Track market-moving stories before they get noisy

HomeEarnings AnalysisTech 

SummaryTaiwan Semiconductor Manufacturing Company Limited aka TSMC delivered robust Q2 results with strong demand, top-line growth, and significant margin expansion, reinforcing its Buy rating.TSMC's 2nm and 3nm technologies now account for a third of revenue, with high performance computing driving 66% of total sales.Gross and operating margins expanded sharply YoY, but future gross margins may face short-term pressure from new tech ramp-up and increased CapEx.TSMC trades at a discount to peers due to geopolitical risks, offering a larger margin of safety and attractive forward P/E multiples around 20x for 2027. JHVEPhoto/iStock Editorial via Getty Images

It has already been more than 6 months since my last analysis on Taiwan Semiconductor Manufacturing Company Limited aka TSMC (TSM); my rating was a Buy, and my main argument was that growth

2.85K Followers

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

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

Roblox announced Thursday a new feature called “Build,” allowing users to design games from their mobile devices using AI. 

The Build feature lets anyone turn simple text prompts into a basic game without any programming experience. For example, if a user types, “Let’s make a cozy adventure game set in a dense forest,” the new feature will generate an initial version of the game, which users can then modify and share with friends.

“Powered by a broad set of AI models, including both open-source and proprietary Roblox models, Build handles gameplay mechanics, environment, characters, visual style, sound, and more,” the company wrote in a blog post.

Companies like Google, Microsoft, and Tencent have built similar tools. However, AI-powered game generation has raised concerns among developers and players, with critics arguing that reducing the barriers to game development via text prompts could lead to an influx of low-quality and repetitive games. This may also increase competition on the platform, as creators are required to compete not only with other developers but also with AI-generated content that can be produced far more quickly. 

These concerns are reflected in this year’s Game Developer Conference State of the Game Industry survey, which found that 52% of game industry professionals believe generative AI is having a negative impact on the industry.

To address this, Roblox plans to rank these AI-generated games based on player retention, similar to the system used for other games on the platform. If a game is not played, it won’t be featured as prominently.

“Our discovery systems are designed to highlight games with long-term retention, which doesn’t include AI slop. The quality of games on the homepage isn’t changing: If no one plays it—no one can find it. The goal across these new tools is to continue to accelerate creation across all experience levels,” the company added.

The Build feature will enter public alpha testing on July 28, available to users in New Zealand aged nine and older who have verified their age. Users aged 16 and up will have the opportunity to publish their creations to a global audience. There will be a free, basic version available along with paid options.

Beyond the Build feature, Roblox is also working on developing AI agents that will assist creators in playtesting and providing analytics. These features are anticipated to roll out in the upcoming months.

The new feature highlights Roblox’s ongoing investment in AI, including an AI foundation model for generating 3D game assets and an AI chatbot for supporting developers through the game-building process. Additionally, Roblox is developing a “new scene-generation model” capable of creating entire editable and playable 3D scenes from a single text prompt.

Additionally, the announcement comes shortly after Roblox disclosed plans to discontinue “Roblox Connect,” the avatar-based video calling feature introduced in 2023.

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

Lauren covers media, streaming, apps and platforms at TechCrunch.

You can contact or verify outreach from Lauren by emailing [email protected] or via encrypted message at laurenforris22.25 on Signal.

Key Takeaways Northrop Grumman is expected to post higher Q2 revenues supported by strong backlog and defense demand.NOC expects high single-digit sequential sales growth across all four operating segments.NOC faces execution risk as Sentinel program cost and contract discussions continue. Northrop Grumman Corporation (NOC - Free Report) is scheduled to release second-quarter 2026 results on July 21, before market open. The company delivered an earnings surprise of 0.99% in the last reported quarter.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Key Factors Likely to Influence NOC’s Q2 ResultsNorthrop Grumman’s second-quarter earnings are expected to have benefited from solid demand, supported by one of the strongest backlogs in the defense industry. It offers strong visibility into near-term revenue streams.

Continued geopolitical tensions, increasing U.S. and allied defense spending, and demand for advanced aircraft, missile defense, space systems, and autonomous technologies should have continued to support new contract awards and program execution during the second quarter.

Management stated that it expects "high single-digit sequential sales growth" in the second quarter. This suggests that revenues should increase meaningfully from the first-quarter level, with growth expected across all four operating segments rather than being driven by a single business. Segment operating margins are expected to improve, driven by stronger operational performance, favorable production timing and a better business mix.

The company’s top line is likely to have benefited from the ramp-up of major programs, particularly in missile systems, airborne radar, and strategic modernization efforts. These programs are transitioning into higher production phases, which typically boosts revenues.

While the Sentinel program remains a key long-term growth driver for Northrop Grumman, it also represents the company's biggest execution risk. Following cost overruns and schedule delays, the U.S. Air Force restructured the program, and discussions with the government on revised costs, timelines, and contract terms are ongoing. If the company records additional cost growth, revises program estimates, or recognizes new charges during the second quarter, it could negatively impact operating margins and earnings.

NOC’s Q2 ExpectationsThe Zacks Consensus Estimate for earnings is pegged at $6.84 per share, indicating a year-over-year decrease of 3.8%.

The Zacks Consensus Estimate for revenues is pinned at $10.78 billion, implying a year-over-year improvement of 4.1%.

What the Zacks Model UnveilsOur proven model predicts an earnings beat for Northrop Grumman this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below.

Other Stocks to ConsiderInvestors may also consider the following players from the same industry, as these, too, have the right combination of elements to post an earnings beat this reporting cycle.

RTX Corporation (RTX - Free Report) is likely to come up with an earnings beat when it announces second-quarter results on July 23, before market open. It has an Earnings ESP of +2.02% and a Zacks Rank #2 at present.

The consensus estimate for RTX’s second-quarter sales suggests an improvement of 5.8% from the year-ago quarter’s reported numbers. The company delivered an average earnings surprise of 12.7% for the trailing four quarters.

General Dynamics (GD - Free Report) is likely to come up with an earnings beat when it announces second-quarter results on July 29, before market open. It has an Earnings ESP of +2.94% and a Zacks Rank #2 at present.

The consensus estimate for GD’s second-quarter sales suggests an improvement of 3.2% from the year-ago quarter’s reported numbers. The company delivered an average earnings surprise of 5.3% for the trailing four quarters.

L3Harris Technologies (LHX - Free Report) is expected to come up with an earnings beat when it reports second-quarter results on July 29, after market close. It has an Earnings ESP of +3.02% and a Zacks Rank #3 at present.

The consensus estimate for LHX’s second-quarter sales implies an improvement of 6.6% from the year-ago quarter’s level. The Zacks Consensus Estimate for earnings is pinned at $2.81 per share, indicating year-over-year growth of 1.1%.

Key Takeaways Capital One's Q2 revenues are estimated to rise 25.7% y/y to $15.7 billion.COF's NII is projected to climb 24.8%, supported by earning-asset growth and card operations.Higher provisions, operating costs and acquisition-related expenses may weigh on COF's earnings. Capital One (COF - Free Report) is scheduled to announce second-quarter 2026 results on July 21, after market close.

The company’s to-be-reported quarter’s performance is expected to have been driven by its solid credit card business and the positive effects of the Discover Financial acquisition (completed in May 2025). As such, the Zacks Consensus Estimate for revenues is pegged at $15.7 billion, which indicates year-over-year growth of 25.7%.

In the past seven days, the consensus estimate for earnings for the to-be-reported quarter has been revised 4.3% higher to $5.08. Nonetheless, the estimate indicates a 7.3% fall from the prior-year quarter. This is likely to be due to higher provision charges and an increase in operating expenses.

Estimate Revision Trend
 

Image Source: Zacks Investment Research

COF does not have an impressive earnings surprise history. The company’s earnings outpaced the Zacks Consensus Estimate in only two of the trailing four quarters and lagged in other two, the average beat being 18.58%.

Earnings Surprise History
 

Image Source: Zacks Investment Research

Major Factors at Play for Capital One’s Q2 ResultsNet Interest Income (NII): The Federal Reserve has paused rate cuts and signaled a hike later in the year amid higher inflation and a volatile macro backdrop. This followed a 175-basis-point cut in the last two years.

The overall lending scenario was impressive in the second quarter. Per the Federal Reserve’s latest data, the demand for consumer loans was solid. The Zacks Consensus Estimate for total average earning assets is pegged at $614.3 billion, implying a 17% rise from the prior-year quarter.

This, along with stable rates and decent economic growth, is expected to have helped Capital One’s NII growth. Also, the company’s continued efforts to strengthen its card operations are expected to have provided support. The consensus estimate for NII of $12.47 billion indicates 24.8% year-over-year growth.

Fee income: Supported by an overall rise in credit card usage and the Discover Financial buyout, Capital One’s interchange fees (constituting more than 60% of fee income) are likely to have increased in the quarter under review. The Zacks Consensus Estimate for interchange fees is $2.16 billion, suggesting a 46.3% year-over-year jump.

The consensus estimate for service charges and other customer-related fees of $853.7 million implies a 29.7% year-over-year rise. The Zacks Consensus Estimate for other non-interest income is pegged at $378.4 million, indicating a 4.8% rise.

Thus, the consensus estimate for total non-interest income of $3.21 billion indicates a jump of 28.4% from the prior-year quarter.

Expenses: Capital One has been witnessing a persistent rise in expenses over the past several quarters due to higher marketing costs and investment in technology upgrades. The Discover Financial and Brex acquisitions, along with inflation pressure, are expected to have resulted in an increase in operating expenses in the second quarter.

Asset Quality: Capital One is likely to have set aside a significant amount of money for potential delinquent loans, as the interest rates have been unchanged and there has been a steady rise in credit card loan demand.

Given the current macro backdrop and higher inflation, because of the Middle East conflict and the oil price shocks, borrowers are likely to have faced problems in keeping up with loan repayments. Hence, credit costs for COF are likely to have risen in the to-be-reported quarter.

Notable Development for Capital One in Q2In April, Capital One completed the acquisition of Brex for approximately $2.56 billion in cash and issued nearly 10.7 million shares of its common stock. This will significantly strengthen the company’s strategic expansion into the business payments and AI-driven financial software space.

Brex is a leading AI-native financial platform that integrates corporate cards, expense management software and banking services into a single ecosystem. Its platform leverages AI to automate workflows, streamline expense reviews and enable secure, real-time payments for businesses.

By integrating Brex’s AI-powered capabilities, COF is expected to enhance innovation in corporate payments and spend management, enabling businesses to operate with greater speed, control and efficiency through automated workflows, real-time visibility and reduced manual processes.

What Our Quantitative Model Unveils for COFAccording to our quantitative model, the chances of Capital One beating the Zacks Consensus Estimate for earnings this time are high. This is because it has the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.

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

Earnings ESP: The Earnings ESP for Capital One is +1.54%.

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

Capital One’s Price PerformanceIn the second quarter, COF shares gained 10%, underperforming the Zacks Consumer Loans industry. Its peers Ally Financial (ALLY - Free Report) and Navient Corporation (NAVI - Free Report) have rallied 17.2% and 4.1%, respectively.

2Q26 Price Performance
 

Image Source: Zacks Investment Research

Ally Financial is scheduled to announce second-quarter 2026 numbers on July 21, whereas Navient is set to report on Aug. 8.

Over the past week, the Zacks Consensus Estimate for Ally Financial’s second-quarter 2026 earnings has been revised lower to $1.24. The consensus estimate for Navient has been unchanged at 18 cents over the past seven days. At present, both ALLY and NAVI carry a Zacks Rank #3.

MIAMI, FL AND HOLLYWOOD, FL / ACCESS Newswire / July 16, 2026 / HEICO Corporation (NYSE:HEI.A, HEI) today announced that it closed an offering of $550 million in aggregate principal amount of 4.950% Senior Notes due 2031 (the "2031 Notes") and $650 million in aggregate principal amount of 5.400% Senior Notes due 2036 (the "2036 Notes", and together with the 2031 Notes, the "Notes").

HEICO will use the net proceeds from the sale of the Notes to pay down outstanding borrowings under its $2.2 billion revolving credit agreement, leaving the Company with substantial ability and flexibility to fund future potential acquisitions.

Eric A. Mendelson and Victor H. Mendelson, HEICO's Co-Chairmen and Co-Chief Executive Officers, stated, "HEICO's strong operating performance and solid balance sheet earned investment grade ratings on our existing notes issued in 2023 and the Notes issued today. Building on our inaugural issuance in 2023, this second offering gives us an efficient way to fund ongoing acquisition activity."

Carlos L. Macau Jr., HEICO's Chief Financial Officer and Executive Vice President, added, "This offering expands HEICO's capital sources and gives HEICO greater flexibility to pursue continued growth. Further, our well-staggered borrowing maturity schedule provides excellent planning and financial safety for the Company."

Truist Securities, BofA Securities, PNC Capital Markets LLC, Wells Fargo Securities, Credit Agricole CIB and TD Securities served as joint book-running managers for the offering, with Co-Managers including Huntington Securities, J.P. Morgan, M&T Securities and RBC Capital Markets. Akerman LLP served as legal counsel to HEICO. King & Spalding LLP served as legal counsel to the joint book-running managers.

About HEICO

HEICO Corporation is engaged primarily in the design, production, servicing and distribution of products and services to certain niche segments of the aviation, defense, space, medical, telecommunications and electronics industries through its Hollywood, Florida-based Flight Support Group and its Miami, Florida-based Electronic Technologies Group. HEICO's customers include a majority of the world's airlines and overhaul shops, as well as numerous defense and space contractors and military agencies worldwide, in addition to medical, telecommunications and electronics equipment manufacturers. For more information about HEICO, please visit our website at https://www.heico.com.

No Offer or Solicitation

This communication shall not constitute an offer to sell or the solicitation of an offer to sell or an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

Forward-Looking Statements

Certain statements in this press release constitute forward-looking statements, which are subject to risks, uncertainties and contingencies. HEICO's actual results may differ materially from those expressed in or implied by those forward-looking statements. Factors that could cause such differences include, among others: the severity, magnitude and duration of public health threats; our liquidity and the amount and timing of cash generation; lower commercial air travel, airline fleet changes or airline purchasing decisions, which could cause lower demand for our goods and services; product specification costs and requirements, which could cause an increase in our costs to complete contracts; governmental and regulatory demands, export policies and restrictions, reductions in defense, space or homeland security spending by U.S. and/or foreign customers or competition from existing and new competitors, which could reduce our sales; our ability to introduce new products and services at profitable pricing levels, which could reduce our sales or sales growth; product development or manufacturing difficulties, which could increase our product development and manufacturing costs and delay sales; cybersecurity events or other disruptions of our information technology systems could adversely affect our business; and our ability to make acquisitions, including obtaining any applicable domestic and/or foreign governmental approvals, and achieve operating synergies from acquired businesses; customer credit risk; interest, foreign currency exchange and income tax rates; and economic conditions, including the effects of inflation, within and outside of the aviation, defense, space, medical, telecommunications and electronics industries, which could negatively impact our costs and revenues. Parties receiving this material are encouraged to review all of HEICO's filings with the Securities and Exchange Commission including, but not limited to filings on Form 10-K, Form 10-Q and Form 8-K. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.

Contact:
Victor H. Mendelson (305) 374-1745
Carlos L. Macau, Jr. (954) 744-7570

SOURCE: HEICO Corporation

Key Takeaways EMCOR is expanding across AI data centers, healthcare, manufacturing and water infrastructure.Record RPOs of $15.62 billion reflect strong demand across multiple high-growth end markets.Network and communications revenues rose nearly 50% in electrical and 86% in mechanical construction. EMCOR Group, Inc. (EME - Free Report) continues to strengthen its position across some of the fastest-growing construction end markets, supported by robust demand for AI data centers, digital infrastructure, healthcare, institutional facilities, manufacturing and water infrastructure.

A key differentiator for EMCOR is its diversified exposure across multiple secular growth markets rather than dependence on a single industry. During the first quarter, the company's construction businesses generated strong growth from network and communications, institutional, manufacturing and industrial, healthcare, water and wastewater, and commercial projects as warehousing, distribution and logistics activity resumed. This broad end-market exposure allows EMCOR to benefit from several long-term infrastructure investment trends.

The AI infrastructure boom remains one of EMCOR's strongest growth drivers. Revenues from the network and communications market increased nearly 50% year over year in the electrical construction segment and 86% in the mechanical construction segment. Increasing cooling requirements and the adoption of advanced liquid-cooling technologies for AI data centers continue to create new opportunities, while the company sees no sign of slowing demand as investments in AI infrastructure, cloud computing and digital transformation accelerate.

Strong demand from healthcare, institutional, manufacturing, water and wastewater, and commercial projects continues to support the business, while institutional activity has remained more resilient than expected. Record remaining performance obligations of $15.62 billion further strengthen revenue visibility. Supported by disciplined project execution, geographic expansion and expanding customer relationships, EMCOR appears well positioned to benefit from multiple long-term construction growth trends.

High-Growth End Markets Intensify Industry CompetitionEMCOR’s expansion across high-growth end markets reflects a broader shift across the specialty construction industry, where contractors are increasing their exposure to data centers, advanced manufacturing and other mission-critical infrastructure. Competitors such as Sterling Infrastructure, Inc. (STRL - Free Report) and Comfort Systems USA, Inc. (FIX - Free Report) are also scaling their capabilities through geographic expansion, integrated service offerings, modular construction and disciplined project selection.

Sterling Infrastructure is strengthening its position in mission-critical construction through rapid growth in data centers, electrical services and semiconductor manufacturing. First-quarter E-Infrastructure revenues surged 174%, while mission-critical projects represented more than 90% of the segment’s signed backlog. STRL also secured the first phase of a semiconductor fabrication campus valued at more than $500 million and is combining site-development and electrical services on large data center projects.

Comfort Systems is also benefiting from sustained technology infrastructure demand. First-quarter revenues increased 56% to $2.9 billion, while the record backlog reached $12.5 billion. Advanced technology, led by data centers, accounted for 56% of revenues and remained the largest contributor to the company’s pipeline. Comfort Systems is investing heavily in modular capacity, targeting 4 million square feet by the end of 2026, while expanding its electrical capabilities through acquisitions. Its nationwide workforce, integrated mechanical and electrical solutions, and growing service opportunity position the company to capture a larger share of long-term data center spending.

EME Stock’s Price Performance & Valuation TrendShares of this Connecticut-based infrastructure service provider have gained 25.8% year to date, slightly underperforming the Zacks Building Products - Heavy Construction industry, but outperforming the Construction sector and the S&P 500 Index.

EME YTD Share Price Performance

Image Source: Zacks Investment Research

EME stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 24.64, as evidenced by the chart below.

EME Valuation

Image Source: Zacks Investment Research

Earnings Estimate Revision of EME Stock
Image Source: Zacks Investment Research

EME’s earnings estimates for 2026 and 2027 have moved upward in the past 60 days. The estimates for 2026 and 2027 imply year-over-year growth of 13.5% and 11.8%, respectively.

EME’s Zacks Rank

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

Key Takeaways Vistra plans to invest $2.587 billion in 2026, up from $2.16 billion in 2025.Capital spending targets nuclear, solar, battery storage and modernized gas-fired facilities.Vistra is adding 4.5 GW organically and plans to acquire Cogentrix's 5,500-MW portfolio. Vistra Corp. (VST - Free Report) is well positioned for long-term growth, supported by its disciplined capital investment strategy. As the energy sector shifts toward cleaner and more reliable power generation, the company is making significant capital investments to expand its renewable energy and battery storage portfolio. These investments are expected to strengthen Vistra's ability to meet growing electricity demand while enhancing grid reliability and supporting long-term earnings growth.

Vistra aims to invest $2.587 billion in 2026, up from $2.16 billion and $1.93 billion invested in 2025 and 2024, respectively. The company’s capital expenditure is strategically directed toward the development of nuclear, solar, battery storage and modernized gas-fired facilities. Vistra operates a diversified generation fleet with approximately 44,000 megawatts (“MW”) of capacity, spanning natural gas, nuclear, coal, solar and battery energy storage assets.

VST is strategically deploying capital to expand its asset base, modernize technology and improve operational efficiency, strengthening the long-term growth prospects. The company is also growing its natural gas portfolio through acquisitions, including the Lotus assets and the planned acquisition of Cogentrix's 5,500-MW portfolio, while advancing approximately 4.5 GW of organic capacity additions to meet rising electricity demand and support cash flow growth.

With strong fundamentals and a clear capital deployment strategy, Vistra’s steadily rising CapEx signals long-term upside potential. Investors may view Vistra as a compelling opportunity in the evolving utility and clean energy space.

Utilities Are Investing in Energy TransitionUtilities across the United States are ramping up investments to advance the energy transition, directing capital toward expanding renewable generation and energy storage infrastructure.

NextEra Energy’s (NEE - Free Report) growth strategy is its planned capital investment of more than $94.1 billion through 2030. Planned investment at NEE’s unit FPL and NextEra Energy Resources will expand generation, strengthen grid reliability and accelerate renewable and storage development, supporting long-term earnings growth amid rising power demand.

Duke Energy's (DUK - Free Report) outlook is supported by its regulated utility operations and robust capital investment plan of $103 billion in the 2026-2030 period. Investments in grid modernization, renewable energy and transmission infrastructure are expected to expand Duke Energy's operation and drive consistent earnings.

The Zacks Rundown on VSTThe Zacks Consensus Estimate for Vistra’s 2026 and 2027 earnings per share indicates a year-over-year increase of 80.99% and 18.06%, respectively, in the past 60 days.

Image Source: Zacks Investment Research

VST’s trailing 12-month return on equity (ROE) is 105.64%, way ahead of its industry average of 11.21%. ROE, a profitability measure, reflects how effectively a company is utilizing its shareholders’ funds in operations to generate income.

Image Source: Zacks Investment Research

Shares of Vistra have risen 1% in the past month compared with the Zacks Utility- Electric Power industry’s of 0.7% rally.

Image Source: Zacks Investment Research

VST's Zacks Rank

Key Takeaways Ciena and Nokia are benefiting from rising AI-driven demand for networking infrastructure.Ciena reported record revenues, expanded margins and raised its fiscal 2026 outlook.Nokia raised its AI and Network Infrastructure growth outlook as optical and IP demand accelerated. Ciena Corporation (CIEN - Free Report) and Nokia (NOK - Free Report) are benefiting from the rapid adoption of artificial intelligence (AI), which is driving strong demand for high-speed networking infrastructure. As hyperscalers and service providers expand AI deployments, both companies are strengthening their optical networking, routing and switching portfolios to support higher-capacity, low-latency connectivity. Ciena is leveraging its broad networking portfolio and deep customer relationships, while Nokia is expanding its AI and cloud business through optical and IP networking solutions.

Both companies are also introducing new AI-focused networking technologies and increasing investments to capture the growing opportunity. Ciena continues to expand its AI-driven portfolio with solutions such as RLS Hyper-Rail and DCOM, while Nokia has launched next-generation hyperscale optical solutions and AI-ready mobile networking products, alongside raising its Network Infrastructure growth outlook.

Let’s analyze their fundamentals, growth opportunities, market challenges and valuation to assess which one presents a stronger investment opportunity.

The Case for CIENCiena is benefiting from robust AI-driven demand for networking infrastructure, supported by its technology leadership, diversified product portfolio and long-standing customer relationships. In the second quarter of fiscal 2026, the company reported record revenues of $1.57 billion, up 40% year over year. Adjusted gross margin expanded to 44.9%, while adjusted earnings per share climbed to $1.64, nearly four times the prior-year level. Management stated that these results were delivered despite ongoing supply constraints. Backed by a growing backlog and offerings spanning networking systems, interconnects, software and services, Ciena remains well positioned to address rising connectivity needs across wide area networks and data centers.

The company continues to benefit from increasing investments by hyperscalers and service providers in networking infrastructure. Management indicated that hyperscalers have expanded their capital expenditure plans for 2026, with further investments expected beyond 2027, while service providers are resuming spending on optical infrastructure after a prolonged slowdown. Demand is being fueled by AI applications requiring high-capacity, low-latency and high-speed connectivity for model training, data ingestion and inference. Ciena expects these trends to significantly expand its addressable market to nearly $50 billion by 2029, covering both traditional WAN opportunities and fast-growing data center networking markets.

Ciena is further strengthening its competitive position through new product adoption and expanding customer engagements. The company secured the industry's first multi-rail order for its RLS Hyper-Rail platform from a leading hyperscaler and is actively working with additional hyperscalers, neoscalers and service providers that have shown strong interest in the solution. Its Data Center Out-of-Band Management (DCOM) platform drove 88% year-over-year growth in the Routing and Switching business, while Ciena also secured orders from a second hyperscaler, progressed qualifications with a third and won a major contract for coherent modules.

Demand for its 400G and 800G pluggables remains strong, with management expecting pluggable revenues to more than double from 2025. Customer collaboration is also increasing, as clients engage earlier in network design, helping shape Ciena's product roadmap and improving demand visibility. During the quarter, direct cloud customer revenues increased 70% year over year, service provider revenues rose 28%, India service provider revenues more than doubled and backlog expanded by more than $600 million sequentially to $7.7 billion, providing visibility into fiscal 2027.

The favorable demand environment has also strengthened Ciena's financial outlook. The adjusted operating margin improved to 19.5%, free cash flow reached $219 million and cash and investments totaled $1.4 billion. Management attributed the stronger profitability to engineering cost reductions, pricing optimization and disciplined working capital management. Reflecting solid first-half execution, the company raised its fiscal 2026 guidance and expects revenues of approximately $6.3 billion, plus or minus $100 million, an adjusted gross margin of 44.5%-45% and an adjusted operating margin of around 19%.

However, Ciena continues to face supply constraints as customer demand outpaces available component supply, requiring ongoing investments to secure manufacturing capacity and maintain execution. The company also operates in a highly competitive networking market and remains exposed to customer concentration risk.

The Case for NOKNokia is gaining from accelerating AI-driven demand and strengthening momentum across its network infrastructure business. The company reported 49% year-over-year growth in AI and cloud net sales, supported by strong demand from AI and cloud customers and €1 billion in new orders, primarily driven by Optical Networks. Management stated that rising AI adoption is increasing demand for data center interconnect, routing, switching and transport networks, creating a multi-year structural growth opportunity. Nokia also raised its AI and cloud addressable market growth outlook to a 27% CAGR for 2025-2028 from the previously expected 16%, while increasing its network infrastructure market growth outlook to 14% from 9%, reflecting stronger customer demand and higher AI-related infrastructure investments.

The company is also benefiting from expanding investments in Optical and IP Networks as AI deployments drive higher networking requirements. The company introduced a next-generation hyperscale multi-rail solution that significantly increases fiber density without expanding physical infrastructure and unveiled a new optical architecture designed to simplify deployments while reducing customers' total cost of ownership. Nokia also reported growing engagement with AI and cloud customers in switching and routing, secured new design wins, expanded its IP Networks pipeline and increased investments in optical manufacturing capacity. Reflecting these trends, management raised its 2026 Network Infrastructure growth outlook to 12-14% from 6-8% and increased its Optical and IP Networks growth forecast to 18-20% from 10-12%.

Nokia is strengthening its mobile network portfolio through AI-focused innovation and product development. The company introduced a new generation of AI RAN-ready radios featuring improved power efficiency and lower weight while continuing development of AI RAN solutions with NVIDIA, with field trials expected by year-end. Management also highlighted strong customer demand for cloud-native core software, new security capabilities and end-to-end automation as operators modernize their networks. At the same time, Nokia expects AI-related design wins in IP networking to translate into additional orders over the coming quarters, supporting future growth opportunities.

However, Nokia continues to face supply constraints as AI-related demand exceeds available capacity. Management noted that semiconductor supply limitations and the need to expand optical manufacturing capacity remain challenges as the company scales production. The company is investing in manufacturing capabilities, supply chain expansion and additional production capacity to capture growing demand, but acknowledged that the broader optical ecosystem continues to experience more demand than supply.

Nokia continues to face weakness in parts of its traditional networking business. Fixed Networks sales declined 13% in the quarter due to the company's strategy of prioritizing higher-margin products, while IP Networks growth was partly offset by softness in non-AI customer segments. Management also expects continued headwinds in the customer premises equipment business as it remains disciplined in focusing on long-term profitable opportunities, while describing the overall telecom market as relatively flat.

CIEN Shares vs. NOKOver the past year, CIEN shares have soared 393.5% while Nokia stock has surged 139.4%.

Image Source: Zacks Investment Research

Valuation for CIEN & NOKIn terms of Price/Book, CIEN shares are trading at 20.48X, higher than NOK’s 2.6X.

Image Source: Zacks Investment Research

How Do Zacks Estimates Compare for CIEN & NOK?Analysts have significantly revised their earnings estimates upward for CIEN’s bottom line for the current year.

Image Source: Zacks Investment Research

For NOK, there have been no revisions for the current year.

Image Source: Zacks Investment Research

CIEN or NOK: Which Stock to Bet on?CIEN sports a Zacks Rank #1 (Strong Buy) at present, while NOK has a Zacks Rank #3 (Hold). Consequently, in terms of Zacks Rank and valuation, CIEN seems to be a better pick at the moment.

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

Key Takeaways DoubleVerify trades at 9.93X forward earnings as 2026 revenue growth is forecast at 8%-10%.First-quarter adjusted EBITDA reached $55.2 million, with a 31% margin and no debt outstanding.Measured transactions rose 12%, but the fee per thousand transactions fell 4%, pressuring growth. DoubleVerify Holdings, Inc. (DV - Free Report) presents a split investment case. The stock trades at a low multiple, solid profitability and ongoing investment in social, connected TV and AI products.

The caution is growth. Revenue expansion has slowed from prior levels, and pricing pressure remains visible even as transaction volumes rise.

DV Valuation Looks CompressedDV trades at 9.93X forward 12-month earnings, below 28.31X for the Zacks sub-industry, 24.49X for the Zacks Computer and Technology sector and 21.13X for the S&P 500.

That discount is also meaningful against its own history. Over the past five years, DV has traded as high as 171.17X and as low as 9.93X, with a median of 62.60X.

DoubleVerify Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research

For investors seeking a lower-multiple software name, that setup can look appealing. The valuation already reflects a large amount of skepticism, while the company still has earnings growth potential.

DoubleVerify Still Delivers Healthy MarginsProfitability remains the clearest support for the bull case. In the first quarter of 2026, DV reported adjusted EBITDA of $55.2 million, equal to a 31% adjusted EBITDA margin.

The company also expects a full-year adjusted EBITDA margin of about 34%. That level of margin discipline helps offset part of the concern around slower revenue growth.

AI-driven efficiencies are playing a role in cost control. Management has tied margin expansion to operating efficiency, faster product launches and the broader use of AI across the business.

DV Growth Is Slowing From Prior LevelsDV’s revenues increased 10% year over year to $180.8 million in the first quarter of 2026. That still reflects growth, but it is below the company’s stronger 2025 revenue growth rate of 14.7%.

The second-quarter outlook points to further moderation. Management expects revenues of $199-$205 million, representing year-over-year growth of about 7% at the midpoint.

For 2026, DV expects revenues of $810-$826 million, implying growth of 8-10%. That makes execution in social, connected TV and AI products central to the debate over whether the valuation discount is justified.

DoubleVerify Faces Fee and Mix PressureThe pricing picture is less favorable than the volume picture. Advertiser revenues represented 90% of total revenues and grew 9% year over year in the first quarter, while Media Transactions Measured increased 12%.

That volume gain was partly offset by a 4% decline in the fee charged per thousand measured transactions. Lower measured transaction fees can dilute the quality of revenue growth.

This dynamic makes product mix more important. DV needs scale, but it also needs greater adoption of higher-value offerings to reduce the drag from lower fee rates.

Competition adds to that pressure. comScore, Inc. (SCOR - Free Report) is another audience measurement and media planning provider, while The Trade Desk, Inc. (TTD - Free Report) is a major demand-side platform in the programmatic advertising ecosystem.

DV's Balance Sheet Supports the Bull CaseFinancial flexibility remains a real strength. DV ended the first quarter with approximately $174 million in cash and no debt outstanding.

The company has also been active with buybacks. It repurchased 9.8 million shares for $100.2 million year to date and still had $200 million authorized for repurchases.

That balance sheet does not remove execution risk, but it gives DV room to invest in AI and product expansion while returning capital.

What DV's Ratings Say About TimingThe bottom line is that DV looks inexpensive and profitable, but the growth profile is not yet strong enough to make the timing straightforward. A low multiple can support interest, while slower growth and fee pressure argue for patience.

The stock currently carries a Zacks Rank #3 (Hold). That fits a balanced view, suggesting the shares are interesting but not a clear near-term conviction call. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DV also has a VGM Score of B, along with a Value Score of B and a Growth Score of B. Those grades point to attractive underlying value and growth characteristics.

The Momentum Score of F is the offset. Since Style Scores are meant to complement the Zacks Rank, investors may prefer stronger momentum or improved estimate stability before taking a more aggressive stance.

Key Takeaways CAG targets a margin reset with fiscal 2027 goals for sales, operating margin and EPS.Conagra Brands plans $40M more brand investment and $125M incremental capital spending.CAG is evaluating its 5,500 SKUs to reduce complexity and improve resource allocation. Conagra Brands, Inc. (CAG - Free Report) used its fourth-quarter fiscal 2026 earnings call to outline a reset focused on restoring margins, improving supply chain capabilities and simplifying the portfolio. Management emphasized balancing near-term profitability with investments intended to strengthen future performance.

The company reported adjusted EPS of $0.47, ahead of the Zacks Consensus Estimate of $0.46, while revenues reached $2.882 billion compared with the consensus estimate of $2.876 billion. Management’s discussion centered more on strategic changes than on quarterly results.

CAG's Margin Reset PlanCEO John Brase said the company is prioritizing a healthier margin structure after several years of emphasizing volume growth. He highlighted the need to balance competitive pricing, investment levels and profitability as Conagra works toward a stronger operating foundation.

The company’s fiscal 2027 outlook reflects this shift, with organic net sales expected to decline 3-1%, adjusted operating margin targeted at 10-10.5%, and adjusted EPS projected at $1.40-$1.50.

Management also pointed to productivity as a key driver, targeting productivity savings above 4% while addressing inflation pressures. Executives noted that pricing actions will play a role in supporting investment capacity.

Conagra's Investment BalanceBrase said the company plans to increase brand investment by $40 million, representing a 14% increase, while adding $125 million of incremental capital spending to strengthen supply chain resilience and reduce costs.

The company expects fiscal 2027 capital expenditures of about $550 million, with free cash flow conversion above 90%. Management said investments are designed to improve manufacturing capabilities while supporting long-term efficiency.

During the Q&A, a Barclays analyst questioned whether balance sheet constraints limited investment levels. Brase responded that the dividend reduction and capital allocation changes create room for both reinvestment and progress toward the company’s leverage target.

CAG's Frozen FocusManagement maintained that frozen remains a strategic priority despite recent margin pressure. Brase said the company intends to continue investing in frozen brands while using pricing and productivity actions to rebuild profitability.

The Refrigerated & Frozen segment generated $1.2 billion in fourth-quarter sales, but adjusted operating profit declined 18.5% to $139 million due to inflation, higher SG&A and unfavorable operating leverage.

A Bank of America analyst asked about the balance between frozen margin improvement and continued investment. Management said pricing actions, productivity improvements and innovation spending are intended to address both priorities.

Conagra's Portfolio ReviewBrase said portfolio simplification is a major focus, noting that the company plans to evaluate opportunities to reduce complexity and improve resource allocation. He said the review will include a detailed assessment of the company’s approximately 5,500 SKUs.

Management highlighted frozen and permissible snacking categories, including meat snacks, seeds and popcorn, as areas where Conagra believes it has competitive advantages.

A RBC Capital Markets analyst asked about the timing of portfolio changes. Brase said strategic portfolio actions would be a longer-term effort, while near-term opportunities include reducing SKU complexity.

CAG's Guidance FrameworkConagra entered fiscal 2027 with a focus on improving execution while managing inflation and consumer sensitivity. Management said pricing assumptions and volume trends are key factors it will monitor throughout the year.

The company reported fiscal 2026 adjusted EPS of $1.72, adjusted operating margin of 11.3% and free cash flow of $978.7 million. Net debt ended the year at $7.1 billion, with a net leverage ratio of 3.83X.

Executives also said the dividend reduction is expected to support deleveraging efforts. Management expects the change to free roughly $1 billion of incremental cash flow over the next three years.

Conagra's Closing DirectionBrase said his early focus has been listening to investors, customers and employees while identifying opportunities to simplify operations and improve accountability. He highlighted Project Catalyst as an initiative aimed at improving efficiency.

Management’s message on the call was centered on rebuilding operational discipline through targeted investments, portfolio focus and stronger cash management. The company plans to provide additional strategic details at an Investor Day in early 2027.

Zacks Signals for CAGCAG carries a Zacks Rank #4 (Sell) at present, which indicates that the stock is currently positioned lower within the Zacks Rank system based on earnings estimate revisions. The Zacks Rank can change as analysts update their estimates following new company information.

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

The stock has a Value Score of A, a Growth Score of D, a Momentum Score of B and a VGM Score of B. The Zacks Style Score is designed to complement the Zacks Rank by evaluating value, growth and momentum characteristics, with higher grades representing stronger relative characteristics within each style category.

Key Takeaways MP links Mountain Pass, Independence and 10X to build a domestic rare earth supply chain.Policy support boosts demand visibility through price protection, incentives and long-term offtake.Rising costs, working-capital needs and unfinished ramps keep MP's margin outlook uncertain. MP Materials Corp. (MP - Free Report) sits near the center of a U.S. push to localize rare earth processing and magnet manufacturing. The investor question is no longer limited to mine output.

The bigger issue is whether MP can turn strategic relevance into repeatable earnings power while it builds a domestic supply chain.

Why MP Materials Fits the Reshoring TrendMP’s model fits reshoring because it spans more than mining. The company owns Mountain Pass in California, the only rare earth mine and processing site of scale in North America, and operates the Independence facility in Fort Worth, TX.

Mountain Pass supports mining, concentration and separation. Independence produces rare earth metal, alloy and magnetic precursor products, while the planned 10X campus in Northlake, TX, would add more domestic magnet capacity.

Albemarle Corporation (ALB - Free Report) , a lithium and specialty chemicals producer, gives investors another way to view processing depth in strategic materials. Cameco Corporation (CCJ - Free Report) , a uranium and nuclear fuel company, reflects interest in secure energy supply chains.

How MP is Moving Beyond Commodity ExposureMP is moving away from a simpler concentrate sales model. It stopped rare earth concentrate sales to Chinese customers in July 2025 and now focuses Materials segment revenues mainly on neodymium-praseodymium oxide and metal.

That shift matters because value creation increasingly depends on processing depth. In the first quarter of 2026, Materials revenues rose to $72.2 million, while neodymium-praseodymium oxide and metal revenues reached $71.1 million.

The downstream transition is also taking shape. Independence began generating revenues from magnetic precursor sales to General Motors in the first quarter of 2025 and started neodymium-iron-boron permanent magnet manufacturing in December 2025.

What Policy Support Means for MP GrowthPolicy support has become central to MP’s growth setup. The company entered definitive agreements with the United States Department of War in July 2025 to support a domestic rare earth magnet supply chain.

Those agreements call for expansion of Independence, construction of the 10X facility and extension of heavy rare earth refining capability at Mountain Pass. The Department of War agreed to purchase magnets from 10X, or approve commercial syndication, and guaranteed a minimum EBITDA level for that plant.

MP also implemented a price protection agreement in the fourth quarter of 2025 with a $110-per-kilogram floor for eligible neodymium-praseodymium products through 2035. The Northlake project is supported by roughly $200 million in state and local incentives and a 10-year Pentagon offtake commitment.

This support can improve demand visibility and reduce downside. It also adds contractual obligations, approval requirements and dependence on government program execution.

Why MP Materials Faces a Tougher Margin EquationThe domestic buildout brings costs that investors cannot ignore. MP has reported operating losses for 11 consecutive quarters as it shifts toward higher-value separated products.

Cost of sales climbed 52% in the first quarter of 2026 because of higher volumes of neodymium-praseodymium oxide, metal and magnetic precursor products. These products carry higher per-unit costs than rare earth concentrates because they require chemical reagents, labor, maintenance and other consumables.

Operating expenses are also rising. Selling, general and administrative expenses increased 39.2% in the first quarter, mainly because of higher personnel costs. Start-up costs surged 503% as magnet production and chlor-alkali facilities ramped.

The Zacks Consensus Estimate for MP Materials’ 2026 earnings is pegged at 22 cents per share, indicating an improvement from the loss of 24 cents in 2025. The estimate for 2027 is $1.04 per share, indicating a 372% year-over-year improvement.

Image Source: Zacks Investment Research

However, both the estimates have been revised downward, as shown in the chart below.

Image Source: Zacks Investment Research

Working capital remains part of the equation. Higher trade receivables, inventory needs and deferred revenues show that cash conversion depends on timely shipment, qualification and customer acceptance across newer product lines.

Shares of MP have declined 18.9% in the past three months against the industry’s 9.6% fall.

Image Source: Zacks Investment Research

How MP Scores Reflect a Trend-Driven TradeMP’s reshoring appeal is real, but the stock setup remains mixed. The company has a Zacks Rank #3 (Hold), which fits a business with policy support, improving operating traction and meaningful execution risk. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Style Scores show the same split. MP has a Momentum Score of A, suggesting stronger market interest around the theme and recent estimate activity. Its Value Score of F and Growth Score of D point to caution on valuation and fundamental consistency.

The VGM Score of D reinforces that this is not a clean across-the-board setup. MP looks more like a trend-driven stock that still needs proof of durable margins, smooth qualification and reliable downstream scale than a high-conviction buy at any price.

Key Takeaways Jacobs joined TransnetBW's trusted partner pool to support major transmission infrastructure programs.The framework covers permitting, design, cost management, risk oversight and construction supervision.Jacobs' record $27 billion backlog and 1.4x book-to-bill ratio support strong revenue visibility. Jacobs Solutions Inc. (J - Free Report) has secured a multidisciplinary framework agreement with TransnetBW, one of Germany’s four major electricity transmission system operators, strengthening its position in Europe's accelerating energy transition. Instead of a single contract, the two companies have entered into a flexible agreement that places Jacobs in a pre-approved pool of trusted partners, allowing TransnetBW to assign work more efficiently without repeating the formal bidding process.

Under the agreement, Jacobs will provide end-to-end project delivery support across multiple transmission infrastructure programs. Its responsibilities will span environmental permitting, site investigations, engineering design, project and cost management, risk oversight and construction supervision. While TransnetBW will retain overall governance and final decision-making authority, Jacobs will contribute technical expertise to help deliver large-scale grid modernization projects safely, efficiently and in compliance with Germany's regulatory requirements.

Germany's Energy Transition Creates Long-Term OpportunityThe partnership strengthens Jacobs' presence in energy and power infrastructure, one of the company's fastest-growing end markets. As renewable energy capacity expands, Germany requires significant transmission upgrades to improve grid reliability and connect new clean-energy sources across the country.

Leveraging its established engineering and program management capabilities in Germany, Jacobs will help TransnetBW execute complex transmission projects through integrated technical delivery, environmental planning and disciplined project oversight. The collaboration also aligns with Jacobs' broader strategy of providing integrated lifecycle solutions, from planning and advisory services through construction management, for critical infrastructure projects.

The award comes amid rising investments in Germany's transmission network as renewable energy deployment and electrification increase demand for a stronger, more resilient power grid. It also positions Jacobs to capitalize on long-term infrastructure spending opportunities across Europe's energy market.

Record Backlog Supports Growth VisibilityThe TransnetBW framework further strengthens Jacobs' long-term growth outlook, supported by robust project demand across its key end markets. In the second quarter of fiscal 2026, the company reported a record backlog of $27 billion, up 22% year over year, while its trailing 12-month book-to-bill ratio remained a healthy 1.4x, reflecting continued strong bookings and revenue visibility. Management also raised its fiscal 2026 organic adjusted net revenue growth outlook to 8-10.5%, citing sustained momentum across data centers, semiconductors, water, energy and power, and transportation.

Recent project wins, including the Dallas Fort Worth International Airport Terminal S expansion, the San Francisco Southeast Wastewater Treatment Plant modernization and multiple hyperscaler data center projects, underscore Jacobs' ability to secure large, complex infrastructure programs across diversified end markets. This broad-based demand continues to reinforce the company's long-term growth strategy.

J’s Share Price PerformanceJacobs’ stock has declined 2.1% year to date against the Zacks Building Products - Miscellaneous industry’s 2.1% growth. Near-term performance could remain pressured by uncertainties surrounding infrastructure funding, foreign-exchange headwinds and higher leverage following the acquisition of the remaining stake in PA Consulting.

Image Source: Zacks Investment Research

Nevertheless, Jacobs remains well positioned for long-term growth, supported by its record backlog, improving bookings and sustained demand across mission-critical markets such as energy and power, transportation, water, advanced manufacturing and AI-related infrastructure.

J’s Zacks Rank & Key PicksJacobs currently carries a Zacks Rank #3 (Hold).

Some top-ranked stocks from the Construction sector are:

Argan, Inc. (AGX - Free Report) flaunts a Zacks Rank #1 (Strong Buy) at present. The company delivered a trailing four-quarter earnings surprise of 40.5%, on average. AGX stock has surged 94.4% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Argan’s 2026 sales and EPS indicates growth of 38% and 29.4%, respectively, from the prior-year levels.

Sterling Infrastructure, Inc. (STRL - Free Report) flaunts a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 29.1%, on average. STRL stock has jumped 118.4% year to date.

The Zacks Consensus Estimate for Sterling’s 2026 sales and EPS indicates growth of 59.2% and 75.7%, respectively, from the prior-year levels.

Everus Construction Group (ECG - Free Report) presently has a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 62%, on average. ECG stock has climbed 61.8% year to date.

The Zacks Consensus Estimate for ECG’s 2026 sales and EPS indicates growth of 17% and 11.1%, respectively, from the year-ago period’s levels.

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

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 23. 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 motorcycle maker is expected to post quarterly earnings of $0.58 per share in its upcoming report, which represents a year-over-year change of -34.1%.

Revenues are expected to be $1.12 billion, up 6.5% 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 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 Harley-Davidson?For Harley-Davidson, 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 -1.16%.

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

So, this combination makes it difficult to conclusively predict that Harley-Davidson 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 Harley-Davidson would post earnings of $0.34 per share when it actually produced earnings of $0.22, delivering a surprise of -35.29%.

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.

Harley-Davidson 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 - Domestic industry, General Motors (GM - Free Report) , is soon expected to post earnings of $3.13 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +23.7%. Revenues for the quarter are expected to be $45.96 billion, down 2.5% from the year-ago quarter.

The consensus EPS estimate for General Motors has remained unchanged over the last 30 days. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +5.17%.

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

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

Key Takeaways HealthEquity is gaining from solid fiscal Q1 results, HSA strength and its business model.HQY's AI tools cut manual email handling 25% and reduced efforts by more than 90% in targeted workflows.HealthEquity's HSAs rose 8% to 10.6 million, while total HSA assets grew 19% to $37.1 billion. HealthEquity, Inc. (HQY - Free Report) has been gaining from its business model and strategy. The optimism, led by a solid first-quarter fiscal 2027 performance and strength in Health Savings Accounts (HSAs), is expected to contribute further. However, data security threats are major concerns.

In the year-to-date period, this Zacks Rank #3 (Hold) company’s shares have gained 3.8% against the 0.7% decline of the industry. The S&P 500 has increased 10.3% during the said time frame.

The renowned provider of technology-enabled services platforms for healthcare savings and spending decisions has a market capitalization of $7.9 billion. The company projects 15.2% growth over the next five years and expects to witness continued improvements in its business. HealthEquity’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 12.02%.

Image Source: Zacks Investment Research

Reasons Favoring HQY’s GrowthAI & Digital Innovation Drive Scalable Efficiency:In the first quarter of fiscal 2027, management said AI-driven tools reduced manual handling of member and client service emails by 25%. In targeted workflows such as card servicing and claims inquiries, AI-enabled automation reduced manual efforts by more than 90% and accelerated processing times by up to 50%. These initiatives are being paired with continued technology and security investments embedded in the raised fiscal 2027 outlook, suggesting management intends to keep pushing automation while sustaining service quality.

Expansion of Health Savings Accounts: HealthEquity has experienced significant growth in its HSA offerings. As of April 30, 2026, the total number of HSAs for which HealthEquity served as a non-bank custodian was 10.6 million, up 8% year over year.

HealthEquity reported 909,000 HSAs with investments as of April 30, 2026, up 18% year over year. Total accounts, as of April 30, 2026, were 17.8 million. This uptick included total HSAs and 7.2 million Consumer Direct Benefits (CDBs).

Total HSA assets were $37.1 billion at the end of April 30, 2026, up 19% year over year. This included $17.5 billion of HSA cash and $19.6 billion of HSA investments. This figure compares with our fiscal first-quarter HSA cash and HSA investments projection of $17.6 billion and $17.9 billion, respectively. We projected total HSA assets of $35.5 billion for the fiscal first quarter.

Client-held funds, which are deposits held on behalf of HealthEquity’s clients to facilitate the administration of its CDBs and from which the company generates custodial revenues, were $1 billion as of April 30, 2026.

Strong Fiscal Q1 Results: HealthEquity exited first-quarter fiscal 2027 with better-than-expected results. The company witnessed solid top and bottom-line performances in the reported quarter. Solid growth in HSAs also drove the top line. The solid uptick in total HSA assets in the reported quarter is promising. Improvements in operating and gross margins also bode well.

Management noted that the company opened approximately 172,000 new HSAs during the quarter. The company noted that it outpaced industry HSA growth, supported by strong client retention, an active enterprise sales pipeline and continued adoption of HSA-qualified plans.

Management also emphasized that digital engagement continues to strengthen, with monthly active mobile usage surging 90% year over year. The increased use of the mobile platform is helping improve member engagement, boost investing activity and support marketplace adoption, all of which are expected to enhance long-term member lifetime value.

Factor That May Offset HQY’s GainsData Security Threats: HealthEquity manages sensitive personal data and large custodial balances, which keeps cybersecurity risk elevated despite recent progress in fraud reduction. The company remains subject to a consolidated putative class action related to a fiscal 2025 cybersecurity incident involving a business partner’s user account and is also subject to regulatory inquiries connected to that incident.

In May 2026, the company filed a renewed motion to compel arbitration, and the potential loss associated with the lawsuit and any regulatory action was not reasonably estimable based on available information. Any adverse outcome could increase costs, create operational distraction and impact member and client confidence, which can weigh on the long-term margin and growth profile.

Estimate TrendHealthEquity has been witnessing a stable estimate revision trend for fiscal 2027. Over the past 30 days, the Zacks Consensus Estimate for earnings per share (EPS) has remained stable at $4.71.

The Zacks Consensus Estimate for second-quarter fiscal 2027 revenues is pegged at $350.2 million, implying a 7.5% rise from the year-ago reported number. The consensus mark for fiscal second-quarter EPS is pinned at $1.19, implying a 10.2% improvement year over year.

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

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

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

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

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

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

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

Key Takeaways AAOI is adding nearly 400,000 square feet of production to boost 800G and 1.6T transceiver output. Applied Optoelectronics expects demand to exceed production capacity through mid-2027. AAOI targets monthly production of more than 650,000 units by the end of 2026 and 930,000 units by end-2027. Applied Optoelectronics (AAOI - Free Report) has begun expanding its Pearland, TX, manufacturing campus, reinforcing its commitment to meeting rapidly growing demand for artificial intelligence (AI) networking infrastructure. The project will add nearly 400,000 square feet of production space across two facilities, supporting higher output of 800G and 1.6T optical transceivers used in hyperscale AI data centers.

The expansion builds on AAOI's broader U.S. manufacturing strategy and follows the company's previously announced plans to significantly increase domestic production capacity. Once fully operational, the Houston-area campus is expected to support production of up to 700,000 high-speed optical transceivers per month while substantially expanding laser manufacturing capacity by the end of 2027. The investment is aimed at strengthening AAOI's ability to serve hyperscale cloud providers as AI infrastructure deployments continue to accelerate.

The new facilities complement AAOI's vertically integrated manufacturing model, enabling the company to expand domestic production while maintaining greater control over product quality, supply chain resilience and manufacturing efficiency. The expansion also positions AAOI to capitalize on the industry's transition to higher-speed optical networking solutions.

AI Networking Demand Continues to Fuel AAOI's GrowthApplied Optoelectronics shares have soared 212.9% year to date, significantly outperforming the broader Zacks Computer and Technology sector's 15.8% growth. The rally reflects investors' optimism surrounding the company's expanding AI optics business, increasing hyperscaler engagements and aggressive manufacturing expansion.

The Pearland expansion supports AAOI's strategy of becoming a leading U.S. supplier of AI optical networking products. Demand for 800G and 1.6T optical transceivers is rising rapidly as hyperscale cloud providers build AI data centers, with management expecting demand to exceed production capacity through mid-2027, providing strong revenue visibility.

The company's AI optics business is gaining momentum. In the first quarter of 2026, 800G transceivers generated $4.6 million, or 5.6% of data center revenues, following the first volume shipment to a major hyperscale customer. Management expects 800G shipments to nearly quadruple in the second quarter, while 1.6T transceiver shipments are expected to begin in the third quarter after the company secured its first volume order from another hyperscale customer.

To support growing demand, AAOI plans to increase production capacity from nearly 100,000 units per month at the end of the first quarter to more than 650,000 units by the end of 2026 and 930,000 units by the end of 2027, alongside a 350% expansion in laser fabrication capacity.

AAOI’s strong position in the 800G transceiver market is fueling both operational and financial momentum. The company forecasts 800G revenues will reach approximately $217 million per month by mid-2027, contributing to total data center transceiver revenues of about $471 million per month.

AAOI Offers Strong Q2 2026 OutlookApplied Optoelectronics' expanding U.S. manufacturing footprint, accelerating AI infrastructure deployments and growing 800G and 1.6T optical transceiver business are expected to benefit the company’s top-line growth.

AAOI expects second-quarter 2026 revenues to be between $180 million and $198 million.

The Zacks Consensus Estimate for second-quarter 2026 revenues is pegged at $191.13 million, indicating year-over-year growth of 85.66%.

The consensus mark for second-quarter 2026 earnings is pegged at 3 cents per share, unchanged over the past 30 days. The figure implies a year-over-year increase of 118.75%.

AAOI's Zacks Rank & Stocks to ConsiderCurrently, Applied Optoelectronics carries a Zacks Rank #3 (Hold).

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

APPS shares have rallied 94.6% in the year-to-date period. The long-term earnings growth rate for Digital Turbine is pegged at 18.98%.

DELL shares have surged 227.8% in the year-to-date period. The long-term earnings growth rate for Dell Technologies is pegged at 26.35%.

Shares of ADI have gained 44.1% in the year-to-date period. The long-term earnings growth rate for Analog Devices is pegged at 28.76%.

Key Takeaways Lumentum's fiscal third-quarter Components and Systems revenues surged 77.3% and 121.1%, respectively.AI demand, sold-out components and new optical products support LITE's multi-year growth outlook.APLD faces widening losses, heavy debt and execution risks despite expanding AI data center capacity. Lumentum Holdings (LITE - Free Report) and Applied Digital Corporation (APLD - Free Report) are emerging beneficiaries of the accelerating AI infrastructure buildout. Lumentum supplies advanced optical networking components that enable high-speed data transmission within AI data centers. At the same time, Applied Digital develops and operates AI-focused data centers and high-performance computing infrastructure. Despite their different business models, both companies are benefiting from the same wave of AI-driven capital spending.

The AI infrastructure investment cycle is gaining momentum as hyperscalers, cloud providers and enterprises continue expanding their AI capabilities. According to Mordor Intelligence, the global AI infrastructure market is projected to reach $202.5 billion by 2031, growing at a 14.9% CAGR. As AI infrastructure spending accelerates, investors are increasingly evaluating companies across different layers of the AI ecosystem. Against this backdrop, comparing these two companies offers insight into which is better positioned to capitalize on this long-term opportunity.

The Case for LITE StockLumentum is emerging as one of the strongest beneficiaries of the accelerating AI infrastructure buildout, supplying the optical engines that enable high-speed connectivity inside and between hyperscale AI data centers. Its portfolio spans electro-absorption modulated lasers (EMLs), continuous-wave lasers, pump lasers, narrow-linewidth laser assemblies, optical circuit switches (OCS) and cloud transceivers — all of which are essential for AI networking, data center interconnect (DCI) and co-packaged optics (CPO). The company increasingly positions itself as a critical supplier of both AI infrastructure components and complete optical systems.

AI demand continues to translate into exceptional execution. In third-quarter fiscal 2026, Components revenues climbed 77.3%, and Systems revenues jumped 121.1%, driven by record cloud transceiver shipments, robust EML demand and expanding AI deployments. Management expects fiscal fourth-quarter revenues of $960 million-$1.01 billion, reflecting confidence in sustained AI infrastructure investments and continued business momentum.

Lumentum's competitive advantage lies in its differentiated "scale-out" and "scale-across" optical portfolio. Hyperscalers are increasingly adopting distributed AI architectures that require high-bandwidth optical interconnects, pump lasers, wavelength-selective switches and narrow-linewidth lasers. The company stated several AI-focused components remain effectively sold out, while 1.6T transceivers, optical circuit switches and CPO products are expected to provide additional multi-year growth opportunities.

However, investors should remain aware of supply constraints, uncertain AI investment timing, manufacturing ramp execution, geopolitical trade restrictions and customer concentration, which could affect near-term performance. Even so, these risks appear manageable given the company's expanding capacity, improving profitability and strengthening product portfolio.

Analyst sentiment toward Lumentum has strengthened, with the Zacks Consensus Estimate for its fiscal first-quarter and full-year fiscal 2027 earnings pegged at $3.53 and $18.07 per share, indicating growth of 220.91% and 121.15%, respectively. These estimates have also moved higher over the past 30 and 60 days.

Image Source: Zacks Investment Research

The Case for APLD StockApplied Digital is positioning itself as an emerging beneficiary of the accelerating AI infrastructure buildout, but the investment case remains clouded by execution and financial risks. The company is pursuing an aggressive, capital-intensive expansion strategy that continues to pressure profitability while increasing financial leverage. Third-quarter fiscal 2026 net loss attributable to common stockholders widened to $100.9 million, while operating loss reached $85.7 million despite strong revenue growth. The balance sheet reflects the scale of its AI infrastructure buildout, with long-term debt exceeding $2.5 billion, making future returns heavily dependent on timely project execution, customer ramp-ups and continued access to financing.

Despite strong AI demand, Applied Digital faces significant execution challenges. Future growth depends on completing Polaris Forge and Delta Forge projects on schedule, securing additional financing, converting its power pipeline into contracted capacity and signing more long-term hyperscaler leases. The company also remains exposed to customer concentration, power availability, permitting delays, equipment disruptions and the timing of hyperscaler leasing decisions — all of which management identifies as key business risks. Moreover, management noted that only a small fraction of its long-term power pipeline has been contracted, while several development sites remain subject to customer negotiations, regulatory approvals and infrastructure development.

Still, Applied Digital is positioned to benefit from the accelerating AI infrastructure investment cycle. The company designs, builds and operates purpose-built AI factories for AI, cloud and high-performance computing workloads while leveraging a vertically integrated strategy spanning power, AI infrastructure and accelerated compute.

APLD recently laid the foundation stone for the 300 MW Delta Forge 1 AI campus, secured a $100 million development facility from Macquarie, strengthened the credit quality of CoreWeave leases, completed a $2.15 billion secured note offering and continued the expansion of Polaris Forge. Management also targets approximately 3 GW of AI capacity by 2031, positioning the company as a potential long-term beneficiary of hyperscalers' accelerating AI infrastructure spending.

The Zacks Consensus Estimate for APLD’s fiscal 2027 loss is currently pegged at $1 per share, wider than the 70-cent loss reported a year ago. While the estimate has remained unchanged over the past 30 days, it has worsened by 9 cents over the past 60 days.

Image Source: Zacks Investment Research

Price Performance & Valuation of LITE & APLDIn the past six months, shares of Lumentum have surged 130.9% against Applied Digital’s decline of 22.3%. Growing adoption of Lumentum's AI optical technologies has enhanced revenue visibility and investor sentiment, enabling the stock to outperform despite volatility across the broader AI infrastructure sector.

LITE Vs. TEAM: Six-Month Price Return Performance
Image Source: Zacks Investment Research

Valuation remains a consideration, with Lumentum and Applied Digital each carrying a Value Score of D and F, respectively. However, Lumentum trades at a lower forward 12-month P/S multiple of 10.21X versus Applied Digital's 11.79X.

LITE's relatively reasonable valuation, combined with its strong AI-driven growth prospects, makes the stock an attractive choice for investors seeking long-term upside with greater stability.

LITE vs. APLD: Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research

LITE or APLD: Which Stock Has the Edge?Lumentum appears better positioned than Applied Digital at present, supported by stronger execution, accelerating earnings growth, improving estimate revisions and a relatively more attractive valuation. While both companies stand to benefit from expanding AI infrastructure investments, Lumentum offers a more balanced risk-reward profile, making it the stronger choice for investors seeking long-term AI-driven growth with greater stability.

Currently, LITE has a Zacks Rank #2 (Buy), while APLD carries a Zacks Rank #5 (Strong Sell).

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

Sandisk (SNDK 10.79%) stock has accelerated in 2026 as the company taps into the surging demand for memory processors. Sandisk is a leader in NAND Flash memory, which is used for everything from smartphones to artificial intelligence data centers.

And it's that second category that's helped push Sandisk stock so high.

Its share price is up an astonishing 857.8% through the end of June, according to data from S&P Global Market Intelligence, as tech companies gobble up all available memory chips for AI data centers.

Here's why Sandisk stock has been a breakout success so far this year, and why it'll likely continue to benefit from the growing memory market.

Image source: The Motley Fool.

Investors are riding a massive memory wave with Sandisk The first impressive share price gains from Sandisk came back in January, when the memory stock surged 143%. Investors were starting to catch on to the fact that as more tech companies invest in AI infrastructure, they'll need far more memory chips.

Some of the biggest technology companies will spend up to $800 billion on capital expenditures (capex) this year, mostly on AI, and part of that spending will trickle down to buying more memory processors.

Rising demand is causing a shortage in memory chip supply, leading to Sandisk and other memory companies, including Micron Technology, to raise their prices. The result of this has caused the gross profit margins for Sandisk to soar to 78% in Q3 2026, compared to just 51% in the year-ago quarter.

Investors were excited to see such high margins, and they appreciated that revenue rose 251% to $5.9 billion and that earnings swung dramatically from a loss of $0.30 per share in the year-ago quarter to earnings of $23.41 per share.

Adding to the optimism for Sandisk's stock this year is the fact that the company signed five multi-year supply agreements with major tech companies, and received $11 billion in guarantees from the deals.

Today's Change

(

-10.79

%) $

-174.18

Current Price

$

1,440.83

What to expect for the rest of 2026 The big picture here for Sandisk and its shareholders is that demand for memory processors is still very high and will likely help Sandisk continue to generate strong sales and earnings growth, especially through this year and likely longer.

Investors will get more insights when the company reports its fourth-quarter results on Aug. 5. Analysts' consensus estimates are for sales of $8.4 billion and earnings of $34.12 per share.

AI infrastructure spending is still well underway and could potentially reach as high as $1 trillion next year . There doesn't appear to be a a slowdown in memory demands among tech companies, which means Sandisk shareholders could have more good times ahead.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

© Kelly Sullivan / Stringer / Getty Images North America

Meta Platforms (NASDAQ:META | META Price Prediction) is spending like an infrastructure company and being valued like a growth company. With full-year 2026 capex guidance raised to $125 to $145 billion to build out AI data centers, the question is whether shareholders get paid back for that bet.

Our proprietary model says yes. The 24/7 Wall St. price target for Meta is $903.93, implying 32.67% upside from $681.31. Our recommendation is buy with high confidence.

24/7 Wall St. Price Target Summary Metric Value Current Price $681.31 24/7 Wall St. Price Target $903.93 Upside 32.67% Recommendation BUY Confidence Level 90% A Choppy Six Months, Then a Sharp Bid Back Meta has been a rollercoaster. Shares are up 12.96% in the past week and 14.8% over the past month, but only 3.39% year to date and down 3.78% over the past year. The stock sits 4% below its 52-week high of $793.65 after bouncing off a 52-week low of $519.78.

Q1 2026 was a blowout: EPS of $10.44 beat expectations of $6.66 on revenue of $56.31 billion, up 33.08% YoY. Ad impressions rose 19% and average price per ad rose 12%. The stock initially sold off to $608.75 a day after the earnings report as investors digested the raised capex line.

Why Bulls See a Breakout Ahead The bull case rests on Meta’s ability to convert AI compute into ad monetization. Family daily active people reached 3.56 billion, and Susan Li noted a 10% lift in Reels time spent on Instagram after Q1 ranking upgrades. Business AI conversations are running at more than 10 million weekly, up from 1 million at the start of the year.

Mark Zuckerberg said Meta is “on track to deliver personal superintelligence to billions of people.” Our bull scenario points to $1,033.70, a 51.72% return if Muse Spark and business agents scale on schedule.

What Could Go Wrong The bear case starts with capex intensity. Q1 capex hit $19 billion, up 46.8%, and Reality Labs still bled $4.03 billion. Insider activity is not encouraging: COO Javier Olivan has been selling weekly, with CFO Susan Li disposing of 9,195 shares on May 18, 2026 around $604 to $611.

SoFi Active Invest is offering a limited-time promotion. Open an account, fund it with $50 or more, and you could receive up to $1,000 in complimentary stock for Active Invest accounts. See for yourself by clicking here now.

Bulls counter that these dispositions are largely scheduled RSU vestings rather than discretionary sales, and that the $8.03 billion tax benefit boosting Q1 EPS is a real cash item tied to CAMT R&D guidance. Our bear scenario lands at $773.09, a 13.47% return. Watch items include EU DMA pressure and 2026 youth-litigation trials.

How Meta Compares to Alphabet and Pinterest Alphabet (NASDAQ:GOOGL) is the cleanest comp because both are AI hyperscalers funding data-center builds from ad cash flow. Alphabet’s 2026 capex guide of $175 to $185 billion dwarfs Meta’s plan, and Google Cloud posted $20.03 billion in Q1 revenue, up 63% YoY. Alphabet trades near a similar forward multiple with a diversified cloud engine Meta lacks, making Meta’s forward P/E of 21x look reasonable rather than rich.

Pinterest (NYSE:PINS) offers a smaller-scale ad-platform contrast. Pinterest grew Q1 2026 revenue 17.8% to $1.01 billion with 631 million MAUs. Meta’s 33% ad revenue growth at vastly larger scale, plus 41.44% operating margins, makes our $903.93 target look conservative against the peer set.

Meta Price Prediction 2026-2030 The 24/7 Wall St. price target of $903.93 with 90% confidence lines up with 57 buy ratings against zero sells. The tipping factor is monetization velocity: ad pricing plus AI-driven engagement gains are already compounding.

The setup looks constructive if Q2 2026 revenue lands at the top of the $58 to $61 billion guide. The thesis weakens if capex creeps past $145 billion without a matching lift in operating income.

Year 24/7 Wall St. Price Target 2026 $903.93 2027 $1,050 2028 $1,210 2029 $1,370 2030 $1,522.85 These projections assume Meta scales ad revenue faster than data-center depreciation and Reality Labs losses stabilize. Meaningful upside or downside could come from AI regulation shifts or a Muse family model breakthrough.

Want Up To $1,000? SoFi Is Giving New Active Invest Users Free StockLooking to grow your money but unsure where to begin? SoFi Active Invest is offering a limited-time promotion—open an account, fund it with $50 or more, and you could receive up to $1,000 in complimentary stock for Active Invest accounts.

From $0 commission trading to fractional shares and automated investing, this app is designed to simplify investing for everyone, whether you’re just starting or already experienced. Its easy to sign up and secure your bonus. 

Contact [email protected] for any questions or corrections.

This year has marked a new chapter for Berkshire Hathaway as Greg Abel has assumed the role of CEO, succeeding Warren Buffett's more than five-decade tenure. Throughout 2026, Abel has executed a number of decisive changes in Berkshire's portfolio.

For instance, during the first quarter, Berkshire fully exited its stakes in Amazon and Domino's Pizza. Meanwhile, the company kept Apple (AAPL +1.13%) as its largest holding by a wide margin and significantly increased its position in Alphabet (GOOGL +0.12%) (GOOG 0.12%).  As of this writing (July 14), Berkshire's equity portfolio stands at $351 billion, with Apple and Alphabet together representing roughly 30% of invested capital.

While Berkshire has long avoided investments in high-growth, volatile technology stocks, the concentrated positions in Apple and Alphabet underscore an extension of Buffett's investing philosophy packaged across two leading artificial intelligence (AI) names.

Image source: The Motley Fool.

Abel has been buying Alphabet stock like there's no tomorrow Since taking the reins as CEO, Abel has moved quickly to double down on Berkshire's exposure to Alphabet. During the first quarter, Berkshire nearly tripled its existing position in Alphabet -- lifting the internet giant into the ranks of the portfolio's largest holdings. Subsequently, Berkshire further committed $10 billion through a private placement as part of Alphabet's broader $80 billion equity raise -- allocating $5 billion each to Class A and Class C shares.

These actions reflect a strong conviction in Alphabet's long-term growth prospects. Google continues to dominate search with a near-monopoly position. This moat helps the company generate predictable, high-margin advertising revenue and consistent cash flow. Moreover, Alphabet has further diversified its revenue streams across YouTube, Google Cloud Platform, and consumer electronics, providing multiple avenues for growth during any economic cycle.

Today's Change

(

-0.12

%) $

-0.46

Current Price

$

369.75

While it's not the top reason to open a position in Alphabet stock, the company also employs a modest dividend program -- adding another dimension of shareholder value while preserving the financial flexibility to reinvest in high-return opportunities, especially in the AI ecosystem.

Abel's willingness to build Berkshire's position in Alphabet so quickly may be a signal that he views the company as a wide-moat business capable of compounding earnings power over the long run. This template is consistent with Berkshire's preference for owning exceptional companies with strong competitive advantages and reliable cash-flow generation.

Image source: Getty Images.

Apple remains the king of Berkshire's portfolio Although Berkshire has been steadily trimming its position in Apple over the last couple of years, Abel has retained the iPhone maker as the portfolio's largest holding. This is interesting because Apple holds a relatively measured position in the generative AI landscape.

I think Abel's decision to continue holding Apple rests on several of the company's enduring strengths. For starters, Apple is one of the most powerful consumer brands and ecosystem moats in the world. The company's tight integration across hardware, software, and services creates meaningful switching costs and supports recurring revenue streams. As a result, Apple produces enormous profits and free cash flow, much of which is returned to investors through aggressive share repurchases.

I think one of the most underappreciated aspects of Apple is its position as a platform toll collector for AI. Developers building applications or features for iOS must navigate Apple's App Store and payment systems. This creates a durable revenue vehicle independent of which AI models are adopted.

Looking even further ahead, Apple has a meaningful optionality to expand its reach into AI-enhanced devices and services. This emerging opportunity aligns with Berkshire's affinity for businesses that are adaptable and have multiyear growth runways.

Today's Change

(

1.13

%) $

3.71

Current Price

$

331.21

Apple and Alphabet are attractive stocks in an otherwise frothy market What ties the positions in Apple and Alphabet under Abel's direction is a reasonable valuation profile relative to their growth potential. Apple trades at a forward price-to-earnings ratio (P/E) around 36, while Alphabet trades at a forward earnings multiple near 25. While neither is cheap per se, these premiums are justified in a broader market environment where many technology and AI-related names carry stretched valuations driven by speculative enthusiasm.

AAPL PE Ratio (Forward) data by YCharts

Both Apple and Alphabet possess durable competitive moats, exceptional cash generation, and quality management teams oriented toward long-term value creation. Abel appears to regard each company as a rare combination of business quality and valuation. In a period when froth has elevated broader indexes, the concentrated commitments to Apple and Alphabet reflect prudent capital allocation rather than momentum-driven decisions.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Passive income has a way of quieting the noise. Whether markets are grinding higher, correcting hard, or drifting sideways, a dividend check lands in your account on the schedule the company sets, regardless of what the stock is doing. For investors building a paycheck that arrives without a shift, without a client, and without a manager, dividend equities offer something real estate and private credit cannot: instant liquidity alongside cash flow.

That flexibility matters more when the underlying business is a 120-year-old industrial with global scale, entrenched brands, and a fresh operational reset. 3M (NYSE:MMM | MMM Price Prediction) produces more than 60,000 products under brands including Scotch, Post-it, and Command, and its dividend has been a fixture of income portfolios for generations. The question for buyers today is what a meaningful position actually pays, and whether the payout can hold.

We screened our 24/7 Wall St. dividend equity research database and ran the math on one specific position size that income investors ask about constantly: 1,000 shares of 3M.

The 1,000-Share Math on 3M Current Share Price: $160.53 Current Quarterly Dividend: $0.78 Forward Annual Dividend: $3.12 per share Forward Yield: roughly 1.94% Cost of 1,000 shares: $160,530 Annual Passive Income: $3,120 That $3,120 arrives in four roughly equal quarterly installments, with payment dates consistently falling on the 12th of March, June, September, and December. It is a modest headline yield by high-income standards, and the coverage and trajectory underneath it are what matter.

Why the Aristocrat Label Now Carries an Asterisk 3M spent decades as one of the market’s marquee Dividend Aristocrats, raising its payout every year for more than six decades. That streak broke in 2024. Following the Solventum spin-off, the quarterly dividend was reset from $1.51 in Q1 2024 to $0.70 in Q2 2024, alongside a $17.3875 special dividend paid on April 1, 2024 tied to the separation.

Purists no longer count MMM as an uninterrupted Aristocrat, though the company continues to be treated as a dividend blue chip by most income indexes.

The recovery arc is visible in the check itself. The quarterly rate has climbed from $0.70 in 2024, to $0.73 in 2025, to $0.78 in 2026. Two consecutive annual raises after a reset is exactly the pattern a rebuilding payer wants to establish.

SoFi Active Invest is offering a limited-time promotion. Open an account, fund it with $50 or more, and you could receive up to $1,000 in complimentary stock for Active Invest accounts. See for yourself by clicking here now.

Can the $3,120 Hold? Coverage is the reason to take this payout seriously. CEO William Brown has guided full-year 2026 adjusted EPS to $8.50 to $8.70 against a $3.12 dividend, and the company is targeting adjusted operating cash flow of $5.6 billion to $5.8 billion with adjusted free cash flow of $4.6 billion to $4.8 billion.

3M has posted four consecutive quarterly EPS beats, most recently delivering Q1 2026 adjusted EPS of $2.14 on $6.03 billion in revenue with a 23.8% adjusted operating margin.

Capital return is aggressive relative to the dividend line. 3M sent $2.41 billion back to shareholders in Q1 2026 alone through dividends and buybacks, on top of $4.8 billion returned across full-year 2025. Institutions are voting with size: institutional ownership sits at 77.5% of the float.

The offsetting concern is litigation. 3M made $3.5 billion in net pre-tax cash payments tied to PFAS in 2025 and faces a new lawsuit from the New York Attorney General over PFAS contamination, alongside ongoing Combat Arms earplug obligations. Those liabilities are the reason the payout was reset in the first place, and they remain the single largest variable in this dividend’s forward path.

The Bottom Line on 1,000 Shares A 1,000-share position in 3M requires roughly $160,530 at today’s price and produces about $3,120 in annual passive income at the current quarterly rate. That is a blended yield near 1.94%, backed by a payout ratio comfortably under 40% of guided 2026 adjusted earnings.

For an income investor, the interesting math is the trajectory: two raises since the reset, expanding margins, and free cash flow that dwarfs the dividend leave room for the next hike. The reinvestment case for dividends is compounding, and a growing payout compounds twice: once through the shares purchased, and again through the raises those shares eventually collect.

Want Up To $1,000? SoFi Is Giving New Active Invest Users Free StockLooking to grow your money but unsure where to begin? SoFi Active Invest is offering a limited-time promotion—open an account, fund it with $50 or more, and you could receive up to $1,000 in complimentary stock for Active Invest accounts.

From $0 commission trading to fractional shares and automated investing, this app is designed to simplify investing for everyone, whether you’re just starting or already experienced. Its easy to sign up and secure your bonus. 

Contact [email protected] for any questions or corrections.

Key Takeaways McDonald's used entertainment partnerships and local campaigns to support customer engagement worldwide.Global marketing helped deliver 3.8% comparable sales growth and market share gains in most top 10 markets.Australia paired value, marketing, menu innovation and beverages to drive sales growth and share gains. McDonald's Corporation (MCD - Free Report) has been reinforcing customer engagement through a global marketing strategy built around cultural relevance, entertainment partnerships and localized campaigns. While value and menu innovation remain central to the company's growth strategy, marketing has become an important tool for attracting new customers, strengthening brand engagement and supporting restaurant traffic across key markets.

During the first quarter of 2026, McDonald's combined globally recognized entertainment brands with locally relevant campaigns to reach customers across different age groups and occasions. Initiatives included the Friends collectibles campaign in several international markets, a Super Mario Happy Meal promotion and a Netflix KPop Demon Hunters partnership that integrated digital activation through the McDonald's app.

The company also expanded successful campaigns across multiple countries, allowing local ideas to reach a broader audience while maintaining brand consistency. In the first quarter of 2026, this marketing approach supported global comparable sales growth of 3.8%, 6% rise in constant-currency systemwide sales and market share gains in nearly all of the company's top 10 markets.

The strategy extends beyond short-term promotional activity. Marketing is designed to complement value offerings and menu innovation, creating multiple reasons for customers to visit restaurants. Australia demonstrated this approach by pairing value menus, marketing activations, menu innovation and beverage initiatives, contributing to mid to high-single-digit comparable sales growth and a third consecutive quarter of market share gains.

As consumer spending remains uneven across many markets, McDonald's broad marketing platform, supported by global scale and local execution, could remain an important factor in sustaining customer traffic and reinforcing its competitive position.

MCD’s Price Performance, Valuation & EstimatesShares of McDonald’s have dropped 11.7% in the past year compared with the industry’s decline of 8.3%. In the same time frame, other industry players like, Starbucks Corporation (SBUX - Free Report) has gained 12.8% and Dutch Bros Inc. (BROS - Free Report) has increased 0.6%.

MCD Stock’s One-Year Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, MCD trades at a forward price-to-sales (P/S) multiple of 6.43, above the industry’s average of 3.29. Then again, other industry players, such as Starbucks and Dutch Bros, have P/S ratios of 3.02 and 4.78, respectively.

MCD’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for MCD’s 2026 earnings per share has declined from $12.93 to $12.90 in the past seven days.

EPS Trend of MCD Stock
Image Source: Zacks Investment Research

The company is likely to report strong earnings, with projections indicating a 5.7% year-over-year increase in 2026. Conversely, industry players like Dutch Bros are likely to rise 22.4% in 2026 earnings. Starbucks is likely to witness growth of 12.7% year over year in fiscal 2026 earnings.

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

UnitedHealth Group (UNH - Free Report) reported $112.03 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 0.4%. EPS of $6.38 for the same period compares to $4.08 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $110.12 billion, representing a surprise of +1.74%. The company delivered an EPS surprise of +29.15%, with the consensus EPS estimate being $4.94.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

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

Operating Statistics - Medical Care Ratio: 86.7% versus 88.5% estimated by seven analysts on average.UnitedHealthcare Customer Profile - People Served - Total Commercial - Domestic: 29.92 million versus the five-analyst average estimate of 29.53 million.UnitedHealthcare Customer Profile - People Served - Commercial - Domestic - Risk-based: 7.66 million versus 7.26 million estimated by five analysts on average.UnitedHealthcare Customer Profile - People Served - Commercial - Domestic - Fee-based: 22.27 million versus 22.27 million estimated by five analysts on average.Revenues- Investment and other income: $1.22 billion versus the seven-analyst average estimate of $1.03 billion. The reported number represents a year-over-year change of +10.4%.Revenues- Products: $13.84 billion versus $13.69 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +2% change.Revenues- Services: $10.02 billion versus $9.55 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +10.8% change.Revenues- Premiums: $86.96 billion versus the seven-analyst average estimate of $86.21 billion. The reported number represents a year-over-year change of -1.1%.Revenues- Optum Insight: $5.4 billion versus $5.32 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +11.9% change.Revenues- Optum Rx: $38.29 billion versus $37.36 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a -0.4% change.Revenues- Optum Health: $23.47 billion compared to the $22.65 billion average estimate based on six analysts. The reported number represents a change of -6.9% year over year.Revenues- UnitedHealthcare- Total: $86.02 billion versus the six-analyst average estimate of $84.75 billion. The reported number represents a year-over-year change of -0.1%.View all Key Company Metrics for UnitedHealth here>>>

Shares of UnitedHealth have returned +4.8% over the past month versus the Zacks S&P 500 composite's +0.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 23. 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 gold and copper miner is expected to post quarterly earnings of $2.18 per share in its upcoming report, which represents a year-over-year change of +52.5%.

Revenues are expected to be $6.19 billion, up 16.4% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 2.97% 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. 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 Newmont?For Newmont, 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 -12.55%.

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

So, this combination makes it difficult to conclusively predict that Newmont 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 Newmont would post earnings of $2.07 per share when it actually produced earnings of $2.90, delivering a surprise of +40.10%.

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.

Newmont 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 U.S. Bancorp beat Q2 earnings and revenue estimates on higher NII and broad-based fee income growth.USB's BTIG acquisition lifted capital markets revenues and expanded institutional capabilities.USB plans a 4% dividend increase after stress-test clearance and continued share repurchases. U.S. Bancorp (USB - Free Report) has reported second-quarter 2026 earnings per share of $1.35, topping the Zacks Consensus Estimate by 5.5%. The bottom line increased 21.6% from $1.11 in the year-ago quarter.

Results were supported by higher net interest income (NII), broad-based fee revenue growth and strong loan growth, while the company posted positive operating leverage of 400 basis points. The BTIG acquisition (completed in June 2026) also contributed to capital markets revenue growth and expanded the company’s institutional capabilities. However, a rise in provision was concerning.

Net income attributable to U.S. Bancorp was $2.18 billion, up 19.9% from the prior-year quarter.

USB Revenue Mix Improves on Higher NII & Fee GrowthNet revenues reached a record level of $7.71 billion in the second quarter, rising 10.1% year over year and surpassing the consensus estimate by 1.3%.

Tax-equivalent NII was $4.39 billion, up 7.5% from the prior-year period. Management attributed the improvement to loan growth, a better earning-asset mix and fixed-asset repricing benefits. The net interest margin expanded 13 basis points year over year to 2.79%.

Non-interest income totaled $3.33 billion, rising 13.7% from the year-ago quarter. Growth was driven by higher revenues across all fee categories, including card revenues, corporate payment and treasury management revenues, trust and investment management fees, lending and deposit-related fees, and capital markets revenues. Capital markets revenues benefited from the BTIG acquisition, increased client-related derivative activity, higher corporate bond underwriting fees and favorable market conditions.

U.S. Bancorp Expenses Rise, Efficiency StrengthensNon-interest expenses were $4.43 billion, up 5.9% from the year-ago quarter. The impacts of the BTIG acquisition, higher compensation and employee benefits expenses, technology and communications expenses, marketing and business development initiatives, and other expenses led to the rise.

The company’s efficiency ratio declined to 57.1% from 59.2% a year ago, indicating improvement in profitability.

USB Balance Sheet Expands With Loan & Deposit GrowthAverage total loans increased 3% sequentially to $405.48 billion and advanced 7.1% year over year, reflecting broad-based growth in key categories.

Average total deposits were $515.08 billion, essentially flat with the prior quarter and up 2.4% year over year.

U.S. Bancorp Credit Trends: Mixed BagProvision for credit losses was $538 million, up 7.4% from the year-ago quarter, primarily reflecting loan portfolio growth. Total net charge-offs were $536 million, down from $554 million a year earlier, and the net charge-off ratio was 0.53% versus 0.59% in the prior-year quarter.

The allowance for credit losses increased to $7.98 billion as of June 30, 2026, from $7.86 billion a year earlier. Non-performing assets were $1.35 billion, down from $1.68 billion as of June 30, 2025.

U.S. Bancorp Capital Levels SolidCapital levels remained solid. The Basel III standardized CET1 capital ratio was 10.8% at the quarter end, up from 10.7% in the year-ago period.

The tier 1 capital ratio was 12.2%, down from 12.3% in the prior year. The leverage ratio was 8.9%, up from 8.5% in the year-ago quarter.

The tangible common equity to tangible assets ratio was 6.6%, up from the prior-year quarter’s 6.1%. 

During the quarter, U.S. Bancorp repurchased 3 million shares and continued repurchases under its $5-billion common stock repurchase authorization. Post clearing the 2026 stress test, the company also plans to increase its quarterly common stock dividend 4% to 54 cents per share in the third quarter of 2026, subject to board approval.

Our Take on USBU.S. Bancorp’s diversified revenue streams, solid loan growth and improving credit quality continue to support its strong financial performance. Growth in NII and non-interest income, coupled with improved efficiency, bodes well for future profitability. The completion of the BTIG acquisition expanded USB’s capital markets capabilities and provided opportunities to deepen relationships with corporate and institutional clients. Although provisions rose in the second quarter of 2026, U.S. Bancorp remains focused on delivering sustainable growth, attractive returns and long-term shareholder value.

Currently, U.S. Bancorp carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Dates & Expectations of Other StocksRegions Financial (RF - Free Report) is scheduled to release second-quarter 2026 earnings on July 17.

The consensus estimate for RF’s quarterly earnings has been unchanged at 64 cents per share over the past seven days. This indicates a 6.7% increase from the year-ago reported level.

Truist Financial (TFC - Free Report) is slated to report second-quarter 2026 results on July 17.

Over the past seven days, the Zacks Consensus Estimate for TFC’s quarterly earnings has been unchanged at $1.08 per share. This indicates an 18.7% increase from the year-ago reported level.

Why Abbott Laboratories Stock Is Suddenly Winning Back Wall StreetAbbott Laboratories NYSE: ABT reported second-quarter 2026 comparable sales growth of 4.8% and adjusted earnings per share of $1.31, with Chairman and Chief Executive Officer Robert Ford saying results marked an acceleration from the prior two quarters.

The company reaffirmed its full-year comparable sales growth guidance of 6.5% to 7.5% and raised its adjusted EPS guidance range to $5.45 to $5.60. Chief Financial Officer Phil Boudreau said Abbott expects third-quarter adjusted EPS of $1.38 to $1.46.

Get Abbott Laboratories alerts:

AbbVie Fires Healthy Trend-Following Signal: Is a Rebound Ahead?Ford said Abbott entered the second half of the year with “momentum building across the portfolio” and “clear line of sight” to the drivers behind expected sales growth acceleration. He said the company’s focus on gross margin expansion supported the higher earnings outlook.

Margins Improve as Sales Growth Accelerates Boudreau said second-quarter adjusted gross margin was 58.0% of sales, up 100 basis points from the prior year. He attributed the improvement to favorable business mix within Abbott’s legacy portfolio, the addition of Exact Sciences, operational improvements and disciplined execution of margin expansion initiatives.

Abbott Stock Crash: Rebound Could Be Coming FastAdjusted research and development expense was 6.9% of sales, while adjusted selling, general and administrative expense was 28.6% of sales. Foreign exchange had a favorable 0.8% year-over-year impact on second-quarter sales, slightly better than Abbott expected in April. Based on current rates, Boudreau said the company expects foreign exchange to have a positive impact of about 1% on full-year sales, including an expected negative impact of about 1% in the third quarter.

Diagnostics and Nutrition Show Mixed Trends In diagnostics, Ford said Abbott’s core laboratory business reflected strong demand for testing, which he described as a useful indicator of broader healthcare activity. U.S. core laboratory sales grew 7.5%, and Ford said the company continued to post strong performance in Latin America. During the question-and-answer session, he said hospital lab testing within Abbott’s U.S. core lab business was up 13% in the quarter.

Rapid and molecular diagnostics sales declined 8%, driven by an expected drop in respiratory virus testing following a weaker-than-normal season that ended during the quarter.

Cancer diagnostics sales grew 13%, supported by mid-teens growth in Cologuard, contributions from precision oncology and international growth. Ford said Abbott continues to expect cancer diagnostics growth in the second half to exceed first-half growth, helped by care gap programs, recently launched tests and international adoption. He also noted that the American Cancer Society updated its colorectal cancer screening guidelines in May, reaffirming Cologuard and Cologuard Plus as preferred screening options.

Nutrition sales came in slightly ahead of Abbott’s expectations for the second straight quarter, according to Ford. Sales increased sequentially by $125 million, supported by improving trends in both pediatric and adult nutrition. International pediatric nutrition returned to positive growth, rising 6.5% in the quarter. In the U.S. pediatric business, Ford said Abbott exited the quarter with the full benefit of recent WIC contract wins in its run rate and is now the market leader in both WIC and non-WIC segments.

In adult nutrition, Ford said the company continued to see positive volume trends after price actions taken late last year. U.S. retail consumption of Ensure rose by double digits compared with levels exiting last year. Abbott is also seeing contributions from new versions of Ensure featuring higher protein, lower sugar and updated labeling and packaging.

Medical Devices Growth Led by EP, Rhythm Management and Diabetes Care Medical devices sales grew 8.5%, with Abbott’s cardiovascular device portfolio also up 8.5%. Ford said growth was led by low-teens growth in electrophysiology and high-single-digit growth in rhythm management and heart failure.

In electrophysiology, Ford said the second quarter marked the beginning of an acceleration in the business. Abbott launched its next-generation Volt pulsed field ablation catheter, commonly called Volt 2.0, in the U.S. in May and expects to move from limited market release to full market release in the third quarter. Internationally, the rollout of Volt and TactiFlex Duo is gaining traction, with growth of more than 20% in Europe.

Rhythm management sales grew 9.5%, supported by expanded use of the AVEIR pacemaker across single- and dual-chamber segments and broader international adoption. Heart failure sales grew 9%, led by double-digit growth in the U.S. from Abbott’s heart assist devices.

In diabetes care, continuous glucose monitoring sales exceeded $2 billion and grew 9.5%. Abbott received CE mark in May for Libre Duo, which Ford described as the world’s first dual glucose-ketone wearable sensor. The company plans to begin the international rollout in the fall and bring the product to the U.S. after FDA approval.

Pipeline Updates Include New Launches and Clinical Trials Ford highlighted several pipeline milestones, including completion of patient enrollment in the TECTONIC coronary intravascular lithotripsy pivotal trial and completion of Abbott’s FDA submission for approval of its new Amulet 360 left atrial appendage device.

He said Abbott expects to launch Amulet 360, Libre Duo, its coronary IVL product and TactiFlex Duo PFA catheter in the U.S. over the next 12 months. The company also remains on track to begin patient enrollment in the fourth quarter for several clinical trials, including studies for a balloon-expandable TAVR valve, a leadless conduction system pacing device using the AVEIR platform, a mitral replacement valve developed after Abbott’s acquisition of Cephea Valve Technologies, a peripheral IVL device developed after the acquisition of CSI and a wearable continuous lactate monitoring sensor intended to reduce sepsis risk after hospital discharge.

Management Addresses Demand, CGM Reimbursement and 2027 Setup During the call’s Q&A session, Ford said Abbott is not seeing signs of weakening procedure volumes in its businesses, despite investor concerns tied to hospital-sector preannouncements and possible Medicaid disenrollment. He said Medicare, not Medicaid, is the larger payer for many medical device procedures, including more than two-thirds of Abbott’s U.S. cardiovascular business. He also said demand for high-acuity, life-saving products is “very inelastic.”

Ford said 80% of Abbott’s expected second-half growth acceleration is expected to come from four areas: nutrition, electrophysiology, core laboratory and cancer diagnostics.

On continuous glucose monitoring, Ford said Abbott remains bullish on the market, estimating that 75 million to 80 million people globally could realistically use CGM, compared with about 15 million today. He said reimbursement expansion is the most immediate driver of adoption, and Abbott is in discussions with about a dozen countries on introducing or expanding coverage. In the U.S., he said broader type 2 diabetes coverage could unlock about 10 million Medicare beneficiaries and accelerate commercial insurance coverage, though he did not provide a specific timing forecast.

Looking beyond 2026, Ford declined to provide specific 2027 guidance but said Abbott continues to target high-single-digit top-line growth and double-digit earnings growth. He described 7% sales growth as a sustainable target for the company, supported by its mix of nutrition, diagnostics, established pharmaceuticals and medical technology businesses.

About Abbott Laboratories NYSE: ABTAbbott Laboratories is a global healthcare company headquartered in Abbott Park, Illinois, that develops, manufactures and markets a broad portfolio of medical products and services. Founded in 1888, Abbott operates through multiple business areas that focus on diagnostics, medical devices, nutritionals and established pharmaceuticals. The company supplies hospitals, clinics, laboratories, retailers and direct-to-consumer channels with products intended to diagnose, treat and manage a wide range of health conditions.

In diagnostics, Abbott provides laboratory and point-of-care testing platforms and assays used to detect infectious diseases, chronic conditions and biomarkers; its Alinity family of instruments and rapid-test solutions are examples of this capability.

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

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

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

While Abbott Laboratories currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Tesla, Nvidia, and Google helped shape the last era of market growth, but the next wave could come from a new group of companies. Inside this report, you’ll find 7 stocks that could play a major role in the next tech-driven market boom.

Get This Free Report