Track market-moving stories before they get noisy

Key Takeaways Management targets 4-6% revenue growth and 10-12% adjusted operating income growth.FedEx Freight's revenue rose 4.8% as revenue per shipment climbed 11.5% despite lower volumes.Technology and network investments aim to improve freight efficiency, service and connectivity. FedEx Freight ((FDXF - Free Report) ) is entering public markets as a pure-play less-than-truckload carrier at a time when volume growth remains uneven. The company’s investment case now rests on whether pricing, freight mix and internal efficiency can offset softer shipment activity.

That makes FDXF a useful test of the current LTL cycle. Demand may be under pressure, but management is leaning on revenue quality, network density, and technology to protect margins.

FedEx Freight Is Leaning Into Revenue per ShipmentFourth-quarter revenues rose 4.8% year over year to $2.4 billion even as average daily shipments fell 5.9% to 86.7 thousand. The offset came from stronger revenue per shipment, which increased 11.5% to $415.22.

Weight per shipment rose 3% to 948 pounds, while revenue per hundredweight increased 8.2% to $43.79. Those metrics matter because heavier shipments and better yield can help support revenues when freight counts remain under pressure.

FDXF Margin Expansion Depends on Network OptimizationManagement expects medium-term revenue growth of 4-6% and adjusted operating income growth of 10-12%. That gap implies the company is targeting faster profit growth than revenue growth, driven by operating improvements rather than just better demand.

Capital discipline will be central to that plan. The company expects its capital-expenditure-to-revenue ratio to be around 5%, while investments are being directed toward the network, technology and freight-focused operations. Old Dominion Freight Line ((ODFL - Free Report) ), another major LTL carrier, remains a key benchmark for investors watching service quality, pricing discipline and terminal productivity across the category.

FedEx Freight Faces a Cyclical LTL Demand BackdropFDXF serves manufacturers, retailers, distributors and other businesses, leaving it exposed to manufacturing activity, industrial production and business spending. In a slower economy, customers may ship fewer loads, creating pressure on volumes, pricing and margins.

Risks also include inflation, tariff-related uncertainty, geopolitical tension and supply-chain disruption. United Parcel Service ((UPS - Free Report) ), a broad transportation and logistics company, gives investors a wider freight and parcel comparison point when assessing how business spending and trade flows move through the transport sector.

FDXF Technology Spending Could Reshape Freight EfficiencyTechnology is a key part of the standalone strategy. FedEx Freight expects to benefit from technology investments and optimized operations tailored specifically to freight customers.

The opportunity is operational as well as commercial. Dedicated technology spending could improve freight movement, customer service, network planning and supply-chain connectivity. As an independent company, FedEx Freight can focus capital on LTL priorities rather than competing internally with parcel and express operations.

FedEx Freight Ratings Temper the Emerging Trend StoryThe bottom line is that FDXF has a clear margin-improvement path, but the path depends on execution in a cyclical freight market. Pricing and mix helped the latest quarter, while lower shipments show that demand remains a constraint.

The stock currently carries a Zacks Rank #3 (Hold), which reflects a neutral near-term earnings-revision signal. The VGM Score of D and Momentum Score of F point to weak current market characteristics, while the Value Score of C and Growth Score of C suggest a more balanced profile on those two style measures. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

For investors, the combination argues for patience rather than a one-sided view. FedEx Freight has standalone advantages, scale and a targeted operating plan, but weak momentum and a neutral Rank indicate that earnings-revision support is not yet strong enough to fully validate the margin-growth story.

Shares of American Express (AXP -5.08%) are down 6.5% at 10:25 a.m. ET. The payment card veteran reported Q2 2026 results last night, beating Wall Street's bottom-line expectations but falling just short of analyst consensus on revenues. The market's focus on a slight revenue miss seems odd, given that management also raised its full-year revenue guidance.

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Q2 by the numbers American Express posted 10% year-over-year revenue growth, landing at $19.64 billion. The average analyst was looking for $19.69 billion. Earnings rose 11% to $4.53 per diluted share. Here, the Street consensus pointed to $4.40 per share.

CEO Stephen Squeri called Q2 "another excellent quarter" with better-than-expected member spending growth. The company raised its full-year revenue growth guidance from 9-10% to 10%. It's a small boost, but half a percent makes a difference when you're managing $456 billion of card charges in a single quarter.

Image source: The Motley Fool.

Growth now, profits later So why are American Express shares plunging today, despite a solid earnings surprise and raised full-year revenue guidance? Well, the additional sales dollars will not trickle down to the bottom line. Management is reinvesting the extra capital into growth-oriented moves.

That's already going on. For example, higher fees for the Platinum Card contributed to the double-digit revenue growth in the first half, but the same program also lifted operating expenses by 12%. That's the cost of offering card perks that customers actually use.

Credit quality remains solid. Provisions for credit losses dropped to $1.1 billion from $1.4 billion a year ago, and the net write-off rate held flat at 2%. Card Member spending growth of 9% marked the highest rate in three years on a currency-adjusted basis.

At 15.9 times forward earnings, with credit quality strengthening and spending growth accelerating, this drop looks like a chance to buy a premium business at a discount. Use cash, not a credit card.

American Express is an advertising partner of Motley Fool Money. Anders Bylund has positions in American Express. The Motley Fool has positions in and recommends American Express. The Motley Fool has a disclosure policy.

Key Takeaways American Express beat Q2 EPS estimates as revenues rose 10% on stronger Card Member spending and fee growth.AXP reported 9% network volume growth, while credit loss provisions fell 23% due to a reserve release.AXP expects 2026 revenue growth of 10% and reaffirmed EPS guidance of $17.30-$17.90. American Express Company (AXP - Free Report) reported second-quarter 2026 earnings per share (EPS) of $4.53, which surpassed the Zacks Consensus Estimate by 2.7%. The bottom line advanced 11% year over year.

Total revenues, net of interest expense, improved 10% year over year to $19.6 billion. The top line beat the consensus mark by a whisker.

The strong quarterly results were driven by increased Card Member spending, higher net interest income and improved card fee growth. However, the upside was partly offset by elevated operating expenses.

AXP’s Q2 Operational PerformanceNetwork volumes grew 9% year over year in the second quarter to $516.8 billion on the back of higher U.S. consumer spending. But the metric missed the Zacks Consensus Estimate of $520.9 billion. Total interest income of $6.6 billion rose 5% year over year but missed the consensus mark of $6.7 billion. Provision for credit losses came in at $1.1 billion, which declined 23% year over year in the quarter under review due to a reserve release during the quarter compared to a reserve build in the prior-year quarter.

Total expenses increased 12% year over year to $14.5 billion due to higher variable customer engagement costs resulting from increased spending by Card Members, the refresh of the U.S. Platinum Card, greater use of Card Member benefits, and higher operating costs.

AXP’s Q2 Segmental PerformancesThe U.S. Consumer Services segment recorded pre-tax income of $2.1 billion, which grew 23% year over year and beat the Zacks Consensus Estimate by 27%. Total revenues, net of interest expenses, improved 11% year over year to $9.5 billion but marginally missed the Zacks Consensus Estimate. An expanding Gen-Z and Millennials’ customer base favored this segment’s results.

The Commercial Services segment’s pre-tax income of $970 million rose 7% year over year in the second quarter but fell short of the Zacks Consensus Estimate of $972.8 million. Total revenues, net of interest expense, grew 7% year over year to $4.5 billion, and beat the consensus mark of $4.4 billion.

The International Card Services segment posted pre-tax income of $477 million, which rose 3% year over year but missed the Zacks Consensus Estimate of $908.8 million. Total revenues, net of interest expense, climbed 12% year over year to $3.6 billion but missed the consensus mark of $3.9 billion.

The Global Merchant and Network Services segment’s pre-tax net income of $1.1 billion advanced 7% year over year in the quarter under review but missed the Zacks Consensus Estimate of $1.2 billion. Total revenues, net of interest expense, improved 8% year over year to $2.1 billion but came in lower than the consensus mark by 1.2%.

Corporate and Other incurred a pre-tax loss of $569 million in the second quarter, wider than the prior-year quarter’s loss of $550 million.

Balance Sheet (As of June 30, 2026)American Express exited the second quarter with cash & cash equivalents of $45.2 billion, which fell 5.3% from the 2025-end level. Total assets of $308.2 billion increased 2.7% from the figure at the end of 2025.

Long-term debt amounted to $57 billion, up 1.1% from the figure as of Dec. 31, 2025.  Short-term borrowing was $2 billion.

Shareholders’ equity of $34.3 billion rose 2.4% from the 2025-end level. Return on average common equity remained flat year over year at 37.8% in the quarter under review.

Capital Deployment UpdateAmerican Express bought back 7 million common shares in the second quarter of 2026 for $2.2 billion and paid $600 million worth of dividends. In the quarter under review, the company paid a per-share dividend of 95 cents.

AXP’s 2026 OutlookAmerican Express now expects 2026 revenues to increase to 10% from the 2025 level. Management continues to estimate EPS in the range of $17.30-$17.90, the midpoint of which indicates an improvement of 14.4% from the 2025 figure.

AXP’s Zacks Rank & Key PicksAXP currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader finance space are Victory Capital Holdings, Inc. (VCTR - Free Report) , Acadian Asset Management Inc. (AAMI - Free Report) and Newmark Group, Inc. (NMRK - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Victory Capital’s current-quarter earnings of $1.81 per share has witnessed five upward revisions in the past 30 days against none in the opposite direction. VCTR’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 6.9%. The consensus estimate for current-quarter revenues is pegged at $386 million, suggesting a 9.9% year-over-year jump.

The consensus estimate for Acadian Asset Management’s current-quarter earnings is pegged at $1.05 per share, which signals 64.1% year-over-year growth. Its earnings beat estimates in three of the trailing four quarters and missed once, with the average surprise being 8.6%. The consensus mark for AAMI’s current-quarter revenues of $179.4 million implies 43.7% year-over-year growth.

The consensus estimate for Newmark Group’s current-quarter earnings is pegged at 39 cents per share, which has witnessed one upward revision in the past seven days against none in the opposite direction. Its earnings beat estimates in each of the trailing four quarters, with the average surprise being 12.1%. The consensus estimate for NMRK’s current-quarter revenues is pegged at $881 million, which implies a 16.1% year-over-year rise.

CNBC's Kate Rooney reports on a recent letter regarding open source AI models.

Charter Communications has suffered severe share price declines due to intensifying broadband competition, subscriber losses, and persistent debt overhang. CHTR's Q2 results showed ongoing broadband attrition, falling revenue, but resilient cash generation and aggressive buybacks, with leverage stable at 4.2x. Despite cap-ex normalization and a free cash flow yield above 16%, market sentiment remains negative until broadband losses stabilize and debt concerns ease.

Charter Communications lost more internet and video subscribers over the second quarter. (Courtesy Charter Communications)

Charter Communications stock was dropping on Friday after the cable operator said more subscribers exited their contracts last quarter, piling on the misery to close out a miserable week for the industry.

DeFi has plenty of capital, but too much of it sits idle, fragmented or locked into single-purpose positions. The next step is not simply more TVL - it is liquidity that can actually work when and where demand appears.

DeFi does not lack liquidity. That may sound strange when users still face price impact, fragmented routes and pools that cannot handle larger trades efficiently. But the problem is not always the amount of capital sitting in DeFi. It is how that capital is used.

Huge amounts of liquidity are deposited in pools without doing meaningful work. Assets have been deposited on-chain, but are not consistently helping execution or earning fees.

At the same time, liquidity providers often have to divide one wallet balance across different protocols, pairs, price ranges and strategies. Once those tokens are deposited, they leave the wallet and become committed to individual pools or positions until the LP withdraws and reallocates them, or until the agreed lock period ends.

So the real question is no longer: how much liquidity is locked? It is: how much liquidity is actually usable?

Passive pools made DeFi openThe first major liquidity model in DeFi was simple: users deposit tokens into a pool, traders swap against that pool and liquidity providers earn fees.

This changed crypto markets. Anyone could provide liquidity. Anyone could trade. There was no need for a centralized order book or a traditional market maker.

The strength was openness. But the weakness was efficiency. In many pools, most capital is not close enough to the active trading range to be used often. It exists in the pool, but does not process many swaps. For liquidity providers, this creates a difficult reality: capital can be allocated, locked in a pool and still barely work.

Concentrated liquidity improved efficiency, but added complexityConcentrated liquidity tried to solve that problem. Instead of spreading liquidity across a broad price curve, LPs place capital in selected price ranges. When trades happen inside that range, capital works harder and can earn more fees.

This was an important improvement. But it shifted more responsibility to LPs. Now they need to think about ranges, price movement, volatility and rebalancing. If the market moves outside the selected range, the position may stop earning fees. The liquidity is still deposited, but it is no longer useful for current trading.

To cover more possible price movement, LPs may split their balance across several ranges. That gives them more positions, but each position is backed by only part of the original balance.

Concentrated liquidity therefore makes capital more targeted, but it can also make liquidity more fragmented and management more demanding.

Stable pools work well until the relationship breaksStable pools are built for assets expected to trade close to the same value: stablecoins, wrapped assets or similar tokens.

When the relationship holds, these pools can offer deep liquidity and low slippage. But the strength of the model is also its weakness. If one asset depegs or loses market confidence, the pool can become one-sided. LPs may end up holding more of the weaker asset. What looked like a low-volatility strategy can quickly become concentrated exposure to the token everyone else is trying to sell.

Stable pools solve a specific problem well. However, they do not solve the wider issue of idle and fragmented liquidity across DeFi. Capital is still deposited into an individual pool and committed to that pool’s specific purpose.

Managed strategies reduce manual workManaged LP strategies and vaults try to make liquidity provision easier. Instead of choosing ranges or managing positions manually, LPs deposit into a strategy that handles part of the work for them.

This can be useful. It reduces complexity and gives users access to more advanced liquidity management. But capital is still committed to one strategy. If that strategy is not capturing much flow, the capital may still sit underused. If better opportunities appear elsewhere, the LP often has to withdraw, move funds and reallocate them through additional transactions.

The interface becomes easier. The structural problem remains: liquidity is still locked into separate boxes.

Market makers help, but cannot cover everythingProfessional market makers use inventory, pricing systems and risk management to quote trades. In intent-based systems, professional participants can compete to fill orders and source liquidity from different venues.

This can improve execution, especially where public pools are too shallow. But market-maker liquidity depends on inventory and risk appetite. It may not cover every asset, every chain or every market condition. During volatility, spreads can widen and available liquidity can shrink.

Market makers are important. But they are not a full answer to DeFi’s liquidity problem.

Fragmentation is the root issueDEX trackers now count tens of millions of liquidity pools across hundreds of networks — the vast majority of them shallow or inactive.

For LPs, that creates a structural constraint: one deposited balance normally cannot back several opportunities at the same time. To participate across pools, ranges or strategies, assets must be divided into separate deposits. Once capital is split, efficiency can fall.

A simple example:

An LP provides liquidity for the same pair across three venues. One pool gets 80% of the trading volume that month. The other two share the remaining 20%.

If the LP split capital evenly, only one third of the balance sat where most fees were generated. The rest was technically allocated, but mostly watching from the sidelines.

The total deposit did not change. The fee capture did. This is why DeFi needs liquidity models that do not force LPs to divide one wallet balance before knowing where demand will appear.

TVL is not enoughFor years, DeFi measured success through TVL: total value locked. TVL is easy to understand. It tells you how much capital is deposited in a protocol. But it does not tell you how much of that capital is useful.

A pool can have high TVL and still contribute little to real execution. A strategy can hold large deposits while most liquidity sits away from actual demand. A network can look liquid on paper while routing still struggles in practice.

TVL also reflects a model in which tokens are transferred into pools and contracts. That capital may be locked, but locking it does not guarantee that it is active.

That is why DeFi needs a shift from TVL to useful liquidity. The better question is: How much capital can actually be applied when trades happen?

This is the logic behind TVU - Total Value Unlocked, - a metric 1inch introduced to capture exactly this shift. The focus moves from capital that is merely deposited to capital that remains available and can support execution across more than one position.

Why LPs feel the cost firstLiquidity inefficiency affects the whole market, but LPs often feel it first. They provide the capital. They take the risk. Yet a large share of that capital may not earn meaningful fees.

The problem becomes worse once impermanent loss is included. Impermanent loss occurs when the relative price of pooled assets changes after deposit: the LP can end up with less value than if they had simply held the tokens, even after fees. Concentrated positions can amplify this effect, since capital is exposed to price movement within a narrow band. Some LPs also face more advanced risks, such as Just-in-Time liquidity (see below). 

LPs can also face unnecessary friction when they want to move capital. Tokens deposited into one pool cannot support another position unless the LP withdraws them, pays gas and reallocates them elsewhere.

This shows a larger point. LPs do not just need access to pools. They need structures that help liquidity stay active across more opportunities, remain under their control and move only when it is actually needed.

JIT liquidity weakens long-term LP economicsNot every liquidity problem comes from idle capital. Some arise because liquidity can be strategically timed.

One example is Just-in-Time (JIT) liquidity. Instead of providing liquidity continuously, sophisticated bots can detect a large pending swap, add liquidity immediately before it executes and remove it immediately afterward. The goal is to capture a share of the trading fees without keeping capital in the pool for longer than necessary.

For long-term LPs, this creates another source of inefficiency. They supply liquidity over extended periods, but some of the fees generated by large swaps can be captured by short-lived liquidity that appears only for those transactions.

This highlights another limitation of shared liquidity pools. They do not just fragment capital - they can also create opportunities for sophisticated participants to extract value from liquidity providers. As DeFi evolves, improving capital efficiency will also mean designing liquidity infrastructure that is more resistant to these kinds of strategies.

Current liquidity models have failed to fully solve a core issue: liquidity remains fragmented, underused and often locked into single-purpose structures.

The next model should change that assumption. It should let one balance support multiple positions instead of forcing LPs to pre-split capital. It should reduce idle liquidity. It should allow tokens to remain under the user’s control until they are actually needed for execution. It should help developers access useful liquidity without rebuilding the same infrastructure again and again. Most importantly, it should make existing capital work harder.

Explore 1inch to follow the next stage of DeFi liquidity infrastructure.

© Alexandre Oliveira / iStock Editorial via Getty Images

Exxon Mobil (NYSE:XOM | XOM Price Prediction) and Chevron (NYSE:CVX) both reported Q1 2026 results on May 1, 2026, right as the war with Iran reshaped global crude flows. With the Strait of Hormuz effectively closed and Brent recently near $90 per barrel, the two American majors are running the same playbook with very different exposure maps.

How the Quarter Landed for Each Business Exxon posted adjusted EPS of $1.16 versus $1.01 expected on revenue of $85.14 billion, a solid beat despite $706 million in direct Middle East losses and a $3.88 billion mark-to-market drag on unsettled derivatives. Upstream volumes hit 4.6 million oil-equivalent barrels per day, and CEO Darren Woods framed the quarter bluntly: “Events in the Middle East tested that strength with the safety of our people remaining our top priority.”

Chevron’s beat was larger but messier. Adjusted EPS came in at $1.41 versus $0.97 expected, though revenue of $47.56 billion missed by 9.76% and free cash flow flipped to negative $1.55 billion. Curtailments hit its Tamar and Leviathan operations in Israel, and Mike Wirth leaned on the Hess integration and record U.S. throughput to carry the story.

Cash Machine vs. Hemisphere Hedger Lens XOM CVX Core Bet LNG, Guyana, Permian scale Hess, Gulf of America, Venezuela Middle East Exposure Physical shipment losses Israel field curtailments 2026 Buyback Pace $20B planned $2.5B quarterly Exxon is engineered to convert $100 oil into raw cash. Golden Pass LNG Train 1 shipped its first cargo in April, Guyana output topped 900,000 gross barrels per day, and cumulative structural cost savings since 2019 reached $15.6 billion. Chevron is trading pure upside for geographic insurance. Talks around a $366 billion Iraq-to-Syria pipeline revival aim to bypass Hormuz entirely, and new plays in Libya, Uruguay, and Venezuela widen its Western Hemisphere footprint.

The Next Test Is How Long Brent Stays Elevated The EIA now expects Brent around $106 per barrel in May and June before easing to $89 by 4Q26, with 10.75 million barrels per day of Middle East production shut in. WTI last traded at $80.77, already off May highs. I will be watching whether Exxon’s LNG cargoes and Permian barrels keep compounding, and whether Chevron’s Hess-era production growth of 15% year over year can offset those Israeli curtailments.

Why I Lean Toward Exxon on This Setup For me, Exxon is the cleaner Iran-war trade. The 47.24% one-year return against Chevron’s 32.29% reflects tighter operating leverage to crude, and the $20 billion buyback is a real floor. Investors focused on lower operational supply risk and unique Venezuela and Israel optionality may find Chevron’s profile more appealing, especially with a $1.78 quarterly dividend backed by 39 straight years of increases. The key variable for both names is whether Hormuz reopens faster than the EIA expects.

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

Contact [email protected] for any questions or corrections.

© Zanuck from Getty Images and TheaDesign from Getty Images

I keep buying Salesforce (NYSE:CRM | CRM Price Prediction) because the crowd screaming “SaaSpocalypse” is looking at a stock chart while I am looking at a receipts book. The stock is down 34.05% year to date while the S&P 500 is up 8.82%, and every time the gap widens, I add more shares. My cost basis keeps working in my favor, and the business underneath keeps compounding.

The Receipts Behind My Conviction Start with what actually happened last quarter. Salesforce delivered EPS of $3.88 against a consensus of $3.1271, a 24.08% beat and the fifth consecutive quarter of exceeding estimates. Revenue landed at $11.13 billion, up 13.27% year over year. Net income jumped 36.73%. These are the numbers of a compounder that the market has decided to price like a melting ice cube.

Then there is the AI receipt in plain view. Agentforce and Data 360 combined ARR reached nearly $3.4 billion, up over 200% year over year. Agentforce alone crossed $1.2 billion in ARR, growing 205%. Customers delivered 3.8 billion Agentic Work Units, and more than 50% of new Agentforce bookings came from existing customers. That is real recurring revenue from enterprises paying to have agents do work inside their systems of record. Industry surveys show over 60% of CIOs prefer upgrading incumbent SaaS vendors rather than replacing them with raw models, citing SOC2 compliance and audit trails that startups cannot match. That is the moat.

The capital return finishes the case. Salesforce executed a $25 billion accelerated share repurchase, taking diluted share count from 970 million to 871 million in a year. Total returned in the quarter: $27.5 billion. With a P/E of 19, a free cash flow yield of 10.12%, and a 1.11% dividend that was raised 5.8% this year, I am buying growth at a value multiple.

Why Not the Obvious Alternatives Readers ask about ServiceNow (NYSE:NOW) and HubSpot (NYSE:HUBS). ServiceNow is down 51% from its 52-week high, and CLSA just initiated with an underperform rating and a $72 price target implying 31% downside. HubSpot got cut by Wells Fargo from Overweight to Equal Weight with the target sliced from $300 to $225 on AI transition uncertainty. Salesforce already carries the average Wall Street target of $254.42 against a stock trading at $173.79. Same fear, better fundamentals, cheaper entry.

The Risk I Own Noncurrent debt jumped from $10.4 billion to $39.3 billion to fund the buyback, and Informatica integration is a real execution project. Interest coverage of 27.5x and net debt to EBITDA of 0.78 tell me the balance sheet absorbs it. I am fine with management leaning into a cheap stock.

Marc Benioff called this “an outstanding quarter for Salesforce, record revenue, record deals, and cash flow” and set a $63 billion FY30 revenue target. I will keep buying while the market sells me a compounder at a value multiple.

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

Contact [email protected] for any questions or corrections.

Key Takeaways SAP Q2 revenue jumped 9% as cloud revenue rose 22% and cloud backlog grew 27% year over year.SAP cut its 2026 operating profit outlook after acquisitions but reaffirmed cloud revenue targets.SAP expanded AI adoption and enterprise cloud wins across industries, supporting future growth visibility. SAP SE (SAP - Free Report) reported second-quarter 2026 non-IFRS earnings per share (EPS) of €1.59 ($1.85), which increased 6% from the year-ago quarter. The Zacks Consensus Estimate was pegged at $2.

Despite macroeconomic uncertainty, SAP reported total revenues on a non-IFRS basis of €9.9 billion ($11.5 billion), which increased 9% year over year (up 11% at constant currency or cc). The Zacks Consensus Estimate was pegged at $11.4 billion.

AI strategy is becoming a major competitive advantage for SAP. Management emphasized its Autonomous Enterprise strategy, which combines Business AI with enterprise applications. SAP is embedding AI directly into finance, procurement, supply chain, HR and customer operations. The company's strategy revolves around two major pillars –Autonomous Suite and Business AI Platform. SAP believes customers increasingly value AI solutions that operate using trusted enterprise data while maintaining governance and compliance.

This positioning gives SAP a competitive edge because its AI capabilities are built on decades of customer business processes and transactional data rather than disconnected AI models. As AI adoption expands across enterprises, SAP is well-positioned to monetize AI through higher cloud subscriptions rather than relying solely on standalone AI products.

Cloud Business Continues to Be SAP's Growth EngineCurrent cloud backlog reached €22.9 billion in the quarter, representing 27% year-over-year growth (26% at cc). This metric is important because it reflects contracted future cloud revenue, giving investors visibility into future growth.

On a non-IFRS basis, the Cloud and software segment (89.6% of total revenues) registered revenues of €8.9 billion, rising 11% year over year (up 13% at cc).

Cloud revenue increased 22% year over year (24% at cc) to €6.3 billion, on a non-IFRS basis, demonstrating that enterprise customers continue to migrate mission-critical workloads to SAP's cloud ecosystem. SAP's Cloud ERP Suite, where revenue increased 25% (27% at cc) to €5.5 billion, is equally encouraging. Software licenses and support revenues totaled €2.6 billion, representing a 9% decrease (down 8% at cc) year over year.

Services business (10.4% of total revenues) posted revenues of €1 billion, down 3% year over year (down 2% at cc).

Expanding Clientele Bodes WellIn the second quarter, organizations worldwide continued to adopt the “RISE with SAP” program to support their comprehensive business transformations. Notable adopters included ACCIONA, AIRBUS, City of Osnabrück, Electrolux, Eli Lilly, Gilead Sciences, HARTING, Hindustan Zinc, The Humboldt University of Berlin, JET, Ørsted, Samsonite Group, Shell, The Shoprite Group, SIGNAL IDUNA, SPAR (CH), Sun Pharma and Vonovia.

“GROW with SAP” was implemented by Gooroo Crédito, Modular Data Centers, Parloa, Tarrant County, and Techem.

Major global brands across various industries, including AMADEUS, BBC, Booking.com, GOL, Oki Electric Industry, PwC, University Hospital Zurich and Vale, chose SAP's AI and data solutions.

SAP secured significant customer wins across its solution portfolio, with new or expanded engagements from leading organizations such as Birlasoft, Capgemini, Haier Group and KaDeWe.

Döhler, FANUC Europe, Fonterra, Natura Cosméticos, SABESP and TEAG went live on SAP solutions during the quarter.

SAP’s cloud revenue growth was especially strong in the APJ and EMEA regions and robust in the Americas, with standout performances from Brazil, France, Germany, Italy, India, South Korea and Spain. It remained strong in the United States, Australia and Singapore.

Margin DetailsNon-IFRS gross profit of €7.3 billion increased 9% from the year-ago quarter (up 11% at cc).

Non-IFRS cloud gross profit increased 22% year over year to €4.7 billion (up 23% at cc). Non-IFRS cloud gross margin fell 0.6 percentage points to 74.6%.

SAP's non-IFRS operating profit rose 7% (up 9% at cc) to €2.7 billion, while margin decreased to 27.8%.

Balance Sheet & Cash FlowAs of June 30, 2026, SAP had cash and cash equivalents of €11.6 billion compared with €10.1 billion as of March 31, 2026.

In the second quarter, the company generated operating cash of €3.2 billion, up 22% year over year. Free cash flow, a key metric of operational strength, rose 27% to €3 billion during the quarter.

SAP also continues returning capital to shareholders. Its newly authorized €10 billion share repurchase program remains active. As of June 30, the company had repurchased more than 16.28 million shares and spent approximately €2.6 billion.

SAP’s 2026 Guidance Reaffirmed Despite Lower Profit OutlookThe company lowered its non-IFRS operating profit outlook from €11.9–€12.3 billion to €11.8–€12.2 billion. The revision stems almost entirely from the acquisitions of Dremio and Prior Labs, which closed in July. Management expects these acquisitions to create a dilutive impact exceeding €100 million during 2026.

Despite lowering operating profit guidance slightly, SAP maintained nearly all of its major financial targets. Management still expects cloud revenue between €25.8 billion and €26.2 billion, cloud and software revenue between €36.3 billion and €36.8 billion and approximately €10 billion in free cash flow.

Additionally, SAP expects cloud backlog growth to remain strong, though slightly slower, total revenue growth to match 2025 levels, revenue acceleration in 2027 and operating expense growth to remain below revenue growth.

Nonetheless, the company acknowledged that its outlook assumes a near-term de-escalation of geopolitical tensions in the Middle East. Any prolonged conflict could negatively impact enterprise spending or business operations.

SAP’s Zacks RankSAP currently carries a Zacks Rank #4 (Sell).

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

Recent PerformancesAmerica Movil, S.A.B. de C.V. (AMX - Free Report) reported net income per ADR of 47 cents for the second quarter of 2026, up from 38 cents in the prior-year quarter. The earnings figure missed the Zacks Consensus Estimate of 52 cents. Total quarterly revenues rose 3.1% to Mex$241,071 million, driven by rapid momentum across the Service and Equipment segments.

BlackBerry Limited (BB - Free Report) reported first-quarter fiscal 2027 non-GAAP earnings per share (EPS) of 4 cents. The figure beat the company’s estimate of 2-3 cents. In the year-ago quarter, it reported a non-GAAP EPS of 2 cents. The Zacks Consensus Estimate was pegged at 3 cents per share. BlackBerry generated $152.9 million in fiscal first-quarter revenue, representing 26% year-over-year growth.

Iridium Communications (IRDM - Free Report) reported EPS of 9 cents for the second quarter of 2026, missing the Zacks Consensus Estimate of 26 cents. The bottom line also compared unfavorably with the prior-year quarter's figure of 20 cents. Iridium reported second-quarter revenue of $225.2 million, representing 4% year-over-year growth. The consensus mark was pinned at $221.2 million.

Wall Street analysts expect Agnico Eagle Mines (AEM - Free Report) to post quarterly earnings of $2.89 per share in its upcoming report, which indicates a year-over-year increase of 49%. Revenues are expected to be $3.86 billion, up 37.2% from the year-ago quarter.

Over the last 30 days, there has been a downward revision of 16.2% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.

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

While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.

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

The consensus estimate for 'Revenue from mine operations- Quebec- LaRonde' stands at $427.61 million. The estimate indicates a change of +79.6% from the prior-year quarter.

Analysts forecast 'Revenue from mine operations- Quebec- Canadian Malartic' to reach $667.02 million. The estimate suggests a change of +34.2% year over year.

Analysts expect 'Revenue from mine operations- Quebec- Goldex' to come in at $143.17 million. The estimate indicates a year-over-year change of +24.2%.

It is projected by analysts that the 'Revenue from mine operations- Nunavut- Meliadine' will reach $436.35 million. The estimate suggests a change of +23.1% year over year.

The consensus among analysts is that 'Payable production - Gold (ounces) - Total Gold' will reach $838926.4 ounces. Compared to the current estimate, the company reported $866029.0 ounces in the same quarter of the previous year.

Based on the collective assessment of analysts, 'Payable production - Gold (ounces) - Quebec - LaRonde' should arrive at $87086.3 ounces. The estimate is in contrast to the year-ago figure of $69778.0 ounces.

According to the collective judgment of analysts, 'Payable production - Gold (ounces) - Quebec - Canadian Malartic' should come in at $148272.2 ounces. Compared to the current estimate, the company reported $172531.0 ounces in the same quarter of the previous year.

Analysts' assessment points toward 'Payable production - Gold (ounces) - Quebec - Goldex' reaching $30351.6 ounces. Compared to the present estimate, the company reported $33118.0 ounces in the same quarter last year.

The average prediction of analysts places 'Payable production - Gold (ounces) - Nunavut - Meliadine' at $95419.5 ounces. The estimate is in contrast to the year-ago figure of $90263.0 ounces.

Analysts predict that the 'Payable production - Gold (ounces) - Nunavut - Meadowbank' will reach $104982.5 ounces. The estimate compares to the year-ago value of $101935.0 ounces.

The collective assessment of analysts points to an estimated 'Payable production - Gold (ounces) - Finland - Kittila' of $52694.2 ounces. The estimate compares to the year-ago value of $50357.0 ounces.

The combined assessment of analysts suggests that 'Payable production - Gold (ounces) - Ontario - Detour Lake' will likely reach $172249.1 ounces. The estimate compares to the year-ago value of $168272.0 ounces.

View all Key Company Metrics for Agnico here>>>

Over the past month, Agnico shares have recorded returns of -7.5% versus the Zacks S&P 500 composite's +0.6% change. Based on its Zacks Rank #5 (Strong Sell), AEM will likely underperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Key Takeaways Dow's Q2 EPS beat estimates, with revenues of $12.09B and self-help benefits above $300M.Dow's Packaging & Specialty Plastics sales rose 27% as higher polyethylene prices boosted results.Dow expects Q3 EBITDA of about $1.7B while self-help actions add roughly $130M in sequential benefits. Dow Inc. (DOW - Free Report) used its second-quarter earnings call to emphasize cost actions, portfolio changes and disciplined execution as management focuses on improving earnings durability. The company highlighted stronger pricing, margin recovery and cash generation while acknowledging continued market volatility.

Management also provided a cautious third-quarter outlook, pointing to polyethylene margin pressure and seasonal factors while expecting additional benefits from restructuring and productivity initiatives.

DOW Advances Cost and Portfolio ActionsCEO Karen Carter said that Dow is focused on three priorities: targeted growth, improving portfolio competitiveness and maintaining balanced capital allocation. Carter emphasized using the company’s global assets and customer relationships to strengthen long-term competitiveness.

DOW reported second-quarter operating EPS of $1.44, beating the Zacks Consensus Estimate of $1.25. Revenues of $12.09 billion slightly surpassed the Zacks Consensus Estimate of $12.04 billion.

The company said self-help efforts generated more than $300 million of benefits during the quarter. Management increased expected in-year benefits from these actions to more than $1.3 billion.

Dow Sees Strength in Key MarketsDow’s second-quarter sales increased 20% year over year, supported by higher prices across regions. Operating EBITDA was $2.3 billion, while operating EBIT improved significantly from the prior-year period.

The company’s Packaging & Specialty Plastics segment was a major contributor, with sales rising 27% year over year to $6.4 billion. Dow attributed this improvement to higher polyethylene prices and stronger integrated margins.

Dow noted that data center demand remains a growth area, particularly for thermal management solutions and Industrial Solutions products. Carter highlighted opportunities in electronics, mobility and specialty applications.

DOW Details Third-Quarter OutlookCFO Jeffrey Tate said that Dow expects third-quarter EBITDA of approximately $1.7 billion. The outlook indicates anticipated polyethylene margin compression following June price changes and typical seasonal patterns after strong second-quarter demand.

Management expects about $130 million of sequential benefits from self-help actions during the third quarter. These gains are expected to offset planned maintenance and the absence of certain second-quarter benefits.

Dow also highlighted risks from geopolitical tensions, logistics constraints and uneven regional demand. The company said market conditions remain volatile, particularly due to ongoing disruptions affecting energy and feedstock markets.

Dow Builds Specialty Growth PlatformsDow said it is reshaping the silicones business by reducing higher-cost upstream capacity and expanding downstream opportunities. The company expects the Barry, U.K. siloxanes shutdown to provide a $60 million EBITDA uplift in the second half of 2026.

Management said specialty silicones investments are focused on faster-growing markets, including electric vehicles, consumer electronics, healthcare and data centers. Carter noted that these downstream markets are expected to deliver stronger returns.

The company also discussed its Dow Coolant Care Network, which supports data center thermal management needs. Management views the offering as a way to expand both revenue opportunities and service capabilities.

DOW Addresses Analyst ConcernsA Morgan Stanley analyst asked about the Alberta project and whether Dow could bring in a partner. Carter said that the company remains focused on completing the project while staying disciplined on returns.

A JPMorgan analyst questioned the timing of cost savings and capital allocation priorities. Tate said that debt reduction remains the first priority, with share repurchases not expected during 2026.

Analysts also questioned polyethylene assumptions. Carter said that improving oil prices, declining inventories and stronger order activity could provide upside if current market conditions continue.

Dow Focuses on Financial FlexibilityDow confirmed that it is prioritizing balance sheet strength, maintaining approximately $14 billion in liquidity and directing excess cash toward deleveraging. Management noted that there are no substantive debt maturities until 2029.

The company expects working capital actions to release more than $500 million in the second half of 2026. Management also confirmed progress from restructuring efforts, including implemented role reductions and site transformation initiatives.

Carter said that Dow’s approach remains centered on improving productivity, strengthening its asset base and focusing investment on attractive markets. The company continues to position its actions around longer-term competitiveness.

Zacks Signals Point to a Mixed SetupDOW carries a Zacks Rank #3 (Hold), indicating that the stock’s earnings estimate revision trends are currently consistent with a neutral outlook. The Zacks Rank can change as analysts update earnings expectations 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 B and VGM Score of B, while its Growth Score is C and Momentum Score is F. Zacks Style Scores are designed to complement the Zacks Rank by evaluating value, growth and momentum characteristics, with stronger scores indicating more favorable attributes.

NextEra Energy (NEE - Free Report) reported $7.53 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 12.5%. EPS of $1.15 for the same period compares to $1.05 a year ago.

The reported revenue represents a surprise of -5.76% over the Zacks Consensus Estimate of $7.99 billion. With the consensus EPS estimate being $1.09, the EPS surprise was +5.51%.

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

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 NextEra performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Operating Revenues- NextEra Energy Resources (NEER): $2.53 billion versus the two-analyst average estimate of $3.27 billion. The reported number represents a year-over-year change of +32.3%.Operating Revenues- Florida Power & Light (FPL): $4.9 billion versus the two-analyst average estimate of $4.97 billion. The reported number represents a year-over-year change of +4%.Operating Income (Loss)- Florida Power & Light (FPL): $1.82 billion compared to the $2 billion average estimate based on two analysts.Operating Income (Loss)- Corporate & Other: $-103 million versus the two-analyst average estimate of $-38.5 million.Operating Income (Loss)- NextEra Energy Resources (NEER): $519 million versus the two-analyst average estimate of $1.53 billion.View all Key Company Metrics for NextEra here>>>

Shares of NextEra have returned +2.4% over the past month versus the Zacks S&P 500 composite's +0.6% 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.

NextEra Energy NYSE: NEE reported second-quarter 2026 adjusted earnings per share of $1.15, while adjusted EPS for the first six months of the year rose 9.8% from a year earlier. Chairman, President and CEO John Ketchum said the results reflected continued execution at Florida Power & Light Co. and NextEra Energy Resources amid rising electricity demand.

Oracle (ORCL) won a $7 billion contract with the U.S. Department of War. Shares of the cloud giant didn't move much ahead of Friday's open as the stock stalls near 52-week lows.

Key Takeaways FDX posted 12.5% revenue growth in fiscal 2026's fourth quarter, led largely by B2B services. FedEx appears more attractive than UPS based on valuation, pricing and financial leverage. FedEx targets $2 billion in cost savings by end-2027 and up to $1 billion in 2026 share buybacks. United Parcel Service (UPS - Free Report) and FedEx (FDX - Free Report) , with market capitalizations of $98.46 billion and $75.95 billion, respectively, are leading players in the Zacks Transportation-Air Freight and Cargo industry. These well-established companies are synonymous with parcel delivery and logistics.

Delivery trucks from both companies have become a common sight, reflecting their dominance in handling the bulk of parcel shipments. With that backdrop, let’s take a closer look at their financial performance, growth prospects and ongoing challenges. As a result, let's find out which transportation heavyweight might be the smarter investment for now.

The Case for UPSUPS has been facing prolonged revenue pressure, as geopolitical instability and persistent inflation continue to dampen consumer confidence and economic growth expectations. Uncertainty related to tariffs and geopolitical woes has further intensified these challenges.

UPS’ decision to scale back business with Amazon (AMZN - Free Report) is expected to have kept near-term volumes muted. Management reached an agreement in principle with Amazon to reduce the e-commerce giant’s volume by more than 50% by June 2026. CEO Carol Tome noted that Amazon was not the company’s most profitable customer. The reduction in volumes is compelling UPS to right-size its network.

UPS is now focusing on improving profitability over sheer volume. Under the cost-cutting initiatives, UPS has substantially reduced its U.S. operational workforce and closed daily operations at multiple leased and owned buildings. Moreover, UPS has been focusing on increasing automation in sorting and operations and leveraging AI for logistics planning to boost efficiency.

The shift in focus toward higher-margin areas such as small and medium-sized businesses or SMBs and healthcare logistics from low-margin volumes (like Amazon) is expected to aid its per-package revenues.  Notably, SMBs contributed 34.5% to total U.S. volume in the March quarter, reflecting the highest SMB penetration in UPS’ history. We expect SMBs to keep performing well.

The De Minimis exemption expired last year. The trade exemption allowed packages containing goods valued at less than $800 to enter the United States without additional taxes. This development has hurt the International segment volumes in recent quarters by diverting volumes away from the China-U.S. trade lane.

Moreover, UPS’ dividend payout ratio stands at 97, raising questions about its long-term ability to maintain current dividend levels. The company’s elevated dividend payout is hurting its operational flexibility.

The Case for FDXIn the fourth quarter of fiscal 2026, results of which were released last month, FedEx’s earnings (excluding 29 cents from non-recurring items) of $6.31 per share beat the Zacks Consensus Estimate of $5.91 as well as improved 3.9% year over year. Revenues of $25 billion came ahead of the Zacks Consensus Estimate of $24.1 billion and improved 12.5% from the year-ago quarter.

In the quarter, the majority of the revenue growth was driven by business-to-business (B2B) services and the three-month period was the brightest quarter within fiscal year 2026 from a B2B perspective. This is in line with the company’s continuous efforts to move away from low-margin parcel traffic.

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

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

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

Despite ongoing headwinds, FedEx benefits from a strong brand and an extensive logistics network capable of generating stable long-term cash flows. Strategic investments continue to enhance the service offerings and strengthen its competitive position.

FedEx spun off its struggling Freight division in June 2026, thereby focusing on the core operations. The erstwhile segment of FDX was suffering due to the continued weakness in U.S. industrial production, which dampened demand across the less-than-truckload industry.

FDX’s dividend payout ratio currently stands at 24%, much lower than UPS’. So FDX, unlike UPS, does not face concerns about its long-term ability to maintain current dividend levels.

Taking a Look at the Two Companies’ Price Performance and ValuationIn a year, FDX’s shares have performed much better than those of UPS

One-Year Price ComparisonImage Source: Zacks Investment Research

UPS is trading at a forward sales multiple of 1.05X, whereas FDX’s forward sales multiple sits at 0.79X, suggesting that the former’s shares are pricier.

Image Source: Zacks Investment Research

Leverage ComparisonFDX’s lower debt-to-capital ratio implies that it relies less on debt financing and has a stronger equity position.

Image Source: Zacks Investment Research

End NoteAgreed that both FedEx and UPS continue to experience revenue pressure amid sluggish demand conditions. To navigate the challenging environment, each company is pursuing cost-reduction initiatives.

From a valuation as well as pricing standpoint, FDX appears more attractive than UPS. FedEx also maintains an edge over UPS in terms of financial leverage. Dividend sustainability concerns are not present in FDX, unlike UPS.

Taking all these factors into account, FDX appears to be the more compelling choice than UPS, even though both stocks currently carry a Zacks Rank #3 (Hold).

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

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

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 31. 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 oil and natural gas transportation and power transmission company is expected to post quarterly earnings of $0.43 per share in its upcoming report, which represents a year-over-year change of -8.5%.

Revenues are expected to be $10.85 billion, up 0.9% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 2.5% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

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

Price, Consensus and EPS Surprise

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

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

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

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

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

How Have the Numbers Shaped Up for Enbridge?For Enbridge, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.59%.

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

So, this combination makes it difficult to conclusively predict that Enbridge 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 Enbridge would post earnings of $0.69 per share when it actually produced earnings of $0.71, delivering a surprise of +2.90%.

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

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

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

Enbridge 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 PlayerEnbridge (ENB - Free Report) , another stock in the Zacks Oil and Gas - Production and Pipelines industry, is expected to report earnings per share of $0.43 for the quarter ended June 2026. This estimate points to a year-over-year change of -8.5%. Revenues for the quarter are expected to be $10.85 billion, up 0.9% from the year-ago quarter.

The consensus EPS estimate for Enbridge has been revised 2.5% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -0.59%.

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

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

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is CF Industries (CF - Free Report) . CF is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 11.87, which compares to its industry's average of 12.54. CF's Forward P/E has been as high as 16.16 and as low as 11.10, with a median of 14.29, all within the past year.

We also note that CF holds a PEG ratio of 0.39. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CF's PEG compares to its industry's average PEG of 0.78. Over the last 12 months, CF's PEG has been as high as 2.67 and as low as 0.30, with a median of 0.67.

Another notable valuation metric for CF is its P/B ratio of 1.84. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.40. Within the past 52 weeks, CF's P/B has been as high as 2.38 and as low as 1.59, with a median of 1.93.

Finally, investors should note that CF has a P/CF ratio of 6.29. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.60. Over the past year, CF's P/CF has been as high as 8.02 and as low as 5.19, with a median of 6.93.

Value investors will likely look at more than just these metrics, but the above data helps show that CF Industries is likely undervalued currently. And when considering the strength of its earnings outlook, CF sticks out as one of the market's strongest value stocks.

AbbVie earns a buy rating, supported by accelerating top and bottom-line growth and a compelling valuation at 18x forward P/E. ABBV offers a 2.7% forward dividend yield, outperforming peers by 68%, and maintains a 12-year streak of dividend growth. Dividend growth remains central to ABBV's shareholder-friendly capital allocation, with a payout ratio of 59% and consensus expectations for continued increases.

Rabobank's Senior FX Strategist Jane Foley describes EUR/USD as wary after the July European Central Bank (ECB) meeting. Foley notes that the Euro (EUR) failed to gain support despite a hawkish ECB tone, while the Dollar benefits from safe haven demand and Federal Reserve (Fed) expectations. Foley still expects EUR/USD to trade in a choppy range around 1.14 over a 1-to-3-month horizon.

Euro struggles as Dollar stays supported"Despite the hawkish takeaway from the July ECB policy meeting, the EUR failed to find support."

"CFTC speculators’ position data highlight that since the start of the Iran war, confidence in the EUR has been at a low ebb."

"At the same time, the USD has benefitted from a combination of safe haven flows and hawkish expectations regarding the Fed."

"Continued intensification of the Iran war has the potential to boost safe haven flows and hawkish Fed calls further."

"For now, however, we maintain our view that EUR/USD is likely to trade in a choppy range around the 1.14 level on a 1-to-3-month view."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

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Nvidia CEO Jensen Huang, seen here via video link alongside Microsoft CEO Satya Nadella, said the world needs open-weight AI models. Jeffrey Dastin/Reuters In his first-ever post on X, Nvidia CEO Jensen Huang called attention to how some of the biggest names in AI and tech are rallying together to defend the future of open-weight AI models.

"AI will transform every industry, power every company, and be built by every country," Huang wrote on X. "Open models strengthen safety and cybersecurity, accelerate innovation and diffusion, and enable sovereignty."

On Friday, Nvidia, Microsoft, Meta, Mistral, and others signed an open letter that urges US policymakers not to crack down on open-weight AI models.

For my first post, I’m sharing a letter @NVIDIA signed on why open models matter.

AI will transform every industry, power every company, and be built by every country.

Open models strengthen safety and cybersecurity, accelerate innovation and diffusion, and enable sovereignty.… pic.twitter.com/t02bi51N4C

— Jensen Huang (@JensenHuang) July 24, 2026 Their statement amounts to a full-throated endorsement of open-weight AI models at a time when top Trump administration officials have suggested they might take action against Moonshot AI, the creator of the Kimi K3, the world's most powerful open-weight AI model.

"Our AI leadership will be judged not by one frontier AI model, but by whether the United States builds a strong, open ecosystem that diffuses into every sector," the signatories wrote in the letter.

The two biggest absences in the list are OpenAI and Anthropic, widely viewed as the world leaders in the frontier AI model race. Unlike Anthropic's Fable 5 and OpenAI's GPT-5.6-Sol, Kimi K3 as an open-source model will soon be available for download and customization. Both companies would stand to gain if the US government either directly blocks or significantly impedes China-based open model makers like Moonshot AI. Google also did not sign the letter.

OpenAI CEO Sam Altman later said he was "glad to see" the support for open weight models.

"i want the US to win in AI both in open source and proprietary models," Altman wrote on X.

While SpaceX is not listed as a signatory, Elon Musk later signaled his support for the message.

"This has my full support," Musk wrote on X, quoting Huang's tweet. "Jensen is right."

While the letter does not mention Moonshot specifically, its authors portray the broader development of open AI models as akin to how open software revolutionized computing in the 1980s.

"Open source did more than lower the cost of software; it created a shared foundation of knowledge on which generations of American engineers and entrepreneurs built their institutional sovereignty," they wrote.

China has thus far dominated the development of open-weight AI models, despite the US' legendary reputation in the creation of open-source software. Two of the biggest modern names in open software, Mozilla and the Linux Foundation, also signed onto the letter.

In the US, Nvidia's Nemotron model is one of the largest open weight models, though its performance pales in comparison to rivals like Kimi K3. Alexandr Wang, chief AI officer of Meta, has said that his Meta Superintelligence Labs team remains committed to open models and is developing an open variant of its Muse Spark model. Reflection AI, a startup founded by former Google DeepMind researchers, is also preparing its own open model.

On Wednesday, Michael Kratsios, director of the White House Office of Science and Technology Policy, publicly accused Moonshot of developing Kimi K3 by distilling the model from Anthropic's Fable 5. Distillation, the process of training a less powerful model on the outputs of a more powerful one, is a controversial but commonly used practice in AI development. At the same time, companies like Anthropic have accused their Chinese counterparts of abusing the distillation process to the point of essentially ripping off their intellectual property.

Earlier this week, Treasury Secretary Scott Bessent suggested that the US could sanction companies that engage in such distillation, which he compared to theft.

The letter defends the distillation process more broadly, but does open the door to the possibility that companies like Nvidia, Microsoft, and Meta would support a crackdown on those proven to be bad actors.

"Unlawful efforts to extract value from closed models raise legitimate concerns," they wrote. "Those concerns should be addressed through targeted legal and commercial frameworks rather than sweeping restrictions on techniques that play an important role in AI innovation."

In total, a combination of 25 companies, organizations, and platforms signed on to the letter. They are the American Innovators Network, Andreessen Horowitz, Arcee AI, Arena, Black Forest Labs, Box, CrowdStrike, Dell Technologies, Emergence Capital, Hugging Face, IBM, The Linux Foundation, Mariana Minerals, Meta, Microsoft, Mistral, Mozilla, Nvidia, Palantir, Perplexity, Reflection, Replit, ServiceNow, Telnyx, and Y Combinator.

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Brent D. Griffiths You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

Brent Griffiths is a senior reporter at Business Insider who covers AI and tech.Previously, he worked at the Washington Post as a researcher on Power Up and the Finance 202. He started his career at Politico where he worked on the web production team and covered breaking news. His passion for covering politics has only grown since he cut his teeth covering the presidential campaign as a student journalist. He's also contributed to the Almanac of American Politics.

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Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Micron (MU - Free Report) .

Micron currently has an average brokerage recommendation (ABR) of 1.32, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 41 brokerage firms. An ABR of 1.32 approximates between Strong Buy and Buy.

Of the 41 recommendations that derive the current ABR, 32 are Strong Buy and five are Buy. Strong Buy and Buy respectively account for 78.1% and 12.2% of all recommendations.

Brokerage Recommendation Trends for MU

Check price target & stock forecast for Micron here>>>

The ABR suggests buying Micron, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Is MU a Good Investment?Looking at the earnings estimate revisions for Micron, the Zacks Consensus Estimate for the current year has increased 20.3% over the past month to $73.85.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Micron. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, the Buy-equivalent ABR for Micron may serve as a useful guide for investors.

SK Hynix (NASDAQ:SKHY) ADRs are down 6% in Friday morning trading to $158.56 as a Korea-led memory selloff pulls the entire chip complex lower. Micron Technology (NASDAQ:MU | MU Price Prediction) stock is off 6% to $929, SanDisk (NASDAQ:SNDK) shares are down 9% to $1,467, and Western Digital (NASDAQ:WDC) stock is trading 6% lower at $523.48.

The Roundhill Memory ETF (CBOE:DRAM) is down 7% to $54, confirming a broad group retreat rather than a single-name story. The NASDAQ 100 is down 1% and has now fallen for a third straight session to a one-month low, so today’s memory weakness is riding on top of a broader tech pullback.

The move caps a volatile stretch for the memory/storage group after a huge run higher, and the pullback still leaves the sector deeply in the green for the year.

Korea-Led Selloff Sparks Sympathy Move The catalyst traces to an overnight KOSPI selloff in South Korea led by Samsung and SK Hynix. U.S. memory names have become increasingly bundled with the KOSPI given its heavy weighting to those two, so weakness in Seoul is flowing straight through to Micron, SanDisk, and Western Digital shares.

Layered on top is a broader tech pullback. The NASDAQ has fallen three sessions in a row after results from Alphabet‘s (NASDAQ:GOOGL) Google and Tesla (NASDAQ:TSLA), with U.S.-Iran escalation adding pressure.

Notably, Micron is falling even after Tesla CEO Elon Musk praised the company’s “very significant allocation” of memory chips to Tesla on Thursday’s earnings call. That underscores today’s action as a group and macro move, not a Micron-specific problem.

Pullback Inside a Massive Rally Today’s drop lands inside one of the sharpest sector runs in years. Micron stock is up 227% year to date (YTD), SanDisk shares have gained 526% YTD, and Western Digital stock is up 209% YTD, all fueled by AI memory demand and blowout earnings.

Micron’s fiscal Q3 2026 revenue landed at $41.46 billion, up 345.7% year over year (YoY), with non-GAAP EPS of $25.11 against a $20.28 consensus. Micron guided Q4 revenue to $50 billion plus or minus $1 billion and EPS to $31, and CEO Sanjay Mehrotra highlighted “the strategic value of memory in the AI era.”

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SanDisk’s most recent quarter posted revenue of $5.95 billion with EPS of $23.41, and Western Digital delivered $3.34 billion in revenue with non-GAAP EPS of $2.72. None of those numbers explain today’s drop, which is why the DRAM ETF’s decline is a cleaner read on the sector rotation.

Micron stock now trades at a forward P/E ratio of 6x, and analyst price targets sit near $1,507, meaningfully above current levels. SanDisk shares carry a heavier trailing P/E ratio of 55x, which helps explain why the highest-multiple names in the group are giving back the most today.

Sentiment and Prediction Markets Flash Caution Polymarket traders are pricing a 97% probability that Micron stock closes lower today, with the week likely settling near $920. Longer-dated markets show only a 12% probability that Micron shares finish July above $1,100, suggesting limited near-term bounce conviction.

Reddit sentiment on Micron cooled from a bullish reading of 62 earlier in the week to a neutral 54, mirroring the fade in retail enthusiasm. The VIX has jumped to 18.7, up 12.4% on the day, though it remains inside its normal range.

What to Watch SK Hynix reports earnings on July 29, and pre-print positioning may explain part of today’s Korea-side pressure. Intel (NASDAQ:INTC) stock is also weak at $97, suggesting that the softness extends beyond memory into the broader semiconductor complex.

Investors can watch for whether Micron and SanDisk shares hold their recent breakout levels into the close, and whether any updates from the next Korean session shift the tone. The DRAM ETF’s top three holdings, Samsung, SK Hynix, and Micron, account for 72% of the fund’s net assets, so investors should consider keeping their position sizes modest given that concentration and today’s volatility.

The AI memory super cycle thesis remains intact on the earnings side, but sentiment has clearly rotated. Traders may want to watch for whether today’s lows hold or give way as the session moves toward Friday’s close.

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

Contact [email protected] for any questions or corrections.

Key Takeaways BlackBerry raised fiscal 2027 revenue guidance after first-quarter revenues climbed 26% to $152.9 million.QNX revenues rose 26% to $72 million, supported by the strong development licenses performance.Secure Communications revenues grew 24% to $74 million on government demand, retention and recurring sales. BlackBerry (BB - Free Report) kicked off fiscal 2027 on a strong note, delivering better-than-expected first-quarter results and raising its fiscal year outlook. The performance was anchored by strong QNX and Secure Communications businesses, but the key question remains whether this momentum can sustain.

Quarterly revenues came in at $152.9 million, marking a 26% year-over-year increase. Profitability was equally impressive, with adjusted EBITDA more than doubling to $36 million.

QNX remained the key catalyst, with revenues climbing 26% year over year to $72 million. The segment benefited from broad-based strength, particularly in development licenses, which hit their highest level in eight quarters. This metric serves as an early indicator of future royalty streams, reflecting customer investments in new software platforms that will take years to reach production.

Beyond automotive, General Embedded Markets and Physical AI are emerging as a fast-growing opportunity, expanding QNX’s reach into industrial automation, robotics and medical devices.

Additionally, the company continues to advance Alloy Kore, a platform expected to significantly increase software content per vehicle, boost average selling price by multiples and driving backlog. While still early, management remains positive about securing a design win within the current fiscal year.

Secure Communications also delivered a standout quarter, with revenues increasing 24% year over year to $74 million. The segment is witnessing improved performance anchored by government demand, recurring revenues and customer retention. Rising demand for digital sovereignty and cybersecurity modernization by governments across the globe is creating a powerful tailwind.

Encouraged by the strong start, BlackBerry now expects total revenues between $594 million and $621 million compared with $584-$611 million projected earlier.

The strong start to fiscal 2027 and subsequent outlook revision reinforces that BlackBerry’s turnaround strategy is gaining traction. However, the path is not without challenges. Secure Communications remains exposed to deal-timing variability and this could impact performance.

In addition, some of BlackBerry’s most exciting opportunities, such as physical AI, robotics and the Alloy Kore platform, remain in the early stages, introducing execution risk. Heavy reliance on the automotive industry is a concern. The QNX platform remains heavily exposed to vehicle production cycles and OEM spending, which, in turn, are highly dependent on macro conditions. BlackBerry faces increasing competitive pressures in both QNX and cybersecurity businesses.

Let’s Take a Look at BB’s PeersWithin the cybersecurity space, BlackBerry competes with several giants, including CrowdStrike (CRWD - Free Report) . While BlackBerry’s focus remains on encrypted communications and sovereign-grade infrastructure, CRWD is one of the leading pureplay companies. CRWD entered fiscal 2027 with strong momentum, with the fiscal first quarter revenues rising 26% year over year to $1.39 billion and ARR reaching $5.51 billion (up 24%), alongside record net new ARR of $256 million (up 32%). Management emphasized that as enterprises rapidly adopt AI, cybersecurity has become a critical component, creating a massive demand pipeline.  

CrowdStrike is seeing strong adoption across cloud, identity and next-gen SIEM, with these newer categories exceeding $2 billion in ARR. The company expects fiscal second quarter revenues to be between $1.436 billion and $1.442 billion. CRWD raised its fiscal 2027 net new ARR growth guidance by 520 basis points at the midpoint

Aptiv PLC (APTV - Free Report) Intelligent Systems segment is seeing increased activity around next-generation ADAS, user experience and vehicle architecture solutions. However, in the near-term Aptiv is navigating a volatile macro backdrop amid OEM and auto industry disruptions and inflationary pressure. For the second quarter of 2026, Aptiv expects revenues (excluding its EDS segment, which spun-off into a new publicly traded company, Versigent) to be between $3.2 billion and $3.4 billion.  

APTV has only about 25% of its business outside automotive. The company is seeking to increase penetration in markets such as commercial aerospace and telecom and remains focused on accelerating product development and go-to-market activities.

BB Price Performance, Valuation & EstimatesShares of BlackBerry have lost 16.5% in the past month against the Internet-Software industry’s growth of 11%.

Image Source: Zacks Investment Research

Regarding the price/book ratio, BB is trading at 6.74, higher than the industry’s multiple of 4.65.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for BB earnings for fiscal 2027 has been revised downward over the past 60 days.

Image Source: Zacks Investment Research

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

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

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