Track market-moving stories before they get noisy

American Express is slashing 5% of its workforce as the credit card giant prepares to automate some of its internal processes using AI – the latest tech-driven layoffs to hit the financial sector.

The company on Friday announced a $336 million restructuring charge as part of the layoffs, which will impact thousands of the firm’s roughly 77,000 workers. 

Christophe Le Caillec, the firm’s chief financial officer, told CNBC after the firm reported its third-quarter earnings that the reorganization will make American Express “leaner, more agile, and also [able] to prepare for AI.”

American Express CEO Stephen Squeri speaks during an event in New York on Nov. 10, 2022. Bloomberg via Getty Images
“You don’t want to automate processes that are not optimally structured,” he added. “So what we’re doing here is to reduce layers and increase spans of controls, so that we can automate and take advantage of AI in the coming quarters and the coming years.”

Shares of American Express slid 3.8% by about 1 p.m. ET as investors took the layoffs as the latest example of AI’s potential to eliminate jobs. 

British lender Barclays on Thursday announced 5,000 planned job cuts in its own AI push.

So far this year through September, AI has been cited in more than 120,000 job cut announcements, according to data from Challenger, Gray & Christmas. 

The financial sector and other white-collar professions have been among those most impacted by the new tech.

Despite record-low consumer sentiment readings and stubbornly high inflation, American Express reported a rise in profits as shoppers – especially wealthier ones – have shrugged off sky-high prices and continued to spend.

But during a post-earnings call Friday, CEO Stephen Squeri said the AI push and layoffs were necessary to improve efficiency and prepare for the future.

The company announced planned job cuts that will impact thousands of workers. JHVEPhoto – stock.adobe.com
“We’ve got good momentum, but to accelerate innovation and win over the next few years, we needed to become [a] more agile and efficient organization,” he said.

He added that the company will use AI to personalize customer experiences and offers, but assured investors that American Express is “not going to let assistants run rogue through our system.”

Tech giants have reported a slew of concerning incidents in which AI agents broke out of their restraints or turned off safety systems. 

Industry leaders like Anthropic CEO Dario Amodei and OpenAI’s Sam Altman have called for more regulations and a development pause after a researcher last month sounded the alarm over the potential for AI to wipe out the human race.

The credit card giant also reported strong earnings. REUTERS
“We need to protect our customers [and] merchants, and we’re only going to allow agents to access our systems that are either approved through API or MCP channels,” Squeri said, referencing two external security systems.

On Friday, the credit card company reported adjusted earnings per share of $4.68 – beating expectations of $4.48.

Revenue jumped 9% to $20.06 billion, slightly missing estimates of $20.12 billion. 

American Express also hiked its full-year earnings forecast to $18.30 to $18.60 a share, up from a previous range of $17.30 to $17.90.

Its sale of the company’s stake in Global Business Travel Group helped boost its earnings prediction, according to Le Caillec.

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Travelers (TRV - Free Report) , which currently has a Momentum Style Score of A. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Travelers currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for TRV that show why this insurer shows promise as a solid momentum pick.

Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.

For TRV, shares are up 5.64% over the past week while the Zacks Insurance - Property and Casualty industry is up 3.58% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 11.88% compares favorably with the industry's 8.69% performance as well.

Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of Travelers have increased 7.83% over the past quarter, and have gained 50.67% in the last year. In comparison, the S&P 500 has only moved 2.49% and 15.59%, respectively.

Investors should also pay attention to TRV's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. TRV is currently averaging 1,341,677 shares for the last 20 days.

Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with TRV.

Over the past two months, 14 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost TRV's consensus estimate, increasing from $33.82 to $35.96 in the past 60 days. Looking at the next fiscal year, 11 estimates have moved upwards while there have been 1 downward revision in the same time period.

Bottom LineTaking into account all of these elements, it should come as no surprise that TRV is a #2 (Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Travelers on your short list.

Key Takeaways MGM Resorts is set to report Q3 earnings on Oct. 28, with EPS expected to fall 45.8% to 13 cents.Strong group bookings, premium gaming and entertainment events are likely to boost MGM's Las Vegas results.MGM's digital revenues are projected to rise to $207M, while regional revenues may decline to $870M.
MGM Resorts International (MGM - Free Report) is scheduled to report third-quarter 2026 results on Oct. 28, after the closing bell.

MGM’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, the average surprise being 24%.

Trend in Estimate Revision of MGMThe Zacks Consensus Estimate for third-quarter earnings per share (EPS) is pegged at 13 cents, indicating a deterioration of 45.8% from 24 cents reported in the year-ago quarter.

For revenues, the consensus mark is pegged at nearly $4.25 billion, suggesting growth of 0.1% from the prior-year quarter’s figure.

Let's look at how things have shaped up in the quarter.

Factors Likely to Shape MGM Resorts’ Quarterly ResultsMGM Resorts' third-quarter performance is likely to have benefited from continued momentum across its Las Vegas Strip Resorts, supported by group and convention bookings, premium gaming demand and an expanded entertainment calendar. Management highlighted a favorable group booking environment entering the quarter, alongside a larger calendar of sports and entertainment events compared with the year-ago period. These factors are expected to have supported casino activity, hotel demand and non-gaming spending.

The company's Las Vegas Strip Resorts are likely to have benefited from the recovery at MGM Grand, supported by renovated room inventory and favorable gaming trends. Continued demand for premium gaming experiences and investments in luxury offerings are expected to have aided performance. Management also highlighted encouraging trends in high-end customer spending, which may have supported gaming revenues and overall profitability in the quarter under review. The Zacks Consensus Estimate for third-quarter Las Vegas Strip revenues is pegged at $1.99 billion, compared with $1.98 billion reported in the prior-year quarter. Segment-adjusted property EBITDA is projected at $582 million, down from $601 million reported in the year-ago quarter.

MGM China's third-quarter performance is likely to have benefited from a recovery in gaming volumes following the temporary disruption caused by the World Cup in June. Continued investments in premium gaming facilities, renovated suites and luxury hospitality offerings are expected to have supported customer engagement and gaming activity. The recently upgraded suites at MGM Cotai and expanded premium gaming areas may also have strengthened the company's competitive position in Macao. However, higher intercompany branding fees may have weighed on segment profitability. MGM China’s adjusted property EBITDA is projected at $254 million, down from $284 million in the prior-year quarter.

Digital operations are likely to have supported revenue growth, driven by the launch of MGM Digital's proprietary sportsbook in Sweden and growing traction for BetMGM-branded offerings internationally. Encouraging trends in first-time deposits, active players and net gaming revenues in Brazil may also have aided performance. The consensus estimate for digital revenues is pegged at $207 million, up from $174 million a year ago.

However, softness in lower-end leisure demand may have weighed on Las Vegas hotel performance. Management acknowledged continued demand challenges at Luxor and Excalibur, despite some stabilization from value-oriented packages. Subdued international visitation, cautious spending among value-conscious consumers and seasonal fluctuations in leisure demand may also have constrained hotel revenues and gaming activity. Regional Operations' performance is likely to have reflected continued benefits from targeted capital investments and premium gaming upgrades. However, the absence of contributions from Northfield Park following its divestiture may have weighed on reported revenues and profitability. The consensus estimate for regional revenues is pegged at $870 million, down from $957 million reported in the prior-year quarter, while adjusted property EBITDA is expected to decline to $253 million from $296 million.

What Our Model Says About MGM StockOur proven model does not conclusively predict an earnings beat for MGM Resorts this time around. The company does not have the right combination of the two key ingredients, a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), to increase the odds of an earnings beat.

MGM’s Earnings ESP: MGM Resorts has an Earnings ESP of -22.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

MGM’s Zacks Rank: The company currently has a Zacks Rank #5 (Strong Sell).

Stocks Poised to Beat on EarningsHere are some stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.

Cinemark Holdings, Inc. (CNK - Free Report) currently has an Earnings ESP of +4.49% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cinemark’s earnings for the to-be-reported quarter are expected to increase 127.5%. CNK reported better-than-expected earnings in the trailing three out of four quarters and missed once, the average miss being negative 11.4%.

Rush Street Interactive, Inc. (RSI - Free Report) currently has an Earnings ESP of +2.44% and a Zacks Rank of 2.

RSI’s earnings for the to-be-reported quarter are expected to increase 55.6%. Rush Street Interactive reported better-than-expected earnings in the trailing two out of four quarters, missed estimates once and reported in line once, with the average surprise being 6.3%.

Marriott Vacations Worldwide Corporation (VAC - Free Report) has an Earnings ESP of +10.02% and a Zacks Rank of 3 at present.

Marriott Vacations is expected to register a 45% increase in earnings for the to-be-reported quarter. VAC reported better-than-expected earnings in the trailing three out of four quarters and missed once, with the average surprise being 1.3%.

Key Takeaways Phillips 66's Q3 earnings are expected to jump nearly 377% y/y despite a projected 3.6% revenue dip.High refining utilization and strong crack spreads may offset rising crude costs and support Q3 profits.PSX's diversified business offers stability, but its 12.52x EV/EBITDA exceeds the industry's 6.36x average. Phillips 66 (PSX - Free Report) is set to report third-quarter 2026 results on Oct. 28, before the opening bell.

The Zacks Consensus Estimate for third-quarter earnings is pegged at $12.02 per share, implying an improvement of almost 377% from the year-ago reported number. It has witnessed one upward estimate revision in the past seven days. The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $33.7 billion, suggesting a decline of 3.6% from the year-ago actuals.

Image Source: Zacks Investment Research

PSX beat the consensus estimate for earnings in each of the trailing four quarters, with the average surprise being 62.6%. This is depicted in the graph below:  

Q3 Earnings Whispers for PSXOur proven model doesn’t predict an earnings beat for PSX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That isn’t the case here.

The leading refining player has an Earnings ESP of 0.00%. PSX currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

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

PSX’s Factors to NoteTo understand how oil prices behaved in the September quarter, let's analyze the commodity prices from the data provided by the U.S. Energy Information Administration (“EIA”). The average Cushing, OK, WTI spot prices for July, August and September of this year were $80.46 per barrel, $83.90 per barrel and $97.31 per barrel, respectively, per EIA data. Commodity prices were $68.39 per barrel, $64.86 per barrel and $63.96 per barrel in the prior-year, respective quarters, according to the EIA.

A constructive oil-price backdrop, driven by the Iran war, is likely to have hurt the refining business of Phillips 66 in the third quarter, since the input costs to produce final products like gasoline, diesel fuel and others were higher. A similar dynamic is likely to have affected Par Pacific Holdings, Inc. (PARR - Free Report) and Valero Energy Corporation (VLO - Free Report) , belonging to the same space.

However, the high utilization of refineries in the United States to meet resilient demand is likely to have largely offset the negative impacts of high input costs.

PSX’s Price Performance & ValuationPSX's stock has surged 110.8% over the past year, underperforming the industry’s 132.9% growth. PARR has jumped 100.8% over the same time frame, while VLO has gained 149.2%.

One-Year Price Chart

Image Source: Zacks Investment Research

Despite PSX’s stock price underperforming the industry, the company appears relatively overvalued. The company's current trailing 12-month enterprise value/earnings before interest, tax, depreciation and amortization (EV/EBITDA) is 12.52x, reflecting that it is trading at a premium compared with the industry average of 6.36x.  VLO and PARR are valued lower at 9.00x and 3.37x, respectively.

Image Source: Zacks Investment Research

Investment Thesis of PSXPSX noted that there aren’t enough refineries or products globally right now because much refining capacity is offline and fuel inventories are low. This shortage helps keep refining margins, also called crack spreads, high. Management believes these shortages may take longer to resolve than in 2022, which is expected to boost the energy major’s refining profits in the September quarter and in 2027. The broader scenario is also likely to favor other refiners like VLO and PARR.

Although a leading refiner, PSX, unlike most of its refining peers, has diversified into midstream and chemicals. Along with investing in refining operations, Phillips 66 is allocating significant capital to midstream.

The midstream business, by its very definition, is stable since the company generates stable cash flows as the assets are being utilized for the long term and is less vulnerable to commodity price volatility. Hence, having a diversified business model, PSX is insulated from commodity price volatility to a great extent.

Last WordGiven its relatively stable business model, it might be the ideal time for investors to bet on the stock. In fact, investors are willing to pay a premium for this stock as reflected in the valuation picture.

Edge cloud is splitting from the GPU crowd in today's trading, and one name is pulling so far ahead of its own sector fund that traders are asking whether a single partnership deal just rewrote the growth story.

Edge delivery is setting the pace in the cloud software rebound, and one specialist is pulling well ahead of the group. Fastly (NASDAQ:FSLY) stock is at $24.18, up 8% in afternoon trading. This gain ranks among the strongest performances in the cloud group.

Sector-wide gains are far smaller, which makes the jump in Fastly stock stand out even more. The First Trust Cloud Computing ETF (NASDAQ:SKYY) is trading at $167.36, up 2%. On the broad-market side, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is at $762.42, down 0.2%. Cloud buyers aren’t getting any help from the overall market.

Meanwhile, Nebius Group (NASDAQ:NBIS | NBIS Price Prediction) stock is at $161.31, up 1%, a gain that trails Fastly stock by a wide margin. CoreWeave (NASDAQ:CRWV) stock is trading at $54.85, down 1%, moving opposite both Fastly stock and the cloud fund. That split puts Nebius and CoreWeave on opposite sides of a rebound that Fastly stock is leading.

Edge Cloud Leads the Software Bounce
Cloud software stocks are rebounding, and Fastly is posting one of the larger gains in the group. The company runs an edge cloud network that delivers and secures web content close to users, with product lines spanning network services, security, compute, and observability. Nebius and CoreWeave sit in a different corner of the market, renting out graphics processor computing capacity to customers running AI workloads.

Earlier this month, Fastly expanded its partnership with Jio Platforms to power the upgraded JioCDN content delivery network across India. Under the arrangement, Fastly’s programmable edge cloud runs on Jio’s 5G and fixed broadband network, which gives the platform a carrier-scale distribution path. Any link between that agreement and the stock’s jump is still an open question, since the deal came before the current session.

GPU Cloud Names Split From Fastly
Fastly stock is far outpacing the cloud computing fund, and its lead over the GPU providers is wider still, which keeps the spotlight on Fastly’s edge business, a model tied to how much web traffic flows across its network.

Edge positioning gives Fastly a direct line to the rise in machine-generated traffic, a corner of the market where GPU rental plays no part. Company disclosures describe AI traffic as reshaping the internet and lifting demand for tools such as bot management and distributed denial-of-service protection. Reddit, Universal Music Group, and SeatGeek are among the brands already running on Fastly’s platform.

Optimists see that shift in traffic turning into wider adoption of Fastly’s security and compute products, but skeptics counter that a sharp one-session jump can fade quickly when the broad market is slipping and the stock has already outrun its sector fund. Steady demand for AI computing capacity supports the optimism. For Nebius and CoreWeave, the heavy spending needed for that expansion keeps a lid on it (we covered seven suppliers riding that same AI expansion, from power to networking, in a free report).

Jio Deal Sets Up Fastly’s Next Report
Fastly’s upcoming quarterly report will show whether the expanded Jio partnership shows up. Shareholders can watch for whether management puts specific figures behind the JioCDN launch and the India traffic it carries. Hard evidence of that contribution is what would turn a sharp rally into a story grounded in results.

Running this far ahead of both the SKYY cloud fund and the SPY ETF leaves Fastly stock with little buffer if the cloud rebound cools off. Traders may prefer to keep their exposure small until Fastly’s next quarterly report is released.

Got $1,000? Before You Buy NBIS, Read ThisIf you have cash sitting in your account right now, give this two minutes. After more than two decades of helping investors beat the market, our top analysts at 24/7 Wall St. put together a definitive report on the Top 10 Stocks To Buy Today. And NBIS wasn't one of them.

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Contact [email protected] for any questions or corrections.

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Litigation sought reimbursements for violations of state law in prescribing practices, charges to Medicaid program

HOUSTON--(BUSINESS WIRE)--Building on decades of holding pharmaceutical companies responsible for dangerous products and unlawful business practices, The Lanier Law Firm played a pivotal role supporting Texas Attorney General Ken Paxton in securing a $45 million settlement with Gilead Sciences, Inc. Announced on Oct. 22, the settlement resolves claims that the company offered illegal incentives to medical providers to prescribe its drugs over competitors’ medications.

In many cases, these prescriptions resulted in millions of dollars in claims submitted to Texas Medicaid in violation of the Texas Health Care Program Fraud Prevention Act. As outlined in the lawsuit, Gilead allegedly offered other incentives such as “free nurses” and reimbursement support services to further influence medical providers to prescribe the company’s products.

In the litigation initially filed in 2023, the firm’s Mark Lanier, Zeke DeRose, Jonathan Wilkerson and Alex Brown represented Health Choice Advocates, whose mission is to investigate and bring Medicaid fraud litigation against major pharmaceutical companies. Attorneys with the firm of McKool Smith PC served as co-counsel for the non-profit company.

“As we’ve seen in many other cases, Big Pharma is often motivated by corporate profits rather than what is best and safest for patients, and what is in compliance with the law,” says Mr. Lanier. “We are proud to stand with the State of Texas in exposing this kickback scheme and prevent further abuse of taxpayer funds and the Medicaid program.”

The firm is also supporting ongoing and separate litigation brought by the Attorney General against Bristol-Myers Squibb Co., Novartis and Eli Lilly and Company for similar claims of unlawful prescribing practices and fraud.

About the Lanier Law Firm

For more than 30 years, the men and women at The Lanier Law Firm have worked tirelessly, throughout the United States, to find unique and effective solutions for their clients. More than 60 skilled attorneys practice law in a broad array of areas, including business litigation, pharmaceutical litigation, asbestos exposure, oil and gas litigation, personal injury as well as defective and dangerous products, among others. Named an Elite Trial Law Firm by The National Law Journal, The Lanier Law Firm has offices in Houston, New York, Fort Worth and Los Angeles. To learn more, visit http://www.lanierlawfirm.com.

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Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a growth stock that can live up to its true potential can be a tough task.

In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.

However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.

Airbnb, Inc. (ABNB - Free Report) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.

While there are numerous reasons why the stock of this company is a great growth pick right now, we have highlighted three of the most important factors below:

Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Airbnb is 22.8%, investors should actually focus on the projected growth. The company's EPS is expected to grow 31.2% this year, crushing the industry average, which calls for EPS growth of 28.3%.

Impressive Asset Utilization RatioAsset utilization ratio -- also known as sales-to-total-assets (S/TA) ratio -- is often overlooked by investors, but it is an important indicator in growth investing. This metric shows how efficiently a firm is utilizing its assets to generate sales.

Right now, Airbnb has an S/TA ratio of 0.52, which means that the company gets $0.52 in sales for each dollar in assets. Comparing this to the industry average of 0.51, it can be said that the company is more efficient.

While the level of efficiency in generating sales matters a lot, so does the sales growth of a company. And Airbnb is well positioned from a sales growth perspective too. The company's sales are expected to grow 15.8% this year versus the industry average of 3.2%.

Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The current-year earnings estimates for Airbnb have been revising upward. The Zacks Consensus Estimate for the current year has surged 0.2% over the past month.

Bottom LineAirbnb has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.

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

This combination indicates that Airbnb is a potential outperformer and a solid choice for growth investors.

Palantir Technologies (PLTR +0.04%) has been one of the biggest winners of the artificial intelligence (AI) boom, with its stock gaining more than 1,000% over the last three years. But investors who think the company's best days are behind it may be in for a surprise when Palantir reports its third-quarter results on Nov. 2.

That's because Palantir has developed a habit of beating its own revenue guidance -- and its margins are widening.

The company's guidance was for third-quarter revenue between $2.160 billion and $2.164 billion, which would amount to another impressive quarter of growth. But based on Palantir's performances in the first half of the year, I think that forecast is far too conservative.

In fact, I wouldn't be surprised if Palantir delivers more than $2.3 billion in revenue, easily surpassing its own expectations.

Here's why.

Image source: The Motley Fool.

Palantir keeps raising the bar Palantir has been on an incredible run this year, fueled by demand for its Artificial Intelligence Platform (AIP), which helps businesses and government agencies analyze enormous amounts of information and use AI to make decisions.

But what's particularly interesting is how Palantir consistently underestimates its own growth. When the company issued its first-quarter guidance in February, it projected revenue between $1.532 billion and $1.536 billion. Instead, it delivered $1.633 billion -- about 6.4% above the midpoint of that range.

The second quarter's beat was even better. Management projected revenue between $1.797 billion and $1.801 billion, but Palantir generated $1.935 billion -- approximately 7.5% more than projected.

The company's growth is accelerating, too. Revenue increased 16% sequentially in the first quarter, followed by a 19% increase in the second quarter. Year-over-year revenue growth reached 93% in Q2, up from 85% in Q1.

Now look at the company's third-quarter guidance.

PLTR Palantir Technologies$196.26+$0.07 (+0.04%)

NASDAQ · As of 2:00 PM ET 10/23/26

Palantir's forecast of approximately $2.16 billion represents sequential growth of just under 12%. That would be a significant slowdown in growth from the previous quarter.

That doesn't make much sense to me, particularly when Palantir's commercial business has been expanding so rapidly. If the company simply matches its second-quarter sequential growth rate of 19%, third-quarter revenue would reach approximately $2.3 billion. And I think there's a reasonable chance Palantir will do even better.

Commercial demand is driving the growth The biggest reason for my optimism is Palantir's U.S. commercial business, which has been growing at an extraordinary pace. Second-quarter U.S. commercial revenue increased 149% year over year to $764 million, while sequential growth reached 28%.

But revenue only tells part of the story. During the second quarter, Palantir closed 220 deals valued at $1 million or more, including 73 deals worth at least $10 million. Total contract value reached $3.37 billion, while U.S. commercial remaining deal value increased 124% year over year to $6.24 billion.

Those numbers suggest Palantir has plenty of business in the pipeline, although contract values don't necessarily translate into immediate revenue.

It has been expanding its emphasis on AI sovereignty -- giving businesses and governments greater control over their AI systems, sensitive information, and operational decisions.

Palantir recently conducted two sovereignty boot camps that attracted nearly 200 organizations, introducing potential customers to its technology and demonstrating how they can use AI without surrendering control of their data.

I've previously argued that these boot camps could generate another wave of commercial business. While it's too early to know how much revenue they'll lead to, they give Palantir another way to reach customers seeking practical AI applications.

Meanwhile, the company's government business remains a powerful source of growth. Its U.S. government revenue increased 90% year over year in the second quarter to $809 million, reflecting demand for its defense and intelligence applications.

Why I'm expecting another earnings beat While there are no guarantees in investing, it's hard to argue against Palantir's performance. It exceeded its revenue guidance by increasingly large margins in each of the last two quarters, while its commercial business continues to expand at triple-digit percentage rates.

For me, the most important question the Nov. 2 report will answer won't be whether Palantir beat its $2.16 billion forecast. I expect that to happen. I'll be watching to see whether its revenue crossed $2.3 billion, and whether its growth has kept accelerating.

I remain bullish on Palantir for the long term. And I suspect its next earnings report will give investors another reason to be excited.

Key Takeaways Bristol Myers Squibb gains an edge with a lower valuation, higher dividend yield and more favorable outlook.AbbVie's Skyrizi and Rinvoq growth offsets Humira declines, but competition and pricing pressures persist.BMY trades at 9.68X forward earnings versus ABBV's 18.21X, while offering a 4% dividend yield. Bristol Myers Squibb (BMY - Free Report) and AbbVie (ABBV - Free Report) are two leading pharma/biotech players with diversified portfolios and a strong global presence.

BMY has built a robust portfolio comprising drugs for oncology, hematology, immunology, cardiovascular, neuroscience and other therapeutic areas.

AbbVie is a global, diversified biopharmaceutical company with a dominant position across key therapeutic areas, including immunology, neuroscience, oncology, aesthetics and eye care.

Both biopharma/biotech giants have strong footholds in their targeted businesses, delivering consistent returns to shareholders. Against this backdrop, choosing one stock over the other can be tricky. Let us delve into their fundamentals, growth prospects, challenges and valuation levels to make a prudent choice.

The Case for BMYBristol Myers Squibb’s growth portfolio remains the cornerstone of its revenue trajectory, led by key therapies such as Opdivo, Opdivo Qvantig, Orencia, Yervoy, Reblozyl, Camzyos, Breyanzi, Opdualag, Zeposia, Abecma, Sotyktu, Krazati and Cobenfy.

The portfolio generated approximately 56% of total revenues in the first half of 2026, highlighting its importance to the company’s growth strategy.

Growth is led by the immuno-oncology franchise, with newer products such as Camzyos, Breyanzi and Reblozyl gaining momentum and helping offset declines in the legacy portfolio.

Although sales of blockbuster immuno-oncology drug Opdivo declined, primarily due to the ongoing shift to the subcutaneous Opdivo Qvantig in the United States, strong uptake of Qvantig across approved tumor types is helping cushion the decline. Qvantig has already surpassed $1 billion in annualized revenues.

Opdualag continues to benefit from strong global demand and its leading position as a first-line melanoma standard of care in the United States.

Reblozyl, developed in partnership with Merck, is delivering strong growth, supported by solid uptake in first-line MDS-associated anemia, sustained demand in the second-line setting and increasing penetration among first-line RS-negative patients.

Breyanzi is also generating solid sales momentum, fueled by its differentiated profile and growing demand across approved large B-cell lymphoma indications in the United States and international markets.

Cardiovascular drug Camzyos continues to gain traction, supported by promotional efforts, a growing base of new prescribers and deeper penetration in community settings.

In immunology, Sotyktu is an important growth driver, with its recent approval in psoriatic arthritis expanding its commercial opportunity in rheumatology. Ongoing Phase III studies in systemic lupus erythematosus and Sjögren’s disease could further expand its addressable market, if successful.

Newer products such as Cobenfy for schizophrenia provide additional long-term growth potential, with early launch momentum and opportunities for label expansion.

However, the portfolio transition remains a key challenge. Legacy products, including Eliquis, Revlimid, Pomalyst, Sprycel and Abraxane, still account for 44% of revenues and continue to face significant erosion following the loss of exclusivity for Revlimid, Pomalyst, Sprycel and Abraxane.

BMY’s recent pipeline progress strengthens its long-term growth prospects and could help offset pressure from its legacy portfolio.

The FDA recently granted accelerated approval to iberdomide, in combination with daratumumab and hyaluronidase-fihj and dexamethasone (ZDd), under the brand name Zenbexus, for adults with multiple myeloma who have received at least one prior line of therapy. Zenbexus is the first FDA-approved cereblon E3 ligase modulator (CELMoD), representing a novel class of cereblon-modulating protein degraders for multiple myeloma.

BMY is also advancing several candidates with multi-billion-dollar commercial potential, including milvexian, an oral Factor XIa inhibitor; admilparant, an LPA1 antagonist; and pumitamig, a PD-L1 x VEGF-A bispecific antibody. The company continues to pursue strategic acquisitions and collaborations to expand its pipeline. The acquisition of Orbital Therapeutics adds OTX-201, a preclinical RNA CAR-T therapy designed to reprogram cells in vivo for autoimmune diseases, along with Orbital’s RNA platform.

In 2025, Bristol Myers partnered with BioNTech to co-develop the bispecific antibody pumitamig for solid tumors. Early phase II data in triple-negative breast cancer showed encouraging antitumor activity and manageable safety with chemotherapy. By targeting both PD-L1 and VEGF-A, pumitamig could offer a differentiated approach in solid tumors and provide another long-term growth opportunity for BMY.

Bristol Myers is focusing on cost optimization to support margins. However, its aggressive deal-making strategy has significantly increased leverage. As of June 30, 2026, the company reported a debt-to-capital ratio of 65.9%, with $11.5 billion in cash and equivalents versus $42.1 billion in long-term debt, highlighting a key financial risk alongside its growth ambitions.

The Case for ABBVAbbVie’s flagship drug Humira has lost patent protection in the United States and Europe. Biosimilar competition significantly eroded the drug’s sales.

Nonetheless, AbbVie has successfully navigated this headwind by launching two other successful new immunology drugs, Skyrizi and Rinvoq.  Both these drugs are witnessing strong uptake across their approved indications, especially in the popular inflammatory bowel disease space, which includes two conditions, ulcerative colitis and Crohn’s disease. Strong sales of these drugs have enabled AbbVie to offset the decline in sales of the blockbuster drug Humira.

However, AbbVie expects a low single-digit pricing headwind for both Skyrizi and Rinvoq in 2026 and over the next few years. Competition has also intensified for Skyrizi with the launch of J&J’s new oral pill for moderate-to-severe plaque psoriasis, Icotyde, which can impact the product’s prescription trends.

AbbVie’s oncology franchise comprises drugs like Venclexta, Imbruvica and Elahere. While Imbruvica is facing generic erosion, Venclexta and Elahere maintain momentum.

The robust neuroscience portfolio is driven by higher sales of Botox Therapeutic, depression drug Vraylar, newer migraine drugs Ubrelvy and Qulipta, and new Parkinson’s disease drug Vyalev.

Approval of new drugs further expands ABBV’s portfolio.

AbbVie has been active in M&A in recent years to strengthen its early-stage pipeline and support long-term growth. Its recent acquisition of Apogee Therapeutics bolsters its immunology pipeline with a diverse portfolio of assets targeting dermatologic, respiratory and other inflammatory and immunological diseases.

AbbVie has a robust pipeline, with several important data readouts, regulatory submissions and potential approvals expected over the next couple of years, which could support future growth.

The company faces near-term headwinds, including continued Humira biosimilar erosion, slowing oncology sales and weakness in its Aesthetics business amid persistent macroeconomic challenges and economic uncertainty.

A Look at Estimates: BMY versus ABBVThe Zacks Consensus Estimate for BMY’s 2026 sales implies a year-over-year increase of 3.4%, while that for earnings per share (EPS) suggests an increase of 6.7%. The Zacks Consensus Estimate for 2026 EPS has moved south to $6.56 from $6.86 in the past 60 days, while that for 2027 EPS has moved up to $6.50 from $6.44 in the same time frame.

BMY’s Estimate Movement
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for ABBV’s 2026 sales implies a year-over-year increase of 10.6%, while that for EPS suggests a rise of 39.6%.  The Zacks Consensus Estimate for 2026 earnings has declined from $14.06 per share to $13.96 over the past 60 days, while that for 2027 earnings has dropped from $16.16 to $16.06 per share.

ABBV Estimate Movement
Image Source: Zacks Investment Research

Price Performance and Valuation of BMY and ABBVFrom a price-performance perspective, ABBV has fetched better returns than BMY in the year-to-date period. ABBV shares have rallied 28.5%, outperforming BMY’s 19.3% gain. The large-cap pharma industry has gained 19.3% in the said period.

Image Source: Zacks Investment Research

From a valuation standpoint, we use the P/E ratio of the large-cap pharma industry to compare these companies. Going by the same, ABBV shares currently trade at 18.21X forward earnings, higher than 9.68X for BMY. The industry is trading at 19.01X. 
 

Image Source: Zacks Investment Research

GILD and BMY’s attractive dividend yield is a strong positive for investors. However, ABBV’s dividend yield of 2.43% is lower than BMY’s 4%.

Which Stock Is a Better Pick for Now?While BMY carries a Zacks Rank #3 (Hold), ABBV has a Zacks Rank #4 (Sell), giving BMY the edge in this faceoff.  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Overall, Bristol Myers Squibb appears to be the more attractive investment option at present, despite AbbVie’s stronger revenue and earnings growth outlook and superior year-to-date stock performance. BMY trades at a significant valuation discount to both ABBV and the industry, while offering a higher dividend yield and a more favorable Zacks Rank. However, its reliance on successful pipeline execution, declining sales of legacy drugs and elevated debt levels remain key concerns.

AbbVie continues to benefit from robust growth in Skyrizi and Rinvoq. However, its premium valuation, intensifying competition and downward revisions to earnings estimates remain key concerns for its prospects.

Investors interested in Computer - Integrated Systems stocks are likely familiar with Micron (MU - Free Report) and Advanced Micro Devices (AMD - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, Micron is sporting a Zacks Rank of #1 (Strong Buy), while Advanced Micro Devices has a Zacks Rank of #3 (Hold). This means that MU's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

MU currently has a forward P/E ratio of 4.82, while AMD has a forward P/E of 67.28. We also note that MU has a PEG ratio of 0.15. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AMD currently has a PEG ratio of 4.49.

Another notable valuation metric for MU is its P/B ratio of 6.99. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, AMD has a P/B of 12.34.

These metrics, and several others, help MU earn a Value grade of B, while AMD has been given a Value grade of F.

MU has seen stronger estimate revision activity and sports more attractive valuation metrics than AMD, so it seems like value investors will conclude that MU is the superior option right now.

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.

That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.

However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.

Our proprietary system currently recommends Micron (MU - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Research shows that stocks carrying the best growth features consistently beat the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.

Here are three of the most important factors that make the stock of this chipmaker a great growth pick right now.

Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Micron is 31.9%, investors should actually focus on the projected growth. The company's EPS is expected to grow 135.3% this year, crushing the industry average, which calls for EPS growth of 57.9%.

Cash Flow GrowthWhile cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.

Right now, year-over-year cash flow growth for Micron is 459.8%, which is higher than many of its peers. In fact, the rate compares to the industry average of 23.9%.

While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 49.2% over the past 3-5 years versus the industry average of 10.4%.

Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

There have been upward revisions in current-year earnings estimates for Micron. The Zacks Consensus Estimate for the current year has surged 11.6% over the past month.

Bottom LineMicron has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #1 because of the positive earnings estimate revisions.

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

This combination positions Micron well for outperformance, so growth investors may want to bet on it.

Two automotive technology stocks are moving in opposite directions today, and the gap between them reveals a sharp divide in how Wall Street is pricing chip-based versus software-based exposure to the car of the future.

Mobileye Global (NASDAQ:MBLY | MBLY Price Prediction) and BlackBerry Limited (NYSE:BB) both sell technology that goes inside the car, yet the two stocks are heading in opposite directions. Shares of Mobileye are trading at $6.59, down 5% on the day, a drop that adds to deep losses for the stock this year. However, BlackBerry stock is at $8.88, up 3%, a gain that runs directly against the slide in Mobileye shares.

For a read on the wider vehicle technology theme, the Global X Autonomous & Electric Vehicles ETF (NASDAQ:DRIV) is at $29.33, down 0.5%. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is at $760.81, down 0.4%, leaving major indexes only slightly lower. Against those small declines, the selloff in Mobileye Global stock stands out as the sharpest move in the group by a wide margin.

Sellers Press Mobileye Global Lower Again Mobileye hasn’t issued a press release alongside the decline, which places the attention on how the market is valuing the stock itself. Selling pressure is building on a stock that has already given up a large portion of its value this year, and each fresh leg lower tests the patience of longer-term holders, who have endured an extended string of declines.

Demand from carmakers sets the pace for Mobileye’s business. Automakers order its EyeQ chips program by program and in line with the vehicles they build. That tie to production schedules means doubts about auto output can reach the stock quickly, even when the company itself has said nothing new. On the upside, Mobileye also has a self-driving robotaxi program under its Mobileye Drive platform, giving bulls a growth story beyond driver assistance.

BlackBerry Gains as the Auto Tech Fund Barely Moves BlackBerry’s QNX unit licenses the real-time operating system that runs beneath a car’s software, from digital cockpits to driver-assistance features. Carmakers typically pay QNX through development licenses and per-vehicle royalties, a model built on software running across many platforms. A secure communications business also sits inside the company, so BlackBerry stock answers to more than the auto cycle alone.

Shares of BlackBerry have rallied hard this year, a run that contrasts sharply with the extended slide in Mobileye shares. With major indexes lower, the advance in BlackBerry shares looks even more notable for a stock tied so closely to automotive software. Skeptics argue that after such a run, any slowdown in automaker software spending could hit the stock hard.

Electric vehicle makers anchor the Global X DRIV fund, and BlackBerry and Mobileye each make up a minor piece of it. Battery suppliers and semiconductor companies fill out much of the rest of the lineup, alongside a smaller group of vehicle technology names. That slight dip in the fund therefore offers a read on the broader electric vehicle trade and says little about either supplier.

Mobileye still has a broad base of automaker customers and a robotaxi plan that could lift revenue per vehicle over time, which is the core of the bull case. Near-term chip demand is central to the bear case, since lower orders from carmakers would weigh directly on shipments. Taken together, the decline in Mobileye stock shows the market tending toward the cautious side of that debate.

Mobileye’s Next Report Holds the Key Mobileye’s upcoming quarterly report will show whether demand from automakers has steadied. Steadier orders could support the view that the selloff has run ahead of the business, while another lower reading could extend the slide.

Caution is warranted as MBLY stock wobbles today. Investors considering share exposure should size their Mobileye positions carefully given the stock’s long decline.

Contact [email protected] for any questions or corrections.

Every AI chip, every smartphone processor, and every data center upgrade has to pass through the same tollbooth. Here is why one investor keeps buying that tollbooth without apology, and why the geopolitical risk around it changes the math less…

Every time I have extra cash, I buy more Taiwan Semiconductor Manufacturing (NYSE:TSM | TSM Price Prediction). I have stopped apologizing for it. My thesis fits in one sentence. Within five years, TSMC will work like a utility for global computing: a toll road that AI accelerators, smartphone processors and data center chips have to use, and it pays shareholders for every trip.

Why Every AI Player Pays the Toll On the third-quarter call, management said it plainly: “all the AI players are working with TSMC.” Chips at 7nm and below made up 79% of wafer revenue. Production at 2nm grew from 3% of wafer revenue in Q2 to 8% in Q3. High-performance computing now brings in 68% of revenue. The company also says “demand is still far above our capability to supply today.” I look for exactly that in a utility: a broad customer base (534 customers and 12,682 products in 2025) that keeps asking for more capacity than the company can build.

Receipts Behind My Buying Start with growth. Third-quarter revenue reached $46.72 billion, up 41.2% YoY in USD terms. Management raised its full-year 2026 outlook to around 44% growth. Its Q4 guidance of $52.3 billion to $54.3 billion works out to 58% year-over-year growth at the midpoint.

Next comes profitability. Gross margin came in at 66.4%, operating margin at 58.7% and ROE at 45.5%. EPS per ADR of $4.60 beat the $4.46 consensus.

Then there is income. The quarter produced $14.90 billion in free cash flow, and the company holds $126 billion in cash and marketable securities. The quarterly dividend rose from NT$6.00 to NT$7.00, and management says it is committed to a “sustainable and steadily increasing cash dividend per share.” Over the past ten years, the shares have returned 1543.82%.

Why My Money Skips Intel and GlobalFoundries There’s real momentum at Intel (NASDAQ:INTC). Even so, its foundry unit posted a $2.1 billion quarterly operating loss, its Q2 GAAP net loss came to $11.03 billion (mostly from a non-cash charge), and its dividend yield is 0. For a retirement account, I want income today. Specialty processes are the focus at GlobalFoundries (NASDAQ:GFS). Its Q2 revenue grew 5.81% at a 28.3% gross margin. TSMC’s margins and growth rate are both far higher.

Risk I Refuse to Ignore Taiwan is the risk that could hurt this position. European auditors call cross-strait tensions “a source of persistent insecurity” for the chip sector. Building overseas also costs money. Margin dilution from overseas fabs should increase from about 2% to 3%-4%, and 2026 capex runs $60 billion to $64 billion. The stock has fallen 8.77% over the past month.

TSMC’s expanding presence keeps the thesis intact. The second Arizona fab starts volume production in Q3 2027, and Japan gets 3nm in 2028. Those overseas costs buy geographic resilience, and I am willing to pay for that.

What Keeps My Buy Button Active N2 capacity should more than double in 2027. A14 volume production begins in 2028, and management expects it to become a bigger node. Its position is clear: “We have no intention of leaving any food on the table for others.” I plan to keep collecting the toll alongside TSMC for decades.

Contact [email protected] for any questions or corrections.

Texas Instruments (TXN - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.

A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.

Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.

As such, the Zacks rating upgrade for Texas Instruments is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.

Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Texas Instruments imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.

Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for Texas InstrumentsThis chipmaker is expected to earn $8.67 per share for the fiscal year ending December 2026, which represents no year-over-year change.

Analysts have been steadily raising their estimates for Texas Instruments. Over the past three months, the Zacks Consensus Estimate for the company has increased 3.9%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Texas Instruments to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Investors looking for stocks in the Computers - IT Services sector might want to consider either TD SYNNEX (SNX - Free Report) or ServiceNow (NOW - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

TD SYNNEX has a Zacks Rank of #1 (Strong Buy), while ServiceNow has a Zacks Rank of #5 (Strong Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SNX has an improving earnings outlook. However, value investors will care about much more than just this.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

SNX currently has a forward P/E ratio of 11.65, while NOW has a forward P/E of 38.66. We also note that SNX has a PEG ratio of 0.47. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NOW currently has a PEG ratio of 1.58.

Another notable valuation metric for SNX is its P/B ratio of 2.12. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NOW has a P/B of 12.97.

These metrics, and several others, help SNX earn a Value grade of B, while NOW has been given a Value grade of F.

SNX stands above NOW thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SNX is the superior value option right now.

Lockheed Martin Today

LMT

Lockheed Martin

$606.36 +16.45 (+2.79%)

As of 02:18 PM Eastern

This is a fair market value price provided by Massive. Learn more.

$437.25▼

$692.002.28%

22.33

$631.62

Lockheed Martin NYSE: LMT reported third-quarter results on Thursday, Oct. 22, and on paper, there was little to complain about. Earnings came in at $7.97 per share, well ahead of the $7.52 analysts expected, while revenue climbed 11.3% over the prior year to $20.7 billion.

Management also raised its outlook for the second straight quarter. Lockheed now expects 2026 sales of about $80 billion to $82 billion, up from $79.75 billion to $81.75 billion, and earnings per share of roughly $30.35-$30.75, up from $29.95-$30.65. The immediate reaction following the stellar report? Shares closed up nearly 7% on the day, and trading back above the stock's key 200-day moving average.

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It's the latest in a busy week of defense earnings, following RTX NYSE: RTX and Northrop Grumman NYSE: NOC. But Lockheed's story isn’t just about beating the topline. The market, and many investors, will now be asking: with a record $292 billion backlog, how quickly can those orders turn into delivered products and, ultimately, cash?

Where the Backlog Growth Actually Came FromThe headline backlog figure of $292 billion is up 27% from the prior quarter. But the growth has been anything but even.

Almost all of it came from one segment. Missiles and Fire Control, home to the PAC-3 and THAAD interceptor programs, saw its backlog jump to about $142.5 billion from $46.7 billion at the start of the year. That figure includes $52.5 billion tied to a multi-year award to produce PAC-3 MSE interceptors. Aeronautics, which houses the F-35, actually moved the other way, with backlog slipping to $57.3 billion from $59.4 billion.

In other words, the record backlog is now largely a missile defense story. That matters for conversion. At the segment's current sales pace, Missiles and Fire Control has more than eight years of work, and those orders become revenue only as interceptors are built and delivered.

Production and Delivery TimingEncouraging signs are emerging on that front, though. Missiles and Fire Control sales rose 24% in the quarter, driven by production ramps on PAC-3 and THAAD, along with GMLRS and the Precision Strike Missile.

The aircraft side is a bit messier. Lockheed delivered 43 F-35s in the quarter, down from 46 a year earlier, and 94 through nine months versus 143 last year. More importantly, the company said its spending on the F-35 Lot 20 advance contract has now outrun what the government has authorized and funded so far. Talks on Lots 20 and beyond are ongoing, and Lockheed warned that results and cash flow will take a hit in future periods if that funding doesn't come through.

Cash Flow, Margins, and Capital ReturnsLockheed Martin MarketRank™ Stock Analysis4.42417787245 of 5 stars

88th Percentile

Moderate Buy

5.3% Upside

Healthy

Strong

0.68 N/A

8.48%

See Full Analysis

Free cash flow came in at $3 billion for the quarter, down from $3.3 billion a year ago. But over nine months, free cash flow rose to $5.6 billion from $4.2 billion, and the full-year outlook rose to about $7.8 billion to $8.0 billion from $7.0 billion to $7.2 billion.

One line worth watching is contract assets, which climbed to about $16.9 billion from $13 billion at year-end. That's work Lockheed has already recognized as revenue but hasn't yet billed, a sign that cash is lagging behind reported sales as production ramps up.

Margins were fairly steady, with segment operating margin at 10.8% versus 10.9% a year ago. Still, Lockheed's own filing flags fixed-price contracts, where the company absorbs cost overruns, as a key risk, and the quarter showed that risk in small doses. Aeronautics margin slipped to 9.0% due to unfavorable profit adjustments on the F-16 and C-130, while Rotary and Mission Systems adjusted for its Heavy Lift and Seahawk programs. Importantly, it has had no reach-forward losses so far this year, compared with $1.6 billion in the same period of 2025.

What Could Speed Up or Slow Down ConversionThe supportive and bullish case for LMT is clear. A missile defense backlog this size, production ramps already lifting sales, higher cash flow guidance, and no major program losses give Lockheed unusual visibility. Suppliers like Karman NYSE: KRMN are already landing multi-year Lockheed contracts tied to missile defense, a sign the ramp is moving through the supply chain.

The risks now sit mostly in execution. Scaling interceptor output depends on suppliers keeping pace, and Lockheed's filing specifically names materials such as rare earth minerals and microelectronics as potential constraints. Rising contract assets could keep cash trailing sales, and the unresolved F-35 Lot 20 talks remain a clear overhang. The backlog is built. Turning it into cash is the part worth watching closely now.

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

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Cronos Group (CRON - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.

A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.

Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.

Therefore, the Zacks rating upgrade for Cronos basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

For Cronos, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.

Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for CronosFor the fiscal year ending December 2026, this cannabis company is expected to earn $0.21 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for Cronos. Over the past three months, the Zacks Consensus Estimate for the company has increased 200%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Cronos to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

A massive crypto transfer from BlackRock's ETF wallets to Coinbase Prime set off alarm bells across crypto markets, but the real question is whether on-chain traders are misreading the signal entirely.

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Wallets tied to BlackRock’s (NYSE: BLK) spot ETFs moved 3,215 BTC, valued at $262.4 million, to Coinbase Prime, according to on-chain records from October 23, 2026. Coinbase Prime, Coinbase’s institutional trading desk (NASDAQ: COIN), also received another 38,882 ETH, worth $93.2 million, from those wallets. This brings the total transfer to about $355.6 million in just two hours.

The timing is concerning. On October 22, spot Bitcoin ETFs faced $635.6 million in net outflows, and Bitcoin (CRYPTO: BTC) dropped by 3.3% to $81,429. Crypto enthusiasts often interpret such large transfers to exchanges as a sign of significant selling ahead.

However, despite these transfers, Bitcoin trades at $81,858 as of October 23, up 0.3% over the past 24 hours, while Ethereum (CRYPTO: ETH) remains nearly unchanged near $2,408. This raises the question: does this transfer signal a fresh wave of selling, or is it just a paper trail for sales that already occurred?

What BlackRock’s $262 Million Coinbase Transfer Reveals

An on-chain transfer represents the movement of coins between two wallets, publicly recorded on the blockchain. Analytics firms label these wallets to help readers identify where the coins came from and where they’re going. A common trading principle is that when coins flow onto an exchange, traders can sell them, which can read as bearish. Conversely, coins moving off exchanges suggest long-term holding.

Coinbase Prime acts as a prime broker, holding, trading, and settling assets for major institutions through a single account. Because Coinbase is BlackRock’s primary custody and trading partner for its crypto funds, BlackRock moves coins between Coinbase-run wallets as standard fund-management practice.

Interestingly, this transfer aligns closely with an outflow from one of BlackRock’s funds. The $262.4 million in Bitcoin moved corresponds to the $254.1 million that exited the iShares Bitcoin Trust (NASDAQ: IBIT) on October 22, according to SoSoValue.

Why the Coinbase Prime Transfer Is Less Alarming Than It Looks

Most iShares Bitcoin Trust trades do not directly move Bitcoin. When an investor sells IBIT shares on the stock market, another investor buys them, and the fund’s coins remain intact. Coins transfer only when an Authorized Participant, such as a large bank or trading firm, redeems shares with the fund.

BlackRock’s iShares prospectus explains this clearly. In a redemption scenario, “an Authorized Participant deposits Creation Units with a Fund and receives from the Fund a redemption basket,” which can consist of assets or “a specified amount of cash.”

In a cash redemption, the fund sells Bitcoin to raise money through its prime broker, while in an in-kind redemption, the Authorized Participant receives the actual Bitcoin and may choose to hold, hedge, or sell them. In both instances, this recent transfer settles orders investors placed on October 22, already reflected in the published flow numbers. A trader interpreting the wallet movement as new selling could mistakenly count the same $254.1 million twice.

The Ethereum transfer follows the same logic, indicating redemptions from BlackRock’s Ethereum ETF, which is managed through the same account. Furthermore, the outflows are not solely attributable to BlackRock. The Fidelity Wise Origin Bitcoin Fund witnessed $217.5 million in outflows, the ARK 21Shares Bitcoin ETF had $109.4 million, and Grayscale’s and Bitwise’s funds saw outflows of $29.5 million and $27.4 million, respectively. However, BlackRock’s movements drew more attention because of greater scrutiny.

What Could Change the Direction of Bitcoin’s ETF Flows

Bitcoin’s price is closely linked with ETF flows, and October 22 marked a break in buying momentum. The funds had previously attracted $1.08 billion over the three preceding sessions, so after October 22’s outflow, they still brought in a net $442.7 million from October 19 to 22.

IBIT’s activity fueled much of this, drawing in $665.2 million on October 19 and $235 million on October 21. Overall, total net inflows across all spot Bitcoin ETFs stood at $57.32 billion as of October 22.

The funds have experienced other days of outflows this month that did not lead to a downward trend. On October 7, they posted $487.1 million in outflows, and on October 14, $261.5 million, but inflows followed both instances.

Bitcoin’s price has followed a similar pattern, down 0.3% over the past week, 3.7% over the month, and 7.2% year to date. Nevertheless, it remains up 26.3% over the past 90 days, suggesting buyers have maintained a rebound from summer lows. As of the morning of October 23, flow data had not yet been published, which could provide investors with clearer insights than any wallet alert.

Is More Bitcoin Selling Coming After BlackRock’s Transfer?
The transfer to Coinbase Prime appears to record transactions that have already occurred, closely matching the size of redemptions reported on October 22. This transfer alone does not suggest more sellers are queuing up, implying significant additional selling may not be on the horizon yet.

Two checks could change that view. Another outflow near October 22’s $635.6 million, or outflows that wipe out the $442.7 million net inflow from October 19 to 22, would point to wider selling. On price, a close below $81,429 would suggest buyers cannot absorb the redemptions, while a move above $84,378, its September 23 level, would show buyers back in control.

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Spotify Technology Today

SPOT

Spotify Technology

$584.71 +1.05 (+0.18%)

As of 02:15 PM Eastern

This is a fair market value price provided by Massive. Learn more.

$405.00▼

$676.6736.40

$620.07

Shares of Spotify Technology NYSE: SPOT surged following the company’s latest earnings report, ending its two-quarter streak of post-earnings falls. Spotify shares gained 11%, good for the entertainment stock’s largest single-day gain since May, and leaving shares roughly flat on the year.

In contrast to what investors might have expected, Spotify’s sharp rise wasn’t due to the company smashing expectations on headline metrics. In fact, the company posted in-line or below consensus numbers on several key figures. Rather, it appears investors viewed Spotify’s longer-term trajectory favorably, with the company touting its AI initiatives while also expecting costs to moderate over the coming quarters.

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Spotify Posts Mixed Headline Metrics, Solid Underlying MetricsSpotify’s revenue during the quarter was 4.97 billion euros (approx. $5.58 billion), an increase of 14% year-over-year (YOY) on a constant-currency basis. This figure fell slightly short of estimates of $5.64 billion. However, adjusting for currency movements in relation to expectations, Spotify’s revenue was essentially in line with estimates.

Spotify’s diluted earnings per share (EPS) was $2.78, which was significantly below estimates of $3.16. In Q4 2026, Spotify expects to report revenue of approximately $5.82 billion, also slightly below estimates near $5.86 billion. In the context of Spotify’s lackluster headline numbers, it seems that investors put more weight on other metrics reported by the company.

Notably, the company’s premium subscribers increased 9% YOY to 306 million, one million ahead of its guidance. Additionally, gross margin expanded by 140 basis points YOY to 33%, which was 10 basis points higher than expected, while operating income was also above guidance. The company’s monthly active users (MAUs) increased by 11% YOY to 788 million, right in line with its target.

Next quarter, Spotify expects to add 30 million MAUs and 10 million premium subscribers, moving the total figures to around 818 million and 316 million, respectively.

Spotify Highlights AI Investments Including Its “Taste Model”Spotify also called out how it expects AI investments to benefit its growth over time, highlighting several key vectors. One of the most notable is the company’s use of AI in building and improving its “large taste model.”

Spotify uses trillions of data points on user listening habits and trains its taste model to predict what people will want to listen to next. The ultimate goal is to increase user engagement by helping people discover more content they enjoy. Spotify notes double-digit growth in discoveries, a leading indicator of how “exciting” users find Spotify. The company says that even as the taste model is in its early stages of rollout, it is already on track to add billions of hours of listening per year.

Potential Engagement Gains and Moderating Costs Could Benefit Margins Long TermIncreasing engagement is key for multiple reasons. First, it can make people more likely to keep their subscriptions, reducing churn. This is important because Spotify's user growth metrics subtract users lost from users gained, resulting in a “net” figure. By reducing churn, Spotify needs to add fewer new users to increase its overall user base, benefiting revenue growth over time.

This can also make people less likely to unsubscribe when Spotify increases prices, making it more likely to achieve the desired growth from price hikes. Price increases can account for a significant portion of Spotify’s growth. During the quarter, 7.5%, or around half of Spotify’s 15% constant currency premium revenue growth, came from average revenue per user (ARPU) expansion. The company notes that price increases were the primary driver behind ARPU expansion.

Despite not delivering particularly impressive growth metrics during the quarter, Spotify’s rally may be attributable to encouraging early signs from its AI initiatives and its cost trajectory. The firm expects a gross margin of 33.8% next quarter, up approximately 70 basis points YOY. It sees investments and costs moderating from Q3 to Q4, and into next year. Additionally, its AI investments have accelerated the shipment of new features, all while keeping its headcount flat, according to the firm.

These factors suggest that Spotify could realize the growth benefits from its AI investments while also protecting profitability, potentially setting the firm up for sustainable margin expansion long term.

By 2030, Spotify is targeting a gross margin of between 35% and 40%, which would be a 300 basis point to 800 basis point expansion compared to its 2025 gross margin of 32%. Spotify is also targeting an over 20% operating margin by 2030, which would be an over 700 basis point increase compared to 13% in 2025.

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Grant Cardone has been buying apartment complexes for forty years. Eighteen months ago he started putting Bitcoin into the same funds, and he says the response changed who shows up: 80% of investors in the first fund had never owned Bitcoin, half had never invested with him before, and the average cheque was four times bigger.

CrowdStrike founder and CEO George Kurtz joins ‘Squawk on the Street' to discuss the risks posed by PHP vulnerabilities, the rise in the frequency of AI attacks, and more.

At 55, two retirement clocks start ticking the moment you open a Roth IRA, and missing either one turns tax-free income into a tax bill. Here is what it actually takes to hit nearly $4,000 a month before both deadlines…

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Taking $3,950 a month from a Roth IRA adds up to $47,400 a year, and with a Roth, you keep that amount. Under federal law, any qualified distribution from a Roth IRA shall not be includible in gross income. If you’re 55, you’re working against two deadlines. A Roth distribution qualifies only if it comes on or after age 59 1/2 and after a 5-taxable year period that starts with your first Roth contribution. Open the account now, and both clocks run out at about the same time.

Contributions Alone Fall Short For 2026, the IRA limit is $8,600 for individuals age 50 or older, so ten years of maximum contributions adds up to $86,000 before growth. That won’t get you close to any of the targets below. For most people, the realistic path is converting money from an old 401(k) or traditional IRA.

You pay ordinary income tax on the converted amount in the year you convert. In the case of a single filer, the 24% bracket applies to income over $105,700. Spreading conversions over several years keeps more of each dollar in lower brackets.

What Each Yield Level Costs You Upfront Conservative: 3.5% Yield In the world of conservative investing, $47,400 divided by 0.035 equals about $1,354,000. This level supports dividend-growth funds and broad-market index funds. You need more capital, but your principal tends to grow, and payouts rise over time.

Moderate: 6% Yield In a moderate investment, $47,400 divided by 0.06 equals $790,000. NNN REIT (NYSE:NNN) yields about 5.9% and just raised its dividend for the 37th consecutive year. Reaves Utility Income Fund (NYSEAMERICAN:UTG) yields about 7.4%. Its monthly payout has stepped up from $0.19 to $0.21 since 2025. The 10-year Treasury pays 5.1%, so this level earns only a thin premium for taking equity risk.

Aggressive: 10% Yield At a 10% yield, the $47,400 target takes $474,000. The JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ) yields about 11.6%. The Global X S&P 500 Covered Call ETF (NYSEARCA:XYLD) pays about 9.2%. Ares Capital (NASDAQ:ARCC | ARCC Price Prediction) yields about 10.2%, and Hercules Capital about 11.5%.

XYLD’s monthly payments in 2026 have ranged from $0.30 to $0.41. Ares’ net asset value per share fell to $19.35 from $19.94 at the end of 2025, and non-accruals (loans that have stopped paying interest) rose to 2%. Part of Hercules’ payout is a $0.07 supplemental dividend, which can be cut.

A Six-Fund Mix Gets There on About $497,000 Here is one example split that could help investors reach this financial goal. Start with JEPQ 25%, with 15% each in XYLD, NNN, ARCC, Hercules, and UTG. The blended yield comes to about 9.5%, so $47,400 divided by 0.0953 is roughly $497,000. That puts the mix firmly in the aggressive level, since 70% of the money sits in funds yielding above 9%.

Why the Smaller Check Can Win by 65 Picture a dividend growth portfolio paying half your target, or $23,700, with payouts growing 8% a year. In nine years, it pays about $47,376. You’d reach the full goal by your mid-60s on a fraction of the capital the 3.5% level needs today.

Flat payouts lose ground to inflation. Ares has paid $0.48 every quarter since 2023. Your $3,950 check remains the same while your grocery bill keeps rising. NNN’s dividend rose from $0.55 in 2023 to $0.62, so your income keeps rising.

Three Moves to Make This Year Start the five-year deadlines now. Even a small Roth contribution in 2026 starts the holding period, so later conversions can pay out tax-free by about 60. Single filers lose Roth contribution eligibility at $168,000 of modified adjusted gross income. Conversions have no income limit. Map conversions to your bracket. Work out how much traditional money you can convert each year before you cross into the next bracket. Compare that tax bill with what a $497,000 to $1,354,000 Roth balance would require. Blend level by timeline. One approach is to hold dividend growers in the money you won’t touch for 10 years and reserve the high-yield funds for the income you need first. Reviewing NAV trends each year shows whether a payout is eating into principal. Contact [email protected] for any questions or corrections.

Jefferies has maintained a 'hold' rating on Fortinet Inc (NASDAQ:FTNT) arguing that its next earnings outlook will matter more than another strong quarter as investors assess whether product growth can endure into financial year 2027.

The broker expects product revenue growth of around 50% year on year in the third quarter, well above the 31% consensus forecast, supported by positive industry checks, pricing increases and accelerated firewall replacement activity.

However, Jefferies believes the fourth-quarter guidance and any initial framework for 2027 will be more important, as investors remain wary of a potential slowdown following several quarters of strong growth.

A survey of value-added resellers (VARs), which sell and support cybersecurity products, found the US cybersecurity company's average performance was 2.5% above plan, up from 2.3% in the previous quarter and ahead of the survey average of 1.5%.

The survey also found that 54% of respondents had observed customers bringing forward firewall purchases, supporting the broker's view that replacement demand could sustain momentum for another two to three quarters.

Jefferies expects fourth-quarter product revenue guidance to exceed the current consensus forecast of $772 million, representing annual growth of 11.7%, while leaving room for further outperformance.

The broker noted that the consensus forecast for 2027 implies product revenue growth of just 9%, with some investors questioning whether Fortinet can deliver any growth as comparisons become more demanding.

Management has previously outlined a framework for annual product revenue growth of 10% to 15%, while Jefferies believes the current replacement cycle could have further room to run.

Fortinet has recorded three quarters of product growth above 20% during the current cycle, compared with 10 quarters during the pandemic-era refresh cycle, suggesting that replacement demand may continue to support results.

Recent price increases should also provide a tailwind into the first quarter of 2027, with average selling prices potentially rising by more than 10% in the second half, although growth will increasingly depend on underlying demand as those increases feed through.

Jefferies also expects third-quarter billings, a measure of customer orders invoiced, to exceed expectations by a mid-to-high single-digit percentage, against guidance implying growth of 27% at the midpoint.

Investors will also watch current services billings, which Jefferies expects to accelerate from 16% annual growth in the second quarter, with growth above 20% still achievable as product sales generate follow-on service revenue.

Despite the positive near-term outlook, Jefferies warned that tougher comparisons could constrain further upside until Fortinet provides clearer evidence of sustainable growth in 2027.

The broker noted that Fortinet trades at 37 times the estimated calendar 2027 free cash flow, below Palo Alto Networks at 50 times and broadly in line with Zscaler at 36 times.

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SLB’s Kelvion Deal Could Change How Investors Value the Oilfield GiantSLB NYSE: SLB reported third-quarter 2026 revenue of $9.45 billion, up 5% sequentially, as growth in the Middle East, North America land and international deepwater activity supported results. The company said pre-tax segment operating margins expanded across all four divisions, while adjusted EBITDA margin increased 71 basis points from the second quarter to 21.9%.

Earnings per share, excluding charges and credits, were $0.64, up $0.09 sequentially but down $0.05 from the prior-year quarter. The company recorded $0.03 per share in merger and integration charges related to its ChampionX acquisition, along with a $0.12 per-share, or $187 million, non-cash pension settlement charge.

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AI’s Power Crunch Fuels a Pivot for These 2 Oilfield StocksChief Financial Officer Stephane Biguet said the pension settlement, funded by plan assets, reduced both pension obligations and assets by nearly $900 million. He said the action was intended to reduce volatility and future pension costs, while the pension plan remains well funded.

Production Systems and Middle East Recovery Drive Growth Chief Executive Officer Olivier Le Peuch said all geographic areas and core divisions delivered sequential revenue growth. Production Systems led the company’s divisions, supported by higher OneSubsea revenue and stronger sales of production chemicals and artificial lift in North America and the Middle East.

MarketBeat Week in Review – 05/04 - 05/08Production Systems revenue rose 6% sequentially to $4 billion, while its pre-tax operating margin increased 60 basis points to 16.1%. Biguet said the division saw broad-based growth in OneSubsea, artificial lift, completions and production chemicals.

The acquired ChampionX businesses delivered their highest quarterly revenue and margin since joining SLB, according to management. Le Peuch said ChampionX had expanded margins for a fourth consecutive quarter, while Biguet said its EBITDA margin had reached the mid-20% range. The company expects to achieve its approximately $200 million interim synergy target from the acquisition by the end of 2026.

Well Construction revenue increased 5% sequentially to $2.9 billion, with growth tied primarily to higher drilling activity in the Middle East. Reservoir Performance revenue also rose 5% to $1.6 billion, driven by the gradual Middle East recovery. Operating margins for Well Construction and Reservoir Performance expanded to 16.4% and 16.3%, respectively.

Middle East revenue totaled $1.9 billion in the third quarter, up 13% from the prior quarter. Le Peuch said activity improved during the quarter in the United Arab Emirates, Kuwait, Qatar and, to a lesser extent, Saudi Arabia, supported by intervention, stimulation and drilling work. He said Iraq did not experience the same increase in activity, while Oman was steady.

SLB said uncertainty remains due to heightened regional tensions. Its fourth-quarter outlook assumes Middle East revenue remains flat sequentially at approximately $1.9 billion, or about 83% of first-quarter 2025 revenue.

Despite the near-term uncertainty, SLB cited Saudi Aramco’s award of four integrated Well Construction contracts covering more than 450 wells over an initial three-year term. Le Peuch said the contracts cover both oil and gas assets, with mobilization beginning in the fourth quarter and activity expected to reach full capacity in 2027.

Digital and Data Center Businesses Continue to Expand Digital revenue was essentially flat sequentially at $693 million, as stronger platform, application, digital operations and professional-services sales were offset by lower digital exploration revenue following a strong second quarter. Digital’s pre-tax operating margin increased 27 basis points to 28%.

Le Peuch said SLB delivered more than 750,000 automated drilling feet during the quarter, nearly 50% above the year-earlier level. The company’s Hellops predictive analytics system monitored more than 20% of active international rigs, representing year-over-year growth of more than 60%.

SLB expects a significant increase in digital exploration revenue during the fourth quarter, supported by typical year-end sales. The company said it expects the Digital division to finish 2026 with double-digit year-over-year revenue growth and adjusted EBITDA margins above 35%.

Revenue in the company’s All Other category rose 8% sequentially, led by Data Center Solutions. However, pre-tax operating income declined slightly because of ramp-up costs for new data-center projects. SLB said it opened a manufacturing center in Canada to support a Meta data center project and has begun expanding its operations into Asia.

The company remains on track to close its planned Kelvion acquisition during the first half of 2027. Management said the combination is expected to expand SLB’s thermal and heat-management offerings for data-center infrastructure.

Fourth-Quarter and 2027 Outlook For the fourth quarter, SLB expects revenue of about $10 billion, representing sequential growth of 5% to 7%, supported by deepwater activity, year-end Digital sales and product sales. The company expects adjusted EBITDA margin to expand by 100 to 150 basis points.

Combined core-division revenue is expected to rise by low single digits sequentially. Production Systems revenue is expected to grow by high single digits. Well Construction and Reservoir Performance revenue are expected to be essentially flat sequentially. Digital revenue is expected to rise in line with historical fourth-quarter trends. Looking to 2027, SLB said it expects global oilfield-services market activity to grow at a mid-single-digit rate, assuming Middle East activity remains at second-half 2026 levels and regional conflict does not materially escalate. The company said normalization in the Middle East would provide additional upside.

Le Peuch pointed to deepwater developments, renewed exploration, production-recovery investments and activity in Venezuela as major growth drivers. He said SLB’s Venezuela revenue is on track to more than double in 2026, with potential for multifold growth in 2027. The company has previously identified $1 billion as a historical revenue level and long-term ambition for the country.

SLB also highlighted OneSubsea backlog growth, including a recent award to provide subsea production systems for the first phase of ExxonMobil’s deepwater Rovuma LNG development in Mozambique. Management said it expects to surpass its $9 billion booking target across 2025 and 2026, supporting revenue visibility through 2027 and beyond.

The company generated $1.5 billion in cash flow from operations and $828 million in free cash flow during the quarter. It ended the period with net debt of $9.2 billion, repurchased $656 million of stock, and said it remains on track to repurchase approximately $2.4 billion in shares for the full year. SLB expects total shareholder returns in 2026 to be slightly above $4 billion.

About SLB (NYSE:SLB)SLB, formerly known as Schlumberger, is a global energy technology company that provides products, services and digital solutions to the oil and gas industry. Its offerings support the exploration, development and production of hydrocarbon resources across the life cycle of an oil or gas field.

The company provides reservoir characterization, drilling and well-construction services, well completion and production technologies, and equipment for subsea and surface operations. SLB also develops software, data and automation solutions designed to help energy companies improve operational efficiency, manage reservoirs and reduce emissions.

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

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It has been about a month since the last earnings report for Cintas (CTAS - Free Report) . Shares have added about 13.3% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Cintas due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

Cintas’ Q1 Earnings & Revenues Beat Estimates on Margin GainsCintas reported first-quarter fiscal 2027 adjusted earnings of $1.39 per share, which beat the Zacks Consensus Estimate of $1.35 by 3.0%. The bottom line increased 15.8% from the year-ago quarter. Revenues of $3.01 billion surpassed the consensus estimate of $2.97 billion by 1.6% and rose 10.9% year over year.

The top line benefited from 8.9% organic revenue growth, reflecting growth after adjusting for acquisitions, foreign currency movements and workday differences. Record gross and operating margins were other key highlights in the quarter.

Cintas' Segmental ResultsThe company has two reportable segments, Uniform Rental and Facility Services and First Aid and Safety Services. Other businesses are included in All Other. Quarterly sales data are briefly discussed below.

Cintas' Uniform Rental and Facility Services segment generated revenues of $2.29 billion, up 9.7% year over year from $2.09 billion. Segment operating income rose to $575.09 million from $499.94 million.

The First Aid and Safety Services segment delivered revenues of $388.52 million, increasing 16.1% from $334.66 million in the prior-year quarter. Operating income climbed to $99.54 million from $80.33 million.

Revenues from the All Other segment totaled $330.73 million, up 13.1% from $292.40 million a year ago. Segment operating income increased to $51.67 million from $37.60 million.

Margin ProfileCintas' cost of sales totaled $1.46 billion compared with $1.35 billion in the year-ago quarter. Gross margin increased 13.7% to $1.55 billion, while gross margin as a percentage of revenue expanded to 51.5% from 50.3%.

Selling and administrative expenses were $827.24 million, up 10.5% year over year. The company also incurred $14.41 million of transaction expenses related to the proposed UniFirst Corporation acquisition. Operating income rose 15.2% to $711.89 million.

Operating margin improved to 23.6% from 22.7% in the prior-year quarter. Net income increased 12.3% to $551.71 million, while net income margin was 18.3% compared with 18.1%. The effective tax rate increased to 20.0% from 17.6%.

Cintas' Cash Flow TrendsIn the first quarter of fiscal 2027, Cintas generated $572.33 million in net cash from operating activities, up from $414.48 million in the year-ago period. Capital expenditures totaled $107.53 million compared with $101.96 million a year earlier.

Free cash flow increased to $464.80 million from $312.52 million. Net cash used in investing activities was $117.37 million, reflecting capital expenditures, purchases of investments and business acquisitions.

During the quarter, the company repurchased common stock worth $315.71 million and paid $180.70 million in dividends. Net cash used in financing activities totaled $500.17 million.

Balance SheetCintas exited the quarter with cash and cash equivalents of $243.60 million compared with $289.02 million at the end of fiscal 2026. Accounts receivable increased to $1.59 billion from $1.56 billion, while inventories declined to $433.29 million from $446.44 million.

Total current assets were $3.93 billion compared with $3.85 billion at May 31, 2026. Long-term debt was $1.43 billion, while debt due within one year totaled $999.29 million. Total shareholders' equity increased to $5.20 billion from $5.14 billion.

Cintas' Fiscal 2027 OutlookFor fiscal 2027, the company raised its revenue guidance to $12.15-$12.27 billion from the prior projection of $12.10-$12.25 billion. Adjusted diluted earnings per share are now projected in the range of $5.45-$5.54, up from $5.36-$5.50 previously.

The guidance excludes expected impacts from the proposed UniFirst acquisition and assumes no future acquisitions and constant foreign exchange rates. Fiscal 2027 also has one more workday than fiscal 2026.

Cintas expects net interest expense of approximately $103.00 million compared with $101.20 million in fiscal 2026, with the increase primarily tied to amortization of bridge loan financing expenses related to UniFirst. The company projects an effective tax rate of 20.4% for fiscal 2027.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in estimates revision.

VGM ScoresAt this time, Cintas has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock has a score of F on the value side, putting it in the bottom 20% quintile 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 upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Cintas has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.