Track market-moving stories before they get noisy

Key Takeaways SL Green signed 129 Manhattan office leases totaling 1.76 million square feet through Sept. 14, 2026.Occupancy reached 94.7% in June 2026, while replacement leases fetched rents 15.8% above prior rates.SL Green plans to use $216 million in expected sale proceeds to repay debt amid rising interest expenses.
SL Green (SLG - Free Report) is well-positioned to capitalize on rising demand for premium office properties in Manhattan. Strong leasing activity, improving occupancy and higher rental rates support its growth prospects. Its diversified tenant base and strategic capital recycling initiatives are expected to strengthen portfolio quality and financial flexibility.

However, elevated debt, refinancing requirements and geographic concentration remain concerns. Competition from office REITs like Vornado Realty Trust (VNO - Free Report) and BXP, Inc. (BXP - Free Report) also adds pressure.

SL Green's recent leasing momentum highlights sustained demand for its premium office properties. From the beginning of 2026 through Sept. 14, the company signed 129 Manhattan office leases aggregating 1.76 million square feet. Replacement leases were priced 15.8% above previous fully escalated rents.

What's Aiding SL Green?Demand for high-quality, amenity-rich office properties continues to support SL Green's leasing activities. The company benefits from its prime Manhattan locations and strong tenant relationships. Manhattan same-store leased occupancy rose to 94.7% as of June 30, 2026, from 93% at year-end 2025. Same-store cash NOI increased 4.3% year over year in the second quarter of 2026, excluding lease termination income. Management expects leased occupancy to reach 95% by year-end 2026. Similar to Vornado Realty Trust and BXP, SL Green is positioned to benefit from tenants' preference for modern, well-located office properties.

SL Green maintains a diversified tenant portfolio across industries, reducing its reliance on individual tenants. Excluding Paramount Global, no tenant accounted for more than 5% of annualized cash rent as of June 30, 2026, including joint venture exposure. Its long-term lease arrangements provide revenue visibility and support relatively stable rental cash flows. During the first half of 2026, Manhattan office leases carried an average term of 8.5 years.

SL Green continues to pursue acquisitions, dispositions and joint ventures to enhance portfolio quality. In September 2026, SL Green agreed to sell 110 Greene Street in SoHo for $226 million, with approximately $216 million in expected net cash proceeds earmarked for unsecured corporate debt repayment. Such initiatives should provide financial flexibility and support long-term growth.

What's Hurting SL Green?SL Green operates in a competitive office real estate market, facing pressure from other property owners and developers. Established office REITs, including Vornado Realty Trust and BXP, compete for tenants seeking premium office space. Such competition may require SL Green to provide attractive leasing incentives, affecting net effective rental growth. During the first half of 2026, its Manhattan office leases carried average concessions of 8.8 months of free rent and tenant improvement allowances of $91.89 per rentable square foot.

SL Green's portfolio remains heavily concentrated in Manhattan, making its operating performance sensitive to New York City's economic conditions. As of June 30, 2026, the company held interests in 54 buildings totaling 30.6 million square feet, with most ownership exposure tied to Manhattan commercial assets. A slowdown in local office demand could adversely affect occupancy and rental revenues.

Elevated leverage and interest expenses remain major concerns. SL Green's consolidated debt totaled $4.55 billion as of June 30, 2026. Variable-rate debt increased to 20.4% from 9.1% at year-end 2025. Interest expense, net of interest income, rose to $54 million in the second quarter of 2026 from $45.3 million a year earlier. This increases the company's vulnerability to refinancing challenges and unfavorable interest-rate movements.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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

The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move lower.

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

Zacks Consensus EstimateThis heating and cooling products maker is expected to post quarterly earnings of $1.47 per share in its upcoming report, which represents a year-over-year change of +38.7%.

Revenues are expected to be $964.62 million, up 30.6% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 13.77% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

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

Price, Consensus and EPS Surprise

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

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

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

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

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

How Have the Numbers Shaped Up for Modine?For Modine, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.

On the other hand, the stock currently carries a Zacks Rank of #5.

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

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

For the last reported quarter, it was expected that Modine would post earnings of $1.27 per share when it actually produced earnings of $1.53, delivering a surprise of +20.47%.

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

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

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

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

Expected Results of an Industry PlayerAnother stock from the Zacks Automotive - Original Equipment industry, Gentherm (THRM - Free Report) , is soon expected to post earnings of $0.66 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of -9.6%. Revenues for the quarter are expected to be $404.4 million, up 4.5% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for Gentherm has been revised 2.3% down to the current level. Nevertheless, the company now has an Earnings ESP of +0.45%, reflecting a higher Most Accurate Estimate.

This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Gentherm will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.

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

SpaceX (SPCX -1.18%) has gone on a wild ride since its IPO on June 12. The aerospace and AI company went public at $135 per share, closed at a record high of $211.39 on June 16, but now trades at $145. Let's see why it fizzled out -- and if it's worth buying below its IPO price.

Why did SpaceX's stock initially soar?
SpaceX initially attracted a lot of attention because Elon Musk founded it, it was growing rapidly, and it had an early mover advantage in the space logistics, satellite, and AI markets. It capitalized on that hype by offering less than 5% of its shares in its IPO. It allocated about a fifth of those shares to retail investors rather than institutional investors.

Image source: Getty Images.

SpaceX's revenue rose 33% to $18.67 billion in 2025, but Musk declared it could generate $1 trillion in revenue by 2030. That optimistic outlook -- which would require SpaceX to grow its top line at an unprecedented 121.7% CAGR from 2025 to 2030 -- attracted a stampede of bulls.

Why did SpaceX's stock give up most of those gains?
At its peak, SpaceX's market cap reached $2.64 trillion, or 58 times the $45.3 billion in revenue analysts expected it to generate in 2026. Some bulls might argue that its breakneck growth rates justify that premium valuation. Still, rising interest rates and Treasury yields drove investors toward more conservative investments over the following four months.

SPCX Space Exploration Technologies$146.22-$1.74 (-1.18%)

NASDAQ · As of 11:34 AM ET 10/20/26

The tougher macro headwinds also made it tough to overlook SpaceX's massive losses. SpaceX's only profitable business division is Starlink, but the losses at its space and AI businesses are wiping out those profits.

In the first half of 2026, Starlink generated an operating profit of $2.84 billion, which was erased by the space segment's operating loss of $1.20 billion and the AI segment's operating loss of $3.73 billion. Those losses will widen as SpaceX ramps up production of Starship, the largest rocket ever built, and expands its AI business (which includes X, Grok, and Cursor).

Many investors also fretted over SpaceX's lockup expirations, which started in early August and will continue through the end of the year. With so much of its future growth already priced into its stock, it would be tempting for SpaceX's early investors and insiders to take some profits.

What would I do if SpaceX's shares drop below $135?
SpaceX will post its third-quarter earnings after the market closes on Oct. 20. Analysts expect its revenue to rise 65% sequentially -- with its AI revenue climbing 153%, Starlink revenue growing 15%, and its space revenue increasing 52%.

That quarter-over-quarter growth should be driven by the expansion of its AI infrastructure (which secured major contracts with Anthropic and other AI companies), the expansion of Starlink's satellite constellation and subscriber base, and its ongoing rocket launches.

Even if SpaceX matches or beats those estimates, it must grow its backlog -- which reached $47.5 billion at the end of June -- to impress the bulls. It should also lay out clearer plans for monetizing its AI business and kick-starting Starlink's direct-to-cell evolution (which was accelerated by its recent acquisition of 800 MHz spectrum from Grain Management).

At $145, SpaceX still has a market cap of $2.0 trillion, or 45 times this year's sales. If it were to revisit its IPO price, it would be worth about $1.8 trillion, or 40 times this year's sales. The bulls will claim that's a reasonable price for a company that could potentially generate $1 trillion in revenue by 2030, but the bears will argue that it will struggle to reach that ambitious goal.

I personally wouldn't touch SpaceX if it dips slightly below its IPO price, because it could trigger panic selling rather than contrarian buying in this volatile market. But if it sinks much lower, I'd consider nibbling on it as a long-term, speculative play in the space, satellite, and AI markets.

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Among Jim Cramer's many famous phrases, his one about Apple often stands out: Own it. Don't trade it.

The saying speaks to the company's enduring ability to overcome any obstacle, whether it's concerns about new products or worries about the global economy. The tech giant recently topped $5 trillion for the first time and is closing in on Nvidia as the world's most valuable company. More gains could be ahead. 

Apple recently described the demand for the iPhone Duo, the long awaited foldable iPhone as "nothing short of extraordinary" after pre-orders opened last Friday. The demand was so great, that estimated delivery times pushed back to late January (so much for a stocking stuffer) within minutes of orders being accepted. Combine this with Homeview, the company's new smart hub, new MacBook Pro models and iPads with OLED displays and the Mac studio and associated chips released several weeks ago and the hardware landscape for the most successful consumer electronics company in history is starting to compete with the AI trade for investors' attention. The only problem is that the company already has a lot of good news baked into its valuation.

Compounding this hardware momentum is the software catalyst. The deep integration of Apple Intelligence, including upgraded Siri AI and Visual Intelligence, means that Apple is becoming part of the AI story, with the benefit that, on a relative basis, they haven't had the enormous Capex that is concerning those investors who are concerned that the AI trade is getting frothy as many companies use all their organic cash flow (Amazon, Alphabet) or substantially more than their organic cash flow (Oracle). Apple's anticipated revenues for FY2027 exceeds $500 billion. Expected EBITDA exceeds $180 billion, but the company's capex is paltry relative to the other megacaps at only $13.5 billion in Capex. Result? $156 billion in anticipated free cash flow, and the company reported ~$62 billion in net cash when they reported results for the quarter ended June 27th.

Apple, YTD

The primary headwind for AAPL is valuation. With a $5 trillion market capitalization, Apple is contending with the law of large numbers. Moving the needle at this scale requires monumental revenue beats that are increasingly difficult to engineer. This is particularly true as the stock is already priced quite richly. AAPL's trading at nearly 36 FY2027 EPS estimates of 9.59 well above the long-term average multiple. Apple options are priced above average too, and that may be the good news, because elevated short term premium can help finance the purchase of longer dated optionality. With Apple supported by an extraordinary string of recent product releases and massive free cash flow, but possibly suppressed by high valuations, this could be an excellent opportunity for a call spread risk reversal.

The tradeThe Long Leg: February 360 calls The Short Legs: Sell December 310 puts and the December 375 callsSelling the shorter dated December 310-puts and December 375 calls offsets the cost of buying the longer dated February calls. Ideally, you want Apple shares to stay between the two, short strikes by December expiration and above $360 by February expiration. One note of caution. By selling that downside put will tie up some margin, you could be on the hook to buy the stock at the put's strike by expiration.

If AAPL chops sideways as it digests its valuation, the short strangle expires worthless, lowering the cost basis of your long.

Disclosures: Tidal owns/holds all the securities mentioned in the article.

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Tesla's proxy filing attached a staggering number to Elon Musk's 2025 pay, but whether shareholders actually lose anything depends on conditions few companies have ever met before.

Tesla (NASDAQ:TSLA | TSLA Price Prediction) filed its definitive proxy at 6:15 a.m. ET on Monday, October 19, 2026, reports Elon Musk’s 2025 compensation at $158,359,009,867, all of it in stock awards. Salary, bonus, option awards, and other pay are all zero, because Musk has never accepted a salary and Tesla has no cash bonus program for named executives.

That total is an accounting value measured at grant date under the standard stock-compensation rule, though Musk has received no cash and no vested stock from it.

Tesla shares rose 3.76% that day to close at $368.06, leaving it with a market cap of $1.45 trillion. The stock is still down 18.16% for the year, and third-quarter results are expected after the close on Wednesday, October 21.

For owners, the headline number mostly leaves what they own unchanged, although the vote and the earnings report both deserve attention.

The 2025 CEO Performance Award accounts for $132,298,849,867, valued at the maximum assuming every condition is met. It covers about 423.7 million shares of performance-based restricted stock.

The rest is a 2025 CEO Interim Award valued at $26,060,160,000, which was fully forfeited in April 2026. The performance award had not been earned or vested as of the proxy.

How Musk Would Actually Earn the Shares The award is split into 12 tranches. Both milestones must be met. Each pays out only when a market-cap milestone and an operational milestone are both met, and earned shares must be held for five years, subject to limited exceptions.

The operational targets reward businesses the proxy highlights. These include 46.7 gigawatt-hours of 2025 storage installations, up 48.7%, plus Cybercab production at Gigafactory Texas, Robotaxi expansion, the Tesla Semi and Optimus lines.

The share count equals roughly 10.7% of Tesla’s 3,949,547,000 shares outstanding. Shareholders give up that stake only if Tesla becomes a far larger company, which many owners are likely to accept.

What Shareholders Can Change on December 3 The annual meeting is Thursday, December 3, 2026, at 3:00 p.m. Central Time. Shareholders vote on three items. These are re-electing Musk, board chair Robyn Denholm, and JB Straubel; a say-on-pay vote; and approving PwC, with the board recommending approval of all three items.

The pay vote is advisory and cannot undo the award, and the chair managing it is herself a candidate. Last year’s say-on-pay drew approximately 78.2% support, while a proposal to drop supermajority voting failed at approximately 39.4% of outstanding shares.

Why the Earnings Report Matters More In the second quarter, operating expenses rose 47% to $4.35 billion, partly from stock compensation tied to this award. Operating margin fell to 1.4%, and non-GAAP EPS of $0.33 missed the $0.5367 estimate. Key-person risk also remains, because Musk runs SpaceX too and recently promised to give away SpaceX shares.

What Long-Term Tesla Owners Need to Weigh Before Earnings The award matters most to owners with a horizon matching Musk’s five-year holding rule, because the accounting figure costs shareholders nothing unless Tesla’s value grows.

Valuation is the larger risk at a P/E of 383x. ARK’s $4,400 long-term target shows how far bullish assumptions stretch.

The test comes on October 21. If operating margin fails to improve on the second quarter’s 1.4%, the bullish case weakens, and the long-term thesis becomes harder to defend.

Contact [email protected] for any questions or corrections.

The artificial intelligence (AI) revolution has produced two of the fastest-growing start-ups in history. OpenAI burst onto the scene in late 2022 when it launched ChatGPT, introducing consumers around the world to generative AI. Meanwhile, Anthropic has emerged as a formidable competitor with its Claude models.

Both companies' growth has been extraordinary. Following a $122 billion funding round in March, OpenAI reached a valuation of $852 billion, while Anthropic was valued at $965 billion after its Series H round in May. Naturally, AI investors are eager to know when they can buy shares.

Anthropic confidentially filed for an initial public offering (IPO) in June and could make its public debut as soon as next month. OpenAI has also explored going public, although its timing remains uncertain.

Here's an interesting alternative: Rather than waiting for either company to go public at a valuation approaching the trillion-dollar milestone, investors can buy Alphabet (GOOGL -0.76%) (GOOG -0.74%) instead. Alphabet stands to benefit regardless of which AI developer ultimately wins. Read on to learn why.

Image source: Getty Images.

Google Cloud already benefits from OpenAI and Anthropic
One of Alphabet's quiet advantages is that it doesn't need its Gemini AI models to beat ChatGPT or Claude. That reason is Google Cloud provides compute infrastructure to its competitors. In May 2025, OpenAI agreed to use Google Cloud's capacity to train and deploy its AI models.

This relationship is particularly interesting because up to that point, OpenAI was primarily tied to Microsoft Azure. Adding Google provided OpenAI with an alternative source of AI compute while giving Alphabet a hyperscaler customer whose infrastructure requirements are enormous.

Anthropic's relationship with Google runs even deeper. In October 2025, Anthropic announced its use of Google's custom silicon, called Tensor Processing Units (TPUs). In April, this relationship was expanded to include multiple gigawatts of TPU capacity expected to come online in 2027.

These arrangements create an attractive business model for Alphabet because the company can develop AI products for consumers while simultaneously supplying infrastructure that competing enterprises need.

The strategy is already producing impressive results. During the second quarter, Google Cloud revenue surged 82% year over year to $24.8 billion. While not all of that growth came from OpenAI and Anthropic, their expanding infrastructure commitments underscore why Google Cloud should remain a major beneficiary of the AI boom.

GOOGL Alphabet$341.57-$2.61 (-0.76%)

NASDAQ · As of 11:33 AM ET 10/20/26

Alphabet is sitting on a generational multibagger
Alphabet isn't just an infrastructure partner to Anthropic. It's also one of the company's largest investors. Google initially invested in Anthropic in 2023. But by early 2026, Alphabet had invested roughly $3 billion in Anthropic and owned an estimated 14% equity stake. In April, Google announced plans to invest up to another $40 billion. The deal was structured to include an initial $10 billion commitment, with an additional $30 billion contingent on Anthropic meeting certain performance milestones.

Why is Google investing so heavily in a company whose generative models compete directly with Gemini?

The answer is simple: Alphabet is positioned to benefit from Anthropic's success in multiple ways. First, its equity investment will appreciate as Anthropic's valuation increases. Additionally, Anthropic is a major customer for Google's cloud infrastructure and custom AI chips. Third, Google's tie-up with Anthropic gives it exposure to an alternative AI ecosystem, reducing its dependence on Gemini emerging as the industry's go-to model.

This is an unusually versatile position to be in. If Anthropic goes public at its reported $2 trillion valuation, a hypothetical 14% stake would be worth $280 billion. This shows how Alphabet can participate in one of the largest IPOs in history without investors needing to lift a finger and buy Anthropic stock directly.

Alphabet is less speculative than an IPO stock
OpenAI's valuation of $852 billion represents approximately 17 times its reported $50 billion annualized revenue run rate. Meanwhile, Anthropic's $965 billion valuation represents 14 times its Q3 annualized revenue run rate of $67.2 billion. At a $2 trillion IPO valuation, Anthropic would trade at nearly 30 times its current revenue run rate.

These are enormous premiums, especially considering the capital expenditures required to develop advanced AI. Moreover, OpenAI remains unprofitable while Anthropic recently reported a small profit on an adjusted operating basis.

Alphabet offers a much different financial profile. During Q2, the company generated $120 billion in revenue and roughly $40.8 billion in operating income. Alphabet stock trades around a 23 times forward price-to-earnings (P/E) ratio -- a relatively reasonable valuation considering its established and highly profitable advertising and cloud businesses.

While OpenAI and Anthropic could become respected public companies, their anticipated valuations already reflect high expectations. Alphabet offers investors exposure to both AI developers through Google Cloud, an existing equity stake in Anthropic, and its own growing AI ecosystem. Combined with its AI-driven revenue and robust profitability, I see Alphabet as the more compelling AI stock to buy and hold ahead of these anticipated mega-IPOs.

Amazon reports Q3 earnings on Oct. 29, and history says the stock pops. But the earnings beat is the least interesting part of the investment case right now.

I keep following Amazon (NASDAQ:AMZN | AMZN Price Prediction), and with third-quarter results due Oct. 29, the stock is back in focus. Amazon beat Q3 EPS estimates in 2023, 2024, and 2025, and the stock rose 6.83%, 6.19%, and 9.58% on those earnings days. I count that run as a bonus. My real reason sits inside AWS.

AWS Is Reaccelerating, and I Want to Own That Curve
AWS growth went from 20% in Q3 2025 to 24%, then 28%, then 37% in Q2 2026. That quarter delivered $42.23 billion in revenue at a 39.4% operating margin. The backlog stands at $496 billion, growing triple digits. The AI and chips businesses each run above $25 billion annually. Management says AWS could “very possibly be a trillion dollar annual revenue business for us in time.” That compounding engine supports the long-term investment case.

Three Data Points Behind the Amazon Thesis
First, growth is broadening. Q2 revenue hit $200.61 billion, up 19.62%, while operating income rose 43.24% to $27.46 billion. Advertising alone brought in $19.81 billion, up 26%.

Second, its financial position can support the expansion. The debt-to-equity ratio sits at 0.37, interest coverage at 35.17, and cash at $78.21 billion.

Third, the long record rewards patience. Shares gained 540.91% over ten years. Amazon pays no dividend, so reinvested profits do the compounding.

How Amazon Stacks Up Against Microsoft and Alphabet
Microsoft (NASDAQ:MSFT) trades at a lower P/E of 30 against Amazon’s 36. Its latest-quarter operating income grew 18.3%, while Amazon’s grew 43.24%. Amazon’s premium reflects faster profit growth.

Alphabet (NASDAQ:GOOGL) looks cheap at 15 times earnings. To fund its AI buildout, though, it raised roughly $70 billion in equity and debt, suspended buybacks, and lifted long-term debt from $46.5 billion to $98.2 billion. I prefer Amazon’s net debt to EBITDA of 0.45 and no share issuance on that scale.

Risk That Could Actually Hurt Me
Free cash flow turned negative at -$7.6 billion on a trailing basis, and Amazon plans about $200 billion in 2026 capex (all of which has to be powered, cooled, and connected by somebody, which is the whole point of our free report on seven suppliers behind the AI buildout). The P/FCF ratio of 367.88 shows it. Reported earnings also include a $53.4 billion Anthropic gain; adjusted EPS came in at $1.88 versus a $1.83 estimate. Jassy admits Amazon will “encounter free cash flow headwinds until these data centers come online.”

I accept that because servers break even in a little less than three years, last five to six years, and most AI capacity is contracted for at least five-year terms. Most of 2027 capacity is already reserved.

Why AWS Momentum Matters Into Earnings
Jassy notes 85% of global IT spending still sits on-premises. Q3 guidance calls for operating income of $22.5 billion to $26.5 billion versus $17.4 billion a year ago. Oct. 29 will show whether AWS keeps compounding.

Contact [email protected] for any questions or corrections.

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

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 27. On the other hand, if they miss, the stock may move lower.

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

Zacks Consensus EstimateThis airplane builder is expected to post quarterly loss of $0.14 per share in its upcoming report, which represents a year-over-year change of +98.1%.

Revenues are expected to be $24.53 billion, up 5.4% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 52.74% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

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

Price, Consensus and EPS Surprise

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

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

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

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

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

How Have the Numbers Shaped Up for Boeing?For Boeing, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +27.01%.

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

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

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

For the last reported quarter, it was expected that Boeing would post a loss of$0.34 per share when it actually produced a loss of -$0.76, delivering a surprise of -123.53%.

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

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

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

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

Expected Results of an Industry PlayerAnother stock from the Zacks Aerospace - Defense industry, Lockheed Martin (LMT - Free Report) , is soon expected to post earnings of $7.49 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +7.8%. Revenues for the quarter are expected to be $20.43 billion, up 9.8% from the year-ago quarter.

The consensus EPS estimate for Lockheed has been revised 0.1% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -1.24%.

This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Lockheed will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.

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

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

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 27. On the other hand, if they miss, the stock may move lower.

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

Zacks Consensus EstimateThis global payments processor is expected to post quarterly earnings of $3.43 per share in its upcoming report, which represents a year-over-year change of +15.1%.

Revenues are expected to be $12.08 billion, up 12.7% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

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

Price, Consensus and EPS Surprise

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

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

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

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

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

How Have the Numbers Shaped Up for Visa?For Visa, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.66%.

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

So, this combination indicates that Visa will most likely beat the consensus EPS estimate.

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

For the last reported quarter, it was expected that Visa would post earnings of $3.23 per share when it actually produced earnings of $3.32, delivering a surprise of +2.79%.

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

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

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

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

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

Retirees chasing inflation protection face a genuine dilemma: one option guarantees a real return backed by the U.S. Treasury, while the other has raised its payout for 70 straight years but leaves every payment up to a corporate board vote.

Treasury Inflation-Protected Securities (TIPS) carry real yields of 2.52% on the five-year maturity and 2.74% on the 10-year, according to the Treasury real yield curve for Oct. 16, 2026. Each figure is above inflation, and inflation has been running hot. Consumer prices rose about 3.7% in the 12 months through September 2026. That leaves Procter & Gamble (NYSE:PG | PG Price Prediction) facing an awkward comparison: its latest dividend increase came to 3%.

How TIPS Work, From Auction to Maturity
A TIPS is a Treasury note or bond with principal that moves with inflation. In the IRS’s words, these securities “pay interest twice a year at a fixed rate, based on a principal amount adjusted to take into account inflation and deflation.” The coupon rate is set at auction and stays the same for the life of that bond. The principal is what moves. When the Consumer Price Index for All Urban Consumers (CPI-U) rises, the principal rises with it, and each semiannual interest payment grows because the same fixed rate now applies to a larger balance. If prices fall, the principal shrinks and so do the payments.

The real yield is the yield above inflation that the market is pricing in today. The 2.52% and 2.74% figures are market quotes for one date, and they change every trading day. You only lock in a real yield by buying a specific TIPS at that price and holding it until maturity.

You can buy TIPS at Treasury auctions through TreasuryDirect or a brokerage, or buy existing issues on the secondary market through a broker. At maturity, Treasury pays back either the inflation-adjusted principal or the original principal, whichever is larger, so a period of deflation cannot push the final payment below face value.

The full faith and credit of the U.S. government stands behind the interest and principal payments. That backing does nothing for the market price before maturity. If real yields rise after you buy, the bond’s price falls, and selling early can lock in a loss. There is also reinvestment risk: when a TIPS matures, the real yield on offer for its replacement may be lower. The inflation adjustment follows CPI-U, which may not match a retiree’s actual spending, especially on healthcare.

Dividend Safety Comes First: P&G Against a TIPS Coupon
A higher yield means little if the payment is at risk, so safety comes first. P&G has raised its dividend for 70 consecutive years and paid one for 136. In fiscal 2026, it generated $19.56 billion in operating cash flow and $15.84 billion in free cash flow (up 12.74%), against over $10 billion in dividends. Trailing 12-month dividends of $4.2906 per share come to roughly 62% of fiscal 2026 core EPS of $6.89. That ratio leaves room for both the payout and reinvestment in the business.

The pressure is real all the same. Fiscal 2027 guidance calls for core EPS of $6.89 to $7.11, which includes a roughly $1 billion after-tax hit from raw materials, energy, and transportation and assumes Brent crude at $90 a barrel. Organic sales were flat in the fiscal fourth quarter. Management’s answer is pricing power through product upgrades: “Our plan assumes that we continue to price with innovation.” With earnings growth forecast this low, future dividend increases will likely stay modest.

The next quarterly payment of $1.0885 per share goes out on Nov. 16, 2026, to holders of record on Oct. 23, 2026. Based on the annualized dividend of $4.354 and the $157.47 share price on Oct. 19, 2026, the forward dividend yield is about 2.76%. That is a nominal starting yield with no inflation adjustment built in, and it says nothing about where the share price goes. The stock was up 9.61% over the past year and down 1.18% in Monday trading.

A Dividend Can Be Cut, While a TIPS Payment Is Owed
A TIPS interest payment is a legal obligation of the U.S. Treasury. P&G’s board votes on every dividend, one quarter at a time. Seventy years of increases is a powerful track record, but it does not bind the board, and a severe earnings shock could lead to a freeze or a cut. A retiree counting on dividend income takes on business risk that a TIPS holder avoids.

A Dividend Can Outrun Inflation, While TIPS Only Track It
TIPS are built to match CPI-U and add the real yield on top. They will never beat inflation by more than that. A dividend can. P&G’s quarterly payout rose from $1.0065 in October 2024 to $1.0885 in October 2026, an increase of about 8.1%. Over roughly the same period, CPI-U rose about 6.9%, from 315.301 in September 2024 to 336.940 in September 2026. The most recent year shows the other side: a 3% raise fell short of 3.7% inflation. Dividend growth keeps pace with prices only over long periods, and only when earnings cooperate.

If building income you never have to sell to collect is the appeal, that is the whole idea behind a dividend ladder (we laid out how to construct one, step by step, in a free guide here: Never Touch the Principal).

For context, Social Security’s cost-of-living adjustment for 2027 is 3.6%, so most retirees already have one income stream linked to inflation. Last week’s edition covered I bonds, which carry a composite rate of 4.26% for the period May 1 through Oct. 31, 2026.

Taxes Can Decide Which Income Keeps Up
TIPS: Interest is taxed as ordinary income at the federal level and is exempt from state and local income tax. The catch is the inflation adjustment. Under Treasury regulations, an inflation adjustment “is taken into account for each taxable year in which the debt instrument is outstanding,” and a positive adjustment counts as original issue discount (26 CFR 1.1275-7(d)(4)(i) and (iii)). In plain terms, you owe tax every year on the growth in principal, even though you don’t receive that money until the bond matures or is sold. In a high-inflation year, the tax on this so-called phantom income can take a large share of the cash interest. Deflation adjustments work in reverse and reduce the interest you report. Holding TIPS in an IRA or 401(k) avoids the annual mismatch.

P&G dividends: Qualified dividends are added to net capital gain under 26 U.S.C. § 1(h)(11)(A), so they are taxed at the lower long-term capital gains rates instead of ordinary income rates. To qualify, you must hold the shares for more than 60 days during the 121 days around the ex-dividend date, under 26 U.S.C. § 1(h)(11)(B)(iii)(I). You pay tax only on cash actually received, so there is no phantom income, but dividends are generally subject to state income tax. In a taxable account, that favorable federal rate often outweighs the TIPS state tax exemption. For residents of high-tax states, the exemption narrows the difference.

Who Each Option Suits
TIPS suit retirees who need a guaranteed inflation-adjusted floor for spending in specific years, who can hold each bond to maturity, and who have room in an IRA or 401(k) to avoid the phantom-income tax. P&G suits retirees with a long horizon and a taxable account who can tolerate share-price swings, want income that has historically grown faster than prices over multiyear periods, and accept that the board decides every payment. A retiree whose income need is fixed and close at hand fits the first profile—one who can wait out a weak year or two fits the second.

Contact [email protected] for any questions or corrections.

Commodity prices are high, and so too are the valuations of many top oil and gas stocks. ExxonMobil (XOM -1.48%), which is a leading oil producer, has been a top company to invest in this year, with oil prices rising due to the war in Iran. The top oil and gas stock is now up close to 50% since the start of the year, recently hitting not only a new 52-week high but also a new all-time high.

This stock, which investors have typically loaded up on for its long-term stability and dividend growth, has surged tremendously in value this year. The concern for investors, however, may be twofold. One is that the yield has come down as a result of its higher price tag, and the second is that with a high valuation, future returns may be limited.

Is it too late to buy the stock?

Image source: Getty Images.

Why ExxonMobil stock can still rise higherIf a stock has hit a new high, that's typically a positive sign that its business has been doing well and that investors see plenty of growth ahead. ExxonMobil benefits from rising oil prices, and with the war in Iran not ending and potentially intensifying, upward pressure on oil prices may persist for the foreseeable future.

The price of crude oil is around $100 per barrel today, and while that is significantly higher compared to where it was last year, when it was commonly around $60, it's also not quite at the highs it reached back in 2022, when rising inflation sent it north of $115.

Not only might it get back to those levels, but it may potentially rise higher, depending on how long the war drags on.

$175.64-$2.64 (-1.48%)

NYSE · As of 11:24 AM ET 10/20/26

It's not too late to invest in ExxonMobil, especially for dividend investorsExxonMobil stock hasn't run out of room to rise higher by any means. The business has become larger over the years, and it's in an excellent position to benefit from rising oil prices. Although its dividend yield has come down this year because of its rising share price, at 2.3%, the payout is still more than twice the S&P 500 average of just 1%. The company has also raised its dividend for decades, giving investors ample incentive to remain invested in the stock for the long haul.

The oil and gas stock hitting new heights may send alarm bells to investors that its value has been rising and that it's now more expensive to own, but with a solid business and a leadership position in the sector, it can still be an excellent investment to buy and hold.

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

Over the past month, shares of this home-improvement retailer have returned +4.3%, compared to the Zacks S&P 500 composite's +0.7% change. During this period, the Zacks Retail - Home Furnishings industry, which Home Depot falls in, has gained 2.8%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

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

Home Depot is expected to post earnings of $3.86 per share for the current quarter, representing a year-over-year change of +3.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.3%.

For the current fiscal year, the consensus earnings estimate of $15.02 points to a change of +2.3% from the prior year. Over the last 30 days, this estimate has changed +0.1%.

For the next fiscal year, the consensus earnings estimate of $16.04 indicates a change of +6.8% from what Home Depot is expected to report a year ago. Over the past month, the estimate has remained unchanged.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Home Depot is rated Zacks Rank #3 (Hold).

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

12 Month EPS

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

In the case of Home Depot, the consensus sales estimate of $42.72 billion for the current quarter points to a year-over-year change of +3.3%. The $171.44 billion and $177.51 billion estimates for the current and next fiscal years indicate changes of +4.1% and +3.5%, respectively.

Last Reported Results and Surprise HistoryHome Depot reported revenues of $47.86 billion in the last reported quarter, representing a year-over-year change of +5.7%. EPS of $4.92 for the same period compares with $4.68 a year ago.

Compared to the Zacks Consensus Estimate of $47.23 billion, the reported revenues represent a surprise of +1.33%. The EPS surprise was +4.46%.

Over the last four quarters, Home Depot surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.

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

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

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Home Depot is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Home Depot. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Image: Bigstock

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Key Takeaways Starbucks plans FY27 tech upgrades to streamline inventory, staffing, scheduling and store operations.Green Apron Service and Smart Queue improvements are helping Starbucks boost service speed and order accuracy.Starbucks' Q3 operating margin rose 430 basis points YoY to 14.4%, supported by cost efficiencies. Starbucks Corporation (SBUX - Free Report) plans to modernize its technology infrastructure in fiscal 2027, focusing on inventory ordering, staffing, scheduling and point-of-sale systems. These upgrades, part of its Back to Starbucks strategy, aim to simplify coffeehouse operations, improve service efficiency and enhance labor productivity. As customer traffic strengthens, improved operational execution could help Starbucks sustain margin expansion.

The initiative builds on progress under the company's Green Apron Service model, which has improved staffing practices, service consistency and customer experience. Starbucks is also refining its Smart Queue system to enhance order accuracy and speed. In the third quarter of fiscal 2026, the company achieved targeted service times across all access points despite higher transaction volumes. The planned technology upgrades could further streamline store operations, improve labor productivity and support operating margins.

Beyond enhancing store-level productivity, the planned upgrades could complement Starbucks' broader cost-reduction strategy. The company remains on track to achieve $2 billion in gross cost savings through fiscal 2028, targeting product and distribution expenses, operating costs and general and administrative spending. In the fiscal third quarter, consolidated operating margin expanded approximately 430 basis points year over year to 14.4%, aided by stronger sales leverage, cost efficiencies, lower inflation and tariff refunds. Importantly, margins improved even excluding the refunds, highlighting underlying operational progress.

Starbucks' fiscal 2027 technology modernization could support sustained margin expansion by improving labor productivity, inventory management and store-level efficiency. Although implementation challenges and continued investments in staffing and customer experience could weigh on near-term profitability, successful integration of these upgrades could strengthen operating leverage and support long-term earnings growth.

How SBUX’s Peers Are Advancing TechnologyMcDonald’s Corporation (MCD - Free Report) is integrating its major markets onto common app, loyalty, pricing, human resources and finance systems. These investments are intended to reduce costs, accelerate innovation and improve system security and stability. MCD is also working to consolidate its data into a global platform to support future artificial intelligence applications. McDonald’s expects its global systems and process investments to begin generating efficiency benefits in 2027 as it seeks to lower general and administrative expenses as a percentage of systemwide sales.

Dutch Bros Inc. (BROS - Free Report) is refining shop operations to accommodate digital demand, with mobile ordering representing approximately 16% of transactions in second-quarter 2026. The company is evaluating workstation layouts to improve order flow across drive-thru and walk-up windows. BROS is also strengthening customer segmentation and personalization through Dutch Rewards, which accounted for more than 73% of transactions. These capabilities enable offers tailored to purchasing behavior, supporting efforts to increase visit frequency and broaden customer adoption of Dutch Bros’ menu offerings.

Published in restaurants retail

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

The earnings report, which is expected to be released on October 27, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

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

Zacks Consensus EstimateThis company is expected to post quarterly earnings of $2.34 per share in its upcoming report, which represents a year-over-year change of +10.9%.

Revenues are expected to be $3.39 billion, up 8.5% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.52% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

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

Price, Consensus and EPS Surprise

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

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

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

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

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

How Have the Numbers Shaped Up for Hilton Worldwide?For Hilton Worldwide, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.53%.

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

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

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

For the last reported quarter, it was expected that Hilton Worldwide would post earnings of $2.29 per share when it actually produced earnings of $2.29, delivering no surprise.

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

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

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

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

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

Key Takeaways QCOM's proposed PickNik acquisition boosts its robotics software capabilities through the MoveIt framework.Integration with Dragonwing and Arduino platforms could accelerate robotics development and adoption.Expanding physical AI opportunities aid diversification, although competition and execution risks persist. Qualcomm Incorporated (QCOM - Free Report) is strengthening its position in the rapidly evolving robotics market through its proposed acquisition of PickNik Robotics, a developer of advanced robotics software. The transaction aligns with Qualcomm's strategy to expand its footprint in physical artificial intelligence (AI), edge computing and intelligent robotics.

PickNik is recognized for its stewardship of MoveIt, a widely adopted open-source robotics manipulation framework built on the Robot Operating System (ROS). The platform supports motion planning, manipulation and robotic control across industrial automation, service robotics and emerging physical AI applications. The transaction, subject to customary closing conditions, could strengthen Qualcomm's ability to offer integrated hardware and software solutions.

Transaction RationaleThe buyout is expected to enhance Qualcomm's Dragonwing Robotics platforms by integrating MoveIt and PickNik's commercial MoveIt Pro software. This combination could enable developers to leverage Qualcomm's AI processing, connectivity and heterogeneous computing capabilities alongside advanced motion planning and real-time robotic control.

The integration is also expected to extend to Arduino platforms, beginning with VENTUNO Q boards. This could make advanced robotics development more accessible to a broader developer community while accelerating the transition from prototypes to commercial deployments.

Importantly, Qualcomm intends to maintain MoveIt as an open-source framework supporting third-party hardware. This approach could encourage wider ecosystem participation and strengthen developer engagement, potentially boosting adoption of its Dragonwing platforms.

Physical AI Opportunities Support Long-Term DiversificationThe planned acquisition complements Qualcomm's broader efforts to diversify beyond smartphones into automotive, industrial IoT and edge AI markets. Its March 2026 collaboration with NEURA Robotics to advance cognitive robotics and humanoid applications further underscores its growing focus on physical AI.

Combining PickNik's software expertise with Qualcomm's power-efficient computing capabilities could improve its competitive positioning as demand for intelligent automation increases across industrial and commercial applications.

However, the acquisition's financial terms remain undisclosed, limiting visibility into its immediate earnings contribution. Integration challenges, competition in robotics computing and uncertain commercialization timelines could also constrain near-term benefits. Stiff competition from NVIDIA Corporation (NVDA - Free Report) , Broadcom Inc. (AVGO - Free Report) and Advanced Micro Devices, Inc. (AMD - Free Report) further strains its margins.

Nevertheless, PickNik's established developer ecosystem and robotics software capabilities could help Qualcomm expand its addressable market and deepen customer engagement. Successful integration may strengthen QCOM's position in next-generation robotics while supporting its long-term diversification strategy.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.82% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Chord Energy Corporation (CHRD - Free Report) Chord Energy Corporation was formed through the July 2022 merger of Oasis Petroleum and Whiting Petroleum. The company is an independent E&P operator focused on the Williston Basin, with operations across the Bakken and Three Forks formations. Chord’s strategy is to maintain production stability while generating free cash flow and returning capital to shareholders through a base dividend and share repurchases.

CHRD is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. CHRD has a Growth Style Score of A, forecasting year-over-year earnings growth of 121.6% for the current fiscal year.

Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $1.94 to $21.12 per share. CHRD also boasts an average earnings surprise of +11.7%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, CHRD should be on investors' short list.

Genuine Parts Co GPC released its 8-K filing on October 20, 2026, detailing its financial performance for the third quarter ended September 30, 2026. The company, renowned for its role as a distributor of automotive and industrial replacement parts, operates primarily through two segments: the Automotive Parts Group and the Industrial Parts Group.

In the automotive segment, the NAPA Auto Parts brand is a significant player, supplying a range of aftermarket parts and tools to both professional repair customers and DIY enthusiasts. The Industrial Parts Group, primarily branded as Motion, caters mainly to maintenance, repair, and original equipment manufacturer clients globally.

Performance Overview and Key ChallengesFor the third quarter, Genuine Parts Co reported revenue of $6.5 billion, reflecting a solid 4.2% increase compared to the $6.3 billion reported in the same quarter last year. This growth stemmed from a 2.9% rise in comparable sales, complemented by contributions from acquisitions and favorable foreign currency impacts. However, net income slightly declined to $224 million, or $1.62 per diluted share, unchanged from the previous year. The slight decrease in net income amidst revenue growth raises concerns about operational efficiency and cost management.

Challenges facing the company include navigating the impacts of global economic pressures and restructuring initiatives, particularly as it approaches its planned separation into two independent entities in early 2027. Adverse fluctuations in foreign currency and overall market conditions could pose additional hurdles for sustained growth. Investors should consider these factors closely, as they may impact future performance and profitability.

Key Financial AchievementsGenuine Parts Co marked notable financial milestones in the third quarter. Adjusted net income was reported at $286 million, translating to $2.07 per diluted share, an increase from $1.98 per diluted share year-over-year. This performance underscores the company’s ability to leverage organic growth and acquisitions effectively within the competitive automotive parts sector.

Furthermore, the company generated robust cash flow from operations amounting to $817 million, leading to a free cash flow of $502 million during the first nine months of 2026, all of which is critical for supporting ongoing investments and dividend payouts. The strong cash position also underpins the company's strategy amidst external economic pressures.

Below is a summary of the key financial details from the recent earnings report:

MetricQ3 2026Q3 2025YTD 2026YTD 2025Net Sales$6,521 million$6,260 million$19,323 million$18,290 millionNet Income$224 million$226 million$641 million$675 millionAdjusted Net Income$286 million$276 million$827 million$810 millionFree Cash FlowN/AN/A$502 millionN/A

Analytical CommentaryOur third quarter performance demonstrates the strength of our market-leading businesses and our teams’ continued focus on serving customers and executing our strategic priorities," stated Will Stengel, Chairman and Chief Executive Officer.This statement illustrates the company's commitment to maintaining operational focus and strategic growth, which are essential in navigating its current challenges and market uncertainties.

GuruFocus Valuation CheckBased on the GuruFocus analysis, Genuine Parts Co currently has a GF Score of 81 out of 100, categorizing it as a strong investment opportunity. The stock is valued at $141.12 according to GuruFocus's metrics, while trading at $130.18, suggesting it is undervalued by approximately 7.8%. Such valuation indicates potential upside for investors considering entry at current price levels.

Additionally, the financial strength rating of 5 out of 10 suggests manageable risk, while a profitability rank of 7 out of 10 indicates stable earnings performance relative to peers in the industry. The growth rank of 6 out of 10 reflects solid market positioning, although the predictability score of 1 star points toward potential volatility in future earnings.

Notably, insider activity reflects caution, with reported insider sell transactions totaling $0.7 million over the last year, signaling that insiders may not be buying into their own company’s stock at this time. This could be interpreted as a need for vigilance from prospective investors regarding future performance.

To gain a thorough insight, visit the Genuine Parts Co stock page on GuruFocus for a more detailed analysis.

Explore the complete 8-K earnings release (here) from Genuine Parts Co for further details.

GuruFocus context: GuruFocus’ GF Value™ estimates fair value near $141.12 (7.8% undervalued); its GF Score™ is 81/100; 14 gurus currently hold the stock, with 7 adding and 7 trimming positions in recent quarters — guru 13F data Simply Wall St and Morningstar don’t have. See the full Genuine Parts Co GPC research.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

NEW YORK, Oct. 20, 2026 (GLOBE NEWSWIRE) -- SueWallSt alerts investors in Baidu, Inc. (NASDAQ: BIDU) that a securities class action has been filed on behalf of shareholders who purchased securities between November 18, 2025 and August 17, 2026. Find out if you might qualify for recovery. You may also contact Joseph E. Levi, Esq. at [email protected] or (888) SueWallSt.

BIDU American Depositary Shares fell $13.25 per share, or 12.73%, to close at $90.87 on August 18, 2026, on unusually heavy volume. Measured from the Class Period high of $162.52 on January 22, 2026, the ADS lost more than $71 per share. Investors seeking appointment as lead plaintiff must file with the Court by November 13, 2026.

What Baidu's Filings Told Shareholders

Beginning with fourth quarter 2025 results, the Company redefined its reporting to present "Baidu General Business," divided among a Core AI-powered Business, a Legacy Business, and Others. The fourth quarter earnings press release further stated that the quarterly revenue attributed to those new categories, including the RMB 11.3 billion credited to the AI-powered Business, was "derived from the Company's internal management accounts and records, which have not been audited." The annual report presented this "AI-native view" as providing "greater visibility" into the AI portfolio.

Where the Disclosures Allegedly Fell Short

The headline metric used to reassure shareholders that AI revenue was offsetting legacy erosion came from unaudited internal management accounts, the complaint charges.The reclassification moved traditional Search and Feed advertising into a "Legacy Business" line that later fell 23% year over year to RMB 10.4 billion in the second quarter of 2026.Risk factor language cautioned only that failure to retain online marketing customers "could" seriously harm results, while marketing revenue had already fallen 17.6% year over year in the third quarter of 2025.AI Cloud Infra, Baidu’s largest AI component, subsequently declined 17% quarter over quarter, from RMB 8.8 billion to RMB 7.3 billion.Total revenue for fiscal year 2025 had already declined 3% year over year to RMB 129.1 billion, and total Online Marketing Services revenue fell 19% year over year in the second quarter of 2026. Why the Reclassification Allegedly Mattered to Investors

The complaint challenges the adequacy of disclosures that presented reorganized, unaudited segment data as proof of an AI-led turnaround while, plaintiffs allege, omitting that total revenue was reasonably likely to decline because AI growth was insufficient to absorb the legacy deterioration.

"Generic risk factor language cannot substitute for disclosing specific, known problems that are already affecting a company's operations. Here, the complaint alleges that unaudited internal segment figures were used to signal that AI revenue was offsetting an advertising decline that had already reached double digits." -- Joseph E. Levi, Esq.

Submit your information now or call (888) SueWallSt.

WHY SUEWALLST: SueWallSt is powered by Levi & Korsinsky LLP. Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States.

Frequently Asked Questions About the BIDU Lawsuit

Q: How much did BIDU stock drop? A: Shares fell approximately 12.73%, a decline of $13.25 per share, after the Company disclosed second quarter 2026 results showing its AI-powered business had declined 8% quarter over quarter while Legacy Business revenue fell 23% year over year. Investors who purchased shares during the Class Period at artificially inflated prices and suffered losses may be eligible to seek compensation.

Q: What specific misstatements does the BIDU lawsuit allege? A: The complaint alleges Baidu, Inc. made materially false or misleading statements regarding the ability of its AI-powered business to mitigate rapid declines in its legacy online marketing business during the Class Period. When second quarter 2026 results showing the AI-powered business itself contracting 8% quarter over quarter were disclosed, the stock price declined sharply.

Q: What court was the BIDU class action filed in? A: The case was filed in the United States District Court for the Southern District of New York, governed by the Private Securities Litigation Reform Act of 1995.

Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

Q: What documents do I need to submit my information? A: Brokerage statements or trade confirmations showing purchase dates, share quantities, prices paid, and any subsequent sale dates and prices.

Q: What if I live outside the United States? A: U.S. securities class actions generally cover purchases on U.S. exchanges regardless of the investor's country of residence.

Q: What if my BIDU losses are small, is it still worth contacting a lawyer? A: Yes. There is no minimum loss amount required to participate as a class member.

Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. If there is a settlement or recovery, eligible class members generally submit a claim form to seek their portion.

CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (888) SueWallSt
Fax: (212) 363-7171

Attorney Advertising. Prior results do not guarantee similar outcomes.

BNP Paribas says Oracle is seeing an “impressive inflection” as generative AI drives stronger software spending. Summary

Oracle’s trailing spending score improved unexpectedly in BNP Paribas’ latest reseller survey.

Database and cloud software major Oracle Corp. (ORCL, Financials) has indicators that its drive into AI is turning into higher client demand.

BNP Paribas said its latest software reseller survey revealed a “impressive inflection” for Oracle, with the October findings better than worse readings in July. The major change was generative AI.

GenAI has already eclipsed cybersecurity in terms of demand, according to the report, indicating that firms are moving out of the testing phase and are starting to invest real budget.

Oracle seems to be the immediate beneficiary. Its DB@AWS and DB@Azure solutions leaped into the top three most demanded products, while Oracle Cloud Infrastructure and Fusion also improved.

That important because those products are supporting both sides of the investment case.

OCI helps drive expansion, while database services operating within competitor clouds can assist produce higher-margin software income.

BNP Paribas also cited positive results for AWS, Google Cloud and Microsoft, while Adobe, Zoom and IBM fell behind in areas of the poll.

For Oracle investors the question is whether this more aggressive reseller engagement translates into sustainable revenue growth.

The next thing to look for is if Oracle's impending findings support the survey's indication of improving demand.

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

Click for the complete disclosure

NEW YORK, Oct. 20, 2026 (GLOBE NEWSWIRE) -- SueWallSt notifies institutional investors in Hyliion Holdings Corp. (NYSE: HYLN) that a class action lawsuit has been filed on behalf of shareholders who purchased securities between May 12, 2026 and June 23, 2026. Request an institutional investor loss assessment. You may also contact Joseph E. Levi, Esq. at [email protected] or (888) SueWallSt.

HYLN closed at $7.37 on June 22, 2026 and at $4.92 on June 24, 2026, a two-session decline of $2.45 per share, or 33.24%. With approximately 178.3 million shares of common stock outstanding as of May 7, 2026, that repricing touched index positions, small-cap mandates, and separately managed accounts alike. To be considered for lead plaintiff, investors must file by October 27, 2026.

Notice to Institutional Holders

The pleading asserts that the Company promoted a "new data center partnership" with VFG Holdings, LLC covering deployment of up to 250 KARNO Cores, an opportunity representing roughly $133 million of Hyliion's more than $400 million in disclosed potential revenue from non-binding letters of intent. As averred, material facts concerning the counterparty's operational capabilities, financial resources, and development experience were not disclosed to the market while that pipeline figure was being presented to analysts and shareholders.

ERISA and Fiduciary Considerations

Plan trustees, public retirement systems, and advisers with discretionary authority may have obligations to evaluate and pursue available claims on behalf of beneficiaries. A documented review of Class Period transactions is often the first step in satisfying that obligation.

Fiduciary Obligations and Recovery Options

Investment committees may wish to pull custodial records identifying HYLN purchases between May 12, 2026 and June 23, 2026.Eligibility turns on purchase date and price paid, not on whether the position is still held.Funds with the largest documented losses are generally best positioned for lead plaintiff consideration under the PSLRA.Serving as lead plaintiff does not increase a fund's individual recovery, but it does provide direct oversight of case strategy and counsel.Absent class members may participate in any eventual recovery without filing a lead plaintiff motion.A loss review is provided at no cost and carries no obligation. "Institutional investors play a critical role in securities class actions, and the allegations here concerning the disclosed basis for a partnership representing roughly one-third of a stated pipeline are the kind of issue fiduciaries are expected to examine. A review of Class Period transactions is a straightforward step for any fund that held this position." -- Joseph E. Levi, Esq.

Contact us to learn more about institutional recovery options or call (888) SueWallSt.

WHY SUEWALLST: SueWallSt is powered by Levi & Korsinsky LLP. Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States.

Frequently Asked Questions About the HYLN Lawsuit

Q: When did Hyliion Holdings Corp. allegedly mislead investors? A: The Class Period runs from May 12, 2026 to June 23, 2026. The complaint alleges that corrective disclosures revealed information that caused a significant stock decline.

Q: What court was the HYLN class action filed in? A: The case was filed in the United States District Court for the Western District of Texas, Austin Division, governed by the Private Securities Litigation Reform Act of 1995.

Q: Who are the defendants named in the HYLN lawsuit? A: The complaint names Hyliion Holdings Corp. and individual defendants including senior executives who signed SEC filings, made public statements, or certified financial disclosures under Sarbanes-Oxley.

Q: What do HYLN investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Submit your information for a no-cost, no-obligation evaluation of your potential recovery. No immediate action is required to remain eligible as an absent class member.

Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

Q: What if I already sold my HYLN shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.

Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. If there is a settlement or recovery, eligible class members generally submit a claim form to seek their portion.

Q: What does it cost me to participate? A: There is no upfront cost to submit your information and review whether you may be eligible to recover. Should you choose to participate in the securities class action, they are generally handled on a contingency basis, with any attorneys' fees and expenses subject to court approval.

Q: What if I live outside the United States? A: U.S. securities class actions generally cover purchases on U.S. exchanges regardless of the investor's country of residence.

CONTACT:

Levi & Korsinsky, LLP

Joseph E. Levi, Esq.

33 Whitehall Street, 27th Floor

New York, NY 10004

[email protected]

Tel: (888) SueWallSt

Fax: (212) 363-7171

Attorney Advertising. Prior results do not guarantee similar outcomes.

Costco (COST - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Over the past month, shares of this warehouse club operator have returned +10.8%, compared to the Zacks S&P 500 composite's +0.7% change. During this period, the Zacks Retail - Discount Stores industry, which Costco falls in, has gained 9.9%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

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

Costco is expected to post earnings of $4.87 per share for the current quarter, representing a year-over-year change of +12.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.8%.

For the current fiscal year, the consensus earnings estimate of $22.7 points to a change of +11% from the prior year. Over the last 30 days, this estimate has changed +0.8%.

For the next fiscal year, the consensus earnings estimate of $24.92 indicates a change of +9.8% from what Costco is expected to report a year ago. Over the past month, the estimate has changed +1.7%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Costco is rated Zacks Rank #3 (Hold).

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

12 Month EPS

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

In the case of Costco, the consensus sales estimate of $74.14 billion for the current quarter points to a year-over-year change of +10.2%. The $328.53 billion and $352.07 billion estimates for the current and next fiscal years indicate changes of +8.4% and +7.2%, respectively.

Last Reported Results and Surprise HistoryCostco reported revenues of $95.72 billion in the last reported quarter, representing a year-over-year change of +11.1%. EPS of $6.6 for the same period compares with $5.87 a year ago.

Compared to the Zacks Consensus Estimate of $94.82 billion, the reported revenues represent a surprise of +0.95%. The EPS surprise was +1.85%.

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

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

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

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

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

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Costco. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Key Takeaways ISRG plans to extend EndoWrist instrument life in 2027 to lower costs for select robotic procedures.ISRG's I&A revenues rose 18% to $1.73B in Q2, but longer instrument use could pressure revenue per procedure.ISRG's 42% adjusted operating margin supports its strategy to expand adoption through lower costs. Intuitive Surgical (ISRG - Free Report) is preparing to lower customer costs for selected robotic-assisted procedures through its Extended Use Program (“EUP”), reflecting a strategic trade-off between near-term instrumentation and accessories (I&A) revenues and long-term market expansion.

Beginning first-half 2027, the company plans to increase the useful life of a subset of EndoWrist instruments compatible with its fourth- and fifth-generation da Vinci platforms. The initiative targets benign, high-volume procedures where affordability can influence adoption, particularly in cost-sensitive geographies and healthcare systems with lower reimbursement rates.

The strategy could put pressure on I&A revenue per procedure as customers extend the use of eligible instruments before replacing them. In the second quarter of 2026, I&A revenues rose 18% year over year to $1.73 billion, while da Vinci I&A revenue per procedure reached approximately $1,830, compared with $1,800 a year earlier.

Management is yet to quantify EUP’s financial impact, with further details expected following its analysis and pricing decisions. The rollout is expected to have a gradual impact throughout 2027 rather than result in an immediate, one-time change.

However, Intuitive Surgical is prioritizing growth and profitability together, and believes lower procedure costs can unlock incremental demand. By lowering the cost of robotic surgery for selected benign procedures, EUP could encourage hospitals and physicians to increase utilization, particularly in markets where cost has limited adoption. Higher utilization and a broader customer base could strengthen the company’s installed ecosystem and support recurring revenue opportunities over time.

The initiative comes as Intuitive Surgical remains profitable, reporting a 42% adjusted operating margin in the second quarter. Its broader strategy is to use engineering innovation, manufacturing scale and cost reductions to extend access without compromising product quality or reliability. The near-term trade-off impact will likely lead to slower I&A revenue growth per procedure while driving the longer-term opportunity for a larger market share and higher system utilization.

Peer UpdatesStryker (SYK - Free Report) is improving operating leverage through tighter spending controls, stronger gross margins and operational execution. In the second quarter of 2026, adjusted gross margin increased 60 basis points year over year to 66%, supported by favorable business mix, cost discipline and a net benefit from tariff-related costs.

Adjusted operating margin expanded 170 basis points to 27.4%. Gross margin improvement was complemented by lower adjusted selling, general and administrative expenses as a percentage of sales. Adjusted EPS rose 17.9% to $3.69, outpacing 9% organic sales growth and demonstrating improved profitability despite ongoing recovery from the cybersecurity incident.

Medtronic (MDT - Free Report) is pursuing structural cost reductions through product portfolio simplification, manufacturing efficiencies and supply-chain improvements while continuing to fund growth initiatives. In the first quarter of fiscal 2027, cost-reduction measures contributed 50 basis points to gross margin, net of inflation, while disciplined pricing added another 30 basis points.

The company rationalized more than 9,000 SKUs to streamline operations and improve supply-chain efficiency. Adjusted operating profit increased 15% to $2.3 billion, and operating margin rose 10 basis points to 23.7%, despite unfavorable business mix and higher selling expenses. Management expects operating profit growth of approximately 10% and 50 basis points of margin expansion for fiscal 2027.

Occidental Petroleum (OXY - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Over the past month, shares of this oil and gas exploration and production company have returned +9.6%, compared to the Zacks S&P 500 composite's +0.7% change. During this period, the Zacks Oil and Gas - Integrated - United States industry, which Occidental falls in, has gained 4.9%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

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

For the current quarter, Occidental is expected to post earnings of $1.37 per share, indicating a change of +114.1% from the year-ago quarter. The Zacks Consensus Estimate has changed +17.1% over the last 30 days.

The consensus earnings estimate of $6.43 for the current fiscal year indicates a year-over-year change of +191%. This estimate has changed +3.9% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $4.83 indicates a change of -25% from what Occidental is expected to report a year ago. Over the past month, the estimate has changed +14.7%.

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

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

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For Occidental, the consensus sales estimate for the current quarter of $6.66 billion indicates a year-over-year change of -0.9%. For the current and next fiscal years, $27.27 billion and $25.72 billion estimates indicate +7.2% and -5.7% changes, respectively.

Last Reported Results and Surprise HistoryOccidental reported revenues of $8.33 billion in the last reported quarter, representing a year-over-year change of +29%. EPS of $2.4 for the same period compares with $0.39 a year ago.

Compared to the Zacks Consensus Estimate of $7.18 billion, the reported revenues represent a surprise of +16.03%. The EPS surprise was +25%.

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

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

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

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

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

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

ServiceNow's AI business just crossed a major milestone while the stock still sits nearly 20% below where it traded a year ago, and one analyst on Wall Street sees an opportunity the rest of the market is ignoring.

ServiceNow (NYSE:NOW | NOW Price Prediction) currently trades at $145.33. The average analyst price target is $152.23, which implies 4.7% upside.

ServiceNow sells a cloud platform that automates IT, HR, security and customer workflows, and it now positions itself as the “AI control tower” for large enterprises. Investors are watching because the AI revenue is real: ServiceNow AI crossed $1 billion in annual contract value, and agentic deployments rose 9x in 9 months.

The bigger gap comes from the high end of the Street. Bernstein’s Peter Weed holds an Outperform rating with a $248 target, the highest published. That implies 70.6% upside, a sharp break from where the market prices the stock.

AI Disruption Fears Cut ServiceNow by 58% From Its High
Fear that AI agents would make seat-based software obsolete did most of the damage. Shares fell from a 52-week high of $192.97 to a low of $81.24. That marks a decline of 57.9%. Software stocks entered a bear market in January, and ServiceNow plunged 10% in one session. The sector lost $1 trillion in a week.

ServiceNow added problems of its own. The stock tumbled nearly 15% after management warned that delayed Middle East deals would hit first-quarter subscription growth. Profit also took a hit: second-quarter operating income fell 54.75% to $162M as stock compensation and costs from the Moveworks, Veza and Armis deals piled up. The stock has since climbed 78.9% off its low, yet it is still down 19.58% over the past year.

Bernstein Says the Market Is Underpricing an AI Monetization Engine
Weed’s thesis has three parts. First, Now Assist premium levels expand contract value across existing seats, so AI revenue increases without long new sales cycles. Second, ServiceNow is the default coordination layer for IT, HR and customer workflows. Third, operating leverage should support strong free cash flow margins as subscriptions scale (per Bernstein).

The latest quarter supports that case. Revenue increases 24.0% to $3.987B, and EPS of $0.90 beat the $0.86 consensus, the company’s 4th consecutive beat. Current remaining performance obligations rose 21% to $13.20B, and deals above $1 million increases ~40%. Management’s 2030 targets include $30B+ in subscription revenue and 30% of ACV from AI.

Sentiment is generally positive, but most analysts are far less bullish than Weed. Of 49 analysts, 45 give the stock their top two ratings. Estimates have edged lower: the fiscal 2026 EPS average is at $4.0668, down from $4.1291 90 days ago, while fiscal 2027 stands at $5.0067. A price target is one analyst’s view, and it guarantees nothing.

Software Peers Fell Together, but Recovered Unevenly
The AI disruption trade hit the whole application software group, but each stock has recovered at its own pace.

Salesforce (NYSE:CRM) trades at $242.51. It is up 0.63% over the year but down 7.81% year to date. Its $285.68 consensus target implies 17.8% upside. 38 analysts rate it Buy or better, against 15 Holds.

Workday (NASDAQ:WDAY) trades at $195.20, down 16.67% over the year. Its $207.92 target implies 6.5% upside, and opinion is split: 20 Buy ratings, 19 Holds and 3 Sells.

On consensus targets, Salesforce offers the greatest potential gain among these names. ServiceNow’s case depends on whether Bernstein’s high-end view proves right.

ServiceNow Trails a Rising S&P 500
At $145.33, ServiceNow sits 4.7% below its $152.23 consensus target, based on 49 ratings. The stock is down 5.13% year to date and 19.58% over the year. Over the same periods, the S&P 500 rose 12.42% and 15.38%.

Strong Buy: 10
Buy: 35
Hold: 2
Sell: 1
Strong Sell: 1

Momentum is improving, with a one-month gain of 7.28%. The forward P/E of 28 is far below the trailing multiple of 89.

Why I Lean Bullish but Doubt the Full $248
ServiceNow deserves a closer look here if AI contract value keeps growing and margins rebound once Armis integration costs fade in FY27. But I’d stay cautious if growth slows faster than the guidance suggests. The third-quarter subscription growth guide of 20.5% already reflects federal revenue pulled forward into the second quarter, along with a $35 million currency drag to remaining performance obligations.

I lean bullish. Growth above 20% at 28 times forward earnings looks reasonable for a business that is winning large customers. Still, the consensus target is a more realistic 12-month marker than the 70% call.

Contact [email protected] for any questions or corrections.

Broadcom just posted AI chip growth that left Wall Street's estimates in the dust, yet the stock sits more than 30% below its 52-week high while its CEO drops warnings that rattled the entire sector. Something about that math deserves…

NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) gets most of the AI headlines. Broadcom (NASDAQ:AVGO) just guided to some of the fastest AI chip growth in the sector.

Based on our proprietary model, the 24/7 Wall St. price target for Broadcom is $419.38 for a 12-month horizon. That is 21.12% above the $346.25 reference price.

24/7 Wall St. Price Target Summary Metric Value Current Price $346.25 24/7 Wall St. Price Target $419.38 Upside/Downside 21.12% Recommendation BUY Confidence Level 90% Our confidence is high. The target stands well below the Wall Street consensus of $527.59, so our model is the conservative one here. Shares traded at $337.81 midday Thursday, down 2.44% on the session, so today’s price stands even further below our target.

Record Quarter Meets a CEO Warning Broadcom has fallen 10.28% over the past week and 1.86% year to date. It stands about 31.5% below its $493.28 52-week high and about 16.9% above its $288.95 low.

On October 12, CEO Hock Tan warned that many AI investors don’t understand what they’re buying, and chip stocks slid on the comment across the sector. He also named capital as the biggest constraint on AI growth.

The business keeps getting stronger. Fiscal third-quarter revenue rose 85.5% to $29.591 billion, ahead of the $29.44 billion consensus. EPS came in at $3.32 against a $3.2382 estimate, and AI semiconductor revenue reached $16.7 billion, up 221%. For the fourth quarter, Broadcom guided to $34.8 billion in revenue.

Why Bulls See $535 Within Reach Management outlined AI revenue of about $115 billion in fiscal 2027 and $230 billion in fiscal 2028. Tan said Broadcom is “very much on target to exceed $30 in earnings per share in fiscal 2028.”

A long-term Google agreement covers “multi-tens of billions of dollars of TPUs annually,” and OpenAI expects to deploy 1.3 gigawatts of its Broadcom-built accelerator in 2027.

The bull case of $535.21 about matches the consensus, which is supported by 7 Strong Buy and 40 Buy ratings against 3 Holds.

Power, Land and Margin Mix Could Slow the AI Ramp A handful of hyperscalers drive XPU demand, which makes customer concentration a real risk. Tan called land, power and data-center shells “a big concern” for deployment timing. Fourth-quarter gross margin is guided to about 73% because memory-heavy chips reduce the mix.

On the other hand, operating margin hit 67.9%, and Amie Thuener told investors to focus there. The bear case stands at $371.58, still above the reference price.

How Broadcom Stacks Up Against NVIDIA and Marvell NVIDIA is the benchmark for AI compute. Its revenue grew 105.85% to $96.22 billion, and its P/E is about 45x, close to Broadcom’s 44x. Both stocks has similar trailing multiples, and Broadcom’s AI growth is accelerating faster (we reverse-engineered what the biggest AI chip winners looked like early in a free playbook you can grab here). So the target looks reasonable.

The closest peer in custom chips and AI networking is Marvell Technology (NASDAQ:MRVL). Revenue rose 36.55%, with a 36.6% non-GAAP operating margin. Broadcom is growing faster at higher margins, so our target looks conservative.

Company Trailing P/E Latest Revenue Growth Broadcom 44x 85.5% NVIDIA 45x 105.85% Marvell N/A 36.55% Broadcom Earns a Buy Rating at $419.38 The 24/7 Wall St. price target of $419.38 has a buy rating and 90% confidence. The key factor is a forward multiple near 19x on AI growth that is still accelerating.

The bull thesis improves if AI revenue keeps tracking toward $115 billion in fiscal 2027. Power and data-center delays that push deployments out would hurt the thesis. At current levels, there is more upside than downside in the model.

These are our base-case targets, assuming current growth trends continue.

Year 24/7 Wall St. Price Target 2026 $419.38 2027 $462.26 2028 $509.53 2029 $561.62 2030 $619.05 Broadcom needs to keep executing on its custom accelerator roadmap for these projections to hold. Prices could land well above or below this path depending on how quickly hyperscalers spend and how fast supply expands.

Contact [email protected] for any questions or corrections.