releases.

Cincinnati Financial Corporation (CINF - Free Report) has an Earnings ESP of +7.22% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

CINF is set to report quarterly numbers on July 27, after market close. The Zacks Consensus Estimate for Cincinnati Financial’s second-quarter 2026 earnings is pegged at $1.82 per share, indicating a year-over-year decrease of 7.6%. Its earnings beat estimates in each of the past four quarters, delivering an average surprise of 27.5%. The Zacks Consensus Estimate for CINF's revenues is pegged at $3.01 billion, indicating an 8.4% increase from the year-ago reported figure.

The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +10.88% and a Zacks Rank #3 at present. ALL is gearing up for quarterly results on Aug. 5, after market close.

The Zacks Consensus Estimate for Allstate’s second-quarter 2026 earnings is pegged at $5.33 per share, indicating a year-over-year decrease of 10.3%. Its earnings beat estimates in each of the last four reported quarters, delivering an average surprise of 51.1%. The Zacks Consensus Estimate for ALL's revenues is pegged at $17.73 billion, indicating a 5.7% increase from the year-ago reported figure.

Chubb Limited (CB - Free Report) has an Earnings ESP of +1.09% and a Zacks Rank of #3 at present. CB is set to report quarterly earnings on July 21, after market close.

The Zacks Consensus Estimate for Chubb’s second-quarter 2026 earnings is pegged at $6.6 per share, indicating a year-over-year increase of 7.5%. Its earnings beat estimates in each of the last four reported quarters, delivering an average surprise of 12.4%. The Zacks Consensus Estimate for Chubb's revenues is pegged at $15.89 billion, indicating a 7.3% increase from the year-ago reported figure.

Key Takeaways TMUS is expected to post higher Q2 revenue on postpaid subscriber gains and broadband growth.TMUS expanded business and value offerings with SuperBroadband and a Mint Mobile Internet bundle.T-Mobile faces pressure from competition, higher promotional spending and rising operating expenses. T-Mobile, US, Inc. (TMUS - Free Report) is set to report second-quarter 2026 results on July 23, before the opening bell. In the trailing four quarters, the company delivered an earnings surprise of 12.27%, beating estimates on all occasions.

The wireless service provider is expected to witness year-over-year revenue growth, driven by steady postpaid subscriber additions, growing broadband adoption and continued demand for premium wireless services. However, intense competition, higher promotional spending and increased operating expenses are likely to have weighed on the bottom line.

Factors at PlayDuring the quarter, T-Mobile introduced SuperBroadband, a next-generation business Internet solution that integrates wireless, fiber and satellite connectivity with managed network services. The launch is expected to have contributed to second-quarter 2026 revenues by broadening the company's enterprise connectivity portfolio, attracting new business customers and increasing adoption of integrated broadband solutions.

T-Mobile's increased focus on the small business segment is likely to have provided an additional boost to revenues in the quarter under review. Stronger demand for its business wireless plans and connectivity solutions is expected to have expanded its business customer base and raised average revenue per account.

During the to-be-reported quarter, T-Mobile strengthened its value-focused offerings by expanding Mint Mobile's portfolio with a $45 Home Internet and Wireless Bundle. The new bundle is likely to have encouraged customer additions, accelerated home Internet adoption and enhanced T-Mobile's position in the value broadband market.

T-Mobile also launched the new motorola razr lineup during the quarter with attractive promotional offers and financing options. This is expected to have supported revenue growth by stimulating smartphone upgrades, attracting new wireless subscribers and increasing device sales across its retail and online channels.

Despite top-line growth, T-Mobile's earnings are expected to have declined in the June quarter due to higher promotional spending, elevated device subsidies associated with smartphone launches, and increased customer acquisition costs amid intense competition. Continued investments in expanding its 5G and broadband infrastructure are also likely to have raised operating expenses and depreciation costs.

Overall ExpectationsFor the June quarter, the Zacks Consensus Estimate for total revenues is pegged at $22.8 billion, indicating an improvement from the year-ago quarter’s reported figure of $21.1 billion. The consensus estimate for adjusted earnings per share is pegged at $2.52, indicating a decline from $2.84 reported a year ago.

Earnings WhispersOur proven model does not conclusively predict an earnings beat for T-Mobile for the second quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -7.23%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: T-Mobile carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to ConsiderHere are some other stocks you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this season:

Silicon Motion Technology Corporation (SIMO - Free Report) has an Earnings ESP of +7.68% and sports a Zacks Rank #1 at present. It is set to release its second-quarter 2026 numbers on July 29.

The Earnings ESP for Celestica Inc. (CLS - Free Report) is +1.86%, and it carries a Zacks Rank of 2 at present. The company is scheduled to report second-quarter 2026 numbers on July 27.

The Earnings ESP for Monolithic Power Systems, Inc. (MPWR - Free Report) is +1.08%, and it carries a Zacks Rank of 2 at present. The company is slated to report second-quarter 2026 numbers on July 30.

Key Takeaways NextEra Energy's Q2 revenues are projected to rise 18.92% year over year to $7.97 billion.Florida demand, customer growth and new renewable projects are expected to support quarterly earnings.Premium valuation and costly natural gas projects remain concerns despite stronger-than-industry ROE. NextEra Energy (NEE - Free Report) is scheduled to release its second-quarter 2026 results on July 24, before market open. The Zacks Consensus Estimate for earnings is currently pegged at $1.08 per share on revenues of $7.97 billion.

Second-quarter earnings estimates have remained unchanged over the past 60 days. The Zacks Consensus Estimate for quarterly revenues indicates a year-over-year increase of 18.92%.

Image Source: Zacks Investment Research

NEE Stock’s Earnings Surprise HistoryNextEra Energy’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.18%.

Image Source: Zacks Investment Research

What the Zacks Model UnveilsOur proven model does not conclusively predict an earnings beat for NextEra Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you can see below.

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

NEE’s Earnings ESP: NextEra Energy has an Earnings ESP of -0.47%.

Zacks Rank of NEE: The company currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Some companies in the same industry with the right combination of the two factors for an earnings beat this season are Edison International (EIX - Free Report) , Duke Energy (DUK - Free Report) and PPL Corporation (PPL - Free Report) . EIX, DUK and PPL currently have an Earnings ESP of +20.45%, +0.08% and +4.23%, respectively. EIX and DUK carry a Zacks Rank #2 each, while PPL has a Zacks Rank #3.

Factors Likely to Have Boosted NEE Stock’s Q2 ResultsNextEra Energy’s subsidiary, Florida Power & Light (“FPL”), continues to capitalize on Florida’s robust economic growth, driving consistent customer additions. Strategic investments in grid infrastructure support reliable service while keeping electricity rates about 25% below the national average. Competitive pricing and the ongoing shift toward renewable energy are improving customer retention and reducing fuel expenses, supporting long-term earnings growth. Improving electricity demand from this region is expected to have a positive impact on earnings.

NextEra Energy’s other unit, Energy Resources, is benefiting from the new additions to its renewables and storage portfolio. After placing 0.7 gigawatts (GWs) of new projects into service during the first quarter, its backlog stood at nearly 28 GWs. Energy Resources' second-quarter earnings are expected to benefit from the addition of new renewable generation in its portfolio.

Strategic investment in its infrastructure and strong demand from AI and data centers operating in the service region will continue to drive NextEra Energy's performance. New projects placed into service are likely to have contributed to second-quarter earnings.

However, developing natural gas projects has become costly compared with renewable and battery storage and at times, procuring gas turbines for natural gas projects becomes difficult for the company, which can escalate operating costs and adversely impact earnings per share.

NEE Stock Returns Better Than Its IndustryReturn on equity (“ROE”) is a financial ratio that measures how well a company uses its shareholders’ equity to generate profits. The company's current ROE indicates that it is using shareholders’ funds more efficiently than peers.

NextEra Energy’s trailing 12-month ROE is 12.25%, ahead of the industry average of 11.21%.

Image Source: Zacks Investment Research

NEE Stock’s Price PerformanceNEE’s shares have gained 16.6% in the past year compared with the Zacks Utility – Electric Power industry’s rise of 16.5%.

Image Source: Zacks Investment Research

NextEra Energy’s Shares Trading at a PremiumThe company is currently valued at a premium compared with its industry on a forward 12-month P/E basis. NextEra Energy is trading at 21.12X compared with its industry’s 15.4X.

Image Source: Zacks Investment Research

Investment ThesisFlorida’s improving economic conditions are driving higher electricity demand and supporting steady customer growth for NextEra Energy. Continued investments in renewable energy and battery storage are further enhancing its ability to provide reliable and sustainable power.

Through disciplined cost control, the company keeps utility bills significantly below the national average, improving affordability and helping attract additional customers. Demand from data centers is going to create fresh opportunities for the company.

Although the company’s ROE is better than the industry, its premium valuation and costly natural gas projects compared with renewables are a concern.

Wrapping UpAlthough NextEra Energy’s second-quarter earnings are likely to come in below estimates, its long-term outlook remains solid. Ongoing investments in renewable energy and Florida’s robust economic expansion continue to create new growth opportunities.

With increasing power demand and a steadily expanding customer base, the company is well positioned to deliver sustainable growth, making the stock an appealing investment at current valuations.

Wall Street analysts expect Moody's (MCO - Free Report) to post quarterly earnings of $4.23 per share in its upcoming report, which indicates a year-over-year increase of 18.8%. Revenues are expected to be $2.09 billion, up 10% from the year-ago quarter.

The consensus EPS estimate for the quarter has undergone a downward revision of 0.1% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

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

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

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

Analysts forecast 'Revenue- Total external customers- Moody's Analytics' to reach $929.43 million. The estimate indicates a change of +4.7% from the prior-year quarter.

The consensus estimate for 'Revenue- Total external customers- Moody's Investor Services' stands at $1.15 billion. The estimate points to a change of +14% from the year-ago quarter.

Analysts' assessment points toward 'Revenue- Moody's Analytics- Data and Information' reaching $241.11 million. The estimate indicates a year-over-year change of +6.7%.

It is projected by analysts that the 'Revenue- Moody's Analytics- Research and Insights' will reach $264.16 million. The estimate suggests a change of +6.1% year over year.

The average prediction of analysts places 'Revenue- Moody's Analytics- Decision Solutions' at $427.30 million. The estimate suggests a change of +3.5% year over year.

Analysts expect 'Revenue- Moody's Investor Services- Recurring' to come in at $369.50 million. The estimate suggests a change of +6.5% year over year.

Analysts predict that the 'Revenue- Moody's Investor Services- Transaction' will reach $782.03 million. The estimate suggests a change of +18% year over year.

The combined assessment of analysts suggests that 'Revenue- Moody's Investor Services- Ratings- Corporate finance (CFG)- High-yield' will likely reach $100.63 million. The estimate suggests a change of +18.4% year over year.

The consensus among analysts is that 'Revenue- Moody's Investor Services- Ratings- Corporate finance (CFG)- Investment-grade' will reach $184.30 million. The estimate points to a change of +29.8% from the year-ago quarter.

According to the collective judgment of analysts, 'Revenue- Moody's Investor Services- Ratings- Corporate finance (CFG)- Other accounts' should come in at $194.05 million. The estimate points to a change of +3.8% from the year-ago quarter.

Based on the collective assessment of analysts, 'Revenue- Moody's Investor Services- Ratings- Structured finance (SFG)- Asset-backed securities' should arrive at $40.00 million. The estimate indicates a change of +14.3% from the prior-year quarter.

The collective assessment of analysts points to an estimated 'Revenue- Moody's Investor Services- Ratings- Structured finance (SFG)- RMBS' of $33.40 million. The estimate indicates a year-over-year change of +15.2%.

View all Key Company Metrics for Moody's here>>>

Over the past month, Moody's shares have recorded returns of +13.4% versus the Zacks S&P 500 composite's +0.6% change. Based on its Zacks Rank #2 (Buy), MCO will likely outperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Key Takeaways Intuit lost DIY customers after its pricing fell short for filers earning less than $50,000 annually.INTU plans simpler products and more competitive pricing to rebuild its DIY tax user base.Intuit aims to grow revenues through Credit Karma and financial services alongside tax products. Intuit Inc.'s (INTU - Free Report) latest tax season highlights a major shift in its TurboTax business. While TurboTax Live continues to post impressive growth, the company's lower-priced DIY tax products lost customers as price-sensitive filers turned to competing options.

The standout performer was TurboTax Live, Intuit's assisted tax offering that combines AI-powered tools with access to human tax experts. The company expects TurboTax Live revenues to climb 36% to nearly $2.8 billion in fiscal 2026, with customer growth of 38%. Live is also projected to account for about 53% of total TurboTax revenues, underscoring how assisted tax preparation has become the company's primary growth engine.

However, the picture is less encouraging for DIY tax filing. Intuit expects total TurboTax Online units to decline about 2% after admitting it "lost on price" among customers earning less than $50,000 annually. Management acknowledged that its pricing strategy was not competitive enough for budget-conscious users, leading to lower e-file market share and fewer free users entering the TurboTax ecosystem.

To address the weakness, Intuit plans to introduce more competitive pricing and simpler product options for basic tax filers. At the same time, it aims to generate more value through Credit Karma, refund products and other financial services rather than relying solely on tax-preparation fees. Customers using both TurboTax and Credit Karma already generate about 30% more revenues, giving Intuit a strong incentive to rebuild its DIY user base while continuing to expand its higher-margin assisted tax business.

How Are Intuit’s Competitors Faring?H&R Block (HRB - Free Report) reported third-quarter fiscal 2026 revenues of $2.4 billion, up 5.3% year over year, driven by higher pricing and volume in U.S. assisted tax preparation. Its assisted-channel market share improved for a third consecutive year, while net income increased 17.4%, indicating healthy demand for expert-led filing services and support.

Paychex’s (PAYX - Free Report) tax-related business, included in its Management Solutions segment (payroll processing, tax filing and compliance), delivered strong momentum in third-quarter fiscal 2026, with revenues rising 23% year over year to $1.4 billion. Growth was driven by higher client volumes, increased revenue per client and sustained demand for payroll tax compliance services, supported by the Paycor acquisition.

INTU’s Price Performance, Valuation and EstimatesShares of Intuit have risen 12.9% over the past month, outperforming both the broader industry and the S&P 500 composite.

Image Source: Zacks Investment Research

In terms of forward 12-month Price/Sales (P/S), Intuit is currently trading at 3.35X, which is at a discount to the industry average of 5.18X.

Image Source: Zacks Investment Research

Intuit’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for fiscal 2026 EPS has been revised upward by a cent over the past month. The consensus mark for 2026 calls for 18.4% growth year over year.

Image Source: Zacks Investment Research

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

Key Takeaways Micron, Texas Instruments, NVIDIA and Broadcom stand out for strong AI exposure and cash generation.Micron posted $29.9B in trailing free cash flow as HBM demand stayed sold out through calendar year 2026.Texas Instruments, Broadcom and NVIDIA generated trailing 12M FCF of $4.4B, $32.8B and $119B, respectively. The stock market has remained highly volatile throughout 2026 as investors continue to deal with a challenging macroeconomic backdrop. Geopolitical tensions, ongoing wars, tariff-related uncertainties, elevated fuel prices, persistent inflation and still-high interest rates have created a difficult environment for equities.

Semiconductor stocks, despite being at the center of the artificial intelligence (AI) revolution, have also witnessed sharp swings as investors worry about whether massive AI infrastructure spending by hyperscalers will generate returns quickly enough to justify current investment levels.

During such uncertain periods, companies with strong cash-generating abilities tend to stand out. Robust free cash flow provides businesses with the financial flexibility to continue investing in research and development, expand manufacturing capacity, repurchase shares, raise dividends and pursue strategic acquisitions without relying heavily on external financing. It also creates a cushion against economic slowdowns and tighter credit conditions.

The AI boom has dramatically strengthened the financial position of several leading chipmakers. Surging demand for AI accelerators, high-bandwidth memory (HBM), networking chips and data center infrastructure has fueled record revenues and profitability. As a result, these companies are producing billions of dollars in cash every quarter, reinforcing their competitive advantages while rewarding shareholders.

Against this backdrop, investors looking to navigate ongoing market uncertainties should focus on financially strong AI chip leaders. Micron Technology, Inc. (MU - Free Report) , Texas Instruments Incorporated (TXN - Free Report) , NVIDIA Corporation (NVDA - Free Report) and Broadcom Inc. (AVGO - Free Report) combine powerful AI-driven growth opportunities with impressive cash generation, making them well-positioned to outperform when market sentiment improves. These stocks have a favorable combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or #2 (Buy), offering solid investment opportunities.

Our PicksMicron Technology has emerged as one of the biggest beneficiaries of the AI infrastructure buildout. The rapid adoption of generative AI has significantly increased demand for HBM and high-capacity DRAM, where Micron Technology has strengthened its technology leadership. Its HBM products have been sold out through calendar year 2026, reflecting exceptionally strong customer demand from leading AI accelerator manufacturers.

The company has also benefited from improving pricing across the broader memory market following the industry's recovery from the previous downturn. Higher average selling prices, disciplined industry supply and increasing AI server deployments have driven strong revenue growth and expanding margins. In the last reported results for the third quarter of fiscal 2026, Micron Technology’s revenues and non-GAAP earnings per share (EPS) surged 346% and 1,215%, respectively, year over year.

This massive growth has translated into substantial free cash flow generation, enabling Micron Technology to increase manufacturing investments while returning substantial cash to shareholders. The company generated adjusted free cash flow of $18.3 billion in the third quarter and $29.9 billion in the trailing 12 months.

Currently, Micron Technology sports a Zacks Rank #1 and has a Growth Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.

Texas Instruments’ analog and embedded semiconductor portfolio makes it a critical supplier across industrial, automotive and communications markets. AI-enabled factories, robotics, electric vehicles and intelligent power systems all require the company's analog chips and embedded processors.

Texas Instruments has consistently generated strong operating cash flows through business cycles due to its diversified customer base, long product lifecycles and efficient manufacturing strategy. The company's ownership of internal manufacturing facilities provides better cost control while supporting long-term profitability.

In the first quarter of 2026, Texas Instruments’ revenues and non-GAAP EPS jumped 19% and 31%, respectively, year over year. The company generated $1.4 billion of free cash flow in the first quarter and $4.4 billion in the trailing 12 months.

Texas Instruments sports a Zacks Rank #1 at present and has a Growth Score of B.

NVIDIA remains the undisputed leader in AI computing. Its graphics processing units (GPUs) have become the standard platform for training and deploying large language models, making the company the biggest beneficiary of surging AI infrastructure spending by hyperscalers, cloud providers and enterprises.

The company's Blackwell platform has attracted extraordinary customer demand as organizations race to build next-generation AI data centers. Beyond GPUs, NVIDIA continues expanding its ecosystem through networking, AI software, enterprise platforms and accelerated computing solutions, creating multiple long-term growth engines. The company’s first-quarter fiscal 2027 revenues surged 85% year over year, while non-GAAP EPS jumped 140%.

Explosive revenue growth has resulted in enormous free cash flow generation, allowing NVIDIA to invest heavily in research, expand product development and return significant capital to shareholders. The company generated free cash flow of $48.6 billion in the first quarter of fiscal 2026 and approximately $119 billion in the trailing 12 months.

NVIDIA carries a Zacks Rank #2 at present and has a Growth Score of A.

Broadcom has successfully transformed itself into one of the most diversified AI infrastructure companies. While its custom AI accelerators have become a major growth driver, the company also benefits from strong demand for AI networking chips that help connect thousands of GPUs inside massive data centers.

Its custom silicon business continues gaining momentum as several hyperscale cloud companies develop proprietary AI chips to complement commercially available accelerators. This creates a long runway for sustained semiconductor revenue growth for the company. In the second quarter of fiscal 2026, revenues and non-GAAP EPS surged 48% and 54%, respectively, year over year.

Broadcom's software business, strengthened by the VMware acquisition, further diversifies cash flows while generating recurring revenues. The combination of semiconductor leadership and enterprise software has significantly boosted free cash flow generation. The company generated free cash flow of $10.3 billion in the second quarter of fiscal 2026 and approximately $32.8 billion in the trailing 12 months.

Broadcom carries a Zacks Rank #2 at present and has a Growth Score of B.

Did you analyze how Fastenal (FAST - Free Report) fared in its international operations for the quarter ending June 2026? Given the widespread global presence of this maker of industrial and construction fasteners, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.

In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.

Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.

While delving into FAST's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.

For the quarter, the company's total revenue amounted to $2.39 billion, experiencing an increase of 14.7% year over year. Next, we'll explore the breakdown of FAST's international revenue to understand the importance of its overseas business operations.

Trends in FAST's Revenue from International MarketsOf the total revenue, $83.4 million came from Other foreign countries during the last fiscal quarter, accounting for 3.5%. This represented a surprise of +16.14% as analysts had expected the region to contribute $71.81 million to the total revenue. In comparison, the region contributed $79.1 million, or 3.6%, and $66.1 million, or 3.2%, to total revenue in the previous and year-ago quarters, respectively.

During the quarter, Canada and Mexico contributed $333.7 million in revenue, making up 14% of the total revenue. When compared to the consensus estimate of $325.21 million, this meant a surprise of +2.61%. Looking back, Canada and Mexico contributed $306.3 million, or 13.9%, in the previous quarter, and $281.4 million, or 13.5%, in the same quarter of the previous year.

Anticipated Revenues in Overseas MarketsFor the current fiscal quarter, it is anticipated by Wall Street analysts that Fastenal will post revenues of $2.44 billion, which reflects an increase of 14.3% the same quarter in the previous year. The revenue contributions are expected to be 3.1% from Other foreign countries ($74.23 million), and 13.6% from Canada and Mexico ($331.64 million).

For the full year, a total revenue of $9.23 billion is expected for the company, reflecting an increase of 12.5% from the year before. The revenues from Other foreign countries and Canada and Mexico are expected to make up 3.1%, and 13.7% of this total, corresponding to $289.41 million, and $1.27 billion, respectively.

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

In an era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the earnings forecasts.

Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.

With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.

Fastenal currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

A Review of Fastenal's Recent Stock Market PerformanceOver the past month, the stock has lost 0.9% versus the Zacks S&P 500 composite's 0.6% increase. The Zacks Industrial Products sector, of which Fastenal is a part, has declined 2.5% over the same period. The company's shares have increased 1.8% over the past three months compared to the S&P 500's 5% increase. Over the same period, the sector has risen 1.1%

Dallas, Texas--(Newsfile Corp. - July 20, 2026) - Xperi Inc. (NYSE: XPER): Stonegate Capital Partners Initiates Coverage on Xperi Inc. (NYSE: XPER). Xperi's 1Q26 results increased confidence that its earnings inflection is underway. Topline benefited from earlier contract signings in Consumer Electronics and Connected Car, but the more meaningful change was the cost base as adjusted operating expense fell 14%, lifting adjusted EBITDA margin to 22.1% from 14.4%. Management said first-quarter expenses are a fair run rate, giving the Company room to translate Media Platform growth into earnings without relying on further large cost actions. TiVo One's expanding audience is beginning to support advertising revenue, reinforcing the shift toward post-deployment monetization. We are keeping our eye on TiVo One ARPU, the second-half advertising ramp, and the first AutoStage data licenses as markers of continued progress.

To view the full announcement, including downloadable images, bios, and more, click here.

Key Takeaways:

The cost reset materially improves earnings visibility: A 14% reduction in adjusted operating expense establishes a lower run-rate cost base and supports sustained operating leverage toward the 17%-19% EBITDA margin target.

Media Platform is emerging as the core growth and mix driver: TiVo One audience growth, expanding advertising demand, and broader programmatic capabilities support a higher-quality, recurring monetization model.

Execution milestones should drive the next leg of the story: TiVo One ARPU expansion, the second-half advertising ramp, and initial AutoStage data licensing are the key catalysts for earnings upside and multiple expansion.

Click image above to view full announcement.

About Stonegate

Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking, equity research and capital raising for public and private companies.

Source: Stonegate, Inc.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/305770

Source: Stonegate, Inc.

Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.

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Key Takeaways ALGN is set to report Q2 2026 results on July 29, with revenues expected to grow 3.9% year over year. ALGN's Clear Aligner segment is expected to benefit from higher volumes across regions and patient groups.Align Technology's digital tools, scanner adoption and ART pilot may support second-quarter revenue growth. Align Technology, Inc. (ALGN - Free Report) is set to release second-quarter 2026 results on July 29, after the closing bell.

In the last reported quarter, the company posted adjusted earnings per share (EPS) of $2.58, which surpassed the Zacks Consensus Estimate by 14.16%. Align Technology beat on earnings in three of the trailing four quarters and missed on one occasion, the average surprise being 7.80%.

ALGN’s Q2 EstimatesThe Zacks Consensus Estimate for revenues is pegged at $1.05 billion, which suggests 3.9% growth from the year-ago reported figure.

The Zacks Consensus Estimate for earnings is pinned at $2.56 per share, which implies a 2.8% rise from the year-ago recorded actuals.

Estimate Revision Trend Ahead of ALGN’s Q2 EarningsEstimates for second-quarter earnings have remained unchanged at $2.56 per share in the past 30 days.

Here’s a brief overview of the company’s performance leading up to this announcement.

Factors Shaping ALGN’s Q2 PerformanceClear Aligner

The segment is likely to have benefited from higher Clear Aligner volumes, with particular strength across the EMEA, APAC and Latin America, with continued stability in North America. Both orthodontists and GP dentist channels may have seen volume growth, driven by growth across adults, teens and growing kids. From a product standpoint, it is likely to have seen strong contributions from Invisalign First and the Invisalign Palatal Expander with Mandibular Advancement with Occlusal Blocks. 

Dental and orthodontic service organizations (DSOs) must have remained a key, scalable growth channel in the to-be-reported quarter, with continued strong progress across all major regions. Meanwhile, the doctor subscription program (DSP), which includes retention, touch-up and relapse cases, is expected to have maintained strong momentum during the quarter. 

The Zacks Consensus Estimate for Clear Aligner revenues indicates 6.3% year-over-year growth.

Align Technology, Inc. Price and EPS SurpriseImaging Systems & CAD/CAM Services (Systems and Services)

Within this segment, revenues are likely to have benefited from higher volumes across all regions and continued adoption of iTero Lumina scanner. In the first quarter, the total installed base of active scanners exceeded 125,000 globally. We expect this trend to have continued in the to-be-reported quarter as well. 

exocad achieved strong revenue growth, reinforcing the company’s strategy to integrate orthodontics and restorative dentistry within a customer and patient-centric digital platform. We expect this trend to have persisted in the second quarter as well. Following the successful launch of Invisalign Advanced Restorative Treatment (ART) pilot in the EMEA, Align recently began an Invisalign ART pilot in the United States with labs and doctors beginning training in several markets. We expect the development to have contributed to the company’s top-line growth. 

The company’s growing suite of digital diagnostic tools, including Align Oral Health Suite and Align X-ray Insights, helps doctors identify conditions earlier and deliver clearer, more informed treatment recommendations. We expect all these tools to have positively impacted Align Technology’s revenues in the second quarter.

The Zacks Consensus Estimate for the segment’s revenues implies a decrease of 5.5% on a year-over-year basis.

What Our Quantitative Model Predicts for ALGNPer our proven model, stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, have a higher chance of beating estimates. However, this is not the case here, as you can see below:

Earnings ESP: Align Technology has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

Stocks Worth a LookHere are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time around:

Hinge Health Inc. (HNGE - Free Report) has an Earnings ESP of +4.24% and a Zacks Rank #1. The company is expected to release second-quarter 2026 results soon.

In the trailing four quarters, HINGE delivered an average surprise of 179.54%. The Zacks Consensus Estimate for second-quarter EPS implies a decrease of 11.9% from the year-ago quarter’s figure.

Neurocrine Biosciences (NBIX - Free Report) has an Earnings ESP of +40.60% and a Zacks Rank #1 at present. The company is expected to release second-quarter 2026 results soon.

NBIX’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 9.08%. The Zacks Consensus Estimate for the company’s second-quarter EPS calls for an increase of 112.3% from the year-ago quarter’s figure.

West Pharmaceutical Services (WST - Free Report) has an Earnings ESP of +1.09% and a Zacks Rank #2 at present. The company is slated to release second-quarter 2026 results on July 23. 

WST’s earnings beat estimates in each of the trailing four quarters, the average surprise being 19.37%. The Zacks Consensus Estimate for WST’s second-quarter EPS implies a rise of 13% from the year-ago reported figure.

Key Takeaways ROP is expected to report Q2 revenues of $2.10 billion, up 7.9%, with adjusted EPS of $5.29.ROP may benefit from SaaS demand, GenAI solutions and recurring revenues across software units.ROP's Subsplash acquisition may aid revenues, while high costs and a stronger U.S. dollar remain headwinds. Roper Technologies, Inc. (ROP - Free Report) is scheduled to release second-quarter 2026 results on July 23, before market open.

The Zacks Consensus Estimate for Roper Technologies’ second-quarter earnings has remained steady in the past 30 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, with an average surprise of 1.7%.

The consensus estimate for the company’s revenues is pegged at $2.10 billion, indicating growth of 7.9% from the prior-year quarter’s figure. The consensus estimate for adjusted earnings is pinned at $5.29 per share, indicating 8.6% growth from the year-ago quarter’s number.

Let’s see how things have shaped up for Roper Technologies this earnings season.

Factors to Note Ahead of ROP’s Q2 ResultsROP’s Application Software segment’s second-quarter performance is expected to have benefited from strength across its Aderant, Deltek, Vertafore, PowerPlan and CentralReach businesses. The growing adoption of SaaS solutions and continued GenAI innovation are likely to have been key catalysts to Aderant's business growth. The Deltek business is likely to have gained from the strong demand for SaaS solutions in the private sector.

The Vertafore business is anticipated to have performed well, driven by excellent enterprise delivery capabilities to the large customers in the market. The adoption of new SaaS solutions, along with strong customer retention, is expected to drive the PowerPlan business’ results. Strength in the CentralReach business, driven by higher recurring revenues, is expected to have acted as a tailwind for the segment. For the second quarter, the Zacks Consensus Estimate for the Application Software segment’s revenues is pegged at $1.18 billion, indicating an 8.1% increase from the year-ago reported number.

Roper Technologies’ Network Software segment is expected to have benefited from strong momentum across alternate site healthcare, construction and freight match markets. Solid demand for Gen AI-powered solutions within the ConstructConnect business is likely to have driven the segment. Increased average revenue per user (ARPU), driven by a rise in product packaging and continued customer cross-sell activity, is likely to have supported the DAT business. Strength in SoftWriters and Subsplash businesses is also likely to have aided the segment. For the second quarter, the Zacks Consensus Estimate for the segment’s revenues is pegged at $437 million, indicating a 13.5% rise on a year-over-year basis.

The performance of the Technology Enabled Products segment is likely to have been driven by continued demand for ultrasonic meters and rising demand for cloud-based data and billing software solutions. Solid momentum in the Verathon and NDI businesses, supported by strength across single-use BFlex & GlideScope offerings and cardiac, neurology & orthopedic precision measurement solutions, is likely to have been another tailwind. However, softness in the water meter technology business is expected to have put up a weak show in the quarter. For the second quarter, the Zacks Consensus Estimate for the segment’s revenues is pegged at $159 million, indicating a 3% decline from the year-ago reported number.

Nevertheless, ROP has remained focused on expanding its product offerings and market presence through buyouts, which is expected to have boosted its top line. In July 2025, Roper Technologies acquired Subsplash, a provider of cloud-based solutions. The inclusion of Subsplash’s modern technology platform, strong recurring revenue base and software-led payments capability is expected to aid ROP’s second-quarter results.

However, rising operating costs, owing to higher costs related to the amortization of acquired assets, are expected to have affected the company’s bottom line.

Also, given Roper Technologies’ extensive geographic presence, its operations are exposed to foreign exchange headwinds. A stronger U.S. dollar is likely to have hurt its overseas business.

Earnings WhisperOur proven model does not conclusively predict an earnings beat for ROP this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.

Earnings ESP: Roper Technologies has an Earnings ESP of -0.22% as the Zacks Consensus Estimate is pegged at $5.29 per share, higher than the Most Accurate Estimate of $5.28. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: ROP presently carries a Zacks Rank of 2.

Stocks With the Favorable CombinationHere are three companies, which according to our model, have the right combination of elements to post an earnings beat this season.

Vertiv (VRT - Free Report) has an Earnings ESP of +3.28% and a Zacks Rank of 2 at present. The company is slated to release second-quarter 2026 results on July 29. You can see the complete list of today’s Zacks #1 Rank stocks here.

Vertiv’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being a negative 14.7%.

EPAM Systems, Inc. (EPAM - Free Report) has an Earnings ESP of +0.23% and a Zacks Rank of 3 at present. The company is scheduled to release second-quarter 2026 results on Aug. 6.

EPAM Systems’ earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 3.8%.

Leidos Holdings, Inc. (LDOS - Free Report) has an Earnings ESP of +3.54% and a Zacks Rank of 3 at present. The company is slated to release second-quarter 2026 results on Aug. 4.

Leidos’ earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 13.8%.

JetBlue Airways has won Spirit Airlines slots at New York's LaGuardia Airport and is looking to move back into the failed budget carrier's old home, a major reshuffling at the congested airport less than three months after the discounter collapsed in the biggest U.S. airline failure in decades.

The slots at the tightly controlled airport are for 12 round-trip flights and are still subject to final court and regulatory approvals, JetBlue said.

Slots and gates are valuable in congested airports like LaGuardia because tight airspace restrictions and crowded airports in a big city like New York cap airline growth.

Carriers have turned to using larger planes that fit more passengers to boost their capacity in some cases because infrastructure is so limited.

JetBlue told staff in a note Monday, which was seen by CNBC, that it's now turning to "evaluating our plans for the slots as we consider opportunities for our network strategy" noting that any expansion won't happen until 2027.

According to the note, JetBlue wants to move to Terminal A, also known as the Marine Air Terminal, an Art Deco facility that Spirit operated out of until it shut down in early May. JetBlue previously operated out of the space before relocating to a newer terminal years ago.

"It's a convenient terminal travelers love," JetBlue said of the Marine Air Terminal.

Read more CNBC airline newsDelta launches ‘basic business’ fares without lounge access, seat selectionRecord heat, crowds drive offseason boom in international travelDelta expects higher airfare to last, bringing 2026 profit goal in reach'Bring 'em on': Delta wants United's crown over the Pacific, tooSpirit's collapse, high fuel prices test limits of summer vacation spendingMeet the pilots flying Spirit Airlines' yellow jets to the desertThe New York-based airline, which is in the midst of a big expansion at Fort Lauderdale-Hollywood International Airport in Florida, last month said it would reduce its staffing footprint at LaGuardia and Newark Liberty International Airport in New Jersey and ramp up service in Fort Lauderdale.

The carrier didn't immediately respond to a request for comment.

Spirit's airport assets are now winding their way through U.S. Bankruptcy Court in New York.

watch now

Key Takeaways NTAP's Public Cloud revenue grew 11% in Q4 fiscal 2026, led by first-party and marketplace services.NetApp expanded AI cloud use cases, helping customers scale secure hybrid and multi-cloud deployments.NTAP expects enterprise IT spending and AI adoption to sustain cloud storage demand in fiscal 2027. NetApp, Inc. (NTAP - Free Report) is benefiting from rising demand for public cloud services as enterprises continue expanding their cloud environments and increasing AI adoption. The company’s Public Cloud business maintained strong momentum in fiscal 2026, supported by growing demand for hyperscaler first-party and marketplace storage services. In the fourth quarter of fiscal 2026, Public Cloud revenue increased 11% year over year to $182 million, while excluding the prior-year contribution from the divested Spot business, revenue grew 18%. Management attributed this performance to strong demand for first-party and marketplace storage services, reflecting customers’ continued adoption of NetApp’s cloud offerings.

For fiscal 2026, Public Cloud revenue reached $688 million. Management stated that first-party and marketplace cloud services grew 30% during the year, driven by increasing demand from both new and existing customers that are extending NetApp’s capabilities deeper into their cloud environments. Customers are using NetApp to simplify and scale hybrid and multi-cloud deployments through unified data management capabilities that provide operational consistency and agility.

The company also noted that its expanding cloud portfolio is creating new opportunities across AI and additional industry verticals. Examples include an insurance company connecting Azure Databricks directly to data stored in Azure NetApp Files for secure financial risk modeling and data science, and an engineering company deploying a GenAI chatbot on AWS using FSx for NetApp ONTAP to enable secure, permission-aware access to data while reducing operational overhead.

Management also emphasized the profitability of the Public Cloud business, with fourth-quarter gross margin reaching 85.7%, driven by continued margin expansion. The company believes that continued growth in Public Cloud can provide additional earnings leverage as the business becomes a larger part of the overall revenue mix.

NetApp’s fiscal 2027 outlook assumes continued momentum in enterprise IT spending alongside increasing AI activity. Management expects these trends to support cloud use cases that connect governed enterprise data with AI and analytics services while sustaining strong demand for first-party and marketplace cloud storage services.

Taking a Look at NTAP’s CompetitorsSeagate Technology Holdings plc (STX - Free Report) is strengthening its position in cloud infrastructure as hyperscale customers continue expanding AI-driven data center capacity. In the March quarter, cloud demand helped data center revenue rise 55% year over year to $2.5 billion, accounting for 80% of total revenues. The company is accelerating the rollout of its Mozaic platform, with shipments reaching 75% of leading global cloud customers and full qualification expected soon. Its HAMR-based high-capacity drives provide a cost- and power-efficient solution for large-scale cloud storage, while long-term supply agreements, build-to-order contracts and sustained hyperscaler investments support strong demand and revenue visibility through 2028 and beyond.

Western Digital Corporation (WDC - Free Report) is strengthening its cloud storage business by delivering high-capacity HDD technologies that support the rapid expansion of AI and hyperscale data centers. The company is working closely with leading cloud providers, shipping 222 exabytes in the quarter, up 34% year over year, while accelerating adoption of its ePMR, UltraSMR and upcoming HAMR technologies. It has secured firm purchase orders with its top seven customers through 2026 and multi-year agreements extending into 2028. Western Digital also continues qualifying next-generation HDDs and PCIe Gen5 data center SSDs with major cloud companies, positioning it to benefit from sustained cloud infrastructure investments.

NTAP Price Performance, Valuation & EstimatesShares of NetApp have gained 3.8% in the past month against the Computer-Storage Devices industry’s decline of 36.9%.

Image Source: Zacks Investment Research

Regarding the price/book ratio, NTAP is trading at 23.77, higher than the sector’s multiple of 15.11.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for NTAP’s earnings for fiscal 2027 has been revised upward over the past 60 days.

Image Source: Zacks Investment Research

NTAP 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 Blackstone's Q2 revenues are estimated at $3.34 billion, up 8.7% year over year.BX's total AUM is projected to rise 10.2% to $1.34 trillion, supported by higher inflows.Blackstone estimated realization revenues topped $500 million from April 1 through June 23. Blackstone (BX - Free Report) is scheduled to announce second-quarter 2026 results on July 23, before the opening bell. As the world’s leading alternative asset manager, the company's results are likely to be closely watched for insights into how it and its peers deployed capital amid macroeconomic volatility.

In the first quarter, BX delivered a decent performance, with assets under management (AUM) and revenue growth despite private credit concerns. This time, the company is expected to have recorded a similar performance. The Zacks Consensus Estimate for revenues is pegged at $3.34 billion, which implies an 8.7% year-over-year improvement.

In the past seven days, the consensus estimate for the company’s earnings has been revised 1.5% lower to $1.31. This indicates 8.3% growth.

Estimate Revision Trend
 

Image Source: Zacks Investment Research

BX has an impressive earnings surprise history. The company’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, with the average beat being 12.63%.

Earnings Surprise History
 

Image Source: Zacks Investment Research

Major Factors to Impact BX’s Q2 EarningsBlackstone has been recording an increase in fee-earning AUM and total AUM on the back of its diversified product and revenue mix, superior position in the alternative investments space and net inflows. Given the high market volatility and increased client activity in the second quarter, the company is expected to have witnessed a rise in the AUM balance as inflows grew. The Zacks Consensus Estimate for total AUM of $1.34 trillion indicates growth of 10.2% from the prior-year quarter. The consensus estimate for total fee-earning AUM of $962.3 billion suggests a rise of 8.5%.

The Zacks Consensus Estimate for total management and advisory fees (segment revenues) is pegged at $2.12 billion, which indicates a 5.2% increase. The consensus estimate for fee-related performance revenues (segment revenues) of $514.7 suggests a jump 9% because of robust market performance during the second quarter.

Additionally, Blackstone expects profits from deal exits to have been solid in the to-be-reported quarter. Per the company’s preliminary estimate, revenues from realization activities were more than $500 million between April 1 and June 23, 2026.

 The consensus estimate for realized performance revenues and realized principal investment income is pegged at $705.7 million and $40.1 million, respectively. In the second quarter of 2025, Blackstone generated $553.1 million of realized performance revenues and $29.4 million of principal investment income.

Blackstone’s expenses have been increasing over the past few years, mainly because of higher general, administrative and other expenses. As the company has continued to invest in franchises, expenses are expected to have risen to some extent in the second quarter.

What Our Model Unveils for BlackstonePer our proven model, the chances of Blackstone beating the Zacks Consensus Estimate for earnings this time are high. This is because it has the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which is required to be confident of an earnings beat.

BX has an Earnings ESP of +0.16%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Blackstone carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

BX’s Price PerformanceBlackstone shares have gained 2.3% in the second quarter compared with the industry’s rally of 4%. The stock has underperformed Apollo Global (APO - Free Report) , but outpaced KKR & Co. (KKR - Free Report) .

2Q26 BX Price Performance
 

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Apollo Global is slated to report quarterly results on Aug. 4, before the opening bell, while KKR & Co. is scheduled to report results on July 30.

Over the past seven days, the Zacks Consensus Estimate for Apollo Global’s second-quarter 2026 earnings has been unchanged at $2.21. The consensus estimate for KKR & Co.’s second-quarter 2026 earnings has been revised upward to $1.43 over the past week. At present, both APO and KKR also carry a Zacks Rank #3.

In its upcoming report, CME Group (CME - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $2.92 per share, reflecting a decline of 1.4% compared to the same period last year. Revenues are forecasted to be $1.68 billion, representing a year-over-year decrease of 0.5%.

The current level reflects a downward revision of 0.7% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.

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

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

According to the collective judgment of analysts, 'Revenues- Other' should come in at $114.67 million. The estimate indicates a change of +8.3% from the prior-year quarter.

Analysts expect 'Revenues- Clearing and transaction fees- Energy' to come in at $192.96 million. The estimate indicates a year-over-year change of -11.2%.

The consensus among analysts is that 'Revenues- Clearing and transaction fees- Metals' will reach $87.14 million. The estimate suggests a change of +2.4% year over year.

Analysts predict that the 'Revenues- Clearing and transaction fees' will reach $1.36 billion. The estimate indicates a year-over-year change of -1.7%.

The collective assessment of analysts points to an estimated 'Revenues- Clearing and transaction fees- Interest rates' of $440.14 million. The estimate indicates a change of -4.7% from the prior-year quarter.

Based on the collective assessment of analysts, 'Average daily volume' should arrive at 30.30 million. The estimate compares to the year-ago value of 30.22 million.

It is projected by analysts that the 'Average daily volume- Metals' will reach 1.05 million. Compared to the present estimate, the company reported 943.00 thousand in the same quarter last year.

Analysts' assessment points toward 'Average daily volume- Interest rates' reaching 14.96 million. The estimate compares to the year-ago value of 15.47 million.

The average prediction of analysts places 'Average daily volume- Equity indexes' at 8.47 million. Compared to the current estimate, the company reported 7.66 million in the same quarter of the previous year.

The consensus estimate for 'Average daily volume- Foreign exchange' stands at 1.01 million. The estimate compares to the year-ago value of 1.10 million.

Analysts forecast 'Average daily volume- Energy' to reach 2.78 million. The estimate is in contrast to the year-ago figure of 3.08 million.

The combined assessment of analysts suggests that 'Average daily volume- Agricultural commodities' will likely reach 2.03 million. Compared to the present estimate, the company reported 1.96 million in the same quarter last year.

View all Key Company Metrics for CME here>>>

Shares of CME have experienced a change of -0.5% in the past month compared to the +0.6% move of the Zacks S&P 500 composite. With a Zacks Rank #4 (Sell), CME is expected to underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Key Takeaways ConocoPhillips agreed to terms to acquire a 42% stake in BP's unit redeveloping four Iraqi oil fields.The $25 billion project covers fields with more than 3 billion boe of initial gross recoverable resources.Existing production lowers execution risk, while exploration upside may support long-term growth. ConocoPhillips (COP - Free Report) , a leading U.S.-based exploration and production player, has announced that it has agreed to acquire a 42% stake in BP Energy Company of Kirkuk Limited (BP ECKL), a subsidiary of the British energy major BP plc (BP - Free Report) . The subsidiary is involved in the redevelopment of four large oil fields with producing wells in the Kirkuk region of Iraq. Through this partnership, COP will support the ongoing redevelopment efforts for these oil fields. The announcement mentioned that the agreement is anticipated to be signed during Iraq’s Prime Minister al-Zaidi's visit to Washington, D.C., in the United States.

BP ECKL operates under the Development and Production Contract (DPC), which enables it to develop and produce oil from the prominent Baba and Avanah domes of the Kirkuk oil field. The DPC also covers the Bai Hassan, Jambur and Khabbaz oil fields, all of which are currently producing. These fields have an estimated initial gross recoverable resource surpassing 3 billion barrels of oil equivalent (boe), highlighting significant resource potential.

The companies intend to recover these reserves via rehabilitation and upgradation of existing field infrastructure, redevelopment activities and optimization of field operations to improve efficiency. The joint venture project at the giant Kirkuk oil field is estimated to cost around $25 billion.

In addition to raising output from the existing fields, the contract area has exploration potential, suggesting the region may contain untapped oil and gas resources that could be developed later, supporting long-term production growth. The deal is expected to close by the end of 2026, pending necessary regulatory approvals and customary closing conditions.

COP believes that the oil fields included in this project are high-quality assets capable of generating attractive returns. The company’s CEO noted that this redevelopment opportunity aligns with ConocoPhillips’ disciplined approach to capital allocation, while providing exposure to a high-quality, long-life and large asset base that can benefit the company. The project leverages an existing production base, making it capital-efficient, while reducing execution risk and enabling it to generate returns faster. The deal will expand the company’s international portfolio of assets and is expected to boost its total production in the future. The company noted that the redevelopment of these large, established oilfields meets its low cost of supply criteria, while offering exploration upside.

Zacks Rank & Key PicksConocoPhillips and BP currently carry a Zacks Rank #4 (Sell).

Some better-ranked stocks from the energy sector are Par Pacific Holdings (PARR - Free Report) and Valero Energy (VLO - Free Report) . While Par Pacific currently sports a Zacks Rank #1 (Strong Buy), Valero Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

Par Pacific Holdings operates an integrated downstream energy business across the United States, with fuel retail operations in Hawaii, Washington and Idaho, refining operations in Hawaii, Wyoming, Washington and Montana, and a supporting logistics network. Its refineries have a combined crude oil throughput capacity of 219,000 barrels per day and produce gasoline, diesel, jet fuel, marine fuels, asphalt and other petroleum products.

Valero Energy is a leading refining player with a robust network of 14 refineries located across the United States, Canada and Peru. The company has a combined high-complexity throughput capacity of 3 million barrels per day, which distinguishes it from other independent refiners. Valero’s refineries have a combined Nelson Complexity Index of 11.5, which implies that they can process a wide variety of feedstocks, convert it into higher-value products and shift product yields according to market conditions.