Track market-moving stories before they get noisy

Chevron (CVX +1.05%) posted stellar second-quarter results at the end of July, beating the street's estimates thanks to higher oil prices, increased production volumes, and strong margins.

However, even bigger news is that Chevron has entered into a 20-year power purchase agreement (PPA) to build a natural gas-powered facility to power Microsoft's (MSFT +1.68%) artificial intelligence (AI)-focused data center in Texas. The move comes as hyperscalers scramble to find energy for the ever-growing data center footprints.

For Chevron, it locks in long-term revenue, insulating it from volatile commodity prices. Here are details of its recent deal and what it means for Chevron investors.

Image source: The Motley Fool.

Breaking down Chevron's data center deal with Microsoft On June 22, Chevron inked a 20-year take-or-pay power purchase agreement with Microsoft to provide electricity for a Microsoft-operated data center. The agreement is part of Project Kilby, in which Chevron (through its subsidiary Energy Forge One), Engine No. 1, and Microsoft are working together to develop roughly 2.67 gigawatts (GW) of on-site power.

As part of this project, most of the power will come from GE Vernova's gas-powered turbines and related infrastructure. Additional capacity will come from Solar Turbines, a wholly owned subsidiary of Caterpillar. The modular approach enables the project to add capacity over time, and the power plant is expected to begin supplying power by 2028.

Chevron plays a key role as a co-investor and developer through Energy Forge One, as well as a fuel provider. Chevron will supply natural gas from its Permian Basin production field directly to the power plant, while Energy Forge One will manage the long-term operations, including maintenance and water management systems.

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The deal adds a diversified, stable revenue stream for Chevron The move into AI data centers provides Chevron with a targeted, high-margin commercial expansion. This behind-the-meter data center allows Chevron to use associated natural gas, a byproduct of crude oil drilling. Because of limited capacity, companies often have to burn off excess gas, but now Chevron has a place to redirect it as hyperscalers seek baseload energy from natural gas turbines.

The 20-year PPA take-or-pay contract provides Chevron with stable revenue over the life of the contract. The take-or-pay model ensures Chevron recovers its investment and eliminates upstream gas price volatility, while Microsoft secures scarce energy decades in advance.

The AI data center build-out continues to reveal the true bottleneck for hyperscalers: reliable power. This deal helps Chevron add another revenue stream benefiting from AI's secular growth and could pave the way for more deals in the future. It's the kind of news long-term investors should pay closer attention to.

Courtney Carlsen has positions in Chevron, GE Vernova, and Microsoft. The Motley Fool has positions in and recommends Caterpillar, Chevron, GE Vernova, and Microsoft. The Motley Fool has a disclosure policy.

Beacon Pointe Advisors LLC bought a new position in shares of Phillips 66 (NYSE:PSX – Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The fund bought 47,011 shares of the oil and gas company’s stock, valued at approximately $7,947,000.

Other large investors have also added to or reduced their stakes in the company. Brighton Jones LLC grew its stake in shares of Phillips 66 by 238.5% in the fourth quarter. Brighton Jones LLC now owns 10,239 shares of the oil and gas company’s stock valued at $1,166,000 after acquiring an additional 7,214 shares in the last quarter. Woodline Partners LP lifted its holdings in shares of Phillips 66 by 40.7% in the first quarter. Woodline Partners LP now owns 34,891 shares of the oil and gas company’s stock worth $4,308,000 after acquiring an additional 10,089 shares during the last quarter. Sei Investments Co. boosted its position in Phillips 66 by 28.3% in the second quarter. Sei Investments Co. now owns 157,455 shares of the oil and gas company’s stock valued at $18,788,000 after buying an additional 34,698 shares in the last quarter. The Manufacturers Life Insurance Company increased its holdings in Phillips 66 by 9.1% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 346,679 shares of the oil and gas company’s stock worth $41,359,000 after purchasing an additional 28,988 shares in the last quarter. Finally, Glenview Trust co boosted its position in Phillips 66 by 2.6% during the 2nd quarter. Glenview Trust co now owns 8,949 shares of the oil and gas company’s stock worth $1,068,000 after buying an additional 229 shares during the period. Institutional investors own 76.93% of the company’s stock.

Insider Activity at Phillips 66 In related news, EVP Richard G. Harbison sold 52,100 shares of the firm’s stock in a transaction on Wednesday, August 12th. The shares were sold at an average price of $223.76, for a total value of $11,657,896.00. Following the completion of the transaction, the executive vice president directly owned 39,094 shares of the company’s stock, valued at approximately $8,747,673.44. This trade represents a 57.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Kevin J. Mitchell sold 11,021 shares of the firm’s stock in a transaction that occurred on Thursday, July 9th. The shares were sold at an average price of $190.03, for a total value of $2,094,320.63. Following the completion of the sale, the chief financial officer directly owned 97,376 shares of the company’s stock, valued at $18,504,361.28. The trade was a 10.17% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 100,507 shares of company stock worth $21,770,810 over the last ninety days. 0.40% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades Several analysts have recently commented on PSX shares. TD Cowen raised their price objective on shares of Phillips 66 from $240.00 to $255.00 and gave the stock a “buy” rating in a research report on Thursday, August 6th. Wall Street Zen upgraded shares of Phillips 66 from a “buy” rating to a “strong-buy” rating in a research note on Sunday, July 26th. Guggenheim raised shares of Phillips 66 to an “outperform” rating in a research report on Wednesday, May 27th. Jefferies Financial Group increased their price target on Phillips 66 from $191.00 to $207.00 and gave the stock a “hold” rating in a research note on Thursday, July 9th. Finally, Piper Sandler lifted their price target on Phillips 66 from $208.00 to $209.00 and gave the company a “neutral” rating in a research report on Monday, August 10th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eight have given a Hold rating to the company’s stock. Based on data from MarketBeat, Phillips 66 has an average rating of “Moderate Buy” and a consensus target price of $206.56. Read Our Latest Stock Analysis on PSX

Phillips 66 Stock Performance Shares of PSX stock opened at $244.50 on Friday. Phillips 66 has a 12 month low of $126.74 and a 12 month high of $246.95. The company’s fifty day moving average price is $206.11 and its 200-day moving average price is $182.58. The stock has a market cap of $97.56 billion, a PE ratio of 13.93, a price-to-earnings-growth ratio of 0.18 and a beta of 0.68. The company has a current ratio of 1.32, a quick ratio of 1.00 and a debt-to-equity ratio of 0.57.

Phillips 66 (NYSE:PSX – Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The oil and gas company reported $9.41 EPS for the quarter, beating the consensus estimate of $7.50 by $1.91. Phillips 66 had a net margin of 4.54% and a return on equity of 19.93%. The company had revenue of $52.04 billion for the quarter, compared to the consensus estimate of $43.60 billion. During the same period in the prior year, the firm posted $2.38 EPS. On average, equities analysts expect that Phillips 66 will post 23.86 EPS for the current fiscal year.

Phillips 66 announced that its Board of Directors has authorized a share repurchase plan on Friday, July 31st that authorizes the company to buyback $10.00 billion in outstanding shares. This buyback authorization authorizes the oil and gas company to purchase up to 11.8% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s board of directors believes its shares are undervalued.

Phillips 66 Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Tuesday, August 18th will be given a dividend of $1.27 per share. The ex-dividend date is Tuesday, August 18th. This represents a $5.08 annualized dividend and a dividend yield of 2.1%. Phillips 66’s dividend payout ratio (DPR) is currently 28.95%.

About Phillips 66 (Free Report)

Phillips 66 (NYSE: PSX) is an independent energy manufacturing and logistics company engaged primarily in refining, midstream transportation, marketing and chemicals. The company processes crude oil into transportation fuels, lubricants and other petroleum products, operates pipeline and storage infrastructure, and participates in petrochemical production through strategic investments. Phillips 66 serves commercial, industrial and retail customers and positions its operations across the value chain of the downstream energy sector.

The company’s principal activities include refining crude oil into gasoline, diesel, jet fuel and feedstocks for petrochemical production; operating midstream assets such as pipelines, terminals and fractionators that move and store crude oil and natural gas liquids; and marketing and distributing fuels and lubricants through wholesale and retail channels.

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Investors mostly know Caterpillar (CAT -2.05%) as a maker of bulldozers and backhoes, and construction equipment is still a huge part of its business, to be sure.

What was only an ancillary part of its business mix, however, is quickly becoming an important profit center for the company. This new center is Caterpillar's power generation unit, which offers conventional combustion-power generators, gas turbines, and even some solar power solutions.

This shift -- or perhaps more precisely, the reason for this shift -- is affecting the stock's valuation in a way the market is likely to support for the foreseeable future.

Image source: Caterpillar Inc.

Another company capitalizing on the AI revolution It's never been a bad company. With only a handful of predictable exceptions, however, the slow-moving, single-digit-growth nature of the construction business has kept Caterpillar shares priced below the S&P 500's modern-era average price/earnings ratio of around 20.

As is the case with plenty of other related companies, though, the advent of artificial intelligence (AI) is changing how investors value this one.

It's true! While the construction of data centers requires heavy-duty bulldozing and the like, Caterpillar's biggest and most unexpected growth engine of late is the aforementioned power-generation equipment. Starved for electricity, data centers are now utilizing this company's conventional combustion-powered generators for auxiliary and even primary power. For customers willing and able to make the larger upfront investment, Caterpillar is even supplying natural gas power turbines.

And this demand is making a measurable impact on its top and bottom lines. Last quarter, Caterpillar's power and energy unit's revenue grew 17% year over year to more than $8.2 billion, nearing company-leading construction-related sales of just over $8.3 billion. Moreover, power and energy's operating profit of a little more than $2 billion eclipsed construction's profit of just under $2 billion, underscoring the power arm's margin-widening pricing power in this environment.

Look for more of the same, too, and for the same reason. The company's order backlog now stands at $72 billion, growing 92% year over year for the three months ending in June.

The thing is, this future growth appears to already be priced into the stock. CAT shares have soared nearly 90% over the past 12 months due to AI-driven growth, pumping the stock up to a frothy forward-looking price/earnings ratio of a little more than 30. For perspective on this figure, that makes Caterpillar shares more expensive than Microsoft's, Alphabet's, and Nvidia's.

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Just get used to it for a while.

Probably not a short-term fluke Only time will tell how long investors are willing to support such a premium valuation. But, given the amount of money already earmarked for investment in AI infrastructure and how quickly that money is intended to be deployed, it's conceivable this could be the new valuation norm for several more years.

Analysts seem to think so anyway. Indeed, most of them are saying Caterpillar shares still aren't fully valued. The analyst community's current consensus price target of $991.21 is more than 20% above the ticker's current price, allowing room for an even richer valuation.

Baxter Bros Inc. acquired a new position in shares of Caterpillar Inc. (NYSE:CAT – Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the SEC. The firm acquired 625 shares of the industrial products company’s stock, valued at approximately $666,000.

A number of other hedge funds have also modified their holdings of the stock. Lam Group Inc. acquired a new position in Caterpillar in the 1st quarter worth approximately $26,000. Torren Management LLC acquired a new stake in Caterpillar during the 4th quarter valued at $27,000. Frazier Financial Advisors LLC lifted its holdings in shares of Caterpillar by 220.0% in the fourth quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company’s stock valued at $28,000 after purchasing an additional 33 shares in the last quarter. Decker Retirement Planning Inc. lifted its holdings in shares of Caterpillar by 440.0% in the second quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company’s stock valued at $29,000 after purchasing an additional 22 shares in the last quarter. Finally, Cornerstone Financial Management LLC acquired a new stake in shares of Caterpillar in the fourth quarter worth $32,000. 70.98% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In CAT has been the topic of several recent analyst reports. Wells Fargo & Company upped their price target on Caterpillar from $1,050.00 to $1,155.00 and gave the company an “overweight” rating in a research report on Tuesday, June 23rd. Wall Street Zen upgraded Caterpillar from a “hold” rating to a “buy” rating in a report on Saturday, May 2nd. Royal Bank Of Canada increased their price target on shares of Caterpillar from $877.00 to $897.00 and gave the stock a “sector perform” rating in a research report on Wednesday, August 5th. Zacks Research upgraded shares of Caterpillar from a “hold” rating to a “strong-buy” rating in a report on Wednesday, August 12th. Finally, Sanford C. Bernstein reiterated a “market perform” rating and issued a $1,002.00 price objective on shares of Caterpillar in a research note on Wednesday, August 5th. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eleven have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $995.52.

Read Our Latest Report on CAT Key Caterpillar News Here are the key news stories impacting Caterpillar this week:

Positive Sentiment: Caterpillar’s Construction Industries segment generated 35% revenue growth in the second quarter, supported by stronger demand, higher sales volumes and pricing. Digital technology and connected-equipment services could provide additional long-term growth opportunities. CAT’s Construction Revenues Up 35% in Q2: Can It Maintain This Pace? Positive Sentiment: Analysts point to favorable earnings-estimate revisions and recent price strength as potential catalysts. Caterpillar’s latest quarterly results also showed substantial year-over-year revenue and earnings growth, with results exceeding consensus expectations. Why Caterpillar (CAT) Might be Well Poised for a Surge Positive Sentiment: The company raised its quarterly dividend 8% to $1.63 per share and has now increased its annual dividend for 32 consecutive years, reinforcing Caterpillar’s appeal as an income-growth stock. However, the benefit is partly offset by the stock’s high price and consequently low yield. Caterpillar’s Dividend Case Is Stronger in 2026, But the Yield Is Holding It Back Neutral Sentiment: CEO Joe Creed is scheduled to participate in a Wells Fargo investor discussion on September 10. The event could provide updates on demand, dealer inventories and guidance, but it is not an immediate earnings catalyst. Caterpillar CEO Joe Creed to Participate in Virtual Headquarters Visit with Wells Fargo Negative Sentiment: One analysis questions whether construction demand is being driven by durable end-market activity or dealer-channel ordering. That uncertainty raises concerns about a possible slowdown or inventory adjustment after the recent surge. Is Caterpillar Stock Relying on an Artificial Demand Story? Negative Sentiment: At a valuation above 34 times earnings, Caterpillar leaves less room for disappointment. Investors are also cautious that its data-center-related exposure could face political scrutiny, while the dividend yield remains limited at the current valuation. Caterpillar Price Performance Shares of Caterpillar stock opened at $800.11 on Friday. The company has a current ratio of 1.37, a quick ratio of 0.85 and a debt-to-equity ratio of 1.65. The firm has a fifty day simple moving average of $893.92 and a 200-day simple moving average of $837.14. The stock has a market capitalization of $367.79 billion, a price-to-earnings ratio of 34.43, a PEG ratio of 1.40 and a beta of 1.60. Caterpillar Inc. has a 1-year low of $410.52 and a 1-year high of $1,073.46.

Caterpillar (NYSE:CAT – Get Free Report) last posted its earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $6.22 by $1.95. The business had revenue of $20.54 billion for the quarter, compared to analyst estimates of $19.34 billion. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. Caterpillar’s revenue was up 23.7% compared to the same quarter last year. During the same period last year, the business posted $4.72 EPS. On average, sell-side analysts expect that Caterpillar Inc. will post 27.14 earnings per share for the current year.

Caterpillar Increases Dividend The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, August 19th. Investors of record on Monday, July 20th were given a dividend of $1.63 per share. The ex-dividend date of this dividend was Monday, July 20th. This represents a $6.52 annualized dividend and a dividend yield of 0.8%. This is a boost from Caterpillar’s previous quarterly dividend of $1.51. Caterpillar’s payout ratio is presently 28.06%.

Caterpillar Company Profile (Free Report)

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company’s product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off‑highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.

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BNP Paribas purchased a new position in Newmont Corporation (NYSE:NEM – Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 116,016 shares of the basic materials company’s stock, valued at approximately $2,425,000.

Other hedge funds have also added to or reduced their stakes in the company. Pinnacle Bancorp Inc. purchased a new stake in shares of Newmont during the first quarter worth $25,000. Cedar Mountain Advisors LLC bought a new stake in shares of Newmont during the first quarter valued at about $25,000. Clearstead Trust LLC bought a new stake in shares of Newmont during the second quarter valued at about $25,000. Swiss RE Ltd. purchased a new position in Newmont during the fourth quarter worth about $26,000. Finally, Kilter Group LLC purchased a new position in Newmont in the 2nd quarter worth approximately $26,000. Institutional investors own 68.85% of the company’s stock.

Newmont Stock Down 3.4% NEM stock opened at $127.84 on Friday. The firm has a market cap of $134.70 billion, a PE ratio of 16.14, a price-to-earnings-growth ratio of 1.36 and a beta of 0.47. The company has a quick ratio of 2.26, a current ratio of 2.55 and a debt-to-equity ratio of 0.15. Newmont Corporation has a twelve month low of $72.78 and a twelve month high of $135.29. The business has a 50 day moving average of $104.23 and a 200 day moving average of $109.57.

Newmont (NYSE:NEM – Get Free Report) last issued its earnings results on Thursday, July 23rd. The basic materials company reported $2.10 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.05 by $0.05. The business had revenue of $6.12 billion during the quarter, compared to analysts’ expectations of $6.35 billion. Newmont had a net margin of 33.36% and a return on equity of 29.10%. During the same period in the previous year, the company earned $1.43 earnings per share. On average, research analysts forecast that Newmont Corporation will post 9.01 EPS for the current fiscal year. Newmont Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Monday, September 28th. Investors of record on Thursday, September 3rd will be issued a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date is Thursday, September 3rd. Newmont’s payout ratio is presently 13.13%.

Insider Activity at Newmont In related news, CFO Brian Tabolt sold 11,445 shares of Newmont stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $105.09, for a total value of $1,202,755.05. Following the completion of the sale, the chief financial officer directly owned 29,324 shares in the company, valued at approximately $3,081,659.16. This trade represents a 28.07% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Natascha Viljoen sold 7,764 shares of the business’s stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $104.00, for a total value of $807,456.00. Following the completion of the transaction, the chief executive officer directly owned 135,235 shares of the company’s stock, valued at approximately $14,064,440. This trade represents a 5.43% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 32,091 shares of company stock valued at $3,292,513 over the last ninety days. Insiders own 0.06% of the company’s stock.

Wall Street Analyst Weigh In Several research analysts recently issued reports on the stock. Weiss Ratings lowered shares of Newmont from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, June 17th. Jefferies Financial Group decreased their price target on Newmont from $158.00 to $146.00 and set a “buy” rating on the stock in a research note on Monday, July 6th. National Bank Financial dropped their price target on shares of Newmont from $140.00 to $125.00 and set a “sector perform” rating for the company in a research report on Tuesday, July 14th. Argus set a $110.00 price objective on shares of Newmont in a research report on Monday, August 3rd. Finally, BNP Paribas Exane decreased their price objective on Newmont from $111.00 to $102.00 and set a “neutral” rating for the company in a report on Tuesday, July 21st. Two equities research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat, Newmont presently has a consensus rating of “Moderate Buy” and a consensus price target of $132.73.

Get Our Latest Report on Newmont

Newmont Profile (Free Report)

Newmont Corporation (NYSE: NEM) is a leading global gold mining company engaged in the exploration, development, processing and reclamation of gold properties. The company’s core business centers on the production of gold, with additional byproduct metals produced from its operations. Newmont operates a portfolio of long‑lived mines and development projects, and its activities span the full mine life cycle from early-stage exploration through to mining, milling and closure.

Founded in 1921 and headquartered in Greenwood Village, Colorado, Newmont has grown through organic development and strategic acquisitions.

Read More Five stocks we like better than Newmont 3 Financial Stocks Positioned for the Fed’s Next Move After Jackson Hole IREN’s AI Pivot Looks Real, But the Market Wanted a Faster Payoff After Earnings Boeing’s $131B F-15 Win: Mach 1 Momentum or Just Altitude? Okta Stock Surges 29%—Is $200 the Next Stop? Want to see what other hedge funds are holding NEM? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Newmont Corporation (NYSE:NEM – Free Report).

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Nvidia Corp (NASDAQ:NVDA) and Synopsys, Inc (NASDAQ:SNPS) are set to report earnings after the bell Wednesday, putting the companies’ financial results in focus as investors assess the impact of their expanding AI partnership. Nvidia’s $2 billion investment in Synopsys may signal a bet on something much bigger than electronic design automation (EDA) software.

In an exclusive email interview with Benzinga, Synopsys Chief Product Development Officer Shankar Krishnamoorthy said the investment reflects a broader shift toward AI-powered engineering—one that could eventually change how everything from semiconductors to turbine engines is designed.

Nvidia’s Synopsys Investment Is a Bet on AI EngineeringKrishnamoorthy said the strategic value of Nvidia’s investment extends beyond capital, describing it as a reflection of where engineering is headed over the next decade.

“The investment reflects a shared vision that the next generation of engineering will be powered by AI, simulation, and holistic system design,” he told Benzinga.

That vision is already shaping the partnership between the two companies. According to Krishnamoorthy, Synopsys and Nvidia are combining expertise in engineering software and accelerated computing to develop autonomous workflows that help customers tackle increasingly complex design challenges.

The collaboration recently produced an end-to-end autonomous verification workflow that, according to Synopsys, “compresses weeks of manual labor into hours of agentic execution,” addressing one of the most time-consuming stages of chip verification.

The larger objective, however, is not simply to design chips faster. It’s to rethink how products are engineered from concept to completion.

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Synopsys Sees AI Replacing Costly Physical PrototypesKrishnamoorthy believes one of the biggest shifts will occur well before products reach the factory floor.

“Customers can no longer afford the time and cost of creating and testing physical prototypes of their products, from turbine engines to tennis racquets,” he said.

Instead, AI models, simulation tools and digital engineering workflows are increasingly allowing companies to validate designs virtually before committing to expensive physical testing.

That, according to Synopsys, is why the convergence of AI and engineering matters beyond the semiconductor industry. Krishnamoorthy said combining Synopsys’ engineering software with Nvidia’s AI infrastructure is helping accelerate “the industry’s transition toward AI-powered, silicon-to-systems design and development.”

The phrase “silicon-to-systems” reflects a broader ambition: using AI not just to optimize individual chips, but to improve the design of complete products by integrating hardware, software and physics into a unified engineering workflow.

Why Investors Should Watch AI Engineering, Not Just AI ChipsNvidia has become synonymous with the AI infrastructure boom, but Krishnamoorthy suggests the next phase of growth may be driven by the software that enables engineers to build AI-powered products faster and more efficiently.

Rather than viewing the investment as another semiconductor deal, investors may want to see it as a signal that AI is moving deeper into industrial engineering, product development and simulation—areas that have traditionally relied on lengthy design cycles and costly physical prototypes.

If that transition unfolds as Synopsys expects, the biggest winners may not simply be the companies building AI chips, but those enabling an entirely new way of designing products.

For investors, the trend to watch is whether AI-powered engineering platforms can translate today’s strategic vision into measurable productivity gains and broader enterprise adoption over the next several years.

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Photo via Shutterstock

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Key Takeaways Synopsys Q3 earnings rose 15.3% and revenues jumped 42.4%, both topping consensus estimates.EDA strength, Ansys contributions and Design IP growth drove broad-based gains across Synopsys.Synopsys raised fiscal 2026 revenue and earnings guidance and expects double-digit EDA growth. Synopsys, Inc. (SNPS - Free Report) reported third-quarter fiscal 2026 non-GAAP earnings of $3.91 per share, which increased 15.3% year over year and beat the Zacks Consensus Estimate by 6.5%. Broad-based strength, led by EDA and Ansys, supported the earnings outperformance.

Revenues rose 42.4% year over year to $2.48 billion, topping the consensus mark by 1.7%. Backlog remained strong at $10.9 billion, while Design IP returned to year-over-year growth.

SNPS Revenue Mix Shows Broad-Based GrowthTime-based product revenues were $1 billion, which increased 12.4% from the year-ago quarter. Upfront product revenues increased 28.8% to $665.2 million, reflecting higher product contributions during the quarter.

Maintenance and service revenues surged 144.4% year over year to $808.8 million. Ansys contributed approximately $711 million to total quarterly revenues.

Synopsys Segments Gain on EDA and IP GrowthDesign Automation revenues were $2 billion, which increased 52.7% year over year, accounting for 80.9% of total revenues. Within the segment, EDA revenues increased 8.5%, supported by robust software performance and record hardware-assisted verification revenues.

Design IP revenues rose 10.8% to $473.8 million and represented 19.1% of revenues. Management cited broad AI infrastructure demand, including strength in interface, memory and die-to-die IP. The company said its die-to-die business is on pace to double year over year and has surpassed 100 cumulative design wins.

SNPS Margin Expansion Reflects Cost DisciplineThe non-GAAP operating margin was 41.6% in the quarter. Design Automation’s adjusted operating margin expanded to 45.2% from 44.5% a year ago, while the Design IP adjusted margin improved to 26.5% from 20.1%.

Total non-GAAP costs and expenses were $1.45 billion, landing at the lower end of management’s guided range. Synopsys credited operational efficiency and Ansys cost synergies that are running ahead of schedule.

Synopsys Cash Flow and Balance Sheet StrengthenFree cash flow was $746 million in the third quarter. For the first nine months of fiscal 2026, net cash provided by operating activities totaled $2.30 billion.

Synopsys ended the third quarter with $3.61 billion in cash, cash equivalents and short-term investments. Total debt was about $10 billion after the company repaid term loans earlier than planned.

Synopsys AI and Multiphysics Drive New OpportunitiesManagement highlighted AI-driven design complexity as a key demand driver across the portfolio. More than 30 customer engagements are underway for Synopsys’ agentic AI platform, which is designed to automate engineering workflows while increasing use of the company’s underlying EDA tools.

Synopsys also launched Multiphysics Fusion, its first joint Synopsys-Ansys solution. Early customer validations showed up to 10 times faster design closure and three times faster runtime. Management expects these add-on capabilities to begin contributing to EDA growth in fiscal 2027.

SNPS Raises Fiscal 2026 OutlookSynopsys raised its fiscal 2026 revenue guidance to $9.69-$9.74 billion, with the midpoint up $50 million. The company expects Ansys to contribute about $2.98 billion, up $20 million from its previous outlook, and continues to expect Design IP revenues to grow sequentially in the fourth quarter.

The company lifted its fiscal 2026 non-GAAP earnings guidance to $15.04-$15.10 per share, a 31-cent increase at the midpoint from the prior forecast. Non-GAAP operating margin is now projected at about 41.5% at the midpoint, up 50 basis points from the previous guidance.

For the fourth quarter, SNPS projects revenues of $2.53-$2.58 billion and non-GAAP earnings of $4.10-$4.16 per share. Management expects EDA revenue growth to accelerate to double digits in the fourth quarter and for fiscal 2026.

SNPS’ Zacks Rank and Stocks to ConsiderCurrently, SNPS carries a Zacks Rank #3 (Hold).

Some better-ranked stocks worth considering in the broader Zacks Computer and Technology sector are Applied Materials (AMAT - Free Report) , Lam Research (LRCX - Free Report) and Palo Alto Networks (PANW - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Applied Materials’ fiscal 2026 earnings is pegged at $12.73 per share, up by 4.9% over the past 30 days, indicating a year-over-year surge of 35.1%. Applied Materials shares have surged 87.5% year to date (YTD).

The Zacks Consensus Estimate for Lam Research’s fiscal 2027 earnings has moved northward by 17.8% to $9.32 per share over the past 30 days and calls for a year-over-year jump of 60.4%. Lam Research shares have soared 83.8% YTD.

The Zacks Consensus Estimate for Palo Alto Networks’ fiscal 2026 earnings has remained unchanged at $3.78 per share, over the past 30 days, implying a year-over-year increase of 13.2%. Palo Alto Networks shares have risen 94.1% YTD.

Salesforce just staged one of its biggest single-session rallies in years, but the real question is whether that move already priced in everything the AI story has to offer or left something on the table for investors willing to be…

At $252.05, Salesforce (NYSE:CRM | CRM Price Prediction) screens as an attractive setup for value-growth investors willing to average in after a violent post-earnings repricing. The stock just jumped 22.58% in a single session on a blowout print, forcing a real decision on whether the AI story is finally catching up to the fundamentals.

Salesforce is the world’s largest CRM software vendor, wrapping Slack, Tableau, MuleSoft, Data 360, and the newer Agentforce agentic layer around a subscription core. After two years of margin repair and share retirement, the company is now trying to prove that generative AI expands wallet share rather than cannibalizing seat-based licensing. Q2 FY27 delivered $11.35 billion in revenue, up 10.8% year over year, alongside non-GAAP EPS of $5.90 versus a $3.27 consensus, though roughly $2.53 of that came from strategic investment gains.

Why AI Monetization and Buybacks Justify Chasing the Rally The bull case starts with cash generation. Free cash flow grew 81% year over year to $1.098 billion in the quarter, and management guides to a 34.3% non-GAAP operating margin for the year. The $25 billion accelerated repurchase has pulled diluted share count from 962 million to 821 million in twelve months.

AI monetization is no longer a slide-deck promise. Agentforce ARR crossed $1.5 billion, up over 240% year over year, and combined Agentforce and Data 360 ARR reached nearly $3.9 billion. On 15x forward earnings, that is a rare pairing of double-digit growth and defensive cash flow.

Where the Post-Earnings Surge Has Stretched the Setup The bear case is that the easy repricing already happened. CRM ripped 38.87% in a single month, blowing through the $244.02 analyst consensus target. The EPS beat was optically enormous, but $2.61 billion in strategic investment gains did most of the heavy lifting, and GAAP operating income was essentially flat at negative 0.04% year over year.

Structural risks remain. Restructuring charges hit $94 million versus $4 million a year ago, shareholders’ equity fell 37.42%, and total liabilities nearly doubled to fund the ASR. Bears will also note that operating and free cash flow are only guided to grow 4% to 5% this year.

Case for Waiting Out the Post-Earnings Euphoria The hold argument is timing. The business is executing, but the stock is pricing in flawless AI conversion. In 4 of the last 7 beats, CRM posted negative day-of reactions, and this quarter’s move is a three-sigma outlier against that pattern.

Patient investors can wait for Dreamforce Investor Day on September 16, 2026, the closings of Contentful and FEN, and the October 2026 final ASR settlement before adding aggressively. A retest of the $200.19 200-day moving average would offer a cleaner entry.

What Ratings, Targets, and Recent Returns Reveal CRM trades at $252.05 against an average analyst target of $244.02, modestly above the consensus target. The Street breakdown across 55 analysts looks like this:

Strong Buy: 5 Buy: 35 Hold: 13 Sell: 0 Strong Sell: 2 Targets are only one input, and most were set before the latest surge. CRM is down 4.36% year to date and up 1.62% over one year, badly trailing the S&P 500’s roughly double-digit YTD advance. Valuation screens reasonably at 15x forward earnings and a 0.85 PEG, with an EV/EBITDA of 15.

Verdict on Salesforce at $252 At $252.05, the setup for Salesforce skews constructive.

The path to appreciation runs through three catalysts: ClaudeForce general availability in September 2026, incremental revenue from Contentful and FEN closings, and continued Agentforce booking momentum that more than doubled quarter over quarter. With current RPO at $33.5 billion growing 14%, the revenue floor for FY27 and FY28 is well protected.

Risk/reward at 15x forward with a free-cash-flow machine profile and aggressive share retirement is asymmetric to the upside. Invalidation triggers: Agentforce ARR growth decelerating below 100% year over year, cRPO growth slipping into single digits, or operating margin guidance rolling back below 33%.

Scaling in incrementally looks more defensible than chasing the gap. Margin expansion, buyback support, and valuation multiple safety make CRM one of the cleanest AI-adjacent compounders for long-term portfolios, even after this move.

Contact [email protected] for any questions or corrections.

SAP SE SAP , the enterprise-application software giant, fell roughly 4% to $210.16 Wednesday after UBS delivered a brutal reality check on its AI rollout. The bank downgraded the stock from buy to neutral even while raising its price target from €164 to €201. Investors heard the downgrade louder than the target hike.

MarketWatch reported that UBS identified only 17 AI agents ready for broad use, with fewer than 20 more working through development or deployment. The bank also expects constant-currency cloud-backlog growth to fade from 26% in June to roughly 24% by year-end. SAP's second-quarter statement still packed plenty of muscle: €22.9 billion in current cloud backlog, 24% constant-currency cloud-revenue growth and €3 billion in free cash flow.

The valuation picture adds fuel to the debate. At $210.16, SAP trades 19.72% below its $261.80 GF Value estimate, leaving a sizable gap if execution improves. But cheap-looking software can stay cheap when the growth clock starts ticking. SAP already has the customers, contracts and cash. Now it must turn AI promises into deployed products—and do it before cloud momentum slips another gear.

Callan Family Office LLC purchased a new stake in Genuine Parts Company (NYSE:GPC – Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor purchased 6,286 shares of the specialty retailer’s stock, valued at approximately $742,000.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in Genuine Parts by 3.9% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 17,717 shares of the specialty retailer’s stock worth $2,111,000 after buying an additional 671 shares in the last quarter. Woodline Partners LP increased its stake in Genuine Parts by 40.7% during the first quarter. Woodline Partners LP now owns 11,746 shares of the specialty retailer’s stock valued at $1,399,000 after acquiring an additional 3,396 shares during the period. EverSource Wealth Advisors LLC raised its holdings in Genuine Parts by 15.8% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,005 shares of the specialty retailer’s stock valued at $122,000 after acquiring an additional 137 shares in the last quarter. Daiwa Securities Group Inc. raised its holdings in Genuine Parts by 5.6% in the 2nd quarter. Daiwa Securities Group Inc. now owns 24,954 shares of the specialty retailer’s stock valued at $3,027,000 after acquiring an additional 1,323 shares in the last quarter. Finally, AXA S.A. lifted its position in shares of Genuine Parts by 37.2% in the 2nd quarter. AXA S.A. now owns 51,292 shares of the specialty retailer’s stock worth $6,222,000 after acquiring an additional 13,898 shares during the period. 78.83% of the stock is currently owned by institutional investors and hedge funds.

Genuine Parts Stock Up 1.3% Shares of GPC opened at $135.71 on Tuesday. The company has a quick ratio of 0.50, a current ratio of 1.16 and a debt-to-equity ratio of 0.88. The company has a 50-day moving average price of $124.67 and a two-hundred day moving average price of $115.10. The stock has a market cap of $18.71 billion, a price-to-earnings ratio of 542.84 and a beta of 0.63. Genuine Parts Company has a 12 month low of $90.78 and a 12 month high of $151.57.

Genuine Parts (NYSE:GPC – Get Free Report) last released its quarterly earnings data on Tuesday, July 21st. The specialty retailer reported $2.15 earnings per share for the quarter, beating the consensus estimate of $2.08 by $0.07. Genuine Parts had a return on equity of 22.59% and a net margin of 0.13%.The company had revenue of $6.54 billion for the quarter, compared to analyst estimates of $6.43 billion. During the same period in the prior year, the company posted $2.10 EPS. The company’s revenue was up 6.0% compared to the same quarter last year. Genuine Parts has set its FY 2026 guidance at 7.500-8.000 EPS. Equities analysts predict that Genuine Parts Company will post 7.73 EPS for the current fiscal year. Genuine Parts Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Friday, October 2nd. Shareholders of record on Friday, September 4th will be given a $1.0625 dividend. This represents a $4.25 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date is Friday, September 4th. Genuine Parts’s dividend payout ratio is 1,700.00%.

Analyst Ratings Changes Several analysts have recently weighed in on the company. Raymond James Financial reissued a “strong-buy” rating and set a $165.00 price objective on shares of Genuine Parts in a report on Wednesday, July 22nd. Weiss Ratings restated a “hold (c-)” rating on shares of Genuine Parts in a research note on Wednesday, June 24th. UBS Group reaffirmed a “neutral” rating and issued a $122.00 target price on shares of Genuine Parts in a research report on Wednesday, July 22nd. Evercore reiterated an “outperform” rating on shares of Genuine Parts in a research note on Wednesday, July 22nd. Finally, DA Davidson boosted their price target on shares of Genuine Parts from $150.00 to $170.00 and gave the company a “buy” rating in a report on Monday, August 3rd. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Genuine Parts presently has an average rating of “Moderate Buy” and an average price target of $147.86.

Get Our Latest Research Report on Genuine Parts

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Genuine Parts Company (NYSE: GPC) is a global distributor of automotive replacement parts, industrial parts and business products with a history dating back to 1928. Headquartered in Atlanta, Georgia, the company operates a broad distribution network and retail presence serving repair shops, independent retailers, industrial customers and commercial accounts. Its business model centers on stocking and delivering a wide range of parts and supplies to support aftermarket and maintenance needs across multiple end markets.

Genuine Parts conducts its operations through several well-known operating groups and subsidiaries.

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Bank OZK purchased a new position in shares of Emerson Electric Co. (NYSE:EMR – Free Report) during the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 4,180 shares of the industrial products company’s stock, valued at approximately $598,000.

A number of other institutional investors and hedge funds have also added to or reduced their stakes in the business. BlackRock Inc. acquired a new stake in shares of Emerson Electric in the second quarter worth $6,193,425,000. Bank of America Corp DE bought a new stake in shares of Emerson Electric in the 2nd quarter worth about $2,629,146,000. Norges Bank acquired a new position in shares of Emerson Electric in the 4th quarter worth approximately $1,050,040,000. Bank of New York Mellon Corp bought a new stake in shares of Emerson Electric during the second quarter worth $659,000,000. Finally, Legal & General Group Plc acquired a new position in shares of Emerson Electric during the second quarter worth approximately $613,846,000. 74.30% of the stock is owned by institutional investors.

Analyst Ratings Changes Several equities research analysts have recently commented on the stock. BNP Paribas Exane lifted their price target on shares of Emerson Electric from $180.00 to $185.00 in a research report on Thursday, August 6th. JPMorgan Chase & Co. upgraded shares of Emerson Electric from a “neutral” rating to an “overweight” rating and set a $157.00 price target for the company in a report on Friday, July 17th. Wall Street Zen upgraded Emerson Electric from a “hold” rating to a “buy” rating in a report on Saturday, August 8th. Stephens upped their price objective on Emerson Electric from $155.00 to $160.00 in a research note on Thursday, August 6th. Finally, Daiwa Securities Group reduced their price target on Emerson Electric from $177.00 to $156.00 and set an “outperform” rating for the company in a report on Friday, May 15th. Thirteen equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Emerson Electric presently has a consensus rating of “Moderate Buy” and a consensus target price of $167.39.

View Our Latest Analysis on Emerson Electric Emerson Electric Trading Down 0.4% Shares of NYSE:EMR opened at $157.58 on Friday. The company has a market capitalization of $88.26 billion, a P/E ratio of 34.48, a P/E/G ratio of 2.35 and a beta of 1.24. The business’s 50 day simple moving average is $148.70 and its 200 day simple moving average is $143.49. Emerson Electric Co. has a 1 year low of $122.64 and a 1 year high of $166.35. The company has a debt-to-equity ratio of 0.37, a current ratio of 0.90 and a quick ratio of 0.66.

Emerson Electric (NYSE:EMR – Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The industrial products company reported $1.71 earnings per share for the quarter, topping the consensus estimate of $1.68 by $0.03. Emerson Electric had a net margin of 13.83% and a return on equity of 17.58%. The business had revenue of $4.87 billion during the quarter, compared to analysts’ expectations of $4.80 billion. During the same quarter in the prior year, the business posted $1.52 earnings per share. Emerson Electric’s revenue was up .0% compared to the same quarter last year. Emerson Electric has set its FY 2026 guidance at 6.550-6.550 EPS and its Q4 2026 guidance at 1.850-1.850 EPS. On average, research analysts anticipate that Emerson Electric Co. will post 6.56 EPS for the current fiscal year.

Emerson Electric Announces Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Friday, August 14th will be given a dividend of $0.555 per share. This represents a $2.22 annualized dividend and a dividend yield of 1.4%. The ex-dividend date is Friday, August 14th. Emerson Electric’s dividend payout ratio is currently 48.58%.

Insider Buying and Selling at Emerson Electric In other news, CEO Surendralal Lanca Karsanbhai sold 9,650 shares of the firm’s stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $161.91, for a total value of $1,562,431.50. Following the sale, the chief executive officer directly owned 271,743 shares in the company, valued at approximately $43,997,909.13. This trade represents a 3.43% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 0.23% of the company’s stock.

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Emerson Electric Co is a global technology and engineering company that designs and manufactures products and provides services for industrial, commercial and consumer markets. Founded in 1890, the company is headquartered in St. Louis, Missouri, and has built a long-standing presence in automation, control and climate-related technologies. Emerson’s offerings are aimed at improving productivity, energy efficiency and reliability for a wide range of end markets.

Emerson operates through two principal platforms—Automation Solutions and Commercial & Residential Solutions—providing process automation systems, measurement and analytical instrumentation, valves and actuators, control software, and related aftermarket services, alongside products for heating, ventilation and refrigeration, residential and commercial climate controls, tools and storage solutions.

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, /PRNewswire/ -- Denarius Metals Corp. (Cboe CA: DMET) (OTCQX: DNRSF) ("Denarius Metals" or the "Company") provided an update today on the drill results from its ongoing surface in-fill diamond drilling program on the Las Brisas Target at its Zancudo Project in Colombia. The most notable intercept was achieved in drill hole ZM-210 which returned continuous Au mineralization over approximately 33 m from 203.0 m to 235.95 m grading 5.68 g/t Au, including 20.18 g/t Au over 3.10 m from 229.0 m to 232.10 m (Santa Catalina Splay) and 26.35 g/t Au over 2.50 m from 233.45 m to 235.95 m (Santa Catalina) with additional continuous intervals of 1 g/t to 6 g/t Au in the hanging wall and between the two main structures.

Map showing the location of the drill holes for the Las Brisas 2026 drilling campaign

3-D Structural sketch of the Las Brisas Target

Cross-section showing drill holes ZM-210 and ZM-213.

Long-section showing the ore-shoots on the Manto Antiguo structure

Long-section showing the ore-shoots on the Santa Catalina structure Serafino Iacono, Executive Chairman of Denarius Metals, commented, "The thick, high-grade interval in ZM-210, the hanging-wall mineralization and the emerging Manto Antiguo Lower structure, all identified in the latest round of drilling, continue to demonstrate the high-grade continuity and upside of the Santa Catalina and Manto Antiguo systems and the potential for resource growth at our Zancudo Project".

The results announced today have been received from the final assays for additional 8 drill holes from the Las Brisas Target totaling approximately 1,610 meters, bringing the total drilling completed to date at the Zancudo Project to 2,270 meters in 12 drill holes. This press release presents complete results from drill holes ZM-200 through ZM-206, and preliminary Au results for drill hole ZM-210, which were drilled as in-fill holes from platforms IF-08, IF-12 and IF-05 to primarily test the Manto Antiguo and Santa Catalina structures. Approximately 40% of the total surface in-fill drilling program at the Las Brisas Target for this year has been completed by mid-August, the cut-off date for results reported in this press release. The 2026 drilling program aims to tighten drill spacing within the Las Brisas Target to 50 meters between drill centers, allowing for the potential reclassification of resources to higher confidence classification categories in the next mineral resource update.

Other Key Intercepts Reported in the Latest Drilling Results

7.40 g/t Au and 437.8 g/t Ag over 1.02 m from 156.58 m to 157.60 m, hole ZM-200 (Santa Catalina Faulted Block), including 20.70 g/t Au and 1,388.8 g/t Ag over 0.32 m from 156.58 m to 156.90 m. 7.85 g/t Au and 167 g/t Ag over 2.3 m from 143.25 m to 145.55 m, hole ZM-201 (Manto Antiguo), including 10.72 g/t Au and 247.0 g/t Ag over 0.85 m from 143.25 m to 144.10 m, and 7.20 g/t Au and 137.9 g/t Ag over 1.10 m from 144.45 m to 145.55 m. 15.23 g/t Au and 38.4 g/t Ag over 1.35 m from 132.80 m to 134.15 m, hole ZM-206 (Manto Antiguo Splay), including 33.70 g/t Au and 61.8 g/t Ag over 0.54 m from 133.61 m to 134.15 m. 41.82 g/t Au and 36.1 g/t Ag over 1.00 m from 33.17 m to 34.17 m, hole ZM-205 (near surface unknown structure), including 108.90 g/t Au and 89 g/t Ag over 0.38 m from 33.17 m to 33.55 m. A local dextral reverse fault has been interpreted in the southern portion of the Las Brisas Target (drilled from platform IF12). This explains repetition of the mineralized structures and host rocks and has implications for domain modeling and future resource estimation. Significant intercepts of the subparallel Manto Antiguo Lower structure support its potential to contribute additional Indicated Resources. Las Brisas Target – Details of the Latest Drilling Results

The Las Brisas Target represents an unexploited block within the Manto Antiguo structure preserved by past mining. The in-fill drilling program for the Las Brisas Target has been designed at 50x50 meters drill centers from eight platforms (IF-5 to IF-12) aimed at better delineating and confirming the consistency of mineralization on the orebodies outlined by previous drilling on the Manto Antiguo and Santa Catalina structures, of which the Manto Antiguo orebody is controlled by the intersection of the Manto Antiguo and Santa Catalina structures and which usually shows wider and higher-grade intercepts. Drill hole ZM-210, based on the initial Au results, has outlined the potential for a wide mineralized zone in the hanging wall of the Santa Catalina structure, hosted in a sedimentary interval bounded by schists on both sides. An adjacent drill hole (ZM-213) is in process to follow up on this potential mineralized zone. Drilling carried out from platform IF-12 has allowed the identification of a dextral reverse fault based on the repetition of the lithological sequence that usually hosts the Santa Catalina mineralized structure, which comprises an andesitic dike and the tectonic contact between the sedimentary sequence and the chloritic schist. The interpreted reverse fault plane strikes NE-SW, with a shallow dip to the W, which results in offsetting the Santa Catalina, Manto Antiguo and Manto Antiguo Lower structures by approximately 40 meters. The mineralization characteristics, such as the presence of pyrite, arsenopyrite, galena, and sphalerite, as well as the same type of alteration, are preserved on both sides of the fault zone in all the known mineralized structures, providing a basis for supporting their continuity across both blocks. The continuity of the structures to the west of this area will be corroborated by the designed brownfield drilling to be carried out later this year. Drilling carried out from platform IF-12 was successful in confirming and extending to the SE the high-grade nature of the orebody outlined by previous drilling on the Manto Antiguo structure. Multiple high gold grades were intersected with maximum intersection grades of 10.72 g/t Au and 247.0 g/t Ag over 0.85 meters (ZM-201) and 16.65 g/t Au and 48.0 g/t Ag over 0.30 meters on Manto Antiguo (ZM-206). High-grade mineralization associated with Manto Antiguo remains open down-plunge and will be targeted by additional drill holes planned on the same platform. Drilling carried out from platform IF-12 also intersected multiple mineralized structures such as Santa Catalina and Manto Antiguo Lower, confirming the presence of high-grade mineralization on Santa Catalina and extending the mineralization on Manto Antiguo Lower to the interpreted reverse fault. Multiple high gold grades were intersected with maximum intersection grades of 20.70 g/t Au and 1,388.8 g/t Ag over 0.32 meters on Santa Catalina Faulted Block (ZM-200) and 7.90 g/t Au and 66.9 g/t Ag over 0.30 meters on Santa Catalina (ZM-201). Both mineralized intersections fall into an area of the block model that currently shows very low grade, opening up a new scenario for further evaluation. The following table lists the key intervals and sub-intervals from the ongoing Las Brisas in-fill program, since the previous press release issued on July 6, 2026, with grades >4 g/t AuEq cut-off associated with main intervals that, in some cases, might not meet the >4 g/t AuEq cut-off:

Year

Target

Hole ID

Structure

From
(m)

To (m)

Length
(m)

Au (g/t)

Ag (g/t)

AuEq
(g/t)

2026

Las Brisas

ZM-200

Santa Catalina

128.30

130.30

2.00

1.77

46.6

2.35

Including

128.30

128.75

0.45

4.43

82.4

5.46

Santa Catalina Faulted Block

156.58

157.60

1.02

7.40

437.8

12.86

Including

156.58

156.90

0.32

20.70

1,388.8

38.04

ZM-201

Santa Catalina

96.15

97.20

1.05

3.04

23.6

3.33

Including

96.15

96.50

0.35

7.90

66.9

8.73

Unknown

106.20

106.80

0.60

2.78

7.6

2.87

Including

106.50

106.80

0.30

4.12

12.1

4.27

Manto Antiguo

143.25

145.55

2.30

7.85

167.0

9.90

Including

143.25

144.10

0.85

10.72

247.0

13.80

Including

144.45

145.55

1.10

7.20

137.9

8.90

ZM-202

Manto Antiguo Lower Faulted Block

219.90

221.40

1.50

3.69

11.6

3.83

Including

219.90

220.20

0.30

8.04

25.3

8.36

Including

220.90

221.40

0.50

5.39

13.9

5.56

ZM-204

Santa Catalina

95.53

96.53

1.00

2.10

64.0

2.90

Including

95.53

95.83

0.30

3.78

198.0

6.26

Manto Antiguo

154.41

155.56

1.15

3.60

55.0

4.21

Including

155.16

155.56

0.40

4.26

23.0

4.54

ZM-205

Unknown

33.17

34.17

1.00

41.82

36.1

42.27

Including

33.17

33.55

0.38

108.90

89.0

110.01

Manto Antiguo

154.39

155.40

1.01

3.75

4.0

3.80

Including

154.69

154.99

0.30

12.23

9.3

12.34

Manto Antiguo Lower

194.88

195.88

1.00

1.91

4.1

1.96

Including

194.88

195.18

0.30

6.34

12.1

6.49

ZM-206

Manto Antiguo Splay

132.80

134.15

1.35

15.23

38.4

15.67

Including

133.61

134.15

0.54

33.70

61.8

34.47

Manto Antiguo

137.40

140.10

2.70

4.42

21.7

4.69

Including

137.40

137.70

0.30

7.16

40.2

7.66

Including

139.80

140.10

0.30

16.65

48.0

17.25

Unknown

158.50

159.50

1.00

2.87

23.1

3.15

Including

158.50

159.05

0.55

5.17

41.2

5.68

ZM-210

Santa Catalina Zone

203.00

235.95

32.95

5.68

* (5)

* (5)

Santa Catalina Splay

Including

229.0

232.10

3.10

20.18

* (5)

* (5)

Santa Catalina

Including

233.45

235.95

2.50

26.35

* (5)

* (5)

Notes to Las Brisas table:

(1)

The intervals are core lengths. The true widths are estimated to be 80% to 90% of the lengths.

(2)

Equivalent gold grades (AuEq g/t) were calculated using prices of US$3,200/oz gold and US$40.00/oz silver. Gold equivalent formula: AuEq = Au + (Ag / (Au Price/Ag Price)).

(3)

"Unknown": new structure that doesn't correlate with any of the known structures/veins.

(4)

There are no results above cut-off grade for drillhole ZM-203 and it is not listed in the table.

(5)

Ag results for drill hole ZM-210 are still pending.

Please refer also to the attached illustrative images 1 to 5 showing the location of the drill holes reported herein from the 2026 drilling campaign along with a sketch of the main structures for the Las Brisas Target, a cross-section showing drill holes ZM-210 and ZM-213, and two long sections showing intercept locations for the Manto Antiguo and Santa Catalina structures.

Manto Antiguo and Santa Catalina Structures

The Manto Antiguo structure, which was the main structure historically mined, is interpreted as a WNW-ESE trending brecciated manto-type structure that merges into the footwall of the Santa Catalina structure. The northerly-trending Santa Catalina structure, which dips steeply to the east near surface and gently at depth, is interpreted as a mineralized master fault structure and feeder of mineralization for the entire vein system. In the footwall of the Santa Catalina structure, below Manto Antiguo, lies another manto-type structure called Manto Antiguo Lower, which exhibits the same characteristics as Manto Antiguo, being usually narrow and having a typical breccia texture with incipient quartz-sulphide banding and milled wall rock clasts. The mineralization consists of pyrite, arsenopyrite, sphalerite and galena. Fragments of argillic-altered schist are observed, which host pyrite veinlets.

2026 Drilling Program

The 2026 drill program comprises a planned total of 15,100 meters on several target areas within the Zancudo Project, including Las Brisas, El Castano, Independencia Mine and brownfield. The 2026 drill program has been designed to deliver important data for further resource modelling, mine planning and optimization of production stope design to guide our mine development programs as Denarius Metals ramps up mining activities at Zancudo in 2026 and 2027 to feed the Project's new 1,000 tonnes per day flotation processing plant that is currently under construction and expected to be operating later this year.

Qualified Person

Mr. Scott E. Wilson, CPG, President of Resource Development Associates ("RDA"), has reviewed, verified and approved the technical information summarized in this news release, including the sampling, preparation, security and analytical procedures underlying such information, and is not aware of any significant risks and uncertainties that could be expected to affect reliability or confidence in the information discussed herein. Mr. Wilson is an independent consulting geologist specializing in Mineral Reserve and Resource calculation reporting, mining project analysis and due diligence evaluations. Mr. Wilson conducted a personal inspection of the Zancudo Project on June 2-3, 2026. Mr. Wilson has over 36 years of experience in the mining industry and is a Registered Member (4025107RM) of Society for Mining, Metallurgy and Exploration, Inc. Mr. Wilson and RDA are independent of the Company under NI 43-101.

Quality Assurance and Quality Control

All the core samples were prepared and assayed for Au by Actlabs Laboratories Ltd (ISO 9001:2015) at their laboratory in Zona Franca Rionegro, Antioquia, Colombia, by 50 g fire assay with atomic absorption spectrophotometer ("AAS") finish. Subsequently, the pulps were shipped to their laboratory in Ancaster, Ontario, Canada (ISO/IEC 17025) for multi-element analysis by Agua Regia-ICP-OES. Samples above the upper detection limit of 5.0 g/t gold were re-assayed by 30 g fire assay with gravimetric finish, while silver and base metals were analyzed in a multi element analysis by partial digestion and ICP-OES finish. Blank, standard and duplicate samples were routinely inserted and monitored for quality assurance and quality control.

About Denarius Metals

Denarius Metals is a Canadian junior company engaged in the acquisition, exploration, development and eventual operation of precious metals and polymetallic mining projects in high-grade districts in Colombia and Spain. Denarius Metals is listed on Cboe Canada where it trades under the symbol "DMET". The Company also trades on the OTCQX Market in the United States under the symbol "DNRSF".

In Colombia, Denarius Metals is producing gold and silver in an "early production" phase at its 100%-owned Zancudo Project while it completes construction of a 1,000 tonnes per day processing plant that is expected to start producing high-grade gold-silver concentrates in the fourth quarter of 2026. The Zancudo Project is a high-grade gold-silver deposit, which includes the historic producing Independencia mine, and is located in the Cauca Belt, about 30 km southwest of Medellin.

In Spain, Denarius Metals has interests in three projects focused on in-demand critical minerals. The Company owns a 21.8% interest in Rio Narcea Recursos, S.L. and is the operator of its Aguablanca Project, which has been recognized by the EU as a Strategic Project. The Aguablanca Project comprises a turnkey 5,000 tonnes per day processing plant and the rights to exploit the historic producing Aguablanca nickel-copper mine, located in Monesterio, Extremadura. Denarius Metals also owns a 100% interest in the Lomero Project, a polymetallic deposit located on the Spanish side of the prolific copper rich Iberian Pyrite Belt, approximately 88 km southwest of the Aguablanca Project, and a 100% interest in the Toral Project, a high-grade zinc-lead-silver deposit located in the Leon Province, Northern Spain.

Denarius Metals entered into a strategic collaboration in early 2026 as JV partners with ProGrowth Ltd. Company, a Saudi-based diversified group of companies, focused on the processing, smelting and commercialization of material sourced from the Company's projects and to identify, acquire, develop and operate gold and nickel mining concessions within the Kingdom of Saudi Arabia.

Additional information on Denarius Metals can be found on its website at www.denariusmetals.com and by reviewing its profile on SEDAR+ at www.sedarplus.ca.

Cautionary Statement on Forward-Looking Information

This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to anticipated business plans or strategies, including exploration programs, expected exploration results, mineral resource estimates, potential mineralized zones and the potential for resource growth. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Denarius Metals to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements are described under the caption "Risk Factors" in the Company's Annual Information Form dated March 31, 2026 which is available for view on SEDAR+ at www.sedarplus.ca. Forward-looking statements contained herein are made as of the date of this press release and Denarius Metals disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.

Attachment 1 – Map showing the location of the drill holes for the Las Brisas 2026 drilling campaign

Notes:

(1)

This press release includes complete results from drill holes ZM-200 through ZM-206, and preliminary Au results for drill hole ZM-210, which were drilled as in-fill holes from platforms IF-08, IF-12 and IF-05.

(2)

The results from drill holes ZM-195 through ZM-199, which were drilled as in-fill holes from platform IF-07, were included in the Company's press release dated July 6, 2026.

Attachment 2 – 3-D Structural sketch of the Las Brisas Target 

Attachment 3 – Cross-section showing drill holes ZM-210 and ZM-213.

Attachment 4 – Long-section showing the ore-shoots on the Manto Antiguo structure

Attachment 5 – Long-section showing the ore-shoots on the Santa Catalina structure

SOURCE Denarius Metals Corp.

Beacon Pointe Advisors LLC acquired a new stake in Parker-Hannifin Corporation (NYSE:PH – Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor acquired 19,767 shares of the industrial products company’s stock, valued at approximately $19,335,000.

Other institutional investors and hedge funds have also bought and sold shares of the company. Fideuram Asset Management Ireland dac acquired a new stake in shares of Parker-Hannifin in the 4th quarter worth about $1,253,000. Truist Financial Corp grew its position in Parker-Hannifin by 2.7% in the 4th quarter. Truist Financial Corp now owns 174,852 shares of the industrial products company’s stock worth $153,687,000 after purchasing an additional 4,673 shares during the last quarter. Shepherd Street Advisors LLC bought a new position in Parker-Hannifin in the 4th quarter worth about $1,736,000. Jefferies Financial Group Inc. acquired a new stake in shares of Parker-Hannifin in the fourth quarter valued at approximately $11,434,000. Finally, Horizon Investments LLC increased its stake in shares of Parker-Hannifin by 78.8% in the fourth quarter. Horizon Investments LLC now owns 8,829 shares of the industrial products company’s stock valued at $7,760,000 after purchasing an additional 3,892 shares during the period. 82.44% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth A number of equities analysts recently issued reports on PH shares. Truist Financial increased their price objective on Parker-Hannifin from $1,269.00 to $1,358.00 and gave the stock a “buy” rating in a report on Friday, August 7th. UBS Group lifted their target price on Parker-Hannifin from $1,092.00 to $1,250.00 and gave the company a “buy” rating in a research note on Friday, August 7th. Weiss Ratings reissued a “buy (b)” rating on shares of Parker-Hannifin in a research note on Friday, July 17th. KeyCorp raised their price target on Parker-Hannifin from $1,100.00 to $1,210.00 and gave the company an “overweight” rating in a report on Friday, August 7th. Finally, Stifel Nicolaus set a $1,075.00 price objective on shares of Parker-Hannifin in a research note on Friday, August 7th. Seventeen investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $1,100.00.

Get Our Latest Analysis on Parker-Hannifin Insider Buying and Selling at Parker-Hannifin In related news, VP Berend Bracht sold 602 shares of the business’s stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $1,040.47, for a total transaction of $626,362.94. Following the transaction, the vice president owned 4,399 shares of the company’s stock, valued at approximately $4,577,027.53. The trade was a 12.04% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Corporate insiders own 0.32% of the company’s stock.

Parker-Hannifin Stock Down 1.6% Parker-Hannifin stock opened at $995.24 on Friday. The firm has a market cap of $125.45 billion, a PE ratio of 34.93, a P/E/G ratio of 2.63 and a beta of 1.12. The company has a debt-to-equity ratio of 0.44, a quick ratio of 0.74 and a current ratio of 1.26. The firm’s 50 day moving average price is $991.71 and its two-hundred day moving average price is $950.48. Parker-Hannifin Corporation has a twelve month low of $715.37 and a twelve month high of $1,099.94.

Parker-Hannifin (NYSE:PH – Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The industrial products company reported $9.27 earnings per share (EPS) for the quarter, beating the consensus estimate of $8.31 by $0.96. The business had revenue of $5.75 billion during the quarter, compared to analyst estimates of $5.57 billion. Parker-Hannifin had a return on equity of 28.48% and a net margin of 16.97%.The firm’s revenue was up 9.8% on a year-over-year basis. During the same period in the previous year, the company earned $7.69 EPS. Parker-Hannifin has set its FY 2027 guidance at 34.250-35.250 EPS. On average, research analysts predict that Parker-Hannifin Corporation will post 34.93 EPS for the current fiscal year.

Parker-Hannifin Announces Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 11th. Stockholders of record on Monday, August 31st will be paid a $2.00 dividend. The ex-dividend date is Monday, August 31st. This represents a $8.00 dividend on an annualized basis and a dividend yield of 0.8%. Parker-Hannifin’s payout ratio is presently 28.08%.

Parker-Hannifin Profile (Free Report)

Parker-Hannifin Corporation (NYSE: PH) is a global manufacturer and provider of motion and control technologies and systems. The company designs, manufactures and services a broad range of engineered components and systems used to control the movement and flow of liquids, gases and hydraulic power. Its product portfolio is applied across demanding environments and includes solutions for industrial manufacturing, aerospace, mobile equipment and other engineered applications.

Parker-Hannifin’s product and service offerings span hydraulic and pneumatic components, fittings and fluid connectors, valves, pumps and motors, electromechanical actuators and motion-control systems, filtration and separation products, and seals and sealing systems.

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Is Hormel Foods Corp (HRL) Undervalued Despite Q3 EPS Miss? GF Score: 69/100, Revenue at $2.96 Billion Solid Financial Performance Amid Challenges

Hormel Foods Corp HRL released its 8-K filing detailing its third quarter fiscal 2026 results on August 27, 2026. The results demonstrate a company navigating a mixed environment of financial growth yet facing challenges that could impact long-term success.

Founded in Austin, Minnesota, Hormel Foods Corp has evolved from a meat-focused enterprise to a diversified global branded food company with annual revenues exceeding $12 billion. It operates through various channels such as U.S. retail (61.6% of fiscal 2025 sales), U.S. foodservice (32.6%), and international markets (5.9%). The company's diverse product portfolio includes renowned brands like Hormel, Spam, Jennie-O, Columbus, Applegate, Planters, and Skippy, many of which hold leading market shares in their categories.

Performance Overview and ChallengesHormel Foods Corp reported third quarter net sales of $2.96 billion, marking a 2% organic net sales decline compared to the same period last year. Despite this, the operating income stood at $111 million, with an adjusted operating income of $266 million. The diluted earnings per share (EPS) during the quarter was $0.11, which fell below the expected $0.35 from analysts. However, the adjusted diluted EPS was reported at $0.37, surpassing expectations.

This performance is crucial, as sustained revenue growth is essential for maintaining competitive positioning in the consumer packaged goods industry. The noted decline in organic sales highlights ongoing consumer pressure and portfolio adjustments that could lead to potential risks if not addressed effectively. Jeff Ettinger, interim CEO, stated, "With our strong year-to-date performance and continued opportunities ahead, we are raising and narrowing our adjusted earnings outlook for fiscal 2026."

Financial Achievements and Key MetricsKey financial metrics for Hormel Foods Corp reveal a mixed yet promising outlook. The company's operating margin dropped to 3.7%, while the adjusted operating margin improved to 9.0%. A robust cash flow from operations of $241 million, a 54% increase year-over-year, showcases the company's financial strength. Notably, Hormel's commitment to returning value to shareholders is reflected in its dividend payout of $161 million during the quarter.

Below is a summary of key figures from the income statement and balance sheet:

MetricQ3 FY2026Q3 FY2025Net Sales$2.96 billion$3.03 billionOperating Income$111 million$239.7 millionAdjusted Operating Income$266 million$282.2 millionNet Earnings$59.5 million$183.7 millionCash Flow from Operations$241 million$156 millionCash on Hand$840 million$671 million

GuruFocus Valuation CheckHormel Foods Corp currently holds a GF Score of 69/100, suggesting it is above average in terms of fundamentals. The GF Value is set at $31.21, while the current market price stands at $23.71, indicating that the stock is undervalued by 24.0%. With a Financial Strength rating of 7/10 and a Profitability Rank of 8/10, Hormel appears to maintain a sound financial foundation. However, a Growth Rank of 3/10 and a Predictability rating of 1 star highlight areas of concern for potential investors.

Insider activity shows $0.8 million in sales over the past year, which could be perceived as cautious behavior, given that no noteworthy purchases have been made. This suggests potential wariness regarding future performance. Overall, the stock may be considered undervalued at the current price point, but investors should weigh this against the noted challenges in organic sales growth.

For a deeper dive, visit the Hormel Foods Corp stock page on GuruFocus.

Explore the complete 8-K earnings release (here) from Hormel Foods Corp for further details.

GuruFocus context: GuruFocus’ GF Value™ estimates fair value near $31.21 (24.0% undervalued); its GF Score™ is 69/100; 6 gurus currently hold the stock, with 3 adding and 5 trimming positions in recent quarters — guru 13F data Simply Wall St and Morningstar don’t have. See the full Hormel Foods Corp HRL research.

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

Hormel Foods Corporation (NYSE:HRL – Get Free Report) has earned a consensus recommendation of “Hold” from the nine research firms that are covering the firm, MarketBeat.com reports. Seven investment analysts have rated the stock with a hold rating and two have issued a buy rating on the company. The average 1-year target price among brokerages that have issued ratings on the stock in the last year is $26.1429.

Several equities research analysts have issued reports on HRL shares. Stephens set a $23.00 price objective on shares of Hormel Foods in a research report on Friday. Bank of America upped their target price on Hormel Foods from $25.00 to $27.00 and gave the company a “neutral” rating in a research report on Tuesday, June 30th. The Goldman Sachs Group set a $25.00 target price on Hormel Foods in a research note on Thursday, May 21st. Weiss Ratings raised Hormel Foods from a “sell (d+)” rating to a “hold (c-)” rating in a report on Wednesday, August 12th. Finally, BNP Paribas Exane reduced their price target on Hormel Foods from $27.00 to $26.00 and set a “neutral” rating for the company in a research note on Friday.

View Our Latest Stock Report on HRL

Hormel Foods News Roundup Here are the key news stories impacting Hormel Foods this week: Positive Sentiment: Hormel reported adjusted third-quarter EPS of $0.37, ahead of analyst estimates of approximately $0.35–$0.36 and up from $0.35 a year earlier. Margin expansion and cost management helped offset weaker volumes. Hormel Foods Q3 Earnings Beat on Margin Expansion, Sales Miss Positive Sentiment: Management raised and narrowed its fiscal 2026 adjusted EPS outlook to $1.45–$1.51, compared with prior guidance of $1.40–$1.50. Operating cash flow also increased 54% to $240.6 million. Hormel Foods Reports Third Quarter Fiscal 2026 Results Neutral Sentiment: BNP Paribas Exane lowered its HRL price target from $27 to $26 and assigned a neutral rating. The revised target still implies meaningful potential upside from recent levels, but the rating signals limited confidence in near-term growth. BNP Paribas Exane Hormel Foods Price Target Update Neutral Sentiment: Some analysts view Hormel’s elevated dividend yield—reported at roughly 5.5% after the sell-off—and valuation as attractive for long-term income investors, though earnings-based valuation remains a concern. Hormel Foods: A Protein Powerhouse With a Secure Yield Negative Sentiment: Third-quarter revenue fell 2.4% year over year to $2.96 billion, missing the roughly $3.03 billion consensus estimate. Retail sales declined 4%, international sales dropped 5%, and management cited pressured consumers, lower commodity prices and weak private-label snack-nut demand. Hormel Foods Cuts Annual Sales Forecast Negative Sentiment: Hormel reduced fiscal 2026 revenue guidance to $12.1–$12.2 billion from $12.2–$12.5 billion, reinforcing concerns that sluggish demand and falling sales will limit growth despite improved margins and EPS. Why Hormel Foods Stock Swooned Hormel Foods Stock Down 0.2% NYSE:HRL opened at $21.53 on Friday. The firm has a market capitalization of $11.85 billion, a price-to-earnings ratio of 34.18, a price-to-earnings-growth ratio of 2.49 and a beta of 0.34. Hormel Foods has a twelve month low of $19.70 and a twelve month high of $26.60. The stock’s 50 day moving average price is $24.76 and its two-hundred day moving average price is $23.37. The company has a quick ratio of 0.92, a current ratio of 1.88 and a debt-to-equity ratio of 0.30.

Hormel Foods (NYSE:HRL – Get Free Report) last released its quarterly earnings data on Thursday, August 27th. The company reported $0.37 earnings per share for the quarter, topping the consensus estimate of $0.35 by $0.02. The company had revenue of $2.96 billion for the quarter, compared to analyst estimates of $3.03 billion. Hormel Foods had a net margin of 2.82% and a return on equity of 9.91%. Hormel Foods’s revenue for the quarter was down 2.4% compared to the same quarter last year. During the same period in the previous year, the business earned $0.35 EPS. Hormel Foods has set its FY 2026 guidance at 1.450-1.510 EPS. Equities research analysts expect that Hormel Foods will post 1.49 earnings per share for the current fiscal year.

Insider Transactions at Hormel Foods In related news, Director Gary C. Bhojwani sold 20,200 shares of the firm’s stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $24.51, for a total value of $495,102.00. Following the transaction, the director owned 32,002 shares in the company, valued at approximately $784,369.02. This trade represents a 38.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 0.58% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows Institutional investors and hedge funds have recently made changes to their positions in the stock. Corient Private Wealth LP lifted its stake in Hormel Foods by 7.8% in the 2nd quarter. Corient Private Wealth LP now owns 58,967 shares of the company’s stock valued at $1,464,000 after purchasing an additional 4,257 shares during the last quarter. HighTower Advisors LLC boosted its holdings in shares of Hormel Foods by 8.0% during the 2nd quarter. HighTower Advisors LLC now owns 132,688 shares of the company’s stock valued at $3,293,000 after acquiring an additional 9,851 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in shares of Hormel Foods during the 2nd quarter valued at $482,000. California State Teachers Retirement System grew its position in Hormel Foods by 2,186.0% during the 2nd quarter. California State Teachers Retirement System now owns 8,259,202 shares of the company’s stock worth $204,993,000 after acquiring an additional 7,897,912 shares during the last quarter. Finally, HB Wealth Management LLC grew its position in Hormel Foods by 32.0% during the 2nd quarter. HB Wealth Management LLC now owns 20,646 shares of the company’s stock worth $512,000 after acquiring an additional 5,011 shares during the last quarter. Institutional investors own 40.99% of the company’s stock.

About Hormel Foods (Get Free Report)

Hormel Foods Corporation is a global branded foods company primarily engaged in the production, marketing and distribution of value-added, high-quality meat and food products. The company’s portfolio spans a range of categories including refrigerated and frozen meats, pantry staples, specialty foods and shelf-stable items. Through manufacturing facilities located across North America and international markets, Hormel Foods supplies retail grocers, foodservice operators, convenience stores and e-commerce platforms.

Among its best-known brands, Hormel Foods produces SPAM® canned meats, Jennie-O® turkey products, Skippy® peanut butter and Applegate® natural and organic meats.

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It has been about a month since the last earnings report for Stanley Black & Decker (SWK - Free Report) . Shares have added about 3.9% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Stanley Black & Decker due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Stanley Black & Decker, Inc. before we dive into how investors and analysts have reacted as of late.

Stanley Black Beats Q2 Earnings Estimates on Margin Expansion, Raises OutlookStanley Black reported adjusted earnings of $1.57 per share for the second quarter of 2026, which beat the Zacks Consensus Estimate of $1.20 by 30.8%. The bottom line increased from adjusted earnings of $1.08 per share reported in the year-ago quarter.

Net sales of $3.96 billion surpassed the consensus estimate of $3.93 billion by 0.7% and increased 0.4% year over year. Higher organic sales, improved gross margins and strong cash generation supported the quarter, while the company also raised its full-year earnings and free cash flow guidance.

Segmental PerformanceStanley Black generated Tools & Outdoor revenues of $3.56 billion, up 3% year over year, driven by higher volumes in U.S. retail and commercial & industrial channels. Organic revenues for the segment also increased 3%, aided by strength in power tools despite the transition to a licensing model for gas walk-behind outdoor products.

Engineered Fastening revenues declined 18% year over year to $396.4 million due to the divestiture of the Consolidated Aerospace Manufacturing (CAM) business. Excluding the divestiture impact, organic revenues increased 3%, supported by industrial demand and continued automotive fastener growth.

Stanley Black's Margin StrengthStanley Black's cost of sales declined 7.8% year over year to $2.65 billion. Gross profit increased 22.4% to $1.31 billion, lifting the gross margin by 600 basis points to 33.0%. On an adjusted basis, gross margin expanded 620 basis points to 33.7%, benefiting from tariff refunds and productivity improvements.

Selling, general and administrative expenses increased 8.6% year over year to $947.9 million and represented 23.9% of sales compared with 22.1% a year ago. Adjusted EBITDA was $445.7 million, indicating a year-over-year increase of 40.1%. The adjusted EBITDA margin improved 320 basis points to 11.3%, while net earnings rose sharply to $351.3 million from $101.9 million in the prior-year quarter.

Cash Flow and Balance SheetStanley Black ended the quarter with cash and cash equivalents of $592.4 million compared with $280.1 million at the end of 2025. Long-term debt was $4.70 billion, largely unchanged from the figure reported at the end of 2025. The company reduced total debt by $1.7 billion during the quarter using proceeds from the CAM divestiture.

Cash provided by operating activities totaled $763.1 million compared with $214.3 million in the year-ago quarter. Capital and software expenditures were $64.9 million, resulting in free cash flow of $698.2 million compared with $134.7 million in the year-ago quarter. During the quarter, the company repurchased approximately $250 million of shares and paid dividends of $124.3 million.

Stanley Black Raises 2026 OutlookManagement raised its 2026 GAAP earnings guidance to $4.60-$5.45 per share from the prior range of $4.15-$5.35. Adjusted earnings are now projected in the range of $5.20-$5.80 per share, up from the earlier outlook of $4.90-$5.70.

The company also increased its free cash flow forecast to $600-$800 million from the previous expectation of $500-$700 million. Management said the revised guidance reflects the benefit from tariff refunds realized in the second quarter as well as taxes and fees associated with the CAM divestiture.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -7.76% due to these changes.

VGM ScoresAt this time, Stanley Black & Decker has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock has a score of B on the value side, putting it in the second quintile for value investors.

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

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Stanley Black & Decker has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Bank of Nova Scotia bought a new position in Nordson Corporation (NASDAQ:NDSN – Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm bought 12,953 shares of the industrial products company’s stock, valued at approximately $3,908,000.

A number of other hedge funds and other institutional investors also recently bought and sold shares of the stock. Clearstead Trust LLC acquired a new position in Nordson during the 2nd quarter valued at about $25,000. Keating Financial Advisory Services Inc. acquired a new stake in shares of Nordson in the second quarter valued at approximately $30,000. CYBER HORNET ETFs LLC bought a new stake in shares of Nordson during the second quarter valued at approximately $31,000. N.E.W. Advisory Services LLC acquired a new position in shares of Nordson during the second quarter worth approximately $33,000. Finally, MUFG Securities EMEA plc acquired a new position in shares of Nordson during the second quarter worth approximately $34,000. 72.11% of the stock is currently owned by institutional investors and hedge funds.

Nordson Stock Performance Shares of NASDAQ NDSN opened at $333.58 on Wednesday. The stock’s fifty day simple moving average is $300.48 and its 200 day simple moving average is $287.87. The stock has a market capitalization of $18.58 billion, a price-to-earnings ratio of 33.73, a PEG ratio of 2.17 and a beta of 0.96. The company has a quick ratio of 1.18, a current ratio of 1.82 and a debt-to-equity ratio of 0.47. Nordson Corporation has a 52-week low of $220.06 and a 52-week high of $338.55.

Nordson (NASDAQ:NDSN – Get Free Report) last issued its quarterly earnings results on Wednesday, August 19th. The industrial products company reported $3.25 EPS for the quarter, beating the consensus estimate of $3.09 by $0.16. The business had revenue of $817.67 million during the quarter, compared to the consensus estimate of $779.49 million. Nordson had a net margin of 18.63% and a return on equity of 20.49%. The firm’s quarterly revenue was up 10.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned $2.73 EPS. Nordson has set its FY 2026 guidance at 11.800-12.000 EPS. As a group, sell-side analysts forecast that Nordson Corporation will post 11.83 earnings per share for the current fiscal year. Nordson Dividend Announcement The company also recently announced a quarterly dividend, which was paid on Monday, July 6th. Shareholders of record on Thursday, June 18th were paid a $0.82 dividend. The ex-dividend date was Thursday, June 18th. This represents a $3.28 dividend on an annualized basis and a yield of 1.0%. Nordson’s payout ratio is 33.16%.

Analyst Ratings Changes NDSN has been the subject of several recent analyst reports. DA Davidson reissued a “buy” rating and issued a $345.00 price target on shares of Nordson in a research note on Thursday, August 20th. Wall Street Zen downgraded shares of Nordson from a “buy” rating to a “hold” rating in a report on Saturday, June 27th. KeyCorp reiterated a “buy” rating on shares of Nordson in a research report on Thursday, August 20th. Weiss Ratings raised shares of Nordson from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Monday, June 29th. Finally, Robert W. Baird boosted their price target on shares of Nordson from $328.00 to $351.00 and gave the stock a “neutral” rating in a research report on Friday, August 21st. Five analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, Nordson presently has a consensus rating of “Moderate Buy” and an average price target of $326.57.

Check Out Our Latest Stock Analysis on NDSN

About Nordson (Free Report)

Nordson Corporation designs, manufactures and markets precision dispensing equipment and systems that apply adhesives, coatings, sealants and polymers in a broad range of industrial and medical applications. The company’s portfolio spans fluid systems, curing and surface preparation technologies, vacuum and thermal management products, and advanced test and inspection solutions. Nordson’s offerings serve critical manufacturing processes by delivering exacting dispensing accuracy and process control to ensure consistent product performance and high production throughput.

Nordson operates through multiple segments that cater to diverse markets including electronics, packaging, medical, energy, automotive and general industrial sectors.

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Ancora Advisors LLC purchased a new position in Deere & Company (NYSE:DE – Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the SEC. The firm purchased 1,811 shares of the industrial products company’s stock, valued at approximately $1,149,000.

A number of other institutional investors have also recently bought and sold shares of the stock. BlackRock Inc. acquired a new stake in Deere & Company during the 2nd quarter valued at $11,763,504,000. Norges Bank acquired a new position in Deere & Company during the fourth quarter valued at $1,715,633,000. Capital World Investors lifted its stake in Deere & Company by 53.9% in the 4th quarter. Capital World Investors now owns 9,592,004 shares of the industrial products company’s stock worth $4,465,906,000 after acquiring an additional 3,358,264 shares in the last quarter. Bank of New York Mellon Corp purchased a new stake in Deere & Company in the 2nd quarter worth about $1,259,279,000. Finally, Northwestern Mutual Wealth Management Co. boosted its position in Deere & Company by 1,725.8% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,003,715 shares of the industrial products company’s stock worth $932,870,000 after acquiring an additional 1,893,972 shares during the period. Hedge funds and other institutional investors own 68.58% of the company’s stock.

Deere & Company Trading Down 1.9% Shares of NYSE DE opened at $622.67 on Friday. The business has a 50 day simple moving average of $610.78 and a 200 day simple moving average of $593.08. Deere & Company has a 52 week low of $433.00 and a 52 week high of $674.19. The stock has a market cap of $168.08 billion, a price-to-earnings ratio of 34.59, a PEG ratio of 2.62 and a beta of 0.90. The company has a debt-to-equity ratio of 1.45, a quick ratio of 1.89 and a current ratio of 2.10.

Deere & Company (NYSE:DE – Get Free Report) last posted its earnings results on Thursday, August 20th. The industrial products company reported $5.10 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.69 by $0.41. The firm had revenue of $12.61 billion during the quarter, compared to analysts’ expectations of $10.81 billion. Deere & Company had a net margin of 10.16% and a return on equity of 18.10%. The company’s revenue was up 6.2% compared to the same quarter last year. During the same period in the previous year, the company earned $4.75 earnings per share. On average, research analysts predict that Deere & Company will post 18.09 earnings per share for the current fiscal year. Deere & Company Dividend Announcement The firm also recently declared a quarterly dividend, which will be paid on Monday, November 9th. Stockholders of record on Wednesday, September 30th will be issued a dividend of $1.62 per share. The ex-dividend date is Wednesday, September 30th. This represents a $6.48 dividend on an annualized basis and a dividend yield of 1.0%. Deere & Company’s dividend payout ratio (DPR) is currently 36.00%.

Wall Street Analyst Weigh In DE has been the topic of several research analyst reports. Robert W. Baird lifted their target price on Deere & Company from $525.00 to $640.00 and gave the company a “neutral” rating in a research note on Friday, August 21st. Seaport Research Partners set a $570.00 price target on shares of Deere & Company in a report on Friday, August 14th. UBS Group lowered their price objective on shares of Deere & Company from $732.00 to $728.00 and set a “buy” rating on the stock in a research report on Friday, August 21st. Bank of America dropped their price objective on shares of Deere & Company from $672.00 to $607.50 and set a “neutral” rating on the stock in a research note on Friday, May 22nd. Finally, JPMorgan Chase & Co. increased their target price on shares of Deere & Company from $570.00 to $585.00 and gave the stock a “neutral” rating in a research report on Friday, August 21st. Fourteen equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat, Deere & Company has an average rating of “Moderate Buy” and an average price target of $653.48.

View Our Latest Analysis on DE

Deere & Company News Summary Here are the key news stories impacting Deere & Company this week:

Positive Sentiment: Better-than-expected earnings and execution: Deere reported fiscal third-quarter earnings per share of $5.10, above the $4.69 analyst consensus, while revenue reached $12.61 billion versus expectations of $10.81 billion. Net income increased 7% year over year to $1.379 billion. Management cited strong factory output, disciplined cost control, favorable price realization, and steady construction and turf demand. Deere’s Q2 Earnings Call: Our Top 5 Analyst Questions Positive Sentiment: Construction and AI opportunities support diversification: Coverage highlighted growth in less traditional areas, including construction, where demand is benefiting from technology and infrastructure investment. Deere also entered a $10 million, three-year R&D partnership with Reservoir to accelerate rugged artificial-intelligence applications for high-value crop agriculture. Deere quarterly profits and construction growth Reservoir AI partnership with John Deere Positive Sentiment: Analyst support and shareholder return: DA Davidson raised its price target to $760, while RBC reaffirmed an “Outperform” rating. Deere also declared a quarterly dividend of $1.62 per share, payable November 9 to shareholders of record September 30. DA Davidson raises Deere price target RBC reaffirms Deere Outperform rating Deere quarterly dividend announcement Neutral Sentiment: Mixed segment picture: The earnings commentary suggests Deere’s diversified businesses, particularly construction and turf, are offsetting softer conditions in its largest agriculture-related division. Investors may therefore remain focused on the durability of farm-equipment demand and the company’s outlook. Negative Sentiment: Valuation leaves less room for disappointment: With the shares trading at roughly 35 times earnings, investors may be taking profits or showing caution despite the earnings beat, particularly if agricultural weakness persists or growth in newer businesses takes longer to scale. (Free Report)

Deere & Company, commonly known by its brand John Deere, is a global manufacturer of agricultural, construction and forestry machinery, as well as turf care equipment and power systems. Founded in 1837 by blacksmith John Deere—who developed a polished steel plow to improve tillage in tough prairie soils—the company is headquartered in Moline, Illinois, and has grown into one of the largest and most recognizable names in equipment manufacturing worldwide.

The company’s principal businesses include a broad portfolio of agricultural equipment such as tractors, combines, planters, sprayers, harvesters and tillage implements, complemented by precision agriculture technologies and telematics that support farm management, yield optimization and equipment connectivity.

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Citi's software research chief just called Oracle's brutal summer selloff a rare statistical anomaly and went on CNBC to argue the stock belongs in your portfolio. But his own reasoning contains a contradiction that changes everything about the trade.

Oracle (NYSE:ORCL | ORCL Price Prediction) has been the loudest cautionary tale in software this summer, which is exactly why Citi’s Tyler Radke went on CNBC today to argue the selloff has gone too far. Radke, co-head of U.S. software equity research at the bank, opened a positive catalyst watch on Oracle and called the drawdown “a 4 to 5 standard deviation move” driven largely by technical factors.

The stock closed at $148.87 on Wednesday, down 22.88% year to date and 35.71% below its price a year ago. Radke cited Oracle as down over 20% year to date and pacing for its first negative year in four.

His argument rests on three claims: the selling is mechanical, the growth is real, and the valuation is cheap. He describes Oracle as “growing revenue and earnings over 30% over the next few years” and trading at a mid-teens earnings multiple, which lines up with a forward P/E of 18x. The tension in his case is that he blames technical selling while acknowledging Oracle’s credit rating is teetering on the edge of investment grade. Those two things are not independent.

How Bad the Selloff Has Been Oracle traded as high as $341.82 in the past year and as low as $114.50. That is a rare range for a mature megacap software company, following a Q1 FY26 report where the stock jumped 35.95% on the day of earnings.

The Q4 FY2026 report on June 10, 2026, saw shares drop 8.53% on the day and 28.03% over the following 30 days, while the S&P 500 was up modestly over the same period.

Radke thinks that is overdone because the underlying booking data has continued to improve. Oracle finished FY26 with remaining performance obligations of $638 billion, up 363% year over year, and IaaS revenue grew 93% in Q4. Guidance for FY27 was set at $90 billion in revenue and $8.05 in non-GAAP EPS.

Reddit sentiment in early August was dominated by a post about Larry Ellison pledging 346 million Oracle shares as collateral for a loan. That narrative feeds forced selling if the stock keeps sliding.

What ATM Equity Issuance Does to a Share Price Radke told CNBC he wants Oracle to “communicate to investors that they’re done with this at the market equity issuance”. An at-the-market program allows a company to sell new shares directly in the open market at prevailing prices.

That is helpful for the company because it avoids discounting a marketed offering. It is painful for the stock because there is constant latent supply, and any rally can be met by the company itself selling into it.

Oracle disclosed plans to raise approximately $40 billion through debt and equity in fiscal 2027, including a $20 billion at-the-market equity issuance. That program is both a technical drag on the stock and a direct reflection of the fundamentals, because Oracle needs the equity for the AI data center buildout, which has to be powered, cooled, and networked by a whole cast of suppliers we profiled in a free report on the AI infrastructure names that aren’t chipmakers, and which is generating negative $23.7 billion in free cash flow.

When Radke calls the sell-off technical and also worries about the credit rating, that’s the same story told twice. The market is repricing a balance sheet that carries $218.7 billion in total liabilities against a capital plan that continues to grow.

Business Case Underneath the Financing Case Radke’s operating argument is stronger than his technical one. He said Oracle’s “database business is well positioned” and that its applications business is gaining share, growing faster than Salesforce and Workday.

The Q4 numbers back up the direction. Multi-cloud revenue grew 404% year over year, and management said global GPU utilization was 97.5%. Cloud applications revenue was $4.126 billion, up 10%.

Management expects OCI margins to settle in the 30% to 40% range, with a steady-state return on invested capital in the “high 20s”. Those numbers make a mid-teens forward multiple look interesting if you believe them.

The catch is that Radke’s 30%+ revenue and earnings growth figure is his estimate, not a company forecast, and it depends on Oracle continuing to sign multi-billion-dollar contracts without further diluting shareholders. Oracle’s next earnings report is expected on September 8, 2026, though the company has not confirmed the date.

What I Think About the Setup Radke’s most useful observation is that the investor day at the end of October is a real catalyst, because management could signal that new deals carry higher prepayments and do not require incremental financing. If they do, the technical overhang eases.

The problem is that Oracle has to earn that outcome. The $75 billion in bring-your-own-hardware and prepaid contracts disclosed in Q4 is genuinely helpful for capital intensity, but it does not, by itself, resolve the credit question.

At $148.87, the stock is pricing in the risk that another quarter of heavy capex and further equity supply keeps a lid on things through year-end. Radke can be right about the long-term trajectory and still early on the entry.

The setup looks like a legitimate dislocation with a fundamental overhang attached, more complicated than the clean technical story Radke framed it as. Anyone taking his side of the trade is betting that the September earnings report and October investor day give management a chance to change the financing narrative, and that is a real bet with a real timeline attached.

Contact [email protected] for any questions or corrections.

Connor Clark & Lunn Investment Management Ltd. lifted its position in Oracle Corporation (NYSE:ORCL – Free Report) by 147.9% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 13,097 shares of the enterprise software provider’s stock after acquiring an additional 7,813 shares during the quarter. Connor Clark & Lunn Investment Management Ltd.’s holdings in Oracle were worth $1,919,000 at the end of the most recent reporting period.

Other large investors also recently made changes to their positions in the company. FSA Wealth Management LLC bought a new position in shares of Oracle during the 3rd quarter worth approximately $28,000. Mpwm Advisory Solutions LLC increased its position in shares of Oracle by 76.9% during the third quarter. Mpwm Advisory Solutions LLC now owns 115 shares of the enterprise software provider’s stock valued at $32,000 after acquiring an additional 50 shares during the last quarter. Turning Point Benefit Group Inc. bought a new stake in Oracle during the third quarter worth $35,000. HFM Investment Advisors LLC boosted its position in Oracle by 290.9% in the fourth quarter. HFM Investment Advisors LLC now owns 129 shares of the enterprise software provider’s stock worth $25,000 after purchasing an additional 96 shares during the last quarter. Finally, Basepoint Wealth LLC bought a new position in Oracle in the 4th quarter valued at $26,000. 42.44% of the stock is owned by institutional investors.

Key Oracle News Here are the key news stories impacting Oracle this week:

Positive Sentiment: Citigroup placed Oracle on a 90-day “positive catalyst watch,” arguing that the recent selloff was excessive and that strong AI-cloud demand, a large backlog and upcoming earnings could drive a rebound. The view helped improve sentiment toward the stock. Investors Are Missing Oracle’s AI Boom. Citi Says Buy. Positive Sentiment: Wall Street remains broadly bullish, with one report citing a Strong Buy consensus and substantial potential upside. Other analysts and investors highlighted Oracle’s cloud infrastructure scale, AI exposure and improving growth prospects. Most Active Stocks: Oracle Tops List with 71% Upside Positive Sentiment: Oracle was named a Leader in Gartner’s 2026 Magic Quadrant for Supply Chain Management Suites, reinforcing the competitiveness of its Fusion Cloud SCM products and enterprise-software portfolio. Oracle Named a Leader in the 2026 Gartner Magic Quadrant Neutral Sentiment: Oracle has rallied about 18% over the past month from a deeply depressed level, but commentary questions whether the rebound represents a durable leadership position compared with other cloud stocks. September earnings are viewed as the next major test. Oracle Just Rallied 18% in a Month Negative Sentiment: Investors continue to debate whether Oracle can convert its sizable order book into revenue quickly enough. The company’s roughly $55.7 billion data-center buildout, elevated leverage and reported payroll reductions raise questions about funding, execution and future margins. Oracle Capex Funding and Debt Insider Buying and Selling at Oracle In other news, Vice Chairman Jeffrey Henley sold 400,000 shares of Oracle stock in a transaction on Wednesday, June 24th. The stock was sold at an average price of $159.16, for a total value of $63,664,000.00. Following the completion of the transaction, the insider directly owned 400,000 shares in the company, valued at approximately $63,664,000. The trade was a 50.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 40.90% of the company’s stock. Analyst Upgrades and Downgrades A number of equities research analysts have recently commented on the company. Wedbush lowered their target price on Oracle from $275.00 to $240.00 and set an “outperform” rating on the stock in a research note on Thursday, June 11th. Wolfe Research reaffirmed an “outperform” rating and issued a $225.00 price objective on shares of Oracle in a research report on Thursday, June 11th. Mizuho set a $320.00 target price on shares of Oracle in a research report on Wednesday, June 3rd. Oppenheimer raised their price target on shares of Oracle from $235.00 to $275.00 and gave the stock an “outperform” rating in a research note on Monday, June 8th. Finally, Royal Bank Of Canada reiterated a “sector perform” rating and issued a $190.00 price objective on shares of Oracle in a research note on Thursday, June 11th. Two research analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Oracle presently has an average rating of “Moderate Buy” and a consensus target price of $263.97.

Read Our Latest Research Report on ORCL

Oracle Stock Performance NYSE ORCL opened at $151.11 on Friday. The company’s 50 day moving average is $140.73 and its 200-day moving average is $160.60. Oracle Corporation has a 12-month low of $114.50 and a 12-month high of $345.72. The company has a quick ratio of 1.12, a current ratio of 1.12 and a debt-to-equity ratio of 3.21. The firm has a market cap of $435.27 billion, a P/E ratio of 25.92, a price-to-earnings-growth ratio of 0.94 and a beta of 1.72.

Oracle (NYSE:ORCL – Get Free Report) last released its quarterly earnings data on Wednesday, June 10th. The enterprise software provider reported $2.11 EPS for the quarter, topping the consensus estimate of $1.96 by $0.15. Oracle had a net margin of 25.37% and a return on equity of 58.62%. The company had revenue of $19.18 billion during the quarter, compared to the consensus estimate of $19.10 billion. During the same period last year, the firm earned $1.70 EPS. Oracle’s revenue for the quarter was up 20.6% on a year-over-year basis. Oracle has set its Q1 2027 guidance at 1.720-1.760 EPS and its FY 2027 guidance at 8.050-8.050 EPS. Sell-side analysts predict that Oracle Corporation will post 6.49 earnings per share for the current year.

Oracle Announces Dividend The business also recently declared a quarterly dividend, which was paid on Friday, July 24th. Stockholders of record on Friday, July 10th were issued a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date of this dividend was Friday, July 10th. Oracle’s dividend payout ratio (DPR) is presently 34.31%.

About Oracle (Free Report)

Oracle Corporation is a multinational technology company that develops and sells database software, cloud engineered systems, enterprise software applications and related services. The company is widely known for its flagship Oracle Database and a portfolio of enterprise-grade software products that support data management, application development, analytics and middleware. Over recent years Oracle has expanded its focus to include cloud infrastructure and cloud applications, positioning itself as a provider of both platform and software-as-a-service solutions for large organizations.

Oracle’s product and service offerings include Oracle Database and the Autonomous Database, Oracle Cloud Infrastructure (OCI), enterprise resource planning (ERP), human capital management (HCM) and supply chain management (SCM) cloud applications (often grouped under Oracle Fusion Cloud Applications), middleware such as WebLogic, and developer technologies including Java and MySQL.

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Key Takeaways WFC's ROTCE rose to 17.7% in Q2'26 from 15.2% a year ago, reaching its target range.Asset-cap removal is enabling WFC to expand loans, deposits and securities and support NII growth.Cost cuts, portfolio simplification and strong revenue growth will keep supporting profitability. Wells Fargo & Company (WFC - Free Report) has made significant progress in improving profitability following years of regulatory restrictions and operational restructuring. The bank’s return on tangible common equity (ROTCE) improved from 8% in the fourth quarter of 2020 to 14.6% by the end of 2025.

The improvement continued in 2026, bringing Wells Fargo closer to its 17-18% ROTCE target. In the second quarter of 2026, ROTCE reached 17.7%, up from 15.2% in the year-ago quarter and 14.5% in the first quarter. For the first half of 2026, ROTCE was 16.1% compared with 14.4% in the prior-year period.

A key catalyst is the removal of the Federal Reserve’s asset cap in June 2025, which had restricted WFC’s balance-sheet growth since 2018. With the cap removed and the final outstanding consent order closed in early 2026, the bank can now expand deposits, loans and securities holdings. This gives WFC greater flexibility to grow its balance sheet, generate net interest income and pursue opportunities across its businesses, particularly Markets and Corporate & Investment Banking.

Expense discipline remains another key driver of improving returns. Wells Fargo generated roughly $15 billion of gross expense savings from 2021 through 2025, while continuing to invest in technology, risk controls and growth initiatives. The bank is still pursuing incremental efficiencies across businesses and functions. Its branch count declined 1.3% year over year to 4,079, while headcount fell 7.2% to nearly 197,500 in the second quarter of 2026, marking the 24th consecutive quarter of reductions.

In addition, Wells Fargo has been pursuing a strategic exit from non-core and lower-return businesses to sharpen its focus on consumer banking, commercial lending and other high-return areas. The effort, led by CEO Charlie Scharf since 2019, aims to reduce costs and reallocate capital toward core franchises. As part of this strategy, WFC sold its rail lease portfolio to a joint venture of GATX Corporation and Brookfield Infrastructure Partners in January 2026. The continued simplification of operations, including the transformation of Home Lending, is helping the bank to improve efficiency and profitability over time.

Overall, a combination of stronger revenue growth opportunities, efficiency gains, improved profitability across operating segments and disciplined capital management could help Wells Fargo sustain ROTCE in the 17%-18% range.

How Are Other Banks Progressing Toward ROTCE Targets?Similar to Wells Fargo, Citigroup (C - Free Report) and Citizens Financial (CFG - Free Report) are making progress toward their medium-term ROTCE targets through revenue growth, cost efficiency and strategic initiatives.

Citigroup targets a medium-term ROTCE of 14-15%. Citigroup’s transformation is gaining traction, supported by strong growth across Services, Markets, Banking and Wealth, along with cost savings from workforce reductions, automation and technology investments.

Similarly, Citizens Financial targets a 16-18% ROTCE by 2027. Through Reimagine the Bank, branch optimization and Private Bank expansion, Citizens Financial is working to improve efficiency, drive revenue growth and strengthen its business mix.

WFC’s Price Performance, Valuation & EstimatesShares of Wells Fargo have gained 4% in the past year compared with the industry’s growth of 21.4%.

Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, WFC trades at a forward price-to-earnings (P/E) ratio of 11.01X, below the industry’s average of 13.89X.

Price-to-Earnings F12M
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for WFC’s 2026 and 2027 earnings implies year-over-year rallies of 15.5% and 9.5%, respectively. Estimates for both years have been revised upward over the past month.

Estimate Revision Trend

Image Source: Zacks Investment Research

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

Key Takeaways WFC plans to recruit hundreds of independent advisers to expand its wealth-management business.Advisor Gateway offers access to more than 200 tools, including Aladdin Wealth and generative AI capabilities.WFC's wealth push could attract assets and boost recurring fee revenues, but execution remains key. Wells Fargo & Company (WFC - Free Report) is stepping up efforts to expand its wealth management business by recruiting hundreds of independent financial advisers, according to a Bloomberg report published by Yahoo Finance. The hiring push builds on the bank’s multi-year effort to strengthen its Wealth & Investment Management (WIM) division and deepen relationships with affluent and high-net-worth clients.

WFC has been revamping its WIM business since 2020, when it reorganized its operations into five major business lines. WIM offers wealth management, brokerage, financial planning, lending, private banking, trust and fiduciary services to affluent, high-net-worth and ultra-high-net-worth clients. This broad offering enables the bank to address multiple financial needs, deepen client relationships and generate more revenue from wealthy customers beyond traditional banking activities.

Expanding its independent adviser network is a key part of this strategy. Independent advisers are becoming an increasingly important growth channel as financial professionals seek greater control over their practices while retaining access to institutional technology, investment products and infrastructure. WFC’s model gives advisers greater flexibility while allowing them to leverage the bank’s resources.

The bank is also strengthening its adviser capabilities through expanded investment offerings and technology. In May 2026, WFC launched Advisor Gateway, giving advisers one-click access to more than 200 tools and applications, including BlackRock’s Aladdin Wealth technology and generative AI capabilities. Last year, WIM added alternative investments to its Personalized Unified Managed Account program in collaboration with InvestCloud, enabling qualifying clients to hold traditional and alternative assets in a single account. These enhancements are expected to help WFC attract more advisers and assets, improve productivity and capitalize on growing demand for alternative investments.

The wealth management push also aligns with WFC’s broader strategy under CEO Charlie Scharf. Since 2019, the bank has been exiting non-core and lower-return operations to focus resources on its core, higher-return businesses. Meanwhile, the company has been expanding across multiple business lines since the Federal Reserve lifted the asset cap that had constrained its growth since 2018. Reallocating resources toward higher-return businesses, including wealth management, will likely support growth in fee-based recurring revenues, client assets, deposits and lending. However, successful execution will be key to driving sustainable growth and higher returns.

How Are WFC Peers Scaling Wealth Management Business?Similar to WFC, UBS Group (UBS - Free Report) and Morgan Stanley (MS - Free Report) are strengthening wealth management operations through acquisitions, partnerships and technology investments to expand capabilities, deepen client relationships and diversify revenues.

UBS Group has strengthened its wealth franchise through the acquisition and integration of Credit Suisse, while expanding its private-market capabilities through a partnership with MSCI. UBS Group also received a U.S. national bank charter for UBS Bank USA in March 2026, supporting its banking and wealth management offerings.

Similarly, Morgan Stanley has expanded wealth and investment management businesses through acquisitions, including E*TRADE Financial and Eaton Vance. The businesses accounted for nearly 54% of total net revenues in 2025, up from 26% in 2010, highlighting the growing contribution of wealth and investment management to Morgan Stanley’s overall business mix.

WFC’s Price Performance, Valuation & EstimatesShares of Wells Fargo have gained 3.4% in the past year compared with the industry’s growth of 22%.

Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, WFC trades at a forward price-to-earnings (P/E) ratio of 11.03X, below the industry’s average of 14X.

Price-to-Earnings F12M
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for WFC’s 2026 and 2027 earnings implies year-over-year increases of 15.5% and 9.5%, respectively. Estimates for both years have been revised marginally upward over the past month.

Estimate Revision Trend
Image Source: Zacks Investment Research

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

It has been about a month since the last earnings report for American Tower (AMT - Free Report) . Shares have lost about 2% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is American Tower due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for American Tower Corporation before we dive into how investors and analysts have reacted as of late.

American Tower Q2 AFFO Meets Estimates, Revenues Beat, '26 View UpAmerican Tower Corporation reported second-quarter 2026 adjusted funds from operations (AFFO) per share of $2.71, matching the Zacks Consensus Estimate. The metric increased 4.2% from the year-ago quarter.

Total revenues rose 4.7% year over year to $2.75 billion, surpassing the consensus mark by 1.5%. Results benefited from higher property revenues, robust global leasing activity and continued data center growth.

American Tower’s Property Portfolio Drives Revenue GrowthTotal property revenues increased 6.3% year over year to $2.69 billion. Property operations remained the company’s primary growth engine, supported by tower leasing demand and expansion across its data center platform.

Total tenant billings grew 2.4%, while organic tenant billings rose $34 million. Property gross margin expanded 4.9% to $1.98 billion, with the property gross margin standing at 73.7%.

American Tower Benefits From Data Center DemandData center revenues increased 13.4% year over year to $297 million. Cash revenues jumped 12.3%, reflecting healthy customer demand and strong leasing activity at CoreSite.

Management highlighted record leasing activity in the business. The company now expects data center property revenue growth of 14.9% at the midpoint of its updated 2026 outlook, indicating faster growth than anticipated earlier in the year.

American Tower Posts Broad Regional Leasing TrendsOrganic tenant billings growth, excluding the impact of DISH churn, was approximately 4% globally. Africa & APAC delivered a 10.6% rise, while Europe recorded an increase of 4.1%.

U.S. & Canada organic tenant billings grew 0.7% on a reported basis but were approximately 5% when excluding DISH churn. Latin America declined 2.4%, reflecting softer tenant billing trends in the region.

American Tower Generates Strong Cash FlowCash provided by operating activities increased 16% year over year to $1.49 billion. After total cash capital expenditures of $329 million, free cash flow climbed 19.6% to $1.16 billion.

The company declared a quarterly distribution of $1.79 per share, up 5.3% from the prior-year period. It also repurchased approximately 0.1 million shares for about $19 million during the quarter.

American Tower Maintains Financial FlexibilityAmerican Tower ended June with net debt of $35.43 billion, resulting in a net leverage ratio of 4.9 times annualized adjusted EBITDA.

Total liquidity stood at approximately $9.9 billion. This included nearly $1.8 billion in cash and roughly $8.2 billion available under revolving credit facilities, net of outstanding letters of credit.

American Tower Raises Its 2026 OutlookAmerican Tower raised the midpoint of its full-year property revenue outlook by $110 million. Property revenues are now projected between $10.70 billion and $10.85 billion, implying 4.5% growth at the midpoint. AFFO per share is projected between $11 and $11.17.

The updated outlook reflects favorable currency movements, data center outperformance and one-time expense benefits. The company also expects approximately 1% organic tenant billings growth, or roughly 4%, excluding DISH churn, along with about 15% data center revenue growth.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in fresh estimates.

VGM ScoresAt this time, American Tower has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.

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

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Interestingly, American Tower has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerAmerican Tower is part of the Zacks REIT and Equity Trust - Other industry. Over the past month, Digital Realty Trust (DLR - Free Report) , a stock from the same industry, has gained 2.8%. The company reported its results for the quarter ended June 2026 more than a month ago.

Digital Realty Trust reported revenues of $1.92 billion in the last reported quarter, representing a year-over-year change of +28.9%. EPS of $1.21 for the same period compares with $1.87 a year ago.

For the current quarter, Digital Realty Trust is expected to post earnings of $1.98 per share, indicating a change of 0% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days.

Digital Realty Trust has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.

Key Takeaways KMB reached its highest-ever productivity level of 6.4% in the second quarter of 2026.A $45 million tariff refund and productivity gains helped offset higher brand investment.KMB expects mitigating actions to largely offset $150 million of second-half input-cost headwinds. Kimberly-Clark Corporation (KMB - Free Report) delivered its highest productivity level ever in the second quarter of 2026, reaching 6.4%. The strong productivity performance, together with a tariff refund received in the second quarter, more than offset the higher level of brand investment compared with the prior year. This reflects the company’s ability to generate productivity gains while continuing to invest in its brands.

The company remains focused on managing its entire toolkit to navigate cost pressures, with productivity serving as a key area of emphasis. Management believes there is still significant room to improve productivity in North America, particularly as the company continues its $2 billion investment in supply-chain restructuring. The investment is expected to provide additional productivity opportunities, with the restructuring program continuing through 2027 and 2028.

The company expects around $150 million of gross input-cost headwinds in the second half, based on current oil prices and actions already underway. These impacts are fully incorporated into the company’s outlook.

To manage these pressures, Kimberly-Clark is taking a comprehensive approach that goes beyond revenue growth management. Alongside productivity and pricing actions, the company is also managing negotiations and contracts with its vendors and suppliers as part of its broader toolkit.

Management expects mitigating actions, together with the $45 million tariff refund received in the second quarter, to offset these incremental costs. As a result, the company expects pricing, net of cost inflation, to remain roughly neutral for the full year despite the additional input-cost pressures.

Overall, Kimberly-Clark’s productivity gains are an important part of the company’s efforts to manage rising costs, while pricing actions, supplier negotiations and other measures are also being used to offset inflationary pressures. This approach allows Kimberly-Clark to address cost pressures while continuing to prioritize innovation and brand-building initiatives.

The Zacks Rundown for KMBShares of this Zacks Rank #3 (Hold) company have gained 10.8% in the past three months compared with the industry’s growth of 4.4%.

Image Source: Zacks Investment Research

From a valuation standpoint, KMB trades at a forward price-to-earnings ratio of 14.88, lower than the industry’s average of 18.75.

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The Zacks Consensus Estimate for KMB’s current fiscal-year earnings implies a year-over-year decline of 1.5%, and the same for next fiscal year earnings implies growth of 1.7%.

Image Source: Zacks Investment Research

Stocks to ConsiderSome better-ranked stocks have been discussed below:

WD-40 Company (WDFC - Free Report) engages in the provision of maintenance products and home care and cleaning products in North America, Central and South America, Asia, Australia, Europe, India, the Middle East, and Africa. At present, WDFC carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for WDFC’s current fiscal-year sales and earnings suggests growth of 9.9% and 7.2%, respectively, from the year-ago reported figures. WDFC reported a trailing four-quarter average earnings surprise of 18.3%.

BBB Foods Inc. (TBBB - Free Report) provides spot products comprising food and non-food products, such as clothing, electronics, household goods, and others. At present, TBBB carries a Zacks Rank of 2.

The Zacks Consensus Estimate for TBBB’s current fiscal-year sales and earnings implies growth of 44.6% and 52.7%, respectively, from the year-ago reported figures. TBBB delivered a trailing four-quarter negative earnings surprise of 44%, on average.

Purple Innovation, Inc. (PRPL - Free Report) designs, manufactures, and sells sleep and other products in the United States and internationally. PRPL currently carries a Zacks Rank #2.

The Zacks Consensus Estimate for PRPL's current fiscal-year sales and earnings implies growth of 0.4% and 20.8%, respectively, from the year-ago actuals. PRPL delivered a trailing four-quarter earnings surprise of 21.3%, on average. 

Key Takeaways General Mills removed certified colors from U.S. cereals; 90% of its retail portfolio now avoids them. GIS plans more than twice as many nutrition-aligned launches this fiscal year as it did two years ago. Cheerios Protein nears $100M in retail sales, while Annie's Super Mac grew more than 80% in fiscal 2026. General Mills, Inc. (GIS - Free Report) is adapting its portfolio as consumers increasingly seek recognizable ingredients, cleaner labels and foods offering specific nutritional benefits. This shift is particularly important for established packaged-food companies, where maintaining brand relevance can support household penetration and help defend volumes in a competitive and value-conscious environment.

The company’s latest move is the elimination of certified colors from its entire U.S. cereal portfolio, including brands such as Lucky Charms and Trix. Following the earlier completion of this transition across K-12 school foods, 90% of General Mills’ U.S. retail portfolio is now made without certified colors. GIS expects to complete the transition across its remaining U.S. retail products by the end of 2027.

The initiative forms part of a broader effort to address consumer demand for protein, fiber, clean-label products and other benefit-led offerings. General Mills expects to launch more than twice as many products aligned with evolving nutrition preferences this fiscal year as it did two years ago, indicating that product renovation is becoming a more significant component of its growth strategy.

Several brands are already moving in this direction. Cheerios Protein is approaching $100 million in retail sales, while protein-focused innovation is expanding to Honey Nut Cheerios. Nature Valley is emphasizing protein and clean-label offerings, while Annie’s Super Mac, containing 15 grams of protein and 6 grams of fiber per serving, generated retail sales growth of more than 80% in fiscal 2026.

General Mills’ ability to benefit from these changing preferences will depend on how effectively it turns product improvements into stronger consumer demand. Removing certified colors alone may not significantly boost growth, but together with innovation in protein, fiber, taste, packaging and value, it could make General Mills’ brands more appealing to consumers. If these efforts improve household penetration and volumes, they could support General Mills’ return to profitable organic sales growth.

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Shares of this Zacks Rank #3 (Hold) company have tumbled 13.8% year to date against the industry’s growth of 5.8%.

Better-Ranked Stocks to ConsiderThe Chefs' Warehouse, Inc. (CHEF - Free Report) is a distributor of specialty food and center-of-the-plate products across the United States, Canada and the Middle East. CHEF currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for The Chefs' Warehouse’s current fiscal-year sales and earnings per share (EPS) implies growth of 10.6% and 33.7%, respectively, from the year-ago figures. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.

The Vita Coco Company, Inc. (COCO - Free Report) , a leading beverage company that develops, markets and distributes coconut water and other plant-based beverages, currently sports a Zacks Rank #1. COCO delivered a trailing four-quarter earnings surprise of 21.9%, on average.

The Zacks Consensus Estimate for The Vita Coco Company’s current fiscal-year sales and EPS calls for growth of 31.6% and 64.7%, respectively, from the year-ago figures.

Darling Ingredients Inc. (DAR - Free Report) , a global developer and producer of sustainable natural ingredients derived from edible and inedible bio-nutrients, currently carries a Zacks Rank of 2 (Buy).

The Zacks Consensus Estimate for Darling’s current fiscal-year sales suggests an 11.5% jump from the prior-year levels. The consensus estimate for current fiscal-year EPS stands at $6.98, which implies a substantial improvement from the year-ago period. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.