Track market-moving stories before they get noisy

Amazon's Zoox and Alphabet's Waymo on Tuesday separately announced expansions of their driverless ride-hailing operations into new ​U.S. cities, weeks after Zoox started paid services.

Zoox ‌said it would begin testing in Houston and San Diego, bringing its presence to 12 U.S. locations. ​It will initially use retrofitted test ​vehicles for manual mapping and testing before ⁠deploying its purpose-built driverless robotaxis.

Its commercial launch ​has intensified competition with Waymo and Tesla as ​companies race to scale autonomous ride-hailing in the U.S.

Waymo, meanwhile, said it would begin welcoming its first public ​riders in Denver, San Diego and Tampa, ​bringing its fully autonomous ride service to 14 cities. ‌The ⁠company said it would gradually expand access to riders in the three cities.

Zoox has been carrying passengers for free in Las Vegas, San Francisco, ​Austin and ​Miami as ⁠part of its testing program, before it started offering paid rides in ​Las Vegas in August.

Waymo already operates ​paid ⁠driverless services in multiple U.S. cities and is also expanding overseas. The company said last month ⁠it ​would begin testing in Munich ahead of ​a planned commercial launch in Germany toward the end of 2027.

Anthropic has agreed to a $35 billion deal to buy computing power from Nvidia-backed cloud provider Lambda, the Wall Street Journal reported, citing unnamed sources.

The new capacity will be sourced from a Texas data center operated by bitcoin miner Hut 8, with Nvidia holding the underlying lease on the property, according to the report.

The arrangement is the latest example of the tangled web of deals reshaping the AI industry, with Nvidia serving simultaneously as landlord, chip supplier and facilitator across the transaction. Anthropic has now signed $175 billion in cloud deals in recent months as it looks to secure computing capacity ahead of an anticipated supply crunch.

The capacity for the Anthropic-Lambda deal will run through Hut 8's Beacon Point campus in Nueces County, Texas. Hut 8 had previously signed two 15-year leases covering 704 megawatts at the campus with an investment-grade customer later identified as Nvidia, which holds the primary facility lease. Those underlying contracts carry $19.6 billion in base-term contract value for Hut 8.

Once fully operational, the 704-megawatt Beacon Point campus is expected to generate an average of $1.31 billion in annual operating income for Hut 8.

Under the structure of the deal, Anthropic pays Lambda, Lambda installs Nvidia hardware, and Nvidia pays Hut 8 the underlying facility rent, a setup that guarantees Hut 8's long-term infrastructure revenue regardless of specific compute utilization.

Key Takeaways U.S. Bancorp added more than 50 business banking roles, bringing its banker count above 1,300.Expansion into Florida and Georgia and deeper coverage in Texas and Arizona could boost client growth.SBA lending and healthcare banking initiatives broaden USB's offerings and support potential client growth. U.S. Bancorp (USB - Free Report) is expanding its business banking presence across the United States, adding bankers in Florida, Georgia, Texas and Arizona. The move marks its entry into business banking in Florida and Georgia while deepening its presence in Texas and Arizona. The expansion extends USB’s reach beyond its traditional 26-state branch footprint and strengthens its presence in key markets.

The expansion is supported by a growing business banking workforce. USB primarily targets business banking clients with annual sales between $2.5 million and $50 million. Since the beginning of 2026, the bank has added more than 50 customer-facing positions to its business banking division, bringing its total business banker count to more than 1,300. The expanded team will offer deposit, lending, payments and treasury management solutions, giving USB greater capacity to serve its target market.

Along with expanding its frontline workforce, USB is strengthening capabilities tailored to specialized business needs. The bank has added business development officers focused on Small Business Administration (SBA) loans and continues to strengthen its healthcare business banking capabilities.

The geographic rollout builds directly on USB’s previous investments in high-growth economic hubs. In Texas, the bank is expanding its Dallas business banking presence, first established in 2022, while building on its 2025 expansion into Houston. At the same time, it is strengthening its advisory team in Phoenix to complement its expanding regional branch network. In Florida and Georgia, USB is leveraging its existing wealth management, mortgage, commercial and corporate banking offices to accelerate new business client acquisition.

The combination of a larger banker network, specialized capabilities and broader geographic coverage could create additional avenues for organic growth. The entry into Florida and Georgia, along with deeper coverage in Texas and Arizona, should help USB expand its commercial client base and increase activity across lending, operating deposits, payments and treasury management. This could support loan and deposit growth while generating additional fee income. However, successful execution will be key to converting the broader footprint and capabilities into market share gains and sustainable revenue growth.

How Are Other Banks Expanding Their Market Presence?Similar to USB, other banks like Bank of America (BAC - Free Report) and The PNC Financial Services Group, Inc. (PNC - Free Report) are strengthening their market presence through expanded geographic coverage, branch expansion and broader client offerings.

Bank of America is strengthening its middle-market banking franchise by expanding Regional Investment Banking coverage across key U.S. markets. In July 2026, Bank of America added nine senior bankers across nine cities, expanding the platform to more than 200 bankers across 26 U.S. cities. The expansion aims to meet rising middle-market demand and deepen client relationships through its broader banking capabilities.

PNC Financial is similarly expanding its geographic reach through acquisitions and branch investments. Its January 2026 FirstBank acquisition added $26 billion of assets, $16 billion of loans and $23 billion of deposits, while significantly strengthening its presence in Colorado and Arizona. PNC Financial has also increased its planned branch investment to nearly $2 billion, targeting more than 300 new branches across nearly 20 markets by 2030.

USB’s Price Performance & Zacks RankOver the past year, shares of USB have gained 26.9% compared with the industry’s 30.7% growth.

Image Source: Zacks Investment Research

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

Key Takeaways Broadcom's VCF 9.1 expands private AI support across AMD, Intel and NVIDIA systems.Broadcom's software revenues rose 9% to $7.2B year over year.Nutanix and Microsoft intensify competition in hybrid cloud and enterprise AI. Broadcom (AVGO - Free Report) is expanding VMware’s role in enterprise private artificial intelligence (AI) infrastructure as organizations increasingly look to deploy AI workloads across secure on-premises and private-cloud environments. VMware Cloud Foundation (VCF) 9.1 strengthens this effort by improving infrastructure efficiency, security and support for enterprise AI inferencing. The expansion could help Broadcom capture a larger share of enterprise AI and hybrid-cloud spending while strengthening its position against Nutanix (NTNX - Free Report) and Microsoft (MSFT - Free Report) . Broadcom’s infrastructure software already helps enterprises modernize, optimize and secure complex private-cloud, hybrid-cloud and edge environments.

VCF 9.1 broadens VMware’s relevance as enterprises combine AI workloads with traditional applications. The platform supports heterogeneous computing across AMD, Intel and NVIDIA architectures, allowing customers to run AI, Kubernetes and conventional virtualized workloads within a common private-cloud environment. Broadcom noted that VCF 9.1 deployments for on-premises cloud computing have been extremely strong and are contributing to robust revenue growth.

The momentum is already visible in Broadcom’s infrastructure software business. Software revenues increased 9% year over year to $7.2 billion in the second quarter of fiscal 2026, while annualized recurring revenues advanced 17%. Broadcom expects infrastructure software revenues to reach approximately $8.9 billion in the third quarter, representing 31% year-over-year growth. Strong VCF demand contributed to higher operating income in Broadcom’s infrastructure software business.

VMware gives Broadcom exposure to a highly profitable software stream. Infrastructure software generated a 93% gross margin in the second quarter of fiscal 2026, while operating margin improved to roughly 79%. Growing deployments of CPUs alongside Graphics Processing Unit (GPUs) are accelerating VMware growth and Broadcom expects this momentum to continue over the next several quarters. This combination of AI-enabled private-cloud adoption, recurring revenues and strong margins could make VMware an increasingly important contributor to AVGO.

AVGO Faces Tough CompetitionNutanix is intensifying its competition with Broadcom by positioning the Nutanix Cloud Platform and Nutanix Agentic AI as flexible alternatives for enterprise hybrid-cloud and AI deployments. Nutanix Agentic AI is designed to lower complexity, strengthen security and provide more predictable costs, while supporting both AMD and NVIDIA GPUs. Nutanix Agent Gateway adds governance and cost controls for AI spending. Its external-storage strategy lets customers migrate while retaining existing Dell, NetApp and other storage infrastructure, reducing switching costs. Nutanix secured several seven-figure ACV deals in the fourth quarter, with customers citing lower total cost of ownership and easier migration. Management also expects external storage to become a meaningful growth contributor.

Microsoft presents a broader challenge through Azure and its enterprise AI ecosystem. In the fourth quarter of fiscal 2026, Azure surpassed $100 billion in annual revenues, growing 41%, while Microsoft continues expanding AI infrastructure capacity. Microsoft’s Sovereign Cloud enables customers to run models across public, customer-controlled and fully disconnected environments, while Foundry offers more than 11,000 AI models and has seen a fivefold increase in customers building with models from multiple providers. Broadcom itself acknowledges that workload migration to public clouds could limit demand for its virtualization portfolio.

AVGO’s Share Price Performance, Valuation & EstimatesShares of Broadcom have gained 6.3% year to date, underperforming the broader Zacks Computer and Technology sector’s 16.8% growth.

AVGO Stock’s Price Performance
Image Source: Zacks Investment Research

AVGO stock is trading at a premium, with forward 12-month price/earnings of 20.70X compared with the broader sector’s 20.65X. Broadcom has a Value Score of D.

AVGO’s Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Broadcom’s earnings is currently pegged at $3.22 per share, unchanged over the past 30 days, suggesting 90.53% growth.

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

Palo Alto Networks Inc. (NASDAQ:PANW) shares are dipping Tuesday as software stocks broadly pull back amid rising bond yields and oil prices, with the company also set to report fourth-quarter results after today’s market close.

Palo Alto Networks shares are retreating from recent levels. Why are PANW shares down? Rising Yields and Oil Prices Weigh On Software StocksBond markets sent the 10-year Treasury yield to 4.80% Tuesday, its highest level since January 2025, while the 30-year climbed to 5.25%, despite the Treasury Department’s move back in August to double its long-dated bond buybacks in an effort to keep a lid on borrowing costs. That step hasn’t been enough to counter inflation running hotter than the Fed’s target alongside a widening federal deficit, with total U.S. debt now above $40 trillion.

Oil added to the pressure too, with Brent up more than 4% and WTI gaining nearly 3% after Iran’s president said Tehran would respond if the U.S. upholds a temporary agreement signed in June, following the first direct military exchange between the two countries since late July. Rising yields tend to hit software and other growth stocks especially hard, since more expensive borrowing makes investors place less value today on profits companies expect to earn further into the future.

Palo Alto Set to Report Fourth-Quarter Results After the CloseWall Street is looking for Palo Alto to post $3.35 billion in fourth-quarter sales, a jump from the $2.54 billion it brought in during the same period last year, alongside earnings of 98 cents per share versus 95 cents a year earlier. The cybersecurity company has cleared revenue expectations for 11 consecutive quarters running and profit targets in eight of its last ten, and simply matching those numbers tonight would push the company past its own third-quarter revenue mark of $3 billion into new record territory.

If Palo Alto clears those marks tonight, it would reinforce the idea that enterprise demand for cybersecurity, and specifically for AI-related security tools, remains resilient even as broader markets grapple with higher rates and macro uncertainty. A strong beat could also help push the stock back toward its all-time high, something the company is explicitly aiming for with this report.

Palo Alto Posted Accelerating Growth Last QuarterThat upcoming report follows a strong third-quarter showing. For the period ended April 30, Palo Alto’s top line climbed 31% from a year earlier to $3 billion, with $388 million of that boost coming from its recent purchases of CyberArk and Chronosphere.

Chairman and CEO Nikesh Arora described the quarter as “a standout quarter for Palo Alto Networks,” crediting faster organic booking growth to enterprises increasingly leaning on Palo Alto to protect their AI rollouts at scale. He argued that breakthroughs happening at the cutting edge of AI have made cybersecurity a more urgent priority industrywide and are fundamentally altering how the sector will look in years ahead.

Adjusted net income for the quarter came in at $684 million, or 85 cents per diluted share. Adjusted free cash flow reached $910 million for the quarter, and trailing 12-month adjusted free cash flow margin improved to 38.5%. For the fourth quarter, Palo Alto had guided to revenue roughly between $3.35 billion and $3.36 billion, Next-Generation Security ARR of $8.90 billion to $8.95 billion, and adjusted earnings between 96 cents and 98 cents per diluted share.

PANW Shares Are FallingPANW Price Action: Palo Alto shares were down 6.09% at $358.84 at the time of publication on Tuesday, according to Benzinga Pro.

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Fal.Con 2026 – CrowdStrike (NASDAQ: CRWD) today introduced CrowdStrike SafeMind, a family of purpose-built security models and harnesses from the CrowdStrike Cyber Superintelligence Lab. The SafeMind agentic system will operate natively in the CrowdStrike Falcon® platform. Trusted access for standalone models and harnesses will be part of the Project QuiltWorks program.

SafeMind – Delivering Cybersecurity’s First Agentic System Built for Defenders

Unlike frontier AI models, SafeMind runs as one system designed to deliver AI safety: an offensive model that finds the attack path, a defensive model that closes it, and the harnesses that operate both in the same loop.

SafeMind model training data comes from CrowdStrike Falcon sensor telemetry, the world’s largest pureplay cyber dataset and edge install base. Model training also includes CrowdStrike’s threat intelligence, Falcon Complete MDR event annotations, and fifteen years of incident response fieldwork, where human responders stopped breaches on the front lines. SafeMind launches with two distinct models, delivering unique security competencies:

Red Tempest: Offensive red team model release, built for advanced attack scenarios, emulating AI adversaries.Blue Solano: Defensive blue team model release, built for protecting enterprise assets by deploying battle-tested measures that defenders use in real-life.CrowdStrike builds the models using NVIDIA Nemotron open models in collaboration with NVIDIA, its AI design partner. The program also includes CoreWeave’s AI Cloud for training and inference.

SafeMind’s harnesses operationalize both the red and blue CrowdStrike models in a closed-loop system that continuously pits the models against each other to improve. The harnesses also work with frontier and open-source models, maximizing user choice and model preference while maintaining cost control. Frontier labs can tell a defender a risk exists. CrowdStrike goes beyond with the harnesses that can autonomously act on risk.

“The future of cybersecurity won’t be defined by AI that simply identifies threats, it will be defined by AI that defeats them,” said George Kurtz, CEO and founder of CrowdStrike. “SafeMind brings offensive and defensive models together in a system trained on CrowdStrike’s unique cyber data. It finds weaknesses, strengthens protection, and gets smarter with every cycle, advancing our mission to stop breaches at machine speed.”

“Cybersecurity in the age of AI will be a continuous contest between adversaries using AI to scale attacks and defenders using AI to expand detection and response. Cyber defense will be among the most compute-intensive applications of AI,” said Jensen Huang, founder and CEO of NVIDIA. “SafeMind combines NVIDIA Nemotron open models with CrowdStrike’s deep cybersecurity expertise, trusted security data, purpose-built agent harnesses, rigorous evaluations, and safeguards – creating a frontier agentic cybersecurity stack designed to operate at machine speed. Powered by NVIDIA accelerated computing, SafeMind makes AI a force multiplier for defenders.”

“The real test of AI is what it can do in production, at scale, when the stakes are highest. Few environments put that to the test more than cybersecurity,” said Michael Intrator, co-founder and chief executive officer, CoreWeave. “We’re proud to power SafeMind across training and inference as CrowdStrike puts specialized AI to work against real-world threats.”

What Evaluations Show

Compared to leading frontier models and open-source baselines, SafeMind delivers:

29% higher detection rate6x faster end-to-end remediation99% cost savings on detection and remediation“Our models are the start of a new chapter for cyberdefense,” said Dr. Bartley Richardson, chief AI and autonomous systems officer at CrowdStrike. "With the models and harnesses together in a co-evolving agentic system, defenders can now act at machine speed. This is the foundation for the next decade of AI security, and CrowdStrike is the only company that owns the entire stack, from sensor to harness to model."

About CrowdStrike

CrowdStrike (NASDAQ: CRWD), a global cybersecurity leader, has redefined modern security with the world’s most advanced cloud-native platform for protecting critical areas of enterprise risk – endpoints and cloud workloads, identity and data.

Powered by the CrowdStrike Security Cloud and world-class AI, the CrowdStrike Falcon® platform leverages real-time indicators of attack, threat intelligence, evolving adversary tradecraft, and enriched telemetry from across the enterprise to deliver hyper-accurate detections, automated protection and remediation, elite threat hunting, and prioritized observability of vulnerabilities.

Purpose-built in the cloud with a single lightweight-agent architecture, the Falcon platform delivers rapid and scalable deployment, superior protection and performance, reduced complexity, and immediate time-to-value.

CrowdStrike: We stop breaches.

Learn more: https://www.crowdstrike.com/

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Start a free trial today: https://www.crowdstrike.com/trial

© 2026 CrowdStrike, Inc. All rights reserved. CrowdStrike and CrowdStrike Falcon are marks owned by CrowdStrike, Inc. and are registered in the United States and other countries. CrowdStrike owns other trademarks and service marks and may use the brands of third parties to identify their products and services.

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

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Nio just posted its most profitable quarter in years, yet investors are dumping the stock. The culprit is a cost pressure that has nothing to do with cars and everything to do with the AI infrastructure boom eating into Nio's…

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The Chinese electric vehicle sector is reacting a sharp cost-guidance warning, delivered inside what was arguably Nio’s best profit quarter to date. Nio’s management flagged rising costs for batteries and memory chips as the defining challenge of the second half, and investors sold the story despite a huge margin expansion.

The Global X Autonomous & Electric Vehicles ETF (NASDAQ:DRIV) is down 1% to $34.08. Meanwhile, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.7% to $761.68. The electric vehicle fund is trading only slightly softer than the broad market, which places today’s move inside Nio rather than across the sector.

Nio (NYSE:NIO | NIO Price Prediction) stock is down 4% to $4.06 in afternoon trading, having entered the session down 17% year to date through Monday’s close. At the same time, XPeng (NYSE:XPEV) stock is down 0.5% to $11.31, holding steady after XPeng’s own Q2 2026 report last week.

Best Quarter in Years Meets a Cost Warning Nio’s Q2 2026 numbers landed with the kind of profitability the company has been chasing for years. Nio’s revenue rose 69.1% year over year (YoY) to RMB32.14 billion, or $4.74 billion, missing expectations near $4.95 billion. GAAP net loss at Nio narrowed to RMB528 million from RMB4.99 billion a year earlier, and the company reported an adjusted profit for the quarter.

Vehicle margin at Nio improved to 18.5% from 10.3% a year earlier, and overall gross margin expanded to 18.4%. Nio’s deliveries climbed 49.4% YoY to 107,658 units, with the third-generation ES8 crossing 140,000 cumulative deliveries within 11 months of launch. Management said the ES8 and ES9 both carry vehicle margins above 20%, anchoring the mix.

Balance-sheet strength backed it up. Nio ended the quarter with RMB56.7 billion in cash, restricted cash, short-term investments, and long-term time deposits, and generated positive operating cash flow and positive free cash flow. That’s a first for the company at this scale.

What did the damage was Q3 guidance. Nio expects third-quarter deliveries of 108,000 to 111,000 vehicles and revenue of RMB33.29 billion to RMB34.05 billion, or $4.9 billion to $5 billion, slightly under Wall Street’s number. More important, management flagged rising component costs including batteries and memory chips, expected to add RMB2,000 to RMB3,000 per vehicle in the second half.

Memory Chip Costs Reach the Auto Aisle The memory-chip line in Nio’s disclosure is the interesting one. It’s a cost input that originates far outside the automotive supply chain, driven by AI data-center demand for high-bandwidth memory and DRAM, and it is now landing as a per-vehicle expense on Chinese electric SUVs. Nio said the cost pressure began from the beginning of March this year, with a Q2 average impact of around RMB14,000 per car versus late last year.

Nio outlined its mitigation plan on the call: supply-chain optimization, commercial negotiations with suppliers, further cost-structure work, tighter product definition, and reuse of core technologies across the NIO, Onvo, and Firefly brands. The stated target is to hold Q3 and Q4 vehicle margin at a level similar to Q2’s 18.5%.

The margin gains investors just digested are backward-looking. Nio’s cost guidance is forward-looking. A company that has finally proved it can build cars profitably is being asked whether it can hold that line while an outside industry, artificial intelligence infrastructure, competes for its inputs (we pulled together seven suppliers riding that same AI buildout, from power to cooling, in a free report). That’s the whole selloff in one sentence.

XPeng’s Q2 call last week flagged similar industry-wide cost pressure without breaking out chip inputs, and XPeng stock has largely digested that report. Other Chinese EV names traded in a tight band, which helps explain why the ETF is barely moving while Nio absorbs the hit alone.

What to Watch The fair question for Nio is whether 24% to 27.5% delivery growth with compressing input costs is worth more or less than the margin expansion just delivered. Management’s stated goal is to hold vehicle margin near 18.5%, which would require the mitigation work to fully offset the RMB2,000 to RMB3,000 per-car cost. That’s the number to trace into Nio’s Q3 report in November.

Traders can watch for whether the memory-chip cost commentary becomes a broader theme across the Chinese EV cohort in coming weeks. Given the cost uncertainty and Nio’s ongoing losses on a six-month basis, investors should size their positions carefully, treating Nio as a delivery-growth story where second-half margin durability decides the next re-rating.

Contact [email protected] for any questions or corrections.

Key Takeaways Eni expands in offshore Uruguay through agreements covering the OFF-5 and neighboring OFF-6 blocks.Eni operates OFF-5 with MIWEN holding 50%, while the partners assess its hydrocarbon potential.Eni will acquire 40% of OFF-6 and fund a significant share of an initial exploration well set for 2027. Eni S.p.A (E - Free Report) , an Italian integrated energy company, recently signed an agreement with MIWEN, a subsidiary of the Argentinian state-owned energy firm YPF (YPF - Free Report) , and the Uruguayan National Oil Company ANCAP, to expand its presence in Uruguay. The agreement covers the OFF-5 exploration block offshore Uruguay.

Following the necessary approvals from the regulatory authorities in the South American nation, Eni is currently the operator of the OFF-5 exploration block. Its partner, MIWEN, holds the remaining 50% stake in the block. The block is in its first exploration period, and the companies are currently working to evaluate the area’s hydrocarbon potential and geological characteristics. This agreement is also expected to further strengthen the partnership between E and YPF, as the two firms are already working together on the integrated Argentina LNG project.

Additionally, Eni announced that it has agreed to acquire a 40% stake in the neighboring OFF-6 block. APA Corporation operates the OFF-6 block and will retain the remaining 60% interest. Per the agreement, Eni will fund a significant part of the initial exploration well, which is scheduled to be drilled in 2027.

The two agreements are slated to expand Eni’s upstream presence into a new prospective region. By entering Uruguay’s offshore exploration sector, Eni continues to build its position across Latin America’s energy sector and diversify its upstream operations. The near-term value of these investments will depend largely on exploration results, particularly the planned 2027 well in OFF-6 and the ongoing evaluation of the OFF-5 exploration block.

Zacks Rank & Key PicksBoth E and YPF currently carry a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Valero Energy (VLO - Free Report) and Galp Energia SGPS SA (GLPEY - Free Report) . While Valero sports a Zacks Rank #1 (Strong Buy), Galp Energia carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks Rank #1 stocks here.

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

Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. This discovery allows Galp to diversify its global presence, with the potential to become a significant oil producer in the region. It is engaged in refining and marketing of oil products and natural gas marketing and sales.

Key Takeaways KNSL is focusing on smaller E&S risks as competition rises in large shared and layered property accounts.More than half of KNSL's divisions posted double-digit submission growth in Q2 2026.Kinsale's 75.5% combined ratio highlights strong underwriting performance despite softer E&S pricing. Kinsale Capital Group, Inc. (KNSL - Free Report) is leveraging its focus on small and mid-sized accounts to support growth in the excess and surplus (E&S) market, where pricing has started to soften. The strategy allows Kinsale to focus on less competitive areas while maintaining underwriting discipline.

The E&S market remains attractive as insurers provide customized coverage for complex and hard-to-place risks. However, competition has increased, particularly in large shared and layered property accounts. Kinsale is responding by focusing on smaller risks, where business activity remains stronger.

In the second quarter of 2026, more than half of Kinsale's divisions recorded double-digit submission growth, while activity in accounts with premiums of $25,000 or less continued to expand. Growth is also expanding beyond large commercial property risks. Kinsale launched nine new products or product enhancements in the first half of 2026, helping it capture opportunities across different E&S classes.

This strategy gives Kinsale greater flexibility in a softer market. The company can prioritize underwriting profitability by avoiding poorly priced business and focusing on risks that meet its return requirements. Its proprietary technology and analytics further support efficient underwriting and risk selection.

Kinsale’s underwriting performance remains a key strength. Its second-quarter combined ratio was 75.5%, supporting strong underwriting profitability despite the challenging pricing environment.

The softer E&S market remains a risk to premium growth. However, strong business activity outside large property accounts, a small-account focus and disciplined underwriting should help Kinsale protect margins and support profitable growth.

What About Its Peers?Among KNSL’s peers, RLI Corp. (RLI - Free Report) is taking a selective approach as competition increases in E&S property, focusing on risks where pricing adequately reflects the underlying exposure. Meanwhile, W.R. Berkley (WRB - Free Report) is using its decentralized underwriting model to walk away from risks when pricing does not provide adequate returns. This approach allows W.R. Berkley to prioritize profitability over premium volume as competition increases across property and casualty markets.

Both RLI and Berkley are emphasizing risk selection over premium growth as pricing softens. Kinsale’s focus on small and mid-sized E&S accounts could help it target areas where pricing remains more attractive.

KNSL’s Price PerformanceShares of Kinsale Capital have declined 18.3% in a year against the industry’s 1.6% growth.

Image Source: Zacks Investment Research

KNSL’s OvervaluationThe stock is overvalued compared with its industry. It is currently trading at a price-to-book value multiple of 4.19, higher than the industry average of 1.43.

Image Source: Zacks Investment Research

KNSL’s Growth ProjectionThe Zacks Consensus Estimate for Kinsale’s 2026 earnings per share (EPS) indicates a year-over-year increase of 8.2%.

The consensus estimate for revenues is pegged at $1.98 billion, implying a year-over-year improvement of 5.5%.

The consensus estimate for 2027 EPS and revenues indicates an increase of 1.9% and 0.8%, respectively, from the corresponding 2026 estimates.

The Zacks Consensus Estimate for 2026 earnings moved 0.3% north while the 2027 metric has remained unchanged over the last 30 days.

Image Source: Zacks Investment Research

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

CNO Financial Group NYSE: CNO outlined growth strategies for its worksite and Medicare businesses during an investor briefing, emphasizing captive distribution, supplemental insurance products and opportunities to expand its agent footprint.

Executives said both businesses support the company’s focus on serving middle-income Americans through in-person agents who help consumers assess insurance needs and enroll in coverage.

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Worksite sales outpace broader market growth Karen DeToro, president of CNO’s Worksite Division, said worksite sales increased at an 18% compound annual growth rate between 2020 and 2025, compared with a 5% CAGR for the broader U.S. market for the products CNO offers. Year-over-year worksite sales growth was 22% in the first quarter of 2026 and 29% in the second quarter, she said.

The division targets employers with middle-income workforces, including teachers, first responders, union members, transit workers, utility employees and public-sector workers. DeToro said these sectors often need in-person benefits education because employees may not work at computers, may operate on varied shifts, or may be spread among multiple locations.

CNO’s workplace offerings include supplemental health policies such as critical illness, accident and hospital indemnity coverage, as well as supplemental life insurance. The company does not offer major medical, dental or vision insurance, DeToro said, citing its preference for products it can manufacture and service without provider networks.

The products are generally individual policies funded by employees, though payments can be made through payroll deduction or direct billing. Because the coverage is individually issued, policyholders can retain it after leaving an employer, according to DeToro.

DeToro said CNO has paid nearly $5 billion to policyholders since inception through return-of-premium features on certain supplemental health and life products, subject to state rules. The feature generally returns cumulative premiums paid, less benefits received, after 20 to 25 years.

She also pointed to reduced employer-sponsored benefits as a source of demand. In her presentation, DeToro said the share of employers offering major medical coverage declined to 61% from 78% over the last four years, particularly among employers with fewer than 100 workers. She added that 88% of employees with major medical coverage in 2025 were enrolled in a plan with a deductible, with the average annual deductible exceeding $1,800.

Captive agents and expansion support worksite strategy Richard Shaffer, senior vice president of Worksite Sales, said CNO’s Washington National Insurance Company manufactures the insurance products while its wholly owned Optavise Career Agency distributes them. The company primarily uses captive agents rather than relying heavily on benefits brokers and outside enrollment firms.

Optavise agents are independent contractors compensated through product commissions, creating what Shaffer described as a variable-cost structure. The model gives CNO direct relationships with employers and employees before, during and after enrollment, while providing the company with visibility over training, supervision and compliance standards.

The company is seeking to expand geographically, particularly in areas where it has limited presence. Shaffer said 24% of annual worksite sales, a figure that is increasing, comes from geographic expansion locations.

As an example, Shaffer said CNO had minimal sales activity in Georgia four or five years ago. After supporting a leader and team moving from Florida into the state, annual sales in Georgia grew to between $4 million and $5 million. The company is determining its expansion states for 2027, he said.

CNO is also investing in leadership development, customer relationship management tools, enrollment technology and sales training. Shaffer said a new curriculum designed to help agents open new employer groups helped shift the share of new premium coming from new clients from roughly 10% to several times that level.

DeToro declined to provide a long-term worksite growth target, but said the company sees several sources of opportunity, including geographic expansion, new group development, recruiting and increased agent productivity. She said CNO’s field organization has not indicated that dental coverage is essential to its product lineup, though partnerships could be considered for products the company does not manufacture.

Medicare business combines underwriting and distribution fees Scott Goldberg, president of CNO’s Consumer Division, said the Medicare market is large and positioned to grow alongside the aging U.S. population. CNO sells and underwrites Medicare Supplement policies while also distributing Medicare Advantage and prescription drug plans from other carriers.

Goldberg said the company has more than 5,000 licensed health insurance professionals, including Bankers Life agents, that distribute CNO products and approved partner plans. CNO has distribution agreements with more than two dozen carriers that collectively represent more than 90% of U.S. Medicare enrollments, he said.

For Medicare Supplement, CNO retains insurance risk. For Medicare Advantage and prescription drug plans, it acts as an agency and receives enrollment commissions and renewal fees while members remain enrolled.

Jeremy Williams, CNO’s chief actuary, said new Medicare Supplement policies sold have increased by more than 18% annually since 2023. In-force policies, which had remained near 200,000 for several years, reached 212,000 in 2026, he said.

Williams said higher healthcare utilization and medical cost trends pressured Medicare Supplement margins across the industry in recent years. However, he said CNO expects benefit ratios to move toward historical levels of 18% in 2026 as rate actions take effect. CNO received average rate-increase approvals of 11.3% in 2026, equal to about 95% of requested increases, according to Williams.

Industry rates have increased by roughly 35% since 2020, Williams said. He added that CNO’s persistency has remained stable and was higher in 2026 than in 2025 despite increased rates.

Executives see share and cross-selling opportunity Goldberg said CNO represents less than 2% of total Medicare Supplement industry premium and sees room to increase share as it grows its field force. He said total industry earned premium is expected to be 50% larger over the next eight to 10 years.

Total Medicare policies sold by CNO are growing at a CAGR above 9%, Goldberg said. Medicare Advantage sales were slightly lower in the most recent annual election period following plan changes and market exits by some carriers, but total enrollment continued to rise.

Goldberg said Medicare can also open opportunities for broader household relationships. More than one-third of the time, CNO sells a second product to a household after engaging a Medicare customer, he said. Medicare Supplement buyers are more likely than Medicare Advantage buyers to purchase a second product, with roughly one in three Medicare Supplement policyholders doing so, compared with less than half that rate among Medicare Advantage customers.

Executives said CNO remains agnostic between Medicare Supplement and Medicare Advantage from an economic perspective because the products are priced to meet similar long-term return-on-equity targets. Goldberg said the company’s objective is to recommend the coverage that best fits each consumer’s circumstances.

About CNO Financial Group (NYSE:CNO)CNO Financial Group is an Indiana‐based holding company that offers a range of insurance and retirement solutions through its operating subsidiaries. Its primary business activities include life insurance, annuities, and supplemental health insurance products designed to help individuals plan for retirement and manage health‐related expenses. The company serves middle‐income Americans, with particular emphasis on senior customers seeking guaranteed coverage and reliable income streams.

Originally founded as Conseco in 1979, the company underwent a financial restructuring and rebranded as CNO Financial Group in 2010.

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

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

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Key Takeaways Comfort Systems ended Q2 2026 with $1.85B in cash, $54.1M in debt and more than $1.8B in net cash.FIX generated $999M in Q2 free cash flow, while first-half 2026 free cash flow reached $1.24B.FIX targets about 5M square feet of modular capacity by late summer 2027, backed by commitments. Comfort Systems USA (FIX - Free Report) appears well positioned to finance its aggressive expansion without putting meaningful stress on its balance sheet. The company ended the second quarter of 2026 with $1.85 billion in cash against just $54.1 million of total debt, leaving it with a net cash position of more than $1.8 billion. That cushion has strengthened even as Comfort Systems funded acquisitions and stepped up investment in production capacity.

Cash generation is providing the main funding engine. Second-quarter operating cash flow reached $1.14 billion, while free cash flow was $999 million. For the first six months of 2026, free cash flow totaled $1.24 billion. Management expects full-year capital expenditures to equal roughly 5% of revenues as it buys and equips buildings with automation, robotics and specialized production equipment.

The spending supports a sizable modular expansion. Comfort Systems has more than 3.5 million square feet of modular capacity, expects more than 4 million by year-end and roughly 5 million by late summer 2027. Importantly, management said that it will not build facilities speculatively; expansion is tied to meaningful multiyear customer commitments, helping reduce investment risk.
Financial flexibility also remains strong despite the May acquisition of Hunt Electric, expected to add about $250 million of annualized revenues, and a higher dividend. A record backlog of $14.06 billion further supports future activity.

Still, the extraordinary cash flow may not be fully repeatable because advance customer payments contributed to the quarter. Overall, low debt, substantial cash and disciplined capacity additions suggest Comfort Systems can fund growth while keeping financial stress contained.

How Comfort Systems’ Financial Flexibility Compares With Key RivalsEMCOR Group (EME - Free Report) and Quanta Services (PWR - Free Report) provide useful comparisons as Comfort Systems accelerates investment in capacity, automation and data-center-related infrastructure.

EMCOR competes closely in mechanical and electrical construction, with strong exposure to mission-critical and high-tech projects. Like Comfort Systems, EMCOR benefits from healthy cash generation that can support organic investment and acquisitions. EMCOR’s disciplined acquisition strategy also highlights the importance of balancing expansion with balance-sheet flexibility.

Quanta operates on a much larger infrastructure platform spanning electric power, communications and renewable-energy markets. Quanta continues to deploy capital toward acquisitions, workforce expansion and infrastructure capabilities to capture multiyear demand. However, Quanta’s broader acquisition-driven strategy can require greater capital commitments than Comfort Systems’ current expansion model.

Comfort Systems therefore stands out for pairing aggressive capacity additions with exceptionally low debt and substantial cash. Its ability to finance expansion internally could provide greater flexibility if construction demand moderates or additional acquisition opportunities emerge.

FIX Stock’s Price Performance & Valuation TrendShares of this Texas-based heating, ventilation, air conditioning and electrical contracting service provider have surged 65.6% year to date, outperforming the Zacks Building Products - Air Conditioner and Heating industry, the Zacks Construction sector and the S&P 500 Index.

FIX Share Price Performance (YTD)

Image Source: Zacks Investment Research

FIX stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 28.52, as the trend lines suggest below.

FIX Valuation (P/E F12M)

Image Source: Zacks Investment Research

Earnings Estimate Trend of FIXFIX’s earnings estimates for 2026 and 2027 have moved upward in the past 60 days to $45.86 and $58.33 per share, respectively, as shown below. The revised estimates for 2026 and 2027 imply year-over-year growth of 58.8% and 27.2%, respectively.
 

Image Source: Zacks Investment Research

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

Key Takeaways Graco completed the $447 million cash acquisition of Valco Melton, adding it to its Industrial segment.Valco Melton generated $145 million in 2025 revenues, with more than 50% from aftermarket products.Graco expects the deal to expand its fluid handling portfolio and help manufacturers improve productivity. Graco Inc. (GGG - Free Report) recently completed the cash purchase of Valco Melton for $447 million. Considering the roughly $40 million in anticipated tax benefits, the net transaction is valued at about 14 times Valco Melton’s adjusted EBITDA for 2025 and 10 times its projected 2026 EBITDA, including synergies.

Headquartered in Cincinnati, OH, Valco Melton specializes in manufacturing industrial systems designed for accurate adhesive application and production quality verification. The company has a strong customer base across several industries, including packaging, folding carton, envelope, nonwovens, print finishing, textiles, automotive and others. Valco Melton’s revenues totaled $145 million in 2025, with more than 50% generated from aftermarket products.

The latest buyout is in sync with Graco’s policy of acquiring businesses to expand its market share and customer base. The inclusion of Valco Melton’s precision adhesive dispensing and vision-based quality assurance technologies will enhance GGG’s capabilities in precision sealant and adhesive dispensing, further expanding its fluid handling portfolio.

This acquisition will enable GGG to support manufacturers in achieving reliable performance, better product quality and higher productivity. The acquired company will be added to Graco’s Industrial segment.

Other Notable AcquisitionsIn November 2025, Graco acquired Red Devil Equipment Company (Radia). The acquisition boosted GGG’s presence in the color solutions space by incorporating Radia’s advanced mixing, shaking and automated material-handling equipment portfolio.

Also, the company’s buyout of Color Service S.r.l. in July 2025 strengthened its powder handling portfolio and expanded its presence across textiles, rubber, cosmetics, plastics and food industries.

Graco’s Zacks Rank and Price PerformanceGGG currently carries a Zacks Rank #3 (Hold). Graco is poised to benefit from product innovation, targeted acquisitions, disciplined capital returns and ample financial flexibility. High costs pose a threat to the company’s bottom line.

Image Source: Zacks Investment Research

In the past three months, the company’s shares have gained 4.7% compared with the industry’s growth of 2.6%.

The Zacks Consensus Estimate for its earnings is pegged at $3.30 for 2026, suggesting an increase of 6.1% from the 60-day-ago figure.

Key PicksSome better-ranked stocks from the same space are presented below.

Flowserve Corporation (FLS - Free Report) carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Flowserve’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 11.2%.  In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2026 bottom line has increased 1.2%.

Helios Technologies (HLIO - Free Report) currently carries a Zacks Rank of 2. Helios Technologies’ earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 13.1%. In the past 60 days, the Zacks Consensus Estimate for HLIO’s 2026 earnings has increased 10.4%.

RBC Bearings Incorporated (RBC - Free Report) presently carries a Zacks Rank of 2. RBC Bearings’ earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 8.7%. The Zacks Consensus Estimate for RBC’s fiscal 2027 (ending March 2027) earnings has increased 4.9% over the past 60 days.

Key Takeaways PBF Energy operates six U.S. refineries with a combined throughput capacity of 1 million barrels per day.PBF sees tight global supplies and more than 5 million barrels per day of offline refining capacity.PBF Energy gains exposure to constrained East and West Coast markets that rely on imports to meet demand. PBF Energy (PBF - Free Report) is a well-known refining firm in the United States that operates a diverse, highly complex refining network with large-scale processing capacity. It operates six refineries, Delaware City Refinery, Paulsboro Refinery, Toledo Refinery, Chalmette Refinery, Torrance Refinery and Martinez Refinery, with a combined throughput capacity of 1million barrels per day and can process a wide range of feedstocks. This broad geographic footprint gives PBF exposure to several regional refining markets instead of relying on a single region.

The refining player is well-positioned to benefit from a favorable refining environment in the near-term, supported by tight global product supplies and structurally constrained refining capacity in key U.S. markets. Management noted that ongoing geopolitical disruptions, particularly in the Middle East and Russia, have taken more than 5 million barrels per day of refining capacity offline. The affected refining infrastructure is expected to take some timeto recover and come back online due to the extensive damages suffered . Moreover, management expects product inventories to take time to normalize under normal economic conditions. This is expected to support refining margins and create a favorable backdrop for refining players.

In addition, PBF’s diversified refining footprint is a key competitive advantage, providing exposure to the East and West Coasts, where refining capacity remains constrained, and markets rely on imports to meet demand. This includes California, which imports a significant portion of its gasoline and jet fuel requirements. This incurs substantial import costs and is expected to support regional product pricing and refinery margins. As such, the refining environment remains constructive for PBF Energy, which should enable the refining company to sustain profitability in the upcoming quarters.

Refining Players That Can Benefit From the Current Market EnvironmentPar Pacific Holdings (PARR - Free Report) operates an integrated downstream network spanning refining, logistics, retail and renewable fuels. The integrated platform covers the entire process,from sourcing crude to converting it into refined fuels and distributing the products through its retail and logistics channels. The downstream energy firm has a combined refining capacity of 219,000 barrels per day across Hawaii, Montana, Washington and Wyoming. This integrated setup provides the company with the operational flexibility to capitalize on favorable refining market conditions.

Valero Energy (VLO - Free Report) is among the largest independent refiners in the United States, witha combined high-complexity throughput capacity of nearly 3 million barrels per day across its refineries. Its refining footprint is heavily concentrated along the U.S. Gulf Coast and the Midcontinent, offering feedstock sourcing flexibility. Moreover, its Gulf Coast access enables it to sell its refined products in high-demand markets and benefit from elevated refining margins and strong international demand for refined products.

PBF’s Price Performance, Valuation & Estimates

PBF Energy shares have jumped 174% over the past year compared with the 112% improvement of the composite stocks belonging to the industry.

Image Source: Zacks Investment Research

From a valuation standpoint, PBF trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 4.95X. This is below the broader industry average of 5.48X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for PBF’s 2026 earnings has not seen any revisions over the past seven days.

Image Source: Zacks Investment Research

PBF, PARR and VLO each currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways AECOM was named design partner for New Zealand's Warkworth-to-Te Hana transportation project.The design targets safer alignments, resilience to extreme weather and lower environmental impact.Regional backlog rose more than 40% year over year as transportation activity continued to improve. AECOM (ACM - Free Report) has strengthened its transportation infrastructure portfolio with its appointment as design partner for the Warkworth-to-Te Hana project in New Zealand. The company will work with ACCIONA, the lead contractor, while ACCIONA and Aberdeen Investments together form the Northway Consortium.

The award reinforces AECOM’s growing role in major transportation programs across Australia and New Zealand and adds another large-scale infrastructure project to its international portfolio.

Northland Win Strengthens AECOM’s Transportation PresenceThe project represents Section One of the broader Northland Corridor Program, which includes a planned 100-kilometer motorway connecting Auckland with Whangarei. Once completed, the project is expected to upgrade the existing State Highway 1 into a higher-standard, safer and more resilient motorway.

AECOM’s design scope focuses on addressing major safety and resilience challenges along the corridor. The proposed design includes a new system interchange, an optimized road alignment to improve curves and sight distances, and safer gradients. It is also intended to reduce vulnerability to flooding, landslides and other extreme-weather events.

Sustainability is also embedded in AECOM’s proposed solution. The design seeks to reuse on-site materials, reducing reliance on imported materials and minimizing waste. This approach is expected to lower haulage requirements and embodied carbon while generating cost efficiencies and reducing the project’s environmental impact.

The latest award comes as transportation activity in AECOM’s Australia and New Zealand market continues to improve. In the third quarter of fiscal 2026, Australia delivered double-digit growth, while backlog in the region reached a multiyear high, rising more than 40% year over year. Management also noted that accelerating transportation activity should support growth in 2027 and beyond.

ACM’s Stock Price PerformanceAECOM stock has dipped 5.6% in the past three months compared with the Zacks Engineering - R and D Services industry’s 15.3% fall. Near-term sentiment may remain pressured by challenges related to a Construction Management project, slower project starts and continued geopolitical uncertainty in the Middle East.

Image Source: Zacks Investment Research

Nonetheless, underlying business momentum remains solid, supported by record backlog, strong project wins and a growing design pipeline. International momentum is also encouraging, particularly in Australia, alongside accelerating transportation activity. AECOM’s expanding opportunities across transportation, defense and infrastructure should support longer-term revenue visibility and growth.

ACM’s Zacks Rank & Key PicksAECOM currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks from the Construction sector are:

Everus Construction Group (ECG - Free Report) presently flaunts a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 57%, on average. ECG stock has jumped 34.6% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for ECG’s 2026 sales and EPS indicates growth of 23.4% and 32.9%, respectively, from the year-ago period’s levels.

Comfort Systems USA, Inc. (FIX - Free Report) sports a Zacks Rank #1 at present. The company delivered a trailing four-quarter earnings surprise of 34.6%, on average. FIX stock has surged 65.6% year to date.

The Zacks Consensus Estimate for Comfort Systems’ 2026 sales and EPS indicates growth of 38.3% and 58.8%, respectively, from the prior-year levels.

United Rentals, Inc. (URI - Free Report) has a Zacks Rank #2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 1%, on average. URI stock has climbed 28.3% year to date.

The Zacks Consensus Estimate for United Rentals’ 2026 sales and EPS indicates growth of 9.6% and 15.4%, respectively, from the year-ago period’s levels.

Key Takeaways ACHR's L.A. LIVE vertiport adds a key location to its planned air taxi network.ACHR is preparing infrastructure and operating procedures for Midnight in Texas, Florida and New York.ACHR is developing vertiports alongside its aircraft and operating capabilities for future passenger services. Archer Aviation Inc. (ACHR - Free Report) is expanding the infrastructure needed to support its planned air taxi operations as it moves closer to commercial deployment. In August 2026, Archer announced a partnership with AEG to develop a vertiport at L.A. LIVE in downtown Los Angeles. The planned site would become the first announced vertiport in downtown Los Angeles and add another location to Archer's planned air taxi network.

The L.A. LIVE project strengthens Archer's broader approach of building an interconnected network rather than operating isolated air taxi routes. The company plans to use strategically located vertiports to connect passengers with major destinations and transportation hubs across metropolitan areas. The L.A. LIVE location would provide access to a major sports and entertainment district while supporting Archer's preparations for the LA28 Games.

Archer is also working with partners in other markets to establish the infrastructure required for early operations. Under the eVTOL Integration Pilot Program, the company is working with partners in Texas, Florida and New York to prepare local operating teams, infrastructure and procedures for Midnight operations. This expands Archer's focus from aircraft certification toward the practical requirements of operating an air taxi network.

A growing network of vertiports could become an important part of Archer's commercialization strategy. By developing infrastructure alongside its aircraft and operating capabilities, the company is building the physical foundation needed to support passenger operations and potentially expand air taxi services across multiple markets.

Companies Expanding Air Taxi InfrastructureThe development of electric air mobility is creating demand for infrastructure that can support eVTOL operations across cities and transportation networks. Companies like Joby Aviation, Inc. (JOBY - Free Report) and Eve Holding, Inc. (EVEX - Free Report) are also working toward commercial air taxi operations and the infrastructure required to support future services.

Joby Aviation is developing air taxi networks and working with infrastructure partners to support future eVTOL operations.

Eve Holding is developing its eVTOL aircraft alongside plans for the operational ecosystem needed to support future urban air mobility services.

Earnings Estimates for ACHR StockThe Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests a year-over-year decline of 52.38% and growth of 15.63%, respectively.

Image Source: Zacks Investment Research

ACHR Stock Is Trading at a DiscountArcher is trading at a discount relative to the industry, with a trailing 12-month price-to-book of 2.32X compared with the industry average of 6.07X.

Image Source: Zacks Investment Research

ACHR Stock Price PerformanceOver the past month, ACHR shares have rallied 19.4% against the industry’s 5.2% decline.

Image Source: Zacks Investment Research

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

Nebius has surged over 200% in a year on the back of marquee deals and a $37.5 billion backlog, yet three customers still drive nearly 60% of revenue and a $20 billion capex bill looms. The setup has two very…

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At $206.32, Nebius Group (NASDAQ:NBIS | NBIS Price Prediction) sits in a setup that warrants patience. After a violent rerating this year, the stock trades on the assumption that every marquee contract, every megawatt, and every financing round lands on schedule, which warrants pause before adding.

Nebius runs an AI cloud supplying GPU compute, storage, and software to model developers and enterprises, with the Nebius AI Cloud segment producing $574.90 million of the group’s $582.30 million in Q2 revenue. Smaller subsidiaries include TripleTen in edtech and Avride in autonomous delivery, plus a stake in ClickHouse.

The rerating has been driven by anchor deals with Microsoft and Meta, a $2.0B pre-funded warrant investment from NVIDIA, and Nasdaq-100 inclusion earlier this year, per Yahoo Finance coverage from June. The demand pull here is the same one lifting the power, cooling, and networking suppliers we profiled in a free report on seven AI infrastructure names that aren’t chipmakers.

Bull Case: Backlog Is Doing the Talking Q2 revenue grew 454.04% year over year and beat consensus by 1.33%, with the AI cloud unit expanding 514% and cost of revenues improving to 23% from 29%. Group adjusted EBITDA reached $236 million at a 41% margin, and annualized run-rate revenue hit $3 billion.

Remaining performance obligations sit at $37.5B, and management raised its year-end contracted power target to 5 gigawatts. A capacity auction cleared at 15% above prior peak Blackwell pricing, and Arkady Volozh said Nebius “could sell today our entire 2027 capacity on these terms if we wanted to.”

Bear Case: Capital Intensity and Concentration Three customers represented 24%, 21%, and 14% of Q2 revenue. H1 capital expenditures already hit $8.13 billion, with full-year 2026 capex guided to $20 billion to $25 billion. Convertible debt carries at $8.5B with fair value of $20.8B, and interest expense surged to $119.1M from $4.8M.

Uncommenced lease obligations sit at $12.1B, the May ATM already sold 12.7 million shares at a weighted $223.60, and Nebius competes head-on with Azure, AWS, and Google Cloud, a race that requires perpetual capital deployment into next-generation chips. Q3 25, Q4 25, and Q1 26 all missed revenue consensus.

Two-Sided Setup: Patience Required The story is genuinely two-sided. Execution has been strong on capacity, marquee contracts, and margin expansion, but current valuation hinges on hitting the $7B to $9B ARR exit target while navigating global power grid queue delays and steady HBM and GPU supply allocations.

There is also residual sentiment around historical Yandex ties that can occasionally create noise among institutional compliance desks, even though the corporate separation is legally complete. What to watch: quarterly ARR progression toward the guide, connected power reaching the 800 megawatts to 1 gigawatt target, and customer diversification beyond the top three.

Valuation and Targets Shares trade at $206.32 against an average analyst target of $286.69, implying roughly 39% upside if consensus proves right. Forward P/E sits at 68 and EV/revenue at 45.

Coverage skews constructive, with 1 Strong Buy, 8 Buy, 4 Hold, 0 Sell, and 1 Strong Sell. NBIS is up 146.48% year to date against the S&P 500’s 12.48%, and up 201.99% over one year versus 18.91% for the index.

Key Observations: Setup Requires Patience At $206.32, Nebius sits in a wait-and-see setup for researchers. The bull thesis is real, but the entry point implies near-flawless execution across power delivery, GPU allocation, and customer diversification through the second half of the year.

The next catalyst pair matters most: Q3 revenue against the $899 million consensus, and connected-power progress toward the year-end target. A clean beat with visible customer broadening would materially improve the risk/reward profile observed today.

The scenario that would meaningfully weaken the setup is a second consecutive quarter of ARR conversion slippage combined with fresh equity issuance at lower prices, since the $8.5B convertible stack and remaining ATM capacity keep dilution live. With the stock already up 146.48% YTD, the margin of safety has compressed materially.

From a research standpoint, waiting one or two quarters carries limited informational cost relative to the risk embedded in paying growth-stock multiples for a business whose top three customers still generate 59% of revenue.

Contact [email protected] for any questions or corrections.

Key Takeaways Applied Digital has $36B in contracted lease revenues, with roughly $20B tied to one hyperscaler.One HPC customer generated 59% of fiscal 2026 continuing-operations revenues, showing concentration.Long-term take-or-pay leases and expansion with existing customers could help diversify future revenues. Applied Digital (APLD - Free Report) is rapidly expanding its AI data center platform, but its growing reliance on a small group of hyperscalers raises concerns about future revenue concentration.

APLD ended fiscal 2026 with approximately $36 billion of contracted lease revenues across 1.4 gigawatts of critical IT load. However, three recently signed 15-year take-or-pay leases with the same high investment-grade hyperscaler account for roughly $20 billion of contracted revenues. Although these campuses span different states, the contracts increase APLD’s dependence on a single customer.

The concentration is already visible in reported results. During fiscal 2026, one HPC customer accounted for 59% of total revenues from continuing operations, while no other customer represented more than 10%. APLD expects a limited number of hyperscalers to continue accounting for a high percentage of revenues.

This concentration could become a concern if a major customer experiences financial difficulties, reduces equipment usage or discontinues using APLD facilities. Such developments could pressure lease prices, profit margins, revenues and cash flow.

Still, 15-year take-or-pay agreements and investment-grade counterparties provide meaningful protection, while additional expansion leases with two existing investment-grade customers could reduce customer concentration and support more diversified revenue growth. Supporting this outlook, the Zacks Consensus Estimate projects revenues to increase 49.7% year over year in fiscal 2027.

That is why hyperscaler concentration poses a meaningful revenue risk, but long-term contracts and customer diversification efforts provide important safeguards.

How Do CORZ & CRWV Stack Up Against APLD?Core Scientific (CORZ - Free Report) competes with APLD in power-rich, high-density AI infrastructure, where securing capacity and major counterparties is critical. In the second quarter of 2026, CORZ demonstrated strong execution, reaching 437 billable MW and 1.1 GW of contracted capacity, while its AMD deal adds diversification. However, concentrating large capacity with AMD and CoreWeave creates counterparty risk if either reduces commitments. CORZ appears competitive, with execution and power availability as key strengths.

CoreWeave (CRWV - Free Report) contends with APLD through a vertically integrated AI-cloud model spanning GPUs, networking, storage, software and managed inference. CRWV is gaining strong momentum, with second-quarter 2026 revenues rising 112% to $2.6 billion, a $104.2 billion backlog and 1.5 GW of active power. Its expanding customer base helps reduce concentration risk, although exposure to large customers remains a potential weakness. CRWV holds an edge in platform depth and scale but faces higher capital and debt requirements.

APLD’s Share Price Performance, Valuation & EstimatesAPLD shares have returned 3.6% year to date compared with the broader Zacks Finance sector’s 7.4% growth.

APLD’s YTD Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, APLD appears overvalued, trading at a trailing 12-month price/book (P/B) ratio of 4.21, above the Financial - Miscellaneous Services industry’s average of 3.05. The company carries a Value Score of F.

APLD’s Valuation
Image Source: Zacks Investment Research

The fiscal 2027 bottom-line outlook remains challenging, with the consensus estimate currently pegged at a loss of $1.09 per share, representing a 24% decline over the past 30 days. This compares with a loss of 91 cents per share reported in fiscal 2026, highlighting continued pressure on profitability.

Image Source: Zacks Investment Research

APLD stock currently carries a Zacks Rank #5 (Strong Sell).

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

CoreWeave has shed nearly $70 from its May peak and now carries a $104 billion revenue backlog against a debt load that makes bears nervous. Whether the $85 price level is a gift or a trap depends on three catalysts…

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At roughly $84.89, CoreWeave (NASDAQ:CRWV) screens attractively for investors willing to underwrite the capital intensity behind the AI infrastructure buildout. The stock has round-tripped from a $136.80 May peak, resetting valuations.

CoreWeave runs a purpose-built, GPU-native cloud designed specifically for high-density AI training and inference. Legacy hyperscalers such as AWS, Azure, and Google Cloud carry decades of general-purpose enterprise workloads, while CoreWeave’s data centers were engineered from the ground up for foundational model labs and enterprise AI. That specialization shows up in lower latency and better price-to-performance for the customers that matter most in this cycle.

The company delivered $2.58 billion in Q2 revenue, up 112.32% year over year, and ended the quarter with a $104 billion revenue backlog. Yet shares sit near the middle of a 52-week range of $60.55 to $153.20.

Why the Neocloud Thesis Gets Sharper Below $90 Growth this fast is rare, and the price-to-performance gap versus hyperscalers is measurable. Signal 65 estimated CoreWeave delivers total cost of ownership up to 47% lower than the average hyperscaler, and Gartner named the company a visionary in its 2026 Magic Quadrant for Cloud AI Infrastructure.

Pricing power is evident. Management cited an approximately 25% price increase across SKUs in July, with Blackwell and Vera Rubin SKUs setting new highs. Adjusted EBITDA hit $1.51 billion at a 59% margin, and operating cash flow flipped to a positive $679 million. Add Nasdaq-100 inclusion and an $144.46 average analyst target, and the risk-reward skews favorably.

Why Bears See a Debt Time Bomb The bear case rests on capital intensity. Q2 free cash flow was negative $5.74 billion, and full-year 2026 capex guidance was raised to $35 to $39 billion. Interest expense reached $640 million in the quarter and is guided to $860 to $940 million in Q3.

Total liabilities of $72.05 billion tower over $5.02 billion in equity. Analysts have trimmed forward EPS estimates, with seven downward revisions against one upward for fiscal 2026 over the trailing 30 days. Any hiccup in capital markets access, GPU supply, or customer concentration could bite hard.

Why Patience Still Has a Case Revenue growth is real, but GAAP losses widened to $626 million and adjusted operating margin compressed to 5% from 16% from a year earlier. Investors waiting for the margin ramp toward the guided low teens in Q4 can watch backlog conversion and power additions before committing.

Data That Frames the Verdict CoreWeave trades at $84.89, with a consensus target of $144.46 that implies roughly 70% upside if the Street proves right. Coverage spans 37 analysts, with 5 Strong Buy, 21 Buy, 9 Hold, 1 Sell, and 1 Strong Sell ratings.

Year to date the stock is up 18.54% versus 12.48% for the S&P 500, though over the trailing year CRWV is down 17.61% while the index gained 18.91%. Shares carry a 6.12 price-to-sales and 12.38 EV/Sales, rich in absolute terms but reasonable against triple-digit growth.

Why the $85 Level Matters At $85, the setup for CoreWeave looks constructive. The path to appreciation runs through three catalysts. First, the $104 billion backlog plus more than $25 billion in new Q3 commitments gives multi-year revenue visibility that few growth stocks can match. Second, operating margins are guided to expand into the low teens by Q4, which reframes the leverage story. Third, active power scaling from 1.5 gigawatts today toward more than 1.85 gigawatts by year end converts contracted demand into billable revenue.

Buying near $84.89, well off the $153.20 high, builds in a cushion against the debt and capex concerns. The thesis breaks if credit markets tighten, if a top customer renegotiates, or if power buildouts slip materially.

For investors who believe the AI infrastructure cycle runs through 2030, CoreWeave at $85 represents one of the purest and most levered public-market exposures to that theme. The power, cooling, and networking suppliers feeding the same buildout are worth knowing too, and we profiled seven of them in a free report on the AI boom beyond the chipmakers.

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Tesla's (TSLA.O) supervised self-driving technology recorded 4.1 times fewer collisions than manually driven Tesla cars in the five European countries where it is permitted, the ​automaker said on Tuesday, as it steps up lobbying efforts ahead ‌of an EU vote on wider deployment.

The Netherlands in April became the first European country to grant provisional approval for Tesla's Full Self-Driving (FSD) system, prompting Belgium,Denmark, Estoniaand Lithuania to follow suit ahead of a ​European Union vote on broader approval.

Tesla said its findings were based on ​more than 100 million km (62 million miles) of driving data collected ⁠between April and August in those five countries, where FSD-equipped cars were involved ​in three collisions on highways and nine on non-highway roads, compared with 137 ​and 490 collisions respectively involving manually driven vehicles.

Reuters has previously reported that Tesla presented European regulators with safety statistics that experts said relied on invalid comparisons and could give a misleading impression of ​the system's safety performance. Tesla did not respond to detailed questions from Reuters ​for that report.

Tesla also posted an open-source safety dashboard on its website on Tuesday, which it ‌said ⁠was shared with EU member state regulators in April.

"Leading up to a potential EU-wide approval vote ... we have decided to open-source one of the key pieces of evidence used to support the Netherlands approval," the company said.

Tesla has urged EU ​regulators to approve broader ​use of its ⁠FSD technology and says a vote could happen as soon as October 6. Approval would require support from at least ​15 of the EU's 27 member states representing at least ​65% of ⁠the bloc's population.

The U.S. EV maker says FSD approval is key to boosting sales in Europe. On Tuesday, registration data showed a mixed sales picture for Tesla on the ⁠continent.

The approval ​process has faced criticism over a lack of transparency ​after European regulators, including Dutch road authority RDW, declined to publish safety data underpinning the approval of ​FSD, saying it is commercially sensitive information.

The massive capital expenditures (capex) of hyperscalers such as Google parent Alphabet (GOOGL -1.10%) (GOOG -0.88%) have sparked both optimism and concern from investors. The company has said it intends to lay out up to $205 billion in capex this year. That figure reflects management's optimism about artificial intelligence, but such high spending also carries risk.

If these investments fail to pay off, it would cause considerable pain to a cash-rich company like Alphabet. Nonetheless, I believe the potential for growth justifies that spending. 

Image source: The Motley Fool.

Alphabet and capex Alphabet's strong move into AI has cost it an eye-popping amount of money. That figure of up to $205 billion for 2026 comes on top of $91 billion in capex spending for 2025. Also, even though Alphabet claims more than $242 billion in liquidity, it has assumed more than $114 billion in debt since the beginning of 2025, a level that would have been unthinkable before its AI data center spending spree began in earnest.

Earlier in the decade, Alphabet struggled following the so-called "ChatGPT moment," as many investors feared the chatbot and similar platforms would render Google Search -- its cash-cow advertising business -- obsolete. However, the company leveraged its resources to catch up on consumer-facing AI, and now, few can question that the Google parent has regained its reputation as a leader in the space. Gemini has emerged as one of the leading AI platforms, and its AI products now reach over 2.5 billion monthly users through Google Search's AI Overviews.

Alphabet also uses AI to improve the effectiveness of Google advertising, which grew revenue by 14% year over year in Q2.

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The benefits go well beyond the $82 billion that the ad business generated. One of the more notable gains is Google Cloud. The $25 billion it generated in the second quarter of 2026 increased by 82% year over year. In Q2 2025, Google Cloud's revenue rose only 32% year over year, a robust, but more modest, increase.

Furthermore, Alphabet can probably afford this spending, even if it somehow turns out to be a mistake. Over the trailing 12 months, the company generated more than $53 billion in free cash flow, excluding capex.

This stands in contrast to hyperscaler peer Amazon, which has sent its free cash flow into negative territory with its heavy capital expenditures. Also, after years of generating tens of billions of dollars in free cash flow annually, Meta Platforms generated only $784 million of it in Q2, indicating that its free cash flow may turn negative soon.

Hence, despite its borrowing, Alphabet's competitive position suggests it can afford its AI-driven capex, and it may even emerge above key competitors as a result.

Alphabet looking forward Ultimately, the scale of the AI opportunity appears to justify Alphabet's massive spending.

Admittedly, with its debt overhang, the Google parent could face significant pain if its AI investment fails to yield the returns it was banking on. However, growth in enterprises like Google Cloud indicates that investments have boosted its revenue. Additionally, free cash flow remains positive, which stands in contrast to two key hyperscaler competitors.

Thus, no matter what happens amid the AI data center build-out, the tech company should emerge from this spending spree in a stronger competitive position.

Key Takeaways Boeing's BDS revenues rose 13% to $7.5 billion as higher volume drove growth across its portfolio.Boeing's $85 billion defense backlog spans aircraft, weapons, space and communications programs.MQ-25A and T-7A reached Milestone C, clearing both programs for low-rate initial production. The Boeing Company (BA - Free Report) is best known for its commercial aircraft business, but its Defense, Space & Security (“BDS”) segment could become an increasingly important contributor to future growth. In the second quarter of 2026, BDS revenues increased 13% year over year to $7.5 billion, driven by higher volume across the portfolio.

A key advantage for Boeing is the size of its defense backlog. BDS ended the second quarter with approximately $85 billion of backlog. Importantly, 27% of this backlog represents orders from customers outside the United States, providing Boeing with exposure to international defense demand. The backlog spans aircraft, weapons, space and communications programs, giving the segment a diversified pipeline of contracted work that supports revenue visibility for several years.

Several major programs are also moving from development toward production. During the quarter, Boeing's MQ-25A Stingray completed its first flight and received Milestone C, clearing the program to enter low-rate initial production. The U.S. Air Force's T-7A Red Hawk also achieved Milestone C and began low-rate initial production.

Boeing is also benefiting from demand across other areas of the defense market. Earlier in 2026, the company signed a seven-year framework agreement to expand PAC-3 Seeker production and announced a strategic partnership with Rheinmetall to offer the MQ-28 Ghost Bat to Germany. The company also continues to see opportunities in secure communications and space, highlighted by a U.S. Space Force award for proprietary communications capabilities in the second quarter. These programs position BDS across several areas of modern defense spending rather than relying on a single aircraft platform.

Companies Benefiting From the TrendThe broader increase in defense spending is creating opportunities across aerospace and defense. General Dynamics (GD - Free Report) is positioned to benefit from elevated defense spending through its submarines, armored vehicles and munitions businesses, supported by strong demand from the U.S. and international customers. RTX Corporation (RTX - Free Report) could benefit from rising demand for missiles, air-defense systems, sensors and other advanced defense technologies as governments prioritize modernizing military capabilities.

BA Stock’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 earnings per share indicates a year-over-year improvement of 91.82% and 552.32%, respectively.

Image Source: Zacks Investment Research

BA Stock Trades at a DiscountIn terms of valuation, BA’s forward 12-month price-to-sales (P/S) is 1.53X, a discount to the industry’s average of 2.45X.

Image Source: Zacks Investment Research

BA Stock’s Price PerformanceIn the past six months, the company’s shares have lost 9.6% compared with the industry’s 15.4% decline.

Image Source: Zacks Investment Research

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

Key Takeaways 3M's Safety and Industrial segment benefited from broad-based demand across key end markets.3M saw Q2 sales rise 13% in industrial adhesives and tapes and 9.4% in personal safety.3M expects 2026 adjusted organic sales to grow more than 3.5%, with EPS of $8.80-$8.95. 3M Company’s (MMM - Free Report) Safety and Industrial segment continues to provide solid support to its overall growth, driven by broad-based demand across key end markets. The segment is seeing strength across industrial adhesives and tapes, electrical, industrial specialties and personal safety markets. In the second quarter of 2026, sales in industrial adhesives and tapes climbed 13%, while personal safety sales advanced 9.4% year over year. Electrical and industrial specialties markets also posted strong growth of 12% and 10.9% in the second quarter, respectively.

Stable demand for electrical infrastructure products like medium voltage cable accessories and insulation tapes further aided performance. Also, new product launches and an increase in demand for industrial adhesives and electronics bonding solutions bode well for it. The segment’s organic sales increased 8.2% year over year in the second quarter. The segment’s operating income margin improved year over year, benefiting from higher sales and productivity gains, although the improvement was partly offset by tariff impacts and ongoing investments to support business growth.

Supported by strength across its businesses, 3M provided an upbeat outlook for 2026. The company expects total adjusted organic sales to increase more than 3.5% year over year, while adjusted earnings are projected to range between $8.80 and $8.95 per share. At the midpoint of $8.875, the earnings outlook represents an improvement from the $8.06 per share reported in 2025.

Segmental Performance of MMM’s Peers in Q2.Among 3M’s major peers, Carlisle Companies Incorporated (CSL - Free Report) is experiencing strength in its Construction Materials segment. Revenues from Carlisle’s Construction Materials segment increased 7.8% year over year to $1.18 billion in the second quarter of 2026. Organic revenues rose 7.7%, driven by healthy re-roofing demand, strategic initiatives and strong commercial execution, partly offset by continued softness in commercial new construction.

Another peer of MMM, Honeywell International Inc. (HON - Free Report) is witnessing softness in the Process Automation and Technology segment. In second-quarter 2026, the segment’s organic revenues decreased 1% on a year-over-year basis. This decline was attributable to a 6% drop in organic sales in the aftermarket business owing to lower refining catalyst shipments and project delays. Also, reduced customer demand in the Middle East due to ongoing geopolitical tensions hurt Honeywell’s results.

The Zacks Rundown for MMMShares of 3M have gained 7.4% in the year-to-date period against the industry’s decline of 13.4%.

Image Source: Zacks Investment Research

From a valuation standpoint, 3M is trading at a forward price-to-earnings ratio of 18.07X, above the industry average of 15.06X. MMM carries a Value Score of D.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for MMM’s earnings for 2026 and 2027 has increased 2.9% and 4.4%, respectively, in the past 60 days.

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

Key Takeaways Walmart's International e-commerce sales rose 19%, lifting digital mix to about 30% of net sales. China e-commerce sales jumped 26%, with digital mix reaching 55% and faster delivery supporting growth. Lower e-commerce losses lifted operating income, but investments and mix pressures weighed on margins. Walmart Inc. (WMT - Free Report) is seeing its International business become increasingly digital, with e-commerce representing a larger share of sales across markets. The shift is occurring alongside improving e-commerce economics, although the segment’s constant-currency operating margin remained under pressure in the second quarter of fiscal 2027.

International e-commerce sales increased 19% in the quarter, led by China, India and Canada. E-commerce accounted for about 30% of International net sales on a constant-currency basis, up roughly 300 basis points year over year. China stood out, with e-commerce sales rising 26% and digital mix reaching 55%, up 239 basis points from a year earlier. Across International, about 65% of e-commerce units were delivered the same or next day, with roughly half of those arriving in less than one hour.

The segment also showed progress on digital profitability. International operating income increased 16.6% to $1.4 billion, while constant-currency operating income rose 5.7% to $1.3 billion. The increase benefited from lower e-commerce losses and business mix changes across markets.

However, the constant-currency operating income rate declined 9 basis points to 3.9%, while the gross profit rate fell 15 basis points to 21.4%. Meanwhile, reported operating margin rose 13 basis points to 4.1%. The results show that a higher digital mix is being accompanied by better e-commerce margins and lower e-commerce losses. Still, those benefits were partly offset by a discrete trade receivable reserve, price investments, format mix and strategic investments in Mexico and Canada, leaving constant-currency segment margin below the year-ago level.

Walmart International’s rising digital mix is showing signs of better e-commerce economics, but sustained margin expansion will depend on whether those gains can increasingly offset ongoing investment and mix-related pressures.

What Do the Latest Metrics Say About Walmart?Walmart, which competes with Costco Wholesale Corporation (COST - Free Report) and Target Corporation (TGT - Free Report) , has seen its shares gain 8.1% over the past year compared with the industry’s 4.8% growth. Shares of Costco have climbed 0.1%, while Target has surged 67.6% in the aforementioned period.

Image Source: Zacks Investment Research

From a valuation standpoint, Walmart's forward 12-month price-to-earnings ratio stands at 34.07, higher than the industry’s 30.67. The company is trading at a premium to Target (with a forward 12-month P/E ratio of 16.5) while trading at a discount to Costco (46.2). 
 

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Key Takeaways Home Depot's DIY demand stayed soft in Q2'26 as cautious consumers deferred larger projects.Housing affordability, low turnover and consumer uncertainty continue to pressure bigger improvement jobs.Online sales rose 11% y/y, while 13 of 16 merchandising departments posted positive comps in the quarter. The Home Depot Inc.’s (HD - Free Report) do-it-yourself (“DIY”) business remains under pressure as cautious consumers continue to defer larger discretionary home-improvement projects. In the second quarter of fiscal 2026, management noted that Pro customers posted positive comps and outperformed DIY, underscoring the relative softness among DIY shoppers. While DIY demand was healthy across several spring-related categories, including live goods, mulch, soils, hardscapes, storage, patio and grills, larger discretionary projects remained challenged.

The weakness largely reflects an unfavorable housing and consumer backdrop. Management highlighted continued consumer uncertainty and housing affordability pressures, which are weighing on the demand for bigger home-improvement projects. Housing turnover also remains near historically low levels, with management noting no clear sign of an inflection point despite some improvement when interest rates ease.

However, the situation does not appear alarming. Customers continue to engage in smaller repair and maintenance projects, while 13 of Home Depot’s 16 merchandising departments generated positive comps during the quarter. Big-ticket transactions above $1,000 also rose 2.4% year over year, although broader discretionary projects stayed pressured.

Home Depot continues to gain traction through stronger digital engagement, faster delivery and improving in-store execution. Online sales advanced 11% in the quarter, marking the fifth consecutive quarter of double-digit growth. With management reaffirming its fiscal 2026 comparable-sales guidance of flat to 2% growth, weak DIY demand remains a near-term headwind, but broad category strength and continued market-share gains provide some offset.

How Are Peers Like LOW & WSM Catching Up?Peers such as Lowe’s Companies Inc. (LOW - Free Report) and Williams-Sonoma Inc. (WSM - Free Report) are intensifying competition through targeted investments in digital capabilities, customer engagement and differentiated product offerings.

Lowe’s continues to face soft DIY demand as cautious homeowners limit discretionary spending amid elevated rates, inflation, fuel costs and broader economic uncertainty. Management noted that customers are prioritizing repair and maintenance projects over larger remodeling jobs, pressuring transactions. Still, the weakness appears manageable, with Pro, Online and Home Services providing offsets, while five consecutive quarters of positive comps and expectations for eventual housing recovery support confidence in longer-term demand.

Williams-Sonoma continues to navigate a pressured housing backdrop and macro uncertainty, factors that can weigh on discretionary home-furnishings demand. Yet, current results suggest limited cause for concern. Second-quarter fiscal 2026 comparable brand revenues rose 6.2%, with every brand delivering growth, while management said that it gained market share and outperformed the industry. The company also raised its fiscal 2026 outlook, signaling confidence that strong execution can offset softer housing-related demand trends.

HD’s Price Performance, Valuation & EstimatesShares of Home Depot have lost 19.3% in the past year versus the industry’s decline of 24.9%.

Image Source: Zacks Investment Research

From a valuation standpoint, HD trades at a forward price-to-earnings ratio of 21X compared with the industry’s average of 19.17X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for HD’s fiscal 2026 and fiscal 2027 earnings per share (EPS) implies year-over-year growth of 2.1% and 7%, respectively. The company’s EPS estimate for fiscal 2026 has moved up by a penny in the past seven days. Meanwhile, the consensus estimate for fiscal 2027 EPS has moved down 0.1% in the past seven days.

Image Source: Zacks Investment Research

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

With shares down about 5% year to date (YTD), Qualcomm Inc. NASDAQ: QCOM is hardly the most glamorous name in AI. The company neither builds the agents that capture headlines nor operates cloud platforms that draw institutional business.

Qualcomm Today

$166.26 -4.22 (-2.48%)

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Still, the company's underlying strength is hard to dismiss: it helps to put AI into just about everything else, including smartphones, cars, industrial tools in factories and manufacturing, and much more. This may give the company, often seen as an old-fashioned firm because of its legacy in digital cellular technology, a continued path to both relevance and long-term competitiveness.

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First, however, investors are likely to look at the company's recent turbulence (particularly the period of decline in late spring and summer). There is an argument to be made that Qualcomm could once again be transformative over the long-term, though it requires reconciling some not-so-appealing performance measures.

Qualcomm's Turbulence Is RealRecent earnings have not helped Qualcomm build momentum: a 4% year-over-year (YOY) dip in sales was slightly better than expected for Q3 2026, but still not heading in the right direction, and earnings missed analyst predictions slightly.

The company's reliance on Apple Inc. NASDAQ: AAPL products means that as the larger company diversifies its partner base, Qualcomm faces a shrinking opportunity tied to future iPhone launches. Qualcomm now expects revenue related to Apple products to decline even more rapidly than previously expected.

Perhaps the company's biggest issue is not even related to a specific partner company, though. Memory inflation and supply chain costs are eating into handset demand and the company's margins, forcing Qualcomm to make significant price increases just to keep these factors under control.

Understandably, the market has reacted to these updates with volatility. After trading at about $250 per share in late May 2026, shares fell sharply before recently trading around the mid-$160s. Still, the analyst consensus sits somewhere between these two levels, with a QCOM price target of nearly $204 agreed upon across Wall Street.

There's Some Room Still in the Smartphone BusinessDespite the bad news for Qualcomm's handset segment, it may not be worth writing it off entirely. The company's Snapdragon processors have become a primary on-device AI engine for Android phones, helping to process language models and other AI tools locally instead of via the cloud. Qualcomm has a strong position here and enjoys both pricing power and operational efficiency.

Automotive and AI Are Where the Long-Term Gains May Be FoundAlthough Qualcomm is well-known for its role in the smartphone industry, its automotive division could become the key focus as the company seeks to shift its strategic direction. Automotive revenue climbed by 61% YOY to nearly $1.6 billion for the latest quarter, a massive leap by any measure but especially impressive given that this may be only the beginning: Qualcomm anticipates annualized automotive revenue to reach $7 billion for the current fiscal year, thanks to major agreements with BMW OTCMKTS: BMWYY and Stellantis NV NYSE: STLA.

Back in June 2026, at its annual investor day, Qualcomm boosted its long-term non-handset revenue target for fiscal 2029 to $40 billion, almost double its previous target. Automotive is likely key to this projected growth, but the data center business is also significant. With custom silicon deals with hyperscalers and data center AI processors expected to ship in the coming months, Qualcomm is looking to continue its revitalization in one of the hottest markets currently available.

Qualcomm’s AI Case Needs Patience, Not NVIDIA ComparisonsQualcomm trades at nearly 20x earnings, which actually makes it a value play compared to some higher-multiple offerings in the AI space. Still, despite this potential, investors will need to look past Qualcomm's struggles in the smartphone space, which may continue to weigh on the company in the short-term.

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Qualcomm may not need to become the next NVIDIA Corp. NASDAQ: NVDA to succeed. Rather, the company's push into AI (via data centers) as well as automotive and other connected devices will need to offset the pressure it faces in its handset business. This may be a more manageable task and could end up rewarding investors willing to be patient through the low point of the current smartphone cycle.

In the end, the benefit could be longer-term diversification into multiple markets that have ample room for growth. However, this requires moving against Wall Street in some sense: analysts are split on QCOM shares, with most leaning toward Hold or Sell ratings, and the stock has an overall Hold rating despite its potential for upside going forward.

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