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McDonald’s Corporation (NYSE:MCD – Get Free Report) shares reached a new 52-week low during trading on Wednesday after Wells Fargo & Company lowered their price target on the stock from $320.00 to $300.00. Wells Fargo & Company currently has an overweight rating on the stock. McDonald’s traded as low as $264.09 and last traded at $264.8750, with a volume of 3660290 shares traded. The stock had previously closed at $268.94.

MCD has been the topic of a number of other reports. Rothschild & Co Redburn upgraded McDonald’s from a “sell” rating to a “neutral” rating and upped their price objective for the company from $260.00 to $306.00 in a research report on Thursday, April 23rd. Erste Group Bank cut McDonald’s from a “buy” rating to a “hold” rating in a report on Monday, April 27th. BTIG Research reissued a “buy” rating and set a $370.00 target price on shares of McDonald’s in a research report on Thursday, May 7th. Robert W. Baird set a $305.00 target price on McDonald’s in a research report on Thursday, May 7th. Finally, Deutsche Bank Aktiengesellschaft set a $325.00 price target on McDonald’s in a report on Thursday, July 9th. Fifteen investment analysts have rated the stock with a Buy rating and thirteen have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $335.58.

Check Out Our Latest Stock Analysis on McDonald’s

Insider Transactions at McDonald’s In related news, EVP Desiree Ralls-Morrison sold 2,763 shares of the stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $278.36, for a total value of $769,108.68. Following the sale, the executive vice president directly owned 6,268 shares of the company’s stock, valued at $1,744,760.48. This represents a 30.59% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Joseph M. Erlinger sold 5,252 shares of the business’s stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total value of $1,493,248.64. Following the transaction, the insider owned 7,734 shares of the company’s stock, valued at $2,198,930.88. This trade represents a 40.44% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 8,681 shares of company stock worth $2,456,440 over the last three months. 0.26% of the stock is currently owned by corporate insiders.

McDonald’s News Summary Here are the key news stories impacting McDonald’s this week:

Positive Sentiment: McDonald’s is rolling out new limited-time items, including Caesar sauce, new chicken offerings, and other menu tests, which could help boost customer interest and restaurant traffic. McDonald’s builds its new menu around a flavor it never sold Positive Sentiment: Analysts continue to view McDonald’s as a strong defensive restaurant name, with commentary pointing to customer engagement, value messaging, and marketing campaigns as potential supports for sales. Can McDonald’s Global Marketing Strategy Drive Customer Traffic? Positive Sentiment: One Wall Street note kept a Buy rating on MCD even while trimming its price target, suggesting analysts still see upside from current levels. Citigroup price target change Neutral Sentiment: McDonald’s is drawing extra attention from investors and traders, with recent coverage framing the stock as a valuation and defensive-name debate rather than a clear new catalyst. MCD at $268, Starbucks at $106: Buy, Sell or Hold? Negative Sentiment: Several articles focus on ongoing “McProblem” issues, including concerns that McDonald’s traffic and business momentum have not improved enough, which may be reinforcing investor worries about the core growth outlook. McDonald’s has a McProblem that’s not getting better Negative Sentiment: Another report says McDonald’s stock is near its lowest levels in almost two years, highlighting pressure from weaker sentiment and a more cautious view of the company’s growth. Why McDonald’s stock is at nearly 2-year lows Hedge Funds Weigh In On McDonald’s Several hedge funds have recently bought and sold shares of MCD. Norges Bank bought a new position in shares of McDonald’s in the fourth quarter worth about $2,890,438,000. Diamant Asset Management Inc. increased its stake in McDonald’s by 30,979.0% in the 1st quarter. Diamant Asset Management Inc. now owns 2,596,340 shares of the fast-food giant’s stock worth $806,917,000 after buying an additional 2,587,986 shares during the period. J. Stern & Co. LLP lifted its holdings in McDonald’s by 9,867.5% during the 4th quarter. J. Stern & Co. LLP now owns 2,541,008 shares of the fast-food giant’s stock valued at $776,608,000 after buying an additional 2,515,515 shares in the last quarter. Viking Global Investors LP lifted its holdings in McDonald’s by 171.7% during the 2nd quarter. Viking Global Investors LP now owns 3,125,432 shares of the fast-food giant’s stock valued at $913,157,000 after buying an additional 1,974,998 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its position in McDonald’s by 49.9% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 3,104,337 shares of the fast-food giant’s stock valued at $948,779,000 after buying an additional 1,033,041 shares during the period. Institutional investors own 70.29% of the company’s stock.

McDonald’s Trading Up 3.2% The company has a market capitalization of $194.24 billion, a PE ratio of 22.54, a PEG ratio of 2.75 and a beta of 0.41. The firm’s 50-day simple moving average is $277.23 and its 200-day simple moving average is $300.56.

McDonald’s (NYSE:MCD – Get Free Report) last issued its earnings results on Thursday, May 7th. The fast-food giant reported $2.83 EPS for the quarter, topping analysts’ consensus estimates of $2.74 by $0.09. McDonald’s had a net margin of 31.62% and a negative return on equity of 442.10%. The business had revenue of $6.52 billion for the quarter, compared to analyst estimates of $6.47 billion. During the same period last year, the company posted $2.67 earnings per share. The company’s quarterly revenue was up 9.4% compared to the same quarter last year. As a group, analysts anticipate that McDonald’s Corporation will post 12.9 EPS for the current year.

McDonald’s Announces Dividend The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 16th. Investors of record on Tuesday, June 2nd were paid a $1.86 dividend. The ex-dividend date of this dividend was Tuesday, June 2nd. This represents a $7.44 annualized dividend and a yield of 2.7%. McDonald’s’s dividend payout ratio is 61.34%.

McDonald’s Company Profile (Get Free Report)

McDonald’s Corporation (NYSE: MCD) is a global quick-service restaurant company best known for its hamburgers, French fries and breakfast offerings. The company develops, operates and franchises a system of restaurants that sell a range of food and beverage items, including signature products such as the Big Mac, Quarter Pounder, Chicken McNuggets, McCafé coffee beverages and a variety of salads, desserts and seasonal menu items. McDonald’s serves customers through company-operated restaurants and franchised locations, and it supports sales via dine-in, drive-thru, digital ordering platforms and third-party delivery partnerships.

Founded in 1940 by brothers Richard and Maurice McDonald as a single San Bernardino, California restaurant, the business was transformed into a franchising model after Ray Kroc joined in the mid-1950s and led the brand’s national and international expansion.

Further Reading Five stocks we like better than McDonald’s Why Abbott Laboratories Stock Is Suddenly Winning Back Wall Street Revving Up Returns: Big Banks Race Through the Rate Plateau Why Uber’s Biggest Deal Yet Could Unlock Its Next Growth Phase Why Microsoft Is Playing a Different AI Game Than Big Tech—and Cash Flow Is the Test Receive News & Ratings for McDonald's Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for McDonald's and related companies with MarketBeat.com's FREE daily email newsletter.

Key Takeaways FedEx beat fiscal 2026 fourth-quarter earnings and revenue estimates, aided by B2B demand.FDX expects about 11% revenue growth and adjusted EPS of $16.90-$18.10 in calendar 2026. Higher fuel costs and the end of the de minimis exemption may pressure FedEx's near-term margins. FedEx Corporation (FDX - Free Report) , a leading parcel delivery company with a market capitalization of around $75 billion, has seen its shares jump more than 10% so far this year. Improved operational efficiency driven by prudent cost-cutting measures has buoyed the company’s shares. Strong cash flows, a disciplined approach to capital expenditure and resilience in demand in the U.S. domestic package network, despite global uncertainties, have been boosting the company's prospects.

Despite the double-digit gain (% wise) year to date, the stock has marginally underperformed the Zacks Transportation—Air Freight and Cargo industry and rival United Parcel Service (UPS - Free Report) . FDX has, however, outperformed fellow industry player GXO Logistics (GXO - Free Report) .

YTD Price Comparison<Image Source: Zacks Investment Research

Given the stock’s double-digit price gain on the back of the company’s ongoing cost-cutting initiatives aimed at boosting bottom-line growth, investors may be questioning whether it is a buy at present. Let’s take a closer look to address this question.

FDX Performs Well in Q4 FY26 & Gives Bullish OutlookIn the fourth quarter of fiscal 2026, results of which were released last month, FedEx’s earnings (excluding 29 cents from non-recurring items) of $6.31 per share beat the Zacks Consensus Estimate of $5.91 as well as improved 3.9% year over year. The company’s bottom line benefited from share repurchase activity.

Revenues of $25 billion came ahead of the Zacks Consensus Estimate of $24.1 billion and improved 12.5% from the year-ago quarter. In the quarter, the majority of the revenue growth was driven by business-to-business (“B2B”) services and the three-month period was the brightest quarter within fiscal year 2026 from a B2B perspective. This is in line with the company’s continuous efforts to move away from low-margin parcel traffic.

To bolster margins, FedEx is shifting its focus toward high-margin B2B segments — specifically healthcare, aerospace, automotive and data centers. In Europe, the company achieved its 12th consecutive quarter of international revenue share gains, driven by the strong value proposition and improving service levels.

Apart from focusing on AI tools to improve efficiency and customer experience, the transportation giant is keeping CapEx low to boost profitability. As part of its cost discipline, the company aims to achieve a CapEx of $3.9 billion in calendar year 2026. We note that the company has changed its fiscal year-end from May 31 to Dec. 31. The fiscal year change became effective for the period beginning June 1, 2026.

For the calendar year 2026, FedEx anticipates revenue growth of approximately 11%, including about 3 percentage points of assumed fuel price-driven surcharge benefit. The outlook is likely to be supported by continued momentum within base pricing and increased demand for premium B2B and high-value B2C services. This translates to an adjusted EPS range of $16.90 to $18.10. Robust free cash flow is expected to be generated in the period, with the company intending to repurchase up to $1 billion worth of shares. The company expects to generate cost savings worth $2 billion by the end of calendar 2027.

Driven by the cost-cutting initiatives and the impressive outlook, the consensus price target for FDX stock is $357.58, implying an upside of more than 14% from current levels.

Image Source: Zacks Investment Research

Near-Term Headwinds PersistNo doubt, FedEx is seeing consistent improvement, largely supported by efficiencies driven by artificial intelligence, but its near-term outlook remains somewhat uneven. Rising fuel prices, regulatory shifts and wider macroeconomic challenges continue to act as significant obstacles.

With the United States and Iran once again exchanging fire, the already fragile ceasefire is under renewed strain. The uptick in oil prices, following the renewed hostilities, is putting pressure on transportation companies like FedEx.

Since fuel is a major cost component for such businesses, higher prices directly impact profitability. The disruption of the Strait of Hormuz — an essential oil transit route under Iran’s control — has further intensified the situation. Nearly 20% of the world’s traded oil moves through this passage and the disturbance has pushed diesel and jet fuel costs higher, raising expenses across FedEx’s global delivery operations. Moreover, the increase in hostilities in the Ukraine-Russia conflict has accentuated the uncertain global scenario.

In addition, evolving global trade policies are weighing on FedEx’s short-term outlook. The United States has eliminated the “de minimis” exemption for low-value shipments, leading to higher international shipping costs. FedEx now encounters increased brokerage expenses and operational challenges as it must handle formal customs procedures for shipments that were previously exempt from duties. These factors are likely to weigh on margins in the near term, even as FDX works to offset some of the impact through pricing and cost controls.

Valuation CheckFDX stock is trading at 0.78X forward sales, lower than the industry. Its closest peer, United Parcel Service, has a P/S ratio of 1.08. Meanwhile, GXO Logistics is trading at a forward sales multiple of 0.43. FedEx has a Value Score of B, like United Parcel Service and GXO Logistics

FDX Shares Don’t Appear to be PriceyImage Source: Zacks Investment Research

Our Take: Hold for NowFDX’s long-term outlook is becoming increasingly favorable, supported by its emphasis on higher-margin B2B segments, which enhances earnings visibility and margin expansion potential. The company’s commitment to strengthening its bottom line through cost-reduction initiatives is particularly encouraging and could become an increasingly important driver of the long-term investment thesis.

That said, the near-term outlook remains somewhat mixed. Elevated fuel costs, challenges stemming from the removal of the de minimis exemption and broader external uncertainties may continue to weigh on earnings momentum over the next few quarters. Currently, the risk-reward profile does not appear attractive enough to justify a new investment. We believe the stock remains worth holding for investors with a long-term horizon. Potential investors may prefer to wait for a more attractive entry point.

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

The robotic surgery company said U.S. procedure growth moderated relative to recent trends and its expectations at the start of the year, driven mainly by procedures that patients can defer.

China Competition And International HeadwindsDuring the earnings call, CEO David Rosa said the operating environment in China remains difficult.

“In China, the environment remains challenging. We continue to see lower tender activity, increased domestic robotic competition, and policy-driven pricing pressure.”

Rosa added that the company continues to navigate policy changes, including charge code revisions and China’s 15th Five-Year Plan quota process.

“We continue to operate through a dynamic policy environment, including charge code changes and the 15th Five-Year Plan quota process. We are engaging with provincial governments on the charge code policy and are progressing through the green channel process for both SP and Da Vinci 5. When cleared, these platforms will bring additional differentiated capabilities to Chinese customers and their patients.”

In Japan, Rosa noted that new reimbursement policies supporting robotic surgery took effect on June 1, expanding coverage for additional procedures and providing incentives for higher utilization.

US Procedure Growth SlowsChief Financial Officer Jamie Samath said the expiration of enhanced Affordable Care Act premium subsidies affected some patients and contributed to softer procedure growth.

“Patients impacted by the expiration of subsidies for ACA Enhanced premiums. Looking at benign procedures, a subset of which can be deferred, we saw a slight moderation in procedure growth rate that started in Q1. U.S. da Vinci Bariatric cases continued to feel the impact of rising GLP-1 usage, declining high single digits during the quarter.”

Analysts Cut Price ForecastsWilliam Blair said Intuitive Surgical’s more than 10% after-hours decline reflects elevated investor expectations rather than a deterioration in the company’s long-term outlook.

The brokerage said maintaining, rather than raising, its 2026 procedure growth guidance disappointed investors given the stock’s premium valuation.

It also flagged several near-term headwinds, including weaker Affordable Care Act-related procedure volumes, intensifying competition in China, slowing growth as the business scales, and pricing initiatives that could heighten competitive concerns.

William Blair said those factors may create uncertainty around earnings and limit upside over the next few quarters. However, it maintained its Outperform rating, citing Intuitive Surgical’s industry-leading earnings growth profile. The firm added that greater clarity on these issues, along with continued execution, could support the stock after several quarters.

Piper Sandler said U.S. procedure growth slowed by about 200 basis points sequentially and fell short of Wall Street expectations. The firm also noted that maintaining full-year procedure growth guidance of 13.5% to 15.5% disappointed investors. Analyst Adam Maeder reiterated an Overweight rating but lowered the price forecast to $470 from $580.

Intuitive Surgical Price ActionISRG Price Action: Intuitive Surgical shares were down 13.14% at $349.45 at the time of publication on Friday. The stock is trading at a new 52-week low, according to Benzinga Pro data.

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Key Takeaways RTX supports the F-35 with sensors, mission systems, targeting technologies and precision-guided weapons.Raytheon won a $13.5 million contract to support U.S. Navy P-8A Poseidon fleet readiness through 2029.RTX also serves the F-15, F/A-18 and F-16 with radars, electronic warfare, missiles and sustainment. RTX Corporation (RTX - Free Report) continues to strengthen its position in the fighter aircraft market through its broad portfolio of advanced avionics, sensors, electronic warfare systems and precision weapons. The company supplies critical technologies that enhance the performance, survivability and mission effectiveness of some of the world's most advanced fighter aircraft operated by the U.S. military and allied nations.

A key example is RTX's role on the F-35 Lightning II, where it provides advanced sensors, mission systems, electro-optical targeting technologies and precision-guided weapons. These capabilities enable enhanced situational awareness, target detection and mission execution, supporting modern air combat operations.

RTX continues to expand its defense aviation business through new contract awards. Recently, its Raytheon business secured a contract worth approximately $13.5 million to supply 50 weapon repairable assemblies for the U.S. Navy's P-8A Poseidon aircraft, supporting fleet readiness through 2029. The award highlights continued demand for the company's advanced airborne systems across military aviation platforms.

Beyond the F-35 program, RTX supports a broad range of fighter aircraft, including the F-15, F/A-18 and F-16, through its portfolio of radar systems, electronic warfare solutions, missiles and sustainment services. Its diversified offerings and long-standing relationships with defense customers position the company to benefit from increasing investments in next-generation air combat capabilities.

Rising geopolitical tensions, higher defense spending and military modernization programs are driving demand for advanced fighter aircraft worldwide. RTX's diversified defense portfolio and technological expertise position it well to benefit from the market's long-term growth.

Other Fighter Aircraft Stocks to WatchOther aerospace and defense companies strengthening their presence in the fighter aircraft market are discussed below:

Northrop Grumman (NOC - Free Report) : Northrop Grumman is a leading provider of manned and unmanned military aircraft. Its portfolio includes platforms such as the E-2D Advanced Hawkeye, E-2C Hawkeye 2000 and F-5 Tiger fighter aircraft, along with advanced airborne mission systems that support modern military operations.

Lockheed Martin (LMT - Free Report) : Lockheed Martin is one of the leading players in the fighter aircraft market through its portfolio of advanced combat aircraft, including the F-35 Lightning II, F-22 Raptor, F-21 and F-16 Fighting Falcon.

The Zacks Rundown for RTXShares of RTX have surged 30.5% in the past year against the industry’s 3.3% decline.

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The company’s shares are trading at a discount on a relative basis, with its forward 12-month Price/Earnings being 26.77X compared with its industry’s average of 31.92X.

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The Zacks Consensus Estimate for RTX’s 2026 and 2027 earnings has moved north over the past 60 days.

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Key Takeaways GD won a four-year, $1.4 billion Canadian contract to supply 190 Armored Combat Support Vehicles.Its LAV family combines mobility, survivability and mission versatility for combat and reconnaissance.Rising defense budgets and fleet modernization are driving demand for GD's next-generation vehicles. General Dynamics (GD - Free Report) continues to strengthen its position in the armored vehicle market through its portfolio of advanced land combat platforms and decades of expertise in military ground systems. The company develops and manufactures wheeled and tracked combat vehicles that support modern battlefield operations for the U.S. military, Canada and allied nations.

A key example is GD's Light Armored Vehicle (LAV) family, designed to deliver high mobility, survivability and mission versatility across combat and reconnaissance missions while providing enhanced troop protection.

GD recently expanded its presence in the market through its Canadian subsidiary, which secured a four-year contract worth approximately $1.4 billion (C$2 billion) from the Government of Canada to supply 190 Armored Combat Support Vehicles (ACSVs). The award reinforces the company's long-standing relationship with the Canadian Armed Forces and reflects continued demand for its armored vehicle platforms.

Beyond the LAV and ACSV programs, GD also offers the Stryker combat vehicle and the Abrams main battle tank. Its broad portfolio and manufacturing expertise position the company to benefit as defense forces continue to modernize aging armored fleet.

Rising geopolitical tensions, increasing defense budgets and ongoing military modernization programs are driving demand for next-generation armored combat vehicles worldwide. As armed forces prioritize highly mobile and survivable platforms, GD is well-positioned to benefit from long-term growth in the global armored vehicle market.

Other Armored Vehicle Stocks to WatchOther aerospace and defense companies strengthening their presence in the armored vehicle market are discussed below:

BAE Systems (BAESY - Free Report) : BAE Systems manufactures a broad portfolio of armored combat vehicles, including the Armored Multi-Purpose Vehicle (AMPV), Bradley Fighting Vehicle, M109 self-propelled howitzer and M88 recovery vehicle. The company's expertise in combat vehicle design, production and modernization supports growing demand from the U.S. military and allied nations.

Textron (TXT - Free Report) : Textron designs, manufactures and supports a wide range of armored combat vehicles for military, law enforcement and special operations customers worldwide. Its COMMANDO family of vehicles combines mobility, survivability and mission flexibility to support a broad range of tactical operations.

The Zacks Rundown for GDShares of GD have risen 24.9% in the past year against the industry’s 3.3% decline.

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The company shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 1.77X compared with its industry’s average of 2.49X.

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The Zacks Consensus Estimate for GD’s 2026 and 2027 earnings has moved north over the past 60 days.

Image Source: Zacks Investment Research

Key Takeaways Iridium is using strong free cash flow to invest in four growth areas while reducing net leverage.IRDM is advancing IoT, NTN Direct, PNT, aviation safety and government programs with new products.Iridium expects about $318M in 2026 pro forma free cash flow and $1.5B-$1.8B through the decade. Iridium Communications Inc. (IRDM - Free Report) continues to generate strong free cash flow, providing the financial flexibility to support its expansion strategy while maintaining a disciplined capital allocation approach. On the last earnings call, management highlighted that its cash generation allows it to reduce net leverage quickly while also preserving the flexibility to invest in business growth opportunities through product development or potential tuck-in acquisitions.

As of March 31, Iridium had cash and cash equivalents of $111.6 million and ended the quarter with net leverage of 3.4x OEBITDA. The company also remains committed to an active and growing dividend program, having paid a quarterly dividend of 15 cents per share, while expecting its board to continue increasing the dividend in line with prior years. Capital expenditures totaled $30 million in the first quarter, and the company expects full-year CapEx to remain consistent with 2025 levels as it continues investing in Iridium NTN Direct. Iridium projects pro forma free cash flow of about $318 million in 2026 and expects to generate between $1.5 billion and $1.8 billion in free cash flow over the remainder of the decade.

The company plans to utilize this financial strength to advance its four key growth areas while continuing to support its legacy business. In IoT, Iridium is preparing to launch its Iridium 9604 TriMode module, which combines satellite IoT, cellular IoT and GPS into a compact, cost-effective solution. The module is expected to simplify the product portfolio, lower integration costs and support expansion into cost-sensitive applications such as automotive, smart meters, agriculture and asset tracking. The company is also progressing toward the commercial launch of Iridium NTN Direct later this year, while continuing to expand agreements with mobile network operators and working with chip and module manufacturers to enable future standards-based connectivity.

Iridium is also investing in its Assured Positioning, Navigation and Timing (PNT) business, where the rollout of its new ASIC is generating strong interest from more than 100 companies. The company believes the new chip will accelerate deployments and continues to expect PNT to contribute at least $100 million in annual revenue by 2030.

Beyond PNT, Iridium is prioritizing national security missions through its growing work with the U.S. government and the Space Development Agency, while also expanding engineering and support activities. Aviation safety remains another strategic focus, with progress on new Certus aviation safety services and differentiated products intended to create additional opportunities. Management stated that partner activity remains strong, and the company plans to continue investing the cash it generates into these long-term growth initiatives while maintaining its focus on execution.

Taking a Look at IRDM’s CompetitorsAST SpaceMobile (ASTS - Free Report) is gaining from its leadership in direct-to-smartphone satellite connectivity, supported by proprietary phased array technology and thousands of patent claims. The company has built a sizable liquidity base to fund satellite manufacturing, ground infrastructure and launch activity through early commercialization. As of March 31, 2026, the company reported approximately $3.5 billion in cash, cash equivalents and restricted cash. The balance sheet also reflects additional convertible financing completed in early 2026, which management expects to support constellation deployment, technology investment and debt management initiatives. While the company is still operating at a loss, this funding reduces near-term refinancing risk and provides flexibility to sustain the planned deployment cadence as service activation progresses.

Globalstar, Inc. (GSAT - Free Report) is generating positive adjusted free cash flow. During the first quarter of 2026, the company reported adjusted free cash flow of $28.9 million compared with $47.6 million in the prior-year quarter. The decrease was primarily due to the timing of cash receipts under the Updated Services Agreements, as the company received $7.5 million in accelerated service fees during the first quarter of 2026 compared with $22.5 million a year ago. During the quarter, net cash provided by operating activities totaled $35.2 million, while capital expenditures were primarily associated with the deployment of replacement satellites and the Extended MSS Network.

IRDM Price Performance, Valuation and EstimatesShares of IRDM have gained 144.2% in the past six months against the Zacks Satellite and Communication industry’s decline of 13.8%.

Image Source: Zacks Investment Research

From a valuation standpoint, IRDM trades at a forward 12-month price-to-sales (P/S) of 5.39X, above the industry’s 2.8X.

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The Zacks Consensus Estimate for IRDM earnings for 2026 has been marginally revised upward over the past 60 days.

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Iridium currently carries a Zacks Rank #3 (Hold).

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

The cyclosporiasis outbreak linked to lettuce at some Taco Bell locations may not have a significant long-term impact on the chain and other restaurant companies, according to analysts.

The outbreak has currently affected more than 1,600 people across five states, according to the Centers for Disease Control and Prevention. The infection resembles a serious stomach bug and often begins showing up two to three weeks after people become infected by the parasite, according to the CDC. No deaths have been reported.

On Thursday, the agency said its investigation into the source linked the outbreak to shredded iceberg lettuce served at Taco Bell locations in Indiana, Kentucky, Michigan, Ohio and West Virginia. The U.S. Food and Drug Administration is working with the supplier to determine if the lettuce was sent elsewhere, as well.

Taco Bell's parent company, Yum Brands, saw its stock sink nearly 7% over the past five days as the company grappled with the health scare. Other food companies that sell fresh lettuce also saw their shares drop, like salad chain Sweetgreen, which plunged nearly 13% this week, and fast casual chain Cava, which sank more than 3%. Shares of Sweetgreen and Cava rose more than 17% and about 2% on Friday, respectively, due to apparent relief that the CDC did not identify their ingredients as potential sources of cyclosporiasis.

While Taco Bell or other restaurant chains may take a temporary sales hit as headlines about the outbreak swirl, particularly in the states most affected by it, analysts said any dips in revenue or stock prices likely will not be prolonged. Even so, it remains to be seen whether the CDC identifies any other restaurant chains as possible sources of the outbreak.

According to reports, the affected lettuce at Taco Bell may be traced back to supplier Taylor Farms, which distributes the product to many restaurant chains and sells directly in most grocery stores. Other media reports noted the company was preparing to issue a recall of ingredients on Friday.

Taylor Farms, the same company linked to the McDonald's E. Coli outbreak in 2024, did not respond to CNBC's request for comment.

Taco Bell said in a Thursday statement that the fast food chain is actively working to "voluntarily remove potentially impacted lettuce from a supplier in select states."

"The affected ingredient from our supplier is being indefinitely removed from our supply chain nationwide and will be replaced within 24 hours in select states," the company said.

Sweetgreen and other restaurant companies issued statements this week saying that they did not believe their ingredients were affected. The salad chain said it does not use iceberg lettuce on its menu.

"From the outset of the investigation, we have been in close contact with our suppliers to determine whether any ingredients in our supply chain have been identified as part of the investigation. To date, none have been," the company said.

Chipotle, which did not see as much stock movement this week, said in a Friday statement that shredded iceberg lettuce is not served at its locations, and it does not believe its ingredients are associated with the outbreak.

The sales and stock effects

Yum Brands stock

Analysts say the outbreak likely won't have a major effect on Yum Brands' stock, especially based on how restaurants have fared during past health scares.

That's not to say it won't have a temporary effect. Recent data from Placer.ai found that chains serving fresh lettuce saw declining foot traffic over the past week, with Taco Bell's down nearly 6% and Panera Bread down more than 7%.

TD Cowen analyst Andrew Charles told CNBC he believes the impact of the cyclosporiasis outbreak will be contained to a one-quarter risk for the company and culminate in a quick recovery. He said he expects that arc to look similar to how quickly both McDonald's and Wendy's recovered from separate E. Coli outbreaks in 2024 and 2022, respectively.

"Social media just leads to a lot more short-term memory loss," Charles said. "We saw both times a quarter or less of an impact. Here, it's a similar setup too."

He added that the outbreak is also limited to toppings at Taco Bell rather than the meat itself, which is a core offering and would likely have a larger impact on consumer behavior. The Covid-19 pandemic has also lessened the impact of food safety concerns on the broader industry over the past few years, he added.

"We'll have to wait and see from here," Charles said.

Analysts at Evercore ISI wrote in a Friday note that they believe the outbreak will transform from a vendor issue to a supplier issue as the spotlight moves away from Taco Bell to Taylor Farms instead.

"Our guess is that over the coming weeks this food safety issue fades from the headlines and, to the extent it lingers, attaches more to the supplier than to Taco Bell specifically," the analysts wrote.

While lower demand in the impacted Midwest states will likely last longer than in other areas of the U.S., the Evercore analysts said Taco Bell could return to positive same-store sales growth in a matter of weeks, just as McDonald's did within roughly six weeks in 2024. That's especially as the company has recently been "firing on all cylinders" with strong sales numbers, they added.

"The historical playbook for food-safety scares that carry no confirmed brand-level link and no fatalities, points to a one-to-two-quarter demand air-pocket and a stock that tends to recover within two quarters," the analysts wrote.

It's a lesson in marketing and brand loyalty for Taco Bell and other restaurants, too, according to Gerry Chiaro, an associate professor of marketing at Northwestern University. The company will need to regain customers' trust, just as other restaurants like McDonald's, Wendy's and Chipotle have had to in the past after health scares.

"They have to be accountable for it. They can't blame anybody, even though in a way, they're the victim of the policies and processes and the food safety measures of their supplier," Chiaro told CNBC. "But you can't put the blame on it because the customer sees Taco Bell as the brand, and Taco Bell's the one they engage with."

Because health scares like the cyclosporiasis outbreak happen often and are par for the course for any restaurant serving fresh food, Chiaro said the playbook is becoming more common. And because Taco Bell has already issued a statement and pulled its infected ingredients, Chiaro said it's likely to follow the recovery trend of other companies

"A very clear, accountable, transparent communication, a recommitment to our health safety and our food safety processes – it can make them better," he said.

Wise Group PLC (LSE:WISE, NASDAQ:WSE) has kicked off its 2027 financial year with another strong quarter, as more customers turned to the fintech group for fast, low-cost international payments.

The company reported first-quarter net revenue of $714 million, up 25% from a year ago, driven by continued growth in cross-border payment volumes and customer numbers.

Customers transferred $69.3 billion through the platform during the three months to 30 June, a 26% increase on the same period last year, while active customers climbed 21% to 11.9 million. Customer balances also surged 31% to $41.2 billion, highlighting the growing use of Wise's multi-currency accounts.

Transaction revenue rose 27% to $540.9 million, even as the average fee fell to a record-low 0.50%. The lower pricing reflects Wise's strategy of passing on efficiency gains to customers while continuing to grow volumes.

Speed also improved, with 77% of transfers arriving instantly, up from 70% a year earlier.

"We continue building 'the' network for the world's money," co-founder and chief executive Kristo Käärmann said, noting that almost 12 million people and businesses used Wise during the quarter.

The company also expanded into Chile, where customers can now send money abroad and top up multi-currency accounts using local instant payment methods.

Looking ahead, Wise reaffirmed its full-year guidance, expecting revenue growth to remain comfortably within its medium-term target range and profitability towards the top end of its target margin.

Key Takeaways Inspire Medical is positioned for growth as Inspire V drives a major product transition.Inspire V cuts implant time by over 20%, while FDA approvals broaden patient eligibility.Coding uncertainty and WISeR delays may worsen in Q2 before easing in the second half of 2026. Inspire Medical Systems (INSP - Free Report) is well-positioned for solid growth over the next few quarters as it navigates a significant product transition.

Shares of this Zacks Rank #3 (Hold) company have declined 44.1% in the year-to-date period compared with the industry’s 6.8% fall. However, the S&P 500 Index has increased 10% in the same timeframe.

Inspire Medical, a medical technology company focused on the development and commercialization of innovative, minimally invasive solutions for patients with obstructive sleep apnea, has a market capitalization of $1.46 billion.

The company’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 181.2%.

Image Source: Zacks Investment Research

Positive Factors Driving INSP’s ProspectsStrong Clinical Innovation & Growing Clinical Evidence: Inspire Medical continues to strengthen its leadership in hypoglossal nerve stimulation through product innovation and expanding clinical evidence. The Inspire V system remains a key growth driver, offering a simplified implant procedure by integrating the respiratory sensor within the neurostimulator while reducing implant time by more than 20% versus Inspire IV. Clinical studies have demonstrated superior respiratory sensing, improved sleep apnea outcomes and strong patient adherence.

The recently published PREDICTOR study suggests many patients may be screened without drug-induced sleep endoscopy (DISE), reducing diagnostic burden and time to treatment. Long-term data from the ADHERE registry and independent studies presented at SLEEP 2026 demonstrated sustained improvements in apnea severity, therapy adherence and cardiovascular outcomes, with Inspire patients showing lower risks of stroke, myocardial infarction, atrial fibrillation and hospitalization than CPAP-treated or untreated patients. Having treated more than 135,000 patients globally and supported by more than 385 peer-reviewed publications, Inspire Medical continues to strengthen physician confidence and long-term adoption.

Regulatory Expansion & Commercial Execution: Inspire Medical continues expanding its addressable market through regulatory approvals while strengthening commercial execution. Recent FDA approvals broadened patient eligibility by increasing the upper apnea-hypopnea index threshold, expanding BMI criteria and authorizing Inspire therapy for certain pediatric Down syndrome patients. The launch of Inspire V and new CMS HCPCS Level II C-codes has further supported adoption while improving facility reimbursement clarity. Management is also pursuing a dedicated CPT code expected to take effect in 2028, providing a long-term reimbursement solution. The company has optimized its sales organization by strategically consolidating territories while increasing field clinical representatives to achieve its targeted one-to-one ratio with territory managers. International momentum remains encouraging, with first-quarter 2026 international revenues increasing 16.5% year over year, reflecting growing physician awareness and market penetration despite reimbursement headwinds.

Disciplined Financial Execution & Investment in Growth: Inspire Medical delivered resilient financial performance while maintaining a disciplined investment strategy. Revenues increased 1.6% year over year, while the company improved adjusted operating margin through favorable product mix and higher adoption of Inspire V, generating stronger operating cash flow than the prior-year period. Management remains focused on investments that directly support long-term expansion, including reimbursement education, field reimbursement specialists, digital patient engagement tools, marketing effectiveness, operational efficiencies and next-generation product development. These initiatives will begin contributing more meaningfully during the second half of 2026 and accelerate further in 2027 as reimbursement challenges ease.

Key Challenges for INSP StockCoding & Reimbursement Uncertainty: The biggest near-term challenge remains coding and reimbursement uncertainty for Inspire V procedures. Differences in billing practices across Medicare and commercial insurers have slowed prior authorizations, reduced patient pipeline activity and delayed procedures. Although CMS introduced facility billing codes and management is working toward a dedicated CPT code expected in 2028, reimbursement uncertainty is expected to continue affecting procedure volumes until providers gain confidence in billing practices.

Coding and reimbursement disruption, along with the WISeR program, negatively impacted first-quarter 2026 revenues by approximately $20 million and could reduce full-year 2026 revenues by $120-$150 million. The company expects second-quarter revenue pressure to worsen with an estimated revenue headwind of $40-$50 million due to lower prior authorization activity during the first quarter, before improving gradually during the second half of 2026.

WISeR Program Disrupting Procedure Volumes: The rollout of the WISeR’s prior authorization program across six Medicare pilot states has created additional administrative hurdles for providers. AI-driven authorization requirements and varying state-specific workflows have delayed procedures and reduced Medicare volumes during the first quarter. While management expects providers to adapt over time, the program is likely to remain a short-term headwind before becoming less disruptive later in 2026.

GLP-1 Adoption & Competitive Pressure: Inspire Medical also faces emerging external headwinds. Management acknowledged that increasing use of GLP-1 weight-loss therapies may temporarily delay Inspire procedures as some patients pursue medical treatment first. Although GLP-1 therapies could ultimately expand the eligible patient population by helping patients meet BMI requirements, the near-term impact on procedure volumes remains uncertain. At the same time, competition in the hypoglossal nerve stimulation market is gradually increasing, adding another factor that could weigh on growth until reimbursement challenges subside.

Estimate TrendInspire Medical is witnessing a positive estimate revision trend for 2026. In the past 30 days, the Zacks Consensus Estimate for earnings has moved north 1 cent to $1.05 per share.

The Zacks Consensus Estimate for second-quarter 2026 revenues and loss per share is pegged at $194.8 million and 22 cents, respectively.

Stocks to ConsiderSome better-ranked stocks from the broader medical space are West Pharmaceutical (WST - Free Report) , Intuitive Surgical (ISRG - Free Report) and Cardinal Health (CAH - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

West Pharmaceutical reported first-quarter 2026 earnings per share of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%.

West Pharmaceutical has an estimated long-term earnings growth rate of 13.9%. WST’s earnings surpassed estimates in the trailing four quarters, the average surprise being 19.4%.

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

Intuitive Surgical has an estimated long-term earnings growth rate of 14.3%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.

Cardinal Health reported a third-quarter fiscal 2026 adjusted EPS of $3.17, which beat the Zacks Consensus Estimate by 13.2%. Revenues of $60.94 billion missed the Zacks Consensus Estimate by 2.3%.

Cardinal Health has an estimated long-term earnings growth rate of 17%. CAH’s earnings surpassed estimates in the trailing four quarters, the average surprise being 10.3%.

Fifth Third Bancorp (FITB - Free Report) reported $3.28 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 46.1%. EPS of $1.02 for the same period compares to $0.90 a year ago.

The reported revenue represents a surprise of +0.88% over the Zacks Consensus Estimate of $3.25 billion. With the consensus EPS estimate being $0.98, the EPS surprise was +4.08%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Fifth Third Bancorp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Efficiency Ratio (FTE): 64.3% versus the three-analyst average estimate of 57.5%.Net interest margin (FTE): 3.4% versus the three-analyst average estimate of 3.4%.Total nonperforming assets: $1.24 billion compared to the $1.01 billion average estimate based on two analysts.Regulatory Capital Ratios - Tier 1 risk-based Capital: 10.8% versus 10.9% estimated by two analysts on average.Return on average common equity: 9.5% compared to the 10.5% average estimate based on two analysts.Book value per share: $35.56 versus $35.79 estimated by two analysts on average.Average Balance - Total interest-earning assets: $264.99 billion versus $266.2 billion estimated by two analysts on average.Regulatory Capital Ratios - Leverage: 9.2% versus the two-analyst average estimate of 9.3%.Tangible book value per share (including AOCI): $23.15 versus the two-analyst average estimate of $24.17.Return on average assets: 1.1% compared to the 1.2% average estimate based on two analysts.Tangible common equity (including AOCI): 7.3% compared to the 7.4% average estimate based on two analysts.Net charge-off ratio (NCO ratio): 0.3% compared to the 0.3% average estimate based on two analysts.View all Key Company Metrics for Fifth Third Bancorp here>>>

Shares of Fifth Third Bancorp have returned +12.6% over the past month versus the Zacks S&P 500 composite's +0.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

3 Volatile Mid-Caps to Trade This Earnings SeasonIndependent Bank NASDAQ: INDB reported second-quarter 2026 net income of $81.8 million, or $1.70 per diluted share, as executives said stronger deposit momentum, C&I lending growth, margin expansion and share repurchases supported profitability despite pressure from commercial real estate payoffs.

Chief Executive Officer Jeff Tengel said business activity was slow early in the quarter but accelerated as the period progressed. He pointed to “solid deposit growth, strong C&I loan growth, continued improvement in the adjusted NIM, aggressive buyback activity, and excellent results in our wealth management business,” while noting that those gains were partly offset by a smaller average balance sheet and lower loan accretion income.

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Tengel also provided a personal update at the start of the call, saying he had completed treatment for non-Hodgkin’s lymphoma and had learned he is “cancer-free and in remission.”

Deposit Growth and Margin Expansion Independent Bank’s deposit franchise produced more than $300 million of non-time deposit growth in the quarter, which Tengel said represented 7% annualized growth. The company held its cost of deposits stable at 1.36%, despite what management described as heightened competition and expectations that the Federal Reserve will keep rates elevated for longer.

Chief Financial Officer Mark Ruggiero said period-end deposit balances grew at a 5.9% annualized rate, although average balances were down for much of the quarter. That created what he called a temporary drag on cash and average earning assets. He said balances rebounded late in the quarter, supported by new core deposit relationships.

Ruggiero said the core net interest margin increased four basis points in the second quarter. Reported loan yields declined eight basis points, but core loan yields rose three basis points when excluding volatile purchase accounting accretion and other non-core items. Securities yields increased five basis points in the quarter, and Ruggiero said additional maturities and amortization in the second half should support further improvement.

During the question-and-answer session, Ruggiero said the company had introduced a 4% short-term money market special halfway through the second quarter, contributing to some upward pressure in money market rates. He said the spot cost of deposits was 1.38% in June and that management expects some additional pressure in the second half, potentially toward 1.40%, while still maintaining its fourth-quarter margin guidance.

C&I Growth Offsets CRE Paydowns Loan growth was mixed during the quarter. Tengel said C&I and home equity lending were robust, while commercial real estate and construction loans declined by $176 million due to elevated payoffs. Excluding a $37 million decline tied to the dealer floor plan business that Independent Bank has largely exited, C&I loans rose $116 million, or 10% annualized. Tengel said that growth was broad-based across market segments.

Management emphasized that the company remains active in commercial real estate lending despite the paydowns. Tengel said Independent Bank funded $203 million in new relationship-based CRE loans during the quarter, up 11% from the first quarter, and added $300 million of new CRE commitments. The company’s CRE concentration stood at 278 at June 30.

The approved commercial loan pipeline totaled $510 million at quarter-end, up from $313 million at March 31. Tengel said the stronger pipeline, continued origination activity and expected normalization of payoff activity position the company to return to positive commercial loan growth.

In response to analyst questions, Tengel said two relationships accounted for $120 million of second-quarter CRE paydowns, including refinancings away from Independent Bank. One refinancing, he said, occurred on “terms and conditions that we were very uncomfortable with.” He said management expects paydowns to return closer to historical levels in the second half and sees potential for flat to modestly higher CRE balances over that period.

Ruggiero said the commercial pipeline was roughly split between CRE and C&I, with C&I representing a somewhat larger share than before. He said new commercial loan originations moved into the mid-6% range, with C&I loans in the mid- to high-6% range and CRE loans generally in the low-6% range.

Capital Returns Remain a Priority Ruggiero said second-quarter results reflected the bank’s ability to drive core profitability and return capital to shareholders in a competitive environment. During the quarter, Independent Bank completed its prior buyback authorization and announced a new $200 million share repurchase plan in May.

The company repurchased $75 million of stock in the second quarter. Its common equity Tier 1 ratio was 12.8% at June 30, and its tangible capital ratio was 9.7%.

Ruggiero said the buyback plan will remain the primary means of returning excess capital to shareholders. In response to an analyst question, he said returning 100% of quarterly earnings is “the minimum,” adding that the company is committed to executing repurchases aggressively while considering growth trends and funding efficiency.

Asset Quality and Office Exposure Management said asset quality remained consistent with historical performance. Tengel said net charge-offs were two basis points in the second quarter and have averaged nine basis points over the past five quarters. The loan loss provision represented 14 basis points of average loans in the quarter and has averaged 13 basis points over the past five quarters, excluding the day-one impact of the Enterprise acquisition.

Ruggiero said total non-performing assets increased modestly to $103.8 million, or 56 basis points of total assets. He said commercial non-performing asset movement was “fairly benign,” with one office non-performer resolved and another added. Residential non-performers increased by a net $4.7 million, but Ruggiero said there is generally sufficient home equity in workout cases and that charge-offs remain extremely low in that portfolio.

Net charge-offs were $911,000 in the quarter, or two basis points annualized. Year-to-date charge-offs were six basis points annualized. The provision was $6.3 million, and the allowance for loan losses rose to 1.06% of loans, primarily due to modest specific reserves on a couple of commercial loans.

On office-related credit issues, Tengel said the company is still in what he has previously described as a long “seventh inning,” but said he is encouraged by the work underway to reduce criticized and classified office loans over the next several quarters. Ruggiero said a $22 million large syndicated non-performing loan has begun making interest payments and could potentially return to performing status by year-end.

Guidance Reaffirmed for Profitability Targets Independent Bank reaffirmed its fourth-quarter 2026 profitability targets of a 1.4% return on average assets and a 15% return on average tangible capital. Ruggiero also reaffirmed the company’s fourth-quarter margin outlook of 3.90% to 3.95%, though he said it is likely to be at the low end of that range. The range includes an assumed 10-basis-point impact from purchase accounting accretion.

The company lowered its full-year outlook for CRE and construction loans to flat to a low-single-digit percentage decrease, citing second-quarter paydown activity. It expects C&I growth to land at the high end of its mid-single-digit guidance range, with minimal remaining headwinds from the exited floor plan business. Consumer loans are now expected to increase in the low-single-digit percentage range for the full year.

Fee income totaled $42.4 million in the second quarter, up more than 5% from the prior quarter. Ruggiero said wealth management led the increase, with assets under administration of $9.5 billion at June 30, along with higher tax preparation fees, deposit and treasury management fees, and increased swap volume.

Expenses were flat versus the first quarter after excluding merger-related costs and non-recurring core system conversion expenses, according to management. Ruggiero said Independent Bank expects core expenses excluding systems conversion costs to be in the $553 million to $557 million range for the year, with one-time system conversion expenses totaling $5 million to $6 million. Tengel said the conversion from HORIZON to IBS, both part of the FIS ecosystem, is scheduled for October and is intended to improve client service, efficiency, product rollout and growth capacity.

About Independent Bank (NASDAQ:INDB)Independent Bank Group, Inc NASDAQ: INDB is a bank holding company headquartered in McKinney, Texas, that provides a range of financial services through its wholly owned subsidiary, Independent Bank. Tracing its roots to the late 19th century, the company has grown from a single community bank into a regional financial institution serving individuals, small businesses and commercial clients. Independent Bank Group became a bank holding company in 1983 and expanded its footprint through organic growth and strategic acquisitions.

The company's primary business activities encompass retail and commercial banking, including deposit products, consumer and business lending and credit services.

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

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Truist’s second quarter displayed a range of puts and takes shaping consumer banking.

Customers kept spending, mobile activity rose and credit losses eased, while the movement of cash into higher-yielding accounts continued to raise funding costs.

The quarter also marked Bill Rogers’ final earnings call as Truist’s CEO. Mike Lyons will become president and CEO on Sept. 1, after having served as Fiserv’s CEO. Rogers will serve as executive chair until his planned retirement in April 2027.

Commentary during an earnings conference call with analysts Friday (July 17) indicated that consumer liquidity, spending and credit trends remained within management’s expectations. Average consumer and small business loans rose 2% from a year earlier, even as Truist reduced production in lending categories it viewed as less central or less profitable. Consumer and small business deposits also rose 2%, supported by a 39% gain in deposits from new clients.

“Consumer behavior remained resilient during the quarter, with stable liquidity, spending and credit trends that remain within our expectations,” Rogers said during the call.

Credit quality also improved from the first quarter. Net charge-offs fell 11 basis points to 50 basis points, with lower losses across most portfolios. Nonperforming loans rose by one basis point, partly because Truist changed its nonaccrual rules for loans in its nonprime auto business. Management said the accounting change did not reflect weaker underlying credit trends.

The results came as Truist narrowed its lending focus. The bank is reducing exposure to marine, recreational vehicle and selected auto loans. It is directing more capital toward commercial borrowers, where an initial loan can lead to deposits, payments, liquidity services and capital markets work.

Chief Financial Officer Mike Maguire said the review also extends to wholesale banking.

“There are things that we’ve done and will continue to do in wholesale around client selection, around pricing, around product design, rebalancing, that are all intended to create more profitability and efficiency,” Maguire told analysts.

Digital Use Carries More Financial Weight Digital engagement was one of the clearest measures of customer behavior in the quarter. Active mobile users rose 4% from a year earlier to 5.4 million, while digital transaction volume increased 7% to 93 million transactions. About 85% of client logins now take place through mobile devices.

Rogers linked digital activity directly to revenue, profit and operating costs.

“Digital active clients generate more revenue and higher profitability than non-digital clients, while greater self-service adoption continues to improve efficiency across the franchise,” Rogers said.

Clients used Truist Assist nearly 2 million times during the quarter, up 60% from a year earlier. The virtual assistant gives customers a way to handle routine service matters without visiting a branch or contacting an employee.

Rogers said the usage reflected “growing adoption of self-service capabilities and our continued investment in the digital client experience.”

The strategy reaches beyond routine consumer banking. Premier Banking, which serves clients with $100,000 to $1 million in combined deposits and investments, represents more than half of consumer and small business banking deposits. New Premier deposit production balances rose 20%, adviser productivity rose 23%, and financial planning activity rose 9%.

On the commercial side, average wholesale deposits rose 6% after adjusting for large merger-related balances in the prior-year quarter. Truist tied the gains to payments and liquidity services, which place the bank inside the daily movement of corporate funds.

Middle-market deposits rose 12%. Deposits grew 9% in established markets and 27% in expansion markets such as Texas, Pennsylvania and Ohio.

Deposit mix remains the pressure point. Maguire said Truist still expects annual deposit growth of about 3%, but the share of demand deposits could fall from roughly 27% at the start of the year to about 25% by year-end. Those balances usually carry lower funding costs.

“We still actually feel quite good about deposit balances both in wholesale and consumer,” Maguire said. “We’re seeing nice production. It’s really just mix.”

Rogers said the movement toward higher-yielding accounts reflected customer choices more than a new wave of rate competition.

“What we’ve seen in the deposit migration to higher yielding is more client behavior than competitive pressure,” he said. “The competitive environment still is highly competitive. We’re the most competitive we’ve ever been in terms of product and capability.”

Shares in Truist were up 1.5% in early trading Friday morning.

A month has gone by since the last earnings report for Jabil (JBL - Free Report) . Shares have lost about 17.4% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Jabil due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.

JBL Q3 Earnings Beat Estimates on AI Infrastructure StrengthJabil third-quarter fiscal 2026 results surpassed expectations, driven by robust AI infrastructure demand and broad-based growth across its portfolio. Core earnings of $3.16 per share increased 23.9% year over year and topped the Zacks Consensus Estimate of $3.12 by 1.28%.

Net revenues rose 11.8% to $8.75 billion and exceeded the consensus mark of $8.63 billion by 1.39%. Intelligent Infrastructure remained the key growth engine, with segment revenues climbing 21% year over year.

Earnings and Revenue Top ExpectationsJabil reported third-quarter fiscal 2026 net revenues of $8.75 billion, up from $7.83 billion in the year-ago quarter. Revenues benefited from strong demand across multiple end markets, particularly AI-related cloud and data center infrastructure programs.

Core operating income increased to $504 million from $420 million a year ago. Core diluted earnings per share rose to $3.16 from $2.55, reflecting solid operating execution and margin expansion. On a GAAP basis, diluted earnings per share improved to $2.59 from $2.03.

Intelligent Infrastructure Leads GrowthThe Intelligent Infrastructure segment remained Jabil’s largest business, contributing 48% of total revenue during the quarter. Segment revenue increased 21% year over year to approximately $4.2 billion, supported by strong demand in capital equipment, cloud and data center infrastructure, as well as networking and communications.

Management noted that networking and communications revenue increased more than 50%, aided by a strong networking ramp in India. Segment core operating margin expanded 80 basis points year over year to 6.1%, highlighting favorable mix and execution.

Other Segments Deliver Steady ResultsRegulated Industries generated revenues of roughly $3.2 billion, representing 36% of total company sales. Revenues increased 4% year over year, driven primarily by stronger-than-expected automotive and transportation demand. Core operating margin improved 10 basis points to 5.6%.

Connected Living and Digital Commerce accounted for 16% of revenue. Sales rose 5% year over year to approximately $1.4 billion as consumer-related demand performed better than management’s cautious expectations. The segment delivered a core operating margin of 4.9%.

Margins and Cash Flow ImproveJabil’s profitability strengthened during the quarter. Core operating margin expanded to 5.8% from 5.4% in the prior-year period, supported by a favorable business mix and disciplined execution across operations. GAAP operating income increased to $445 million from $403 million a year earlier.

Cash generation also remained healthy. Net cash provided by operating activities totaled $535 million, while adjusted free cash flow reached $359 million after capital expenditures of $176 million. During the quarter, the company repurchased approximately $291 million of shares under its existing authorization.

AI Momentum Drives Outlook HigherManagement highlighted continued strength in AI infrastructure programs as a major growth catalyst. Jabil now expects AI-related revenue of approximately $13.6 billion in fiscal 2026, up from its prior forecast of $13.1 billion and significantly above the $9 billion generated in fiscal 2025. The company also secured a third hyperscale customer during the quarter, further strengthening its long-term growth prospects.

According to management, growth is being supported by capabilities across compute, storage, networking, optics, power, cooling and rack-level integration, while maintaining an asset-light operating model.

Fiscal 2026 Guidance RaisedEncouraged by strong third-quarter execution and healthy demand trends, Jabil raised its fiscal 2026 outlook. The company now expects fiscal 2026 revenues of approximately $35 billion, core operating margin of about 5.8%, core diluted earnings per share of roughly $12.70 and adjusted free cash flow exceeding $1.4 billion.

For the fourth quarter of fiscal 2026, management projects revenues between $9.2 billion and $10 billion and core diluted earnings per share of $3.80-$4.20. The outlook reflects continued momentum in Intelligent Infrastructure, particularly AI-related programs, as well as improving trends in automotive and other end markets.

How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.

The consensus estimate has shifted 9.34% due to these changes.

VGM ScoresAt this time, Jabil has a average Growth Score of C, a score with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Jabil has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

Key Takeaways QS is set to report second-quarter 2026 results on July 22, after the closing bell.QuantumScape remains pre-revenue, with partner payments tied to technical milestones.QS reiterated a 2026 adjusted EBITDA loss outlook of $250-$275 million amid ongoing spending. QuantumScape Company (QS - Free Report) is slated to release second-quarter 2026 results on July 22, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s loss per share is pegged at 18 cents.

For the second quarter, the consensus estimate for QuantumScape’s loss has widened by a penny over the past 90 days. Its bottom-line estimates imply a growth of 10% from the year-ago reported numbers.

The company's earnings beat estimates in one of the trailing four quarters, matched twice and missed once, delivering an average surprise of 1.22%. This is depicted in the graph below:

Q1 HighlightsIn the first quarter of 2026, QuantumScape reported a loss of 16 cents per share, narrower than the Zacks Consensus Estimate of a loss of 18 cents. It delivered an earnings surprise of 11.1%. The quarter also showed improving year-over-year performance, with loss per share narrowing from 21 cents in the year-ago period.

Things to NoteQuantumScape remains pre-revenue and does not provide GAAP revenue guidance, so near-term monetization can be volatile. The company’s customer billings metric is non-GAAP and can swing with activity. PowerCo’s project contributions are tied to technical milestones, and the company reported no such payments in the first quarter. This structure could lead to periods of limited recognized revenue despite ongoing activity, reducing financial clarity and increasing short-term earnings unpredictability.

The company reiterated full-year 2026 adjusted EBITDA loss guidance of $250-$275 million, indicating that meaningful profitability remains distant. In the first quarter of 2026, GAAP net loss was $100.8 million, reflecting continued spending to ramp the pilot line and advance product development. Even with customer billings, the accounting treatment and timing of partner payments may not align with the expense run-rate. Until higher-volume shipments and licensing economics begin to scale, losses are likely to persist.

Limited revenue visibility and expected EBITDA losses are likely to weigh on the company’s second-quarter results.

Earnings WhispersOur proven model does not conclusively predict an earnings beat for QuantumScape for the quarter to be reported, as it does not have the right combination of the two key ingredients. A positive Earnings ESP, combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat. This is not the case here.

Earnings ESP: QS has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is pegged in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

Stocks With the Favorable CombinationHere are a few players from the auto space that, per our model, have the correct ingredients to post an earnings beat this time.

Gentex Corporation (GNTX - Free Report) is slated to release second-quarter 2026 results on July 24. The company has an Earnings ESP of +0.67% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for GNTX’s to-be-reported quarter’s earnings and revenues is pegged at 50 cents per share and $669 million.

Cummins Inc. (CMI - Free Report) is slated to release second-quarter 2026 results on August 4. The company has an Earnings ESP of +0.43% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for CMI’s to-be-reported quarter’s earnings and revenues is pegged at $7.34 per share and $9.33 billion.

BorgWarner Inc. (BWA - Free Report) is slated to release second-quarter 2026 results on August 5. The company has an Earnings ESP of +0.62% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for BWA’s to-be-reported quarter’s earnings and revenues is pegged at $1.26 per share and $3.58 billion.

Key Takeaways Teradata launched its Autonomous Knowledge Platform across cloud, on-premises and hybrid environments. The platform supports agentic AI where data resides while preserving governance, security and compliance. First-quarter recurring revenues rose 12% to $400 million, while public cloud ARR increased 13%. Teradata (TDC - Free Report) has announced the general availability of its Autonomous Knowledge Platform across cloud, on-premises and hybrid environments, expanding its enterprise Artificial Intelligence (AI) portfolio. The platform brings together Teradata Cloud, AI Factory, AI Studio, AI Services and the Tera AI workspace into a unified offering that enables organizations to build, deploy and manage agentic AI where their data resides. It supports both proprietary and open-source foundation models, allowing enterprises to develop AI applications while maintaining governance, security and regulatory compliance across hybrid environments.

The Autonomous Knowledge Platform is designed to help enterprises move AI initiatives from proof-of-concept projects to production by combining trusted enterprise data, analytics and AI capabilities in a single environment. The launch strengthens Teradata's strategy of enabling highly regulated industries, including financial services, healthcare and the public sector, to deploy AI securely while preserving data sovereignty, operational control and deployment flexibility across cloud, on-premises and hybrid infrastructures.

TDC Benefits From Strong Enterprise AI Adoption Teradata shares have gained 42.2% in the trailing 12-month period, outperforming the broader Zacks Computer and Technology sector's 30.6% return. The outperformance can be attributed to the company’s expanding AI portfolio for enterprises. Agentic AI’s always-on query needs are a tailwind, since Teradata manages critical enterprise data and targets high performance across hybrid and cloud deployments.

The company’s announcement of the Autonomous Knowledge Platform helps enterprises move agentic AI from pilot projects to production. AI is becoming part of a growing number of customer engagements, with an increasing share of Teradata's sales pipeline tied to AI initiatives. Enterprise adoption is accelerating as organizations increasingly seek platforms capable of supporting mission-critical AI workloads.

Teradata believes its hybrid architecture is a key differentiator, enabling AI to operate where enterprise data resides while maintaining governance and security. The Autonomous Knowledge Platform combines trusted data, analytics and AI capabilities across cloud, on-premises and hybrid environments, helping customers simplify production AI deployments and capitalize on growing enterprise AI adoption.

Teradata sees a significant opportunity as enterprise AI adoption accelerates. A recent survey sponsored by the company found that 100% of organizations are pursuing agentic AI, but only 17% have moved beyond pilot deployments, while 99% have encountered infrastructure scaling challenges. The platform could help enterprises move AI into production, creating additional annual recurring revenue (ARR) opportunities over time. Early traction is already visible, with first-quarter recurring revenues increasing 12% year over year to $400 million, total ARR rising 3% to $1.49 billion and public cloud ARR growing 13% to $686 million.

Teradata Offers Strong Q2 2026 OutlookTeradata's expanding AI portfolio and growing demand for hybrid AI deployments are expected to drive top-line growth. For the second quarter of 2026, the company expects non-GAAP earnings between 53 cents and 57 cents per share.

The Zacks Consensus Estimate for second-quarter 2026 revenues is pegged at $398.39 million, indicating a 2.36% year-over-year decline.

The consensus mark for second-quarter 2026 earnings is pegged at 55 cents per share, unchanged over the past 30 days. The figure implies a year-over-year increase of 17.02%.

Teradata's Zacks Rank & Other Stocks to ConsiderCurrently, Teradata carries a Zacks Rank #2 (Buy).

Digital Turbine (APPS - Free Report) , Dell Technologies (DELL - Free Report) and Analog Devices (ADI - Free Report) are some other top-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Digital Turbine, Dell Technologies and Analog Devices sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

APPS shares have rallied 72.6% in the year-to-date period. The long-term earnings growth rate for Digital Turbine is pegged at 18.98%.

DELL shares have surged 210.9% in the year-to-date period. The long-term earnings growth rate for Dell Technologies is pegged at 26.35%.

Shares of ADI have gained 40.3% in the year-to-date period. The long-term earnings growth rate for Analog Devices is pegged at 28.76%.

Key Takeaways Credo's fiscal fourth-quarter free cash flow rose to $177.5 million on $182.2 million in operating cash flow.CRDO ended the quarter with $1.4 billion in cash, supporting product innovation and accretive acquisitions.Credo is investing in AECs, ZeroFlap Optics, ALCs and OmniConnect to capture AI connectivity demand. Credo Technology Group Holding Ltd (CRDO - Free Report) posted a strong finish to fiscal 2026, delivering solid free cash flow in the fiscal fourth quarter, underscoring strengthening profitability amid explosive demand for AI infrastructure.

In the fiscal fourth quarter, cash flow from operations reached $182.2 million, increasing $16 million sequentially. With capital expenditures of just $4.8 million, free cash flow climbed to $177.5 million. The company ended the quarter with $1.4 billion in cash and equivalents, driven primarily by robust free cash flow generation.

This strong cash position provides Credo with ample financial flexibility to invest in product innovation and pursue accretive M&A. In the recent earnings call, the company noted that it remains “well capitalized” to fuel the next leg of growth, while maintaining a considerable cash buffer.     

Credo is deploying its capital strategically. Management noted that the Dust Photonics acquisition, which closed in the first quarter of fiscal 2027, utilized approximately $750 million. Despite this sizable outflow, the company expects to remain in a comfortable liquidity position, supported by operating cash flow approaching $200 million per quarter.

Further, Credo added that it may pursue opportunistic acquisitions, but has no such immediate plans. The company also has no plans to raise additional capital or authorize a share repurchase program currently.

As AI reshapes the data center architectures, it is accelerating demand for high-speed connectivity solutions. Credo lies at the intersection of AI and data center build-outs with its active electrical cables (AECs), optical Digital Signal Processors and PCIe retimers solutions that address the growing need for high-speed, low-power connectivity in the data center space.

Given this, the cash strength is strategically valuable as Credo deepens its role in the hyperscale ecosystem. The company continues to scale its AEC business while accelerating investments in newer growth areas such as ZeroFlap Optics, Active LED Cables (ALCs) and OmniConnect solutions.

How Are Competitors Faring?Although Credo has tremendous opportunities, these are unfolding in a fiercely competitive landscape. Bigger rivals like Broadcom (AVGO - Free Report) and Marvell Technology (MRVL - Free Report) , with their relatively stronger financial positions, offer some serious competition to Credo.

Broadcom is one of the giants in the semiconductor space. In the last reported quarter, free cash flow was a massive $10.3 billion (about 46% of revenues) while capex came in at $231 million. As a result, the company had about $19.6 billion of cash and cash equivalents on its balance sheet at the quarter-end.

The company sees massive opportunities in the AI space, as its hyperscaler customers have begun developing their own custom accelerators or XPUs. Broadcom is building custom silicon platforms and enabling massive compute deployments for leading hyperscalers such as Meta, as well as AI companies like Anthropic and OpenAI. AI semiconductor revenues are expected to reach $16 billion in the third quarter of fiscal 2026, up more than 200% year over year.

Strong cash position provides ample flexibility to pursue these opportunities. However, Broadcom’s acquisition-driven growth strategy (mainly the VMware acquisition) had led to a hefty debt on its balance sheet. Long-term debt was nearly $62.7 billion at the end of the last reported quarter.

Marvell Technology has been in the spotlight for some time now, especially after NVIDIA's chief publicly called it the next trillion-dollar company earlier this year. The company is now a component of the S&P 500 index. Marvell Technology’s strategic pivot to prioritize the data center market is proving to be a successful catalyst amid surging AI infrastructure spending.

The company is using its cash pile to capture AI-driven opportunities in cloud and data center infrastructure through R&D investment as well as strategic acquisitions like XConn Technologies and Celestial AI. It had $3.84 billion in cash and cash equivalents at the end of the last reported quarter. Cash flow from operations for the first quarter of fiscal 2027 was $638.8 million.

Like AVGO, Marvell Technology also has a highly leveraged balance sheet with a long-term debt of $4.96 billion as of May 2, 2026.

CRDO’s Price Performance, Valuation and EstimatesShares of CRDO have lost 23.5% compared with the Electronics-Semiconductors industry’s decline of 17.2% in the past month.

Image Source: Zacks Investment Research

In terms of the forward 12-month price/sales ratio, CRDO is trading at 15.01, higher than the Electronic-Semiconductors industry’s multiple of 8.39.

Image Source: Zacks Investment Research

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

Image Source: Zacks Investment Research

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

Key Takeaways Equifax is set to report Q2 results on July 21, with revenues estimated at $1.7B, up 10.3% y/y.Workforce Solutions revenues are expected to rise 9.9% as active records and verification hit rates increase.USIS revenues are projected to grow 14.5%, while International adjusted EBITDA is seen climbing 18.5%. Equifax (EFX - Free Report) is scheduled to report second-quarter 2026 results on July 21, before market open.

EFX has an impressive earnings surprise history. It has outperformed the Zacks Consensus Estimate in the four preceding quarters, with an average of 5.6%.

Equifax’s Q2 ExpectationsThe Zacks Consensus Estimate for Equifax’s top line is pinned at $1.7 billion, hinting at a 10.3% rise from the year-ago quarter’s actual.

For Workforce Solutions, we expect revenues of $623.1 million, suggesting a 9.9% year-over-year increase. The factors influencing this segment’s growth are likely to have been rising active records and higher verification hit rates, driven by EWS’s expanded data integrations with HR software companies, resulting in higher-income and employment datasets.

The adjusted EBITDA for Workforce Solutions is anticipated to be $365.7 million, implying a 3.6% rise from the year-ago quarter’s actual. Growth in adjusted EBITDA is likely to have been driven by cost efficiencies realized through the transition to cloud-native infrastructure, which shortens the development lifecycle of new products.

We anticipate the U.S. Information Solutions (“USIS”) segment to generate $524.2 million in revenues, suggesting a 14.5% increase from the year-ago quarter’s reported figure. This growth is likely to have been driven by rising core online transaction revenues for both auto lending and financial institutions, as well as robust growth in the USIS B2C segment. Adjusted EBITDA for USIS is expected to dip 10.2% year over year to $201 million.

International revenues are estimated to gain 5.6% from the year-ago quarter to $373.3 million. Steady growth across the operating regions is expected to have benefited this segment. For this segment, adjusted EBITDA is expected to be $110.7 million, implying 18.5% year-over-year growth.

The consensus estimate for earnings per share is pegged at $2.21, hinting at a 10.5% year-over-year dip. Robust top-line growth, coupled with cost discipline, is expected to have aided the bottom line.

What Our Model Says About EFXOur proven model does not conclusively predict an earnings beat for Republic Services 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. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Equifax has an Earnings ESP of -0.33% and a Zacks Rank of 3 at present.

Stocks to ConsiderHere are a few stocks from the broader Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this season.

Klarna Group plc (KLAR - Free Report) : The Zacks Consensus Estimate for the company’s second-quarter 2026 revenues is pegged at $987.9 million, indicating year-over-year growth of 20%. For loss, the consensus estimate is pegged at 7 cents per share, whereas it incurred a loss of 14 cents in the year-ago quarter. The company beat the consensus estimate in the first quarter of 2026 by 94.4%.

KLAR has an Earnings ESP of +43.34% and sports a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is scheduled to declare second-quarter 2026 results on Aug. 18.

Thomson Reuters (TRI - Free Report) : The Zacks Consensus Estimate for second-quarter 2026 revenues is $1.9 billion, indicating 7.3% growth from the year-ago quarter’s actual. For earnings, the consensus estimate is 96 cents per share, suggesting 9.1% growth from the year-ago quarter’s reported number. TRI surpassed the consensus estimate in the past four quarters, with an average beat of 3.1%.

Thomson Reuters has an Earnings ESP of +2.35% and a Zacks Rank of 2. It is scheduled to declare second-quarter 2026 results on Aug. 5.

Space stocks are being battered this week, and AST SpaceMobile NASDAQ: ASTS is no exception. Shares of the Midland, Texas-based company have plummeted more than 18% since the market closed on Wednesday, July 15, and the principal culprit seems to be souring investor sentiment in that corner of the market.

AST SpaceMobile, Inc. (ASTS) Price Chart for Friday, July, 17, 2026

With SpaceX NASDAQ: SPCX now trading below its IPO price, the Elon Musk-led firm’s poor performance has reverberated through the industry. Key rivals—including space-based direct-to-device (D2D) cellular broadband provider AST SpaceMobile, launch services provider Rocket Lab NASDAQ: RKLB, and commercial lunar exploration services provider Intuitive Machines NASDAQ: LUNR—have posted losses ranging from 18% to 26% over the past five days.

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For ASTS shareholders, elevated volatility has become the expectation. But this recent development builds upon a more concerning, lengthier downtrend that has seen the stock slide nearly 60% since hitting its all-time high (ATH) on May 28.

AST SpaceMobile Is a Secondhand Victim of Both SpaceX’s Fallout and SuccessOn Thursday, July 16, shares of SPCX traded around 42% below their post-IPO high. That performance reflects the broader, ongoing pullback for CapEx-intensive tech stocks, which has had an outsized impact on the AI infrastructure trade.

But for space stocks, it has taken the form of an outright correction. As a D2D competitor to SpaceX, AST SpaceMobile has seen some of the worst losses as negatively shifting sentiment has coincided with the company’s poorly received offering of $1 billion in convertible senior notes, which come due in 2034. That has led to speculation that the capital-intensive nature of its fundamental business is cause for concern moving forward.

AST SpaceMobile Today

$61.03 +6.02 (+10.94%)

As of 01:10 PM Eastern

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

52-Week Range$36.08▼

$133.86Price Target$86.95

With SpaceX faltering, the spotlight has also turned to AST SpaceMobile’s balance sheet.

The company is forecast to spend roughly $3 billion this year and next, with positive free cash flow not expected until at least 2028.

Scaling to the extent that AST SpaceMobile is capital-intensive. In Q1, that contributed to year-over-year (YOY) net income contraction of more than 292% despite YOY revenue growth of more than 1,952%.

Subsequently, earnings per share (EPS) have suffered. In Q1, diluted EPS came in at negative 66 cents, missing the negative 23-cent consensus and marking the worst performance since the company went public in April 2021.

Meanwhile, SpaceX’s Starlink D2D dominance is fueling concerns that AST SpaceMobile’s BlueBird deployments are failing to keep up with the company’s 2026 launch target of putting 45 satellites into low Earth orbit by early next year.

A New AST SpaceMobile 2x Leveraged ETF Fails to Attract InflowsWhile there are plenty of fundamental reasons for investors to be concerned, another comes in the form of a poorly timed leveraged exchange-traded fund (ETF) debut.

On June 23, Leverage Shares launched nine new 2x single-stock leveraged ETFs, one of which was the Leverage Shares 2X Long ASTG Daily ETF NASDAQ: ASTG. According to a press release, “the new Cboe-listed ETFs are tailored to target 200% exposure to the daily performance of their underlying stocks.”

As a result, since its post-debut peak on July 2, the ETF has doubled ASTS’ losses and is down around 63%. The poor timing of its issuance has disincentivized inflows for the fund and added another sell-the-news headwind for AST SpaceMobile, much to the benefit of short sellers (more on that below).

Wall Street’s Outlook Remains Rightfully ReservedAST SpaceMobile Stock Forecast Today12-Month Stock Price Forecast:
$86.95
51.39% Upside

Hold
Based on 11 Analyst Ratings

Current Price$57.44High Forecast$108.00Average Forecast$86.95Low Forecast$45.60AST SpaceMobile Stock Forecast Details

Apart from being the foremost competitor to SpaceX, AST SpaceMobile’s most distinguishing hallmark is perhaps its exceptionally high volatility, which is demonstrated by its current beta of 2.69.

For speculative investors who are comfortable with the company operating at a sizable loss—both presently and into the foreseeable future—ASTS’ crash from its ATH may be an ideal setup for entry. The stock’s $87 consensus price target implies nearly around 58% upside from current prices.

That may in part explain bullish buying among institutional investors. In Q2, inflows of $110 million easily surpassed outflows of $1.77 million, building upon the momentum seen in Q1 with $329 million in inflows versus $19 million in outflows.

But for Wall Street’s pundits, AST SpaceMobile’s heightened volatility is a red flag.

Overall, ASTS receives a consensus Reduce rating. Of the 11 analysts currently covering the stock, three assign it a Sell rating, six assign it a Hold rating, and just two assign it a Buy rating. Current short interest remains concerningly high at more than 21%, or 64.7 million shares of the approximately 388 million shares outstanding.

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

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and AST SpaceMobile wasn't on the list.

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3 Regional Bank Stocks to Buy on Relaxed RegulationsRegions Financial NYSE: RF reported second-quarter 2026 earnings of $549 million, or $0.64 per share, with adjusted earnings of $583 million, or $0.68 per share, executives said on the company’s earnings call.

Chairman, President and CEO John Turner said the Birmingham, Alabama-based regional bank delivered adjusted pre-tax, pre-provision income of $831 million and an adjusted return on tangible common equity of 20%. Turner said the quarter reflected “disciplined execution across the franchise” and the benefits of investments intended to support profitable growth.

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New York Community Bank stock plummets amid real estate risksRegions’ leadership characterized the operating backdrop across the bank’s markets as solid despite continued uncertainty. Turner said businesses are generally well-positioned, investment and job growth remain steady, and consumer spending trends remain healthy. He also said customers continue to maintain solid account balances and liquidity buffers relative to spending.

Loan Growth Strengthens as Pipelines Build CFO Anil Chadha said average loans increased approximately 2% during the quarter, while ending loans rose 1%. Growth was driven by broad-based commercial and industrial lending, including power and utilities, manufacturing, government and public sector, and retail trade. Investor real estate also grew from a smaller base, led by multifamily, supported by production and bridge financing tied to maturing credits.

Challenges Loom for Regional Banks as Interest Rates SurgeChadha said more than half of the quarter’s loan growth consisted of investment-grade credits. He added that loan pipelines were up roughly 15% from a year ago and remained diversified across industries, markets and client segments. Consumer loan balances were relatively stable as new production roughly matched paydowns, primarily in residential mortgage and home improvement financing.

Regions maintained its outlook for full-year average loan growth to be up low single digits compared with 2025.

During the question-and-answer session, Turner described the loan demand environment as “constructive,” saying demand was broad-based across industry sectors and geographies. He also said line utilization increased by about 100 basis points during the quarter, reflecting ongoing investment by customers.

Deposits Rise Modestly, Net Interest Income Improves Average deposits increased modestly in the second quarter, while ending deposits declined approximately 1%, which Chadha attributed to normal seasonal patterns related to tax refunds and payments. Turner said average deposits included more than 1% growth in non-interest-bearing deposits, supported by household and operating account growth.

Chadha said Regions’ non-interest-bearing deposit mix remained in the low 30% range, consistent with the bank’s target and reflective of the operational nature of its deposit base. He said the company continued to see deposits shift from certificates of deposit into money market accounts across consumer and wealth management segments, driven by its product management strategy.

Net interest income increased 2% from the prior quarter. Chadha said the increase was driven by favorable repricing dynamics, disciplined deposit cost management and loan balance growth. The net interest margin was 3.66%, and interest-bearing deposit costs declined three basis points to 1.69%.

Regions expects third-quarter net interest income to increase approximately 2% and said it is progressing toward the middle of its full-year net interest income growth outlook of 2.5% to 4%. Chadha said the bank expects its net interest margin to exit 2026 at approximately 3.7% based on current expectations for loan growth.

Fee Revenue Gains Led by Wealth Management Adjusted non-interest income increased 7% from the prior quarter, with growth across several core fee categories partly offset by lower bank-owned life insurance and commercial credit fees. Wealth management income rose 6% and reached another record quarter, driven by higher production and favorable market conditions.

Card and ATM fees increased 8%, primarily due to seasonally higher transaction volumes. Capital markets income, excluding credit valuation adjustment, increased modestly as improvements in loan syndications, M&A advisory fees and real estate capital markets offset lower commercial swap income.

Turner said higher long-term interest rates have affected capital markets and residential mortgage activity, but other fee businesses remained solid. Regions continues to expect adjusted non-interest income to grow 3% to 5% for full-year 2026 compared with 2025, though Chadha said results are now expected to trend toward the lower end of that range.

Turner also highlighted the company’s announced acquisition of Frazer Lanier Company after quarter-end. He described Frazer Lanier as a full-service investment banking firm with strong municipal securities capabilities and said the transaction is intended to expand Regions’ capital markets platform and municipal finance expertise.

Credit Metrics Improve, Reserves Decline Asset quality improved during the quarter. Chadha said annualized net charge-offs declined 12 basis points to 42 basis points of average loans. Business services criticized loans and non-performing loans both declined, with the business services criticized ratio falling 14 basis points to 5.01% and the non-performing loan ratio declining four basis points to 67 basis points.

The allowance for credit losses declined $34 million, primarily due to continued resolution of previously reserved charge-offs, partially offset by reserve builds related to high-quality loan growth. The allowance for credit losses ratio declined to 1.63%.

Regions maintained its expectation that full-year 2026 net charge-offs will be between 40 and 50 basis points. In response to an analyst question, Turner said credit has continued to improve and “normalize,” citing reductions in business office, trucking and communications portfolios of interest. He said Regions is seeing “a little softness” in multifamily in a couple of Texas markets, but added that there was nothing “particularly concerning” at this point.

Capital Returns Include Dividend Increase Regions ended the quarter with an estimated common equity tier 1 ratio of 10.7%. The company repurchased $59 million of shares and paid $226 million in common dividends during the quarter.

Chadha said the board approved a 13% increase in the quarterly common stock dividend to $0.30 per share. He said Regions has increased its dividend at a 16% compound annual growth rate over the past 10 years, placing it within the top quartile of its peer set.

The company also received its 2026 supervisory capital stress test results from the Federal Reserve. Chadha said Regions’ stress capital buffer will remain at the regulatory floor of 2.5%, and he said the results reinforced the resilience of the bank’s earnings profile, balance sheet and capital position.

Executives reiterated that Regions expects adjusted non-interest expense to rise 1.5% to 3.5% for full-year 2026 and expects to deliver full-year adjusted positive operating leverage. Chadha said confidence in that outlook is supported by expected revenue growth in the second half of the year and continued expense discipline.

About Regions Financial (NYSE:RF)Regions Financial Corporation NYSE: RF is a U.S. bank holding company headquartered in Birmingham, Alabama, that provides a broad range of banking and financial services. Its primary banking subsidiary, Regions Bank, serves retail and commercial customers through a combination of branch and ATM networks, digital channels and relationship-based delivery. The company offers deposit accounts, consumer and commercial loans, mortgage origination and servicing, and payment and treasury services.

In addition to core banking, Regions offers wealth management, trust and brokerage services, insurance solutions, and capital markets capabilities to corporate and institutional clients.

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

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Tesla Inc (NASDAQ:TSLA) is heading into its second-quarter earnings report with robotaxis doing most of the talking.

Bank of America reiterated its Buy rating on the stock and $460 price objective, pointing to the service's rapid expansion, a delivery number that blew past Wall Street estimates, and looming production milestones for the company's Optimus humanoid robot.

The bank said investor focus will center on the pace of robotaxi fleet scaling and new market launches. Tesla now operates in five markets following its July 3 launch in Miami, though its San Francisco service still requires a safety driver. Four additional markets are in preparation, compared with the company's original target of nine cities by the first half of 2026.

Tesla's Texas fleet has scaled quickly, adding more than 100 vehicles over the past month to reach 175, the fastest growth among the robotaxi operators Bank of America tracks. Safety data has remained compelling, with 22 incidents recorded through mid-June since the service's inception and no serious injuries or fatalities. A San Francisco pricing study the bank conducted in June found Tesla was 21% cheaper on average than Waymo, Uber and Lyft, though wait times ran three to four times higher, suggesting demand is outpacing supply.

On the core auto business, Tesla reported second-quarter deliveries of approximately 480,000 vehicles, above consensus estimates of about 406,000 and up 25% year-over-year. That compares with S&P forecasts for global battery electric vehicle sales growth of 15% year-over-year, suggesting Tesla gained roughly 95 basis points of BEV market share. U.S. share rose 50 basis points year-over-year to 46.1% in the quarter.

Bank of America also flagged upcoming updates on Optimus. Tesla is targeting initial production at Fremont for late July or August, around the same time as a possible Gen 3 reveal, with Giga Texas production expected around summer 2027. The bank expects a slow ramp but sees long-term opportunity, forecasting global humanoid shipments of 1.2 million units by 2030 and 10 million by 2035.

Beyond Optimus, the bank expects focus on energy storage following Tesla's agreement with NatPower for 25 GWh using its Megapack system. Tesla remains the leading battery energy storage systems company in the U.S., an area now drawing entrants including Ford, General Motors and BorgWarner.

Bank of America said Tesla is in the early stages of monetizing its autonomy capabilities, which it views as the most significant change agent in the shift toward autonomous, electric transportation.

Amazon-owned Zoox recalled software in 105 of its robotaxis over concerns its vehicles failed to detect heavy smoke and drove into it.

Zoox notified the National Highway Traffic Safety Administration of the recall on July 8 and said it became aware of the smoke detection issue following an incident last month.

On June 20, an unoccupied Zoox robotaxi encountered heavy smoke that obscured an active emergency fire scene that was not cordoned off with cones, the company wrote in its report. The vehicle entered the scene, then braked hard while attempting to steer away before coming to a stop, Zoox said.

The company said the incident took place in Las Vegas.

A Zoox teleguidance employee instructed the vehicle to reverse, then first responders placed traffic cones to block off the scene, according to the report.

Zoox said it investigated the incident and determined it's "the only event of this kind" that has occurred. No injuries were identified.

Read more CNBC tech newsElon Musk's Memphis AI empire is the epicenter of the data center backlashChinese startup Moonshot AI unveils Kimi model it says rivals OpenAI, AnthropicSpaceX stock falls after Starship test flight abortedMicrosoft's Nadella criticizes Anthropic's Fable for being 'editorially controlled'Amazon acquired Zoox for $1.3 billion in 2020. The company operates driverless buggies that have no steering wheel or pedals, and feature four carriage-style seats that face inward, giving them a shuttle-like atmosphere.

Zoox currently offers free rides in parts of Las Vegas and San Francisco, and it's allowing select users to hail its robotaxis in small zones in Miami and Austin, Texas. Testing is also underway in six other U.S. cities.

The voluntary recall comes after NHTSA Administrator Jonathan Morrison last week issued a directive to autonomous vehicle developers to ensure their vehicles get out of the way of first responders.

Morrison said in the letter that the agency has "identified a clear pattern of driverless AVs interfering with law enforcement and other first responders," citing incidents where AVs drove into active emergency scenes, blocked the paths of ambulances or firefighters, or failed to recognize or respond to flashing lights, flares, smoke, fire and traffic cones.

He called on AV developers and operators "to immediately focus their resources on fixing this issue" and present their solutions to the agency by the end of the month. The letter doesn't name specific AV companies.

Zoox issued several software recalls last year to address issues over lane crossings, as well as its ability to predict the movement of other vehicles and pedestrians.

The company is racing to catch up to Alphabet's Waymo, which is the dominant robotaxi service in the U.S., with a fleet of about 4,000 automated vehicles in the country.

Last month, Waymo recalled about 3,900 robotaxis after some of its vehicles drove into closed construction zones on freeways, increasing "the risk of a crash."

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Apple overtook Nvidia on Friday to become the world’s most valuable company, reshuffling the top ranks of tech heavyweights as investors reassess the outlook for artificial intelligence.

Apple was last valued at $4.88 trillion as its shares held steady, while Nvidia was roughly at $4.86 trillion, following a 3.5% decline.

The shift in the pecking order illustrates that investors are broadening their focus beyond the most obvious beneficiaries of the AI boom, such as Nvidia, which had been at the helm for nearly a year. 

The iPhone maker is reclaiming the top spot for the first time since April last year. REUTERS Apple is reclaiming the top spot for the first time since April last year.

“Apple was seen as a laggard in the AI race because it wasn’t spending to develop models, but now sentiment has changed,” said Toni Meadows, head of investment at BRI Wealth Management.

“Apple is less exposed to capex intensity and better positioned to monetize AI via services, ecosystem lock-in, and hardware upgrades. The re-rating reflects confidence in earnings durability rather than speculative AI upside.”

For a company that was often seen trailing in the AI race, the milestone reflects Apple’s efforts to establish itself more firmly among the sector’s leading players, and could shape how CEO Tim Cook’s final months at the helm are viewed.

Cook is preparing to cede his role to hardware veteran John Ternus in September.

Last month, the company rolled out a long-delayed overhaul of Siri, betting the upgraded assistant would help close the gap ‌with Big Tech rivals and new-age startups in the crucial AI race.

Apple CEO Tim Cookt with his successor John Ternus earlier this month. Getty Images Some analysts say Apple is sitting on an ​AI gold mine in the form of the personal data that lives on every iPhone.

The data could make Siri’s answers more useful and the assistant more capable.

The challenge is that such data is locked away in operating systems in the name of privacy and the company would have to find a way to unlock its value.

AI spending lifts new winners Nvidia became the first company in the world to surpass a $5 trillion market valuation in October, a landmark that propelled it into a rarefied territory that was far beyond the reach of its rivals.

Being superseded by Apple does not necessarily signal a lasting change in the companies’ relative standing. The chipmaker remains a major beneficiary of AI-related spending, and its graphics processors are powering much of the generative AI frenzy.

Nvidia could also reclaim the top spot if sentiment shifts.

Nvidia became the first company in the world to surpass a $5 trillion market valuation in October. CEo Jensen Huang, above. Getty Images Besides, Apple is in a delicate position itself, having raised prices to offset rising costs — a strategy that could hurt demand.

“I don’t see any meaningful distinction. Nvidia likely to be a significant participant in whatever happens going forward,” said Benjamin Hall, vice president, alpha research at Segal Marco Advisors.

However, the AI enthusiasm has spread to other corners of the semiconductor industry. The bigger winners this year have been memory chipmakers such as Micron, which crossed $1 trillion in market value in May as investors embraced the significance of memory chips in AI infrastructure.

South Korea’s SK Hynix also listed on the Nasdaq earlier this month, adding another player to the race for investor attention.

South Korea’s SK Hynix also listed on the Nasdaq earlier this month, adding another player to the race for investor attention. REUTERS “The new entrants to the market could spread out the focus away from the pure Magnificent Seven names into a wider number of names,” Hall said.

The eye-watering chips rally ran into turbulence in July as investors reassessed the sustainability of the artificial intelligence trade, knocking the Philadelphia SE Semiconductor index down almost 19% from its all-time highs.

Despite the steep fall, the index has performed better than Nvidia so far this year.

Procter & Gamble (PG 0.12%) raised its quarterly dividend 3% in April to $1.0885 per share, marking its 70th consecutive year of dividend increases. Only five other publicly traded companies have raised their payouts for that many years in a row.

The streak is even more remarkable when you zoom out. P&G has paid a dividend every year since its incorporation in 1890 -- 136 straight years. And the payments are enormous in absolute terms, too. The company behind Tide, Pampers, and Gillette expects to pay around $10 billion in dividends in fiscal 2026, plus roughly $5 billion in share repurchases on top of it.

A streak like this is only possible because of what P&G sells. Detergent, diapers, razors, and paper towels get bought in good economies and bad ones, and the company's latest results show that durability at work. In its fiscal 2026 third quarter (the period ended March 31), P&G's organic sales, which exclude currency moves, acquisitions, and divestitures, grew 3% year over year, and core earnings per share rose 3% to $1.59. Management also maintained its full-year outlook even while absorbing tariff-related costs.

Image source: Procter & Gamble

Is the stock a buy for income? With shares trading near $148, P&G stock yields about 2.9% as of this writing. The payout consumes about 63% of the company's earnings over the past 12 months, a level that leaves room for the increases to continue. And the valuation looks arguably reasonable, too. Shares trade at about 21 times earnings -- not a bargain, but hardly a demanding price for a business this durable.

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Income investors should like that trade-off. This is a slow-growth business, with organic sales rising at a low single-digit rate, so nobody should expect the stock to keep up with the market's fastest growers. But the dividend is well covered by earnings, the raises keep coming, and 70 years of history suggest the payout can survive whatever the economy does next.

For investors looking for dependable income, P&G remains one of the simplest options in the market: a nearly 3% yield, backed by one of the longest dividend-growth streaks any company has ever put together.

Daniel Sparks and his clients do not have positions in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Key Takeaways GM to report Q2 2026 results on July 21, with the consensus mark for EPS of $3.13 and revenues of $45.96B.GM's China restructuring and rising digital revenues are expected to support second-quarter results. GMNA revenues are projected to fall, while GMI and GM Financial sales are expected to increase. General Motors Company (GM - Free Report) is slated to release second-quarter 2026 results on July 21, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at $3.13 and $45.96 billion, respectively.

For the second quarter, the consensus estimate for General Motors’ earnings has moved up 2 cents over the past seven days. Its bottom-line estimates imply growth of 2.37% from the year-ago reported numbers.

The Zacks Consensus Estimate for GM's quarterly revenues implies a year-over-year decline of 2.5%. The company's earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 20.25%. This is depicted in the graph below:

Q1 HighlightsIn the first quarter of 2026, General Motors reported adjusted earnings of $3.70 per share, which rose 33% from $2.78 a year ago. The figure topped the Zacks Consensus Estimate of $2.61 by 41.8%. Revenues of $43.62 billion slipped 0.9% year over year and missed the consensus mark of $43.94 billion by 0.7%.

Things to NoteGeneral Motors’ China restructuring continues to show traction, with first-quarter 2026 China equity income reported at $165 million (its sixth quarterly gain), reflecting restructuring benefits and disciplined production and inventory management. It expects China to remain profitable in 2026.

The automaker is building a larger recurring revenue base from OnStar and Super Cruise. In first-quarter 2026, recognized digital revenues exceeded $750 million, up more than 20% year over year, and deferred revenues reached $5.8 billion, up more than 50%. Management expects recognized digital revenues of about $3.1 billion in 2026 and deferred revenues approaching $7.5 billion by year-end as subscribers rise to roughly 13 million.

Restructuring benefits in China and strong revenues from the software and services business are likely to have enhanced the performance of GM in the second quarter.

In the second quarter of 2026, General Motors’ brands Cadillac, Buick, Chevrolet and GMC recorded a year-over-year decline of 19.2%, 7.5%, 3.9% and 0.3%, respectively.

Let’s have a look at our estimates for GM’s segmental performance.

We expect GM North America (GMNA) revenues to be $37.8 billion, suggesting a year-over-year decline of 4.3%. For GM International (GMI), we expect sales of $3.75 billion, indicating a 12.8% year-over-year increase. We project GM Financial sales to be $4.35 billion, suggesting a rise of 2.3% year over year.

Our estimate for the GMNA segment’s operating income is $3.03 billion, which suggests a rise of 35.7% year over year. We expect GMI's operating income to be $140.3 million, suggesting a decline of 31.2% year over year. Our estimate for the GM Financial operating income is $731.7 million, suggesting a rise of 3.9% year over year.

Earnings WhispersOur proven model predicts an earnings beat for General Motors for the quarter to be reported, as it has the right combination of the two key ingredients. A positive Earnings ESP, combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat. This is the case here.

Earnings ESP: GM has an Earnings ESP of +5.17%. This is because the Most Accurate Estimate is pegged higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: It currently carries a Zacks Rank #3.

Other Stocks With the Favorable CombinationHere are a few other players from the auto space that, per our model, have the correct ingredients to post an earnings beat this time.

Gentex Corporation (GNTX - Free Report) is slated to release second-quarter 2026 results on July 24. The company has an Earnings ESP of +0.67% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for GNTX’s to-be-reported quarter’s earnings and revenues is pegged at 50 cents per share and $669 million.

Cummins Inc. (CMI - Free Report) is slated to release second-quarter 2026 results on August 4. The company has an Earnings ESP of +0.43% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for CMI’s to-be-reported quarter’s earnings and revenues is pegged at $7.34 per share and $9.33 billion.

BorgWarner Inc. (BWA - Free Report) is slated to release second-quarter 2026 results on August 5. The company has an Earnings ESP of +0.62% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for BWA’s to-be-reported quarter’s earnings and revenues is pegged at $1.26 per share and $3.58 billion.

Allstate’s Comeback Is Turning Into a Profit MachineTravelers Companies NYSE: TRV reported what executives described as an “excellent” second quarter of 2026, supported by strong underwriting results across all three business segments, higher investment income and favorable reserve development.

Chairman and Chief Executive Officer Alan Schnitzer said the insurer earned core income of $2.2 billion, or $10.04 per diluted share, and generated a core return on equity of 24.9% for the quarter. Over the trailing four quarters, Travelers produced a core return on equity of 24.2%.

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3 Insurance Stocks That Can Act as a New Inflation Hedge “We’re pleased to report an excellent second quarter and another in a sustained run of successful quarters, with very strong underwriting performance across all three segments and a terrific result from our investment portfolio,” Schnitzer said.

Pre-tax underwriting income totaled $1.7 billion, while the combined ratio improved to 83.6%. The underlying combined ratio improved to 84.1%, which management attributed to a lower underlying loss ratio. Chief Financial Officer Dan Frey said underlying underwriting income reached $1.3 billion after tax, marking the company’s eighth consecutive quarter above $1 billion.

Investment Income and Capital Returns Strengthen Results 3 Insurance Stocks Hitting 52-Week Highs With More Room to RunAfter-tax net investment income rose 14% from the prior-year quarter to $883 million. Frey said fixed income investment income benefited from higher yields and a higher level of invested assets, while alternative investment income also increased. He noted that new money yields at the end of the second quarter were about 90 basis points above the yield embedded in the portfolio.

Travelers expects fixed income net investment income, including earnings from short-term securities, of approximately $840 million in the third quarter and roughly $870 million in the fourth quarter, consistent with prior guidance, Frey said.

Operating cash flow was $1.9 billion for the quarter and surpassed $11 billion over the trailing 12 months. Adjusted book value per share, which excludes unrealized investment gains and losses, was $168.20 at quarter-end, up 16% from a year earlier.

The company returned more than $1.5 billion of capital to shareholders during the quarter, including $266 million of dividends and $1.3 billion of share repurchases. Frey said Travelers had about $3.9 billion remaining under prior board authorizations for buybacks.

Schnitzer emphasized that the company’s capital management priorities remain reinvestment in the business, organic or inorganic, where attractive returns are available, followed by returning excess capital to shareholders.

Business Insurance Posts Record Segment Income Business Insurance generated segment income of $1.2 billion, a second-quarter record, according to Greg Toczydlowski, president of Business Insurance. The segment’s underlying combined ratio was 88.2%, also a second-quarter record.

Net written premiums in Business Insurance reached $6 billion. Excluding the impact of the sale of the company’s Canadian business in the first quarter, net written premiums increased 5% from the prior-year quarter. Toczydlowski said growth was led by a 7% increase in Middle Market and a 4% increase in Select.

National property premiums declined as Travelers maintained disciplined underwriting standards, passing on business where pricing and terms did not align with the company’s view of risk. However, Schnitzer said property premiums were higher in both small commercial and middle market businesses.

Renewal premium change in the segment was 4.8%. Excluding property, renewal premium change was 7.8% and roughly flat sequentially. Retention remained strong at 86%, while new business reached a quarterly record of $805 million, up 8% from the prior-year quarter.

In response to an analyst question about whether Travelers might relax underwriting standards or pricing to accelerate growth given its elevated return on equity, Schnitzer rejected the idea.

“Competing on pricing in this business is a fool’s errand,” Schnitzer said. He added that Travelers’ objective is to compete on franchise value rather than lower prices.

Bond & Specialty Insurance Benefits From Surety Growth Bond & Specialty Insurance reported segment income of $234 million and a combined ratio of 82.8%. Net written premiums rose 14% to a record $1.2 billion.

Jeff Klenk, president of Bond & Specialty Insurance, said domestic management liability retention improved to 88%, while renewal premium change remained consistent. New business in that area increased 8%.

The company’s surety business posted 40% growth in net written premiums, also reaching a record level. Klenk said production was broad across the portfolio and included a small number of large projects as well as increased bonding for data center development.

Asked about the durability of surety growth, Klenk said surety production can vary because most production comes from new bonds rather than renewals. Still, he said Travelers is positioned to benefit from future infrastructure investment, including public spending and data center-related projects.

Personal Insurance Delivers Strong Profitability Personal Insurance generated segment income of $827 million. Michael Klein, president of Personal Insurance, said the result reflected strong underlying underwriting income, modest catastrophe losses and favorable prior-year reserve development.

The segment’s combined ratio was 79.5%, while the underlying combined ratio was 77.3%. Net written premiums totaled $4.3 billion, with solid retention in both automobile and homeowners and higher new business in homeowners.

In automobile, the combined ratio was 82.8%, including a 4.5-point benefit from favorable prior-year reserve development. The underlying combined ratio improved slightly more than three points from the prior-year quarter to 85.8%. Klein said favorable loss experience across coverages contributed to the improvement, including about a two-point benefit from re-estimating the prior quarter in the current year.

In homeowners and other, the combined ratio was 76.7%, reflecting modest catastrophe losses and very strong underlying underwriting income. The underlying combined ratio was 70.1%, comparable with a strong prior-year quarter.

Klein said Travelers continues to pursue profitable growth by adjusting rates to reflect profitability, enhancing product and pricing segmentation, refining eligibility restrictions and seeking new agent appointments and book consolidation opportunities.

Technology, AI and Reinsurance Remain Focus Areas Executives repeatedly pointed to technology and artificial intelligence initiatives as contributors to underwriting performance and efficiency. Schnitzer said Travelers continues to invest more than $1.5 billion annually, including in focused technology initiatives such as AI, to strengthen competitive advantages.

Toczydlowski highlighted AI advancements in Travis, the company’s digital platform for small commercial business, including submission uploads, data extraction, pre-filled submission information and underwriting rules that can generate quotes in seconds.

Frey also discussed reinsurance actions. Travelers replaced an expiring catastrophe bond in May with a new bond, increasing the size from $575 million to $750 million and slightly decreasing the retention. On July 1, the company renewed its Northeast property catastrophe excess-of-loss treaty, which continues to provide $1 billion of occurrence coverage above a $2.75 billion attachment point.

Frey said Travelers chose not to renew the personal lines catastrophe excess-of-loss treaty it had purchased in 2024 and 2025, citing the efficiency of its all-perils enterprise-wide general corporate catastrophe treaty renewed at Jan. 1.

Looking ahead, management said it remains confident in the durability of the company’s underwriting income, investment income and balance sheet strength. Schnitzer said Travelers’ earnings engine is “tuned to continue delivering industry-leading returns at industry-low volatility.”

About Travelers Companies (NYSE:TRV)The Travelers Companies, Inc NYSE: TRV is a leading provider of property and casualty insurance products and services. The company underwrites a broad range of commercial and personal insurance lines, offering coverage designed to protect individuals, small and midsize businesses, and large corporate clients against property loss, liability, and other operational risks. Travelers is known for combining underwriting, claims management and risk control services to help clients prevent losses and recover when incidents occur.

On the commercial side, Travelers writes primary and specialty coverages including property, general liability, commercial auto, workers' compensation, professional and management liability, surety and inland marine.

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

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