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Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Lincoln National (LNC - Free Report) , which belongs to the Zacks Insurance - Life Insurance industry, could be a great candidate to consider.

When looking at the last two reports, this insurance and retirement business has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 6.92%, on average, in the last two quarters.

For the last reported quarter, Lincoln National came out with earnings of $2.24 per share versus the Zacks Consensus Estimate of $2 per share, representing a surprise of 12.00%. For the previous quarter, the company was expected to post earnings of $1.63 per share and it actually produced earnings of $1.66 per share, delivering a surprise of 1.84%.

Price and EPS Surprise

Thanks in part to this history, there has been a favorable change in earnings estimates for Lincoln National lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

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

Lincoln National has an Earnings ESP of +0.31% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on November 5, 2026.

With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Key Takeaways PPL upgrades transmission and distribution networks to improve reliability and meet rising power demand.PPL plans to invest $23 billion through 2029, targeting 10.3% annual rate-base growth.
PPL's grid upgrades and data center pipeline support capacity expansion and earnings growth.

PPL Corporation (PPL - Free Report) is modernizing its transmission and distribution network to improve grid reliability, reduce outages and accommodate rising electricity demand. The company is making strategic infrastructure investments to support growing power needs and strengthen long-term system performance.

Recently, PPL subsidiary Rhode Island Energy announced an $8.2 million project in Middletown to replace 65 aging wooden transmission structures with steel monopoles. The project aims to improve grid reliability, extend the life of critical electric assets and reduce long-term maintenance requirements.

PPL unit PPL Electric Utilities was selected to receive up to $71.5 million in U.S. Department of Energy funding for its Montour Grid Resilience and Advanced Reconductoring Project. The initiative will modernize 29.3 miles of existing transmission lines using advanced conductors and grid-monitoring technology, enhancing transmission capacity and reliability while helping manage infrastructure investment costs.

The company plans to invest $23 billion through 2029, including $8 billion for transmission and $7.2 billion for distribution infrastructure. The program focuses on system hardening, smart-grid technology, automation and network expansion. PPL expects these investments to drive 10.3% average annual rate-base growth and support 6-8% annual earnings per share (EPS) growth through 2029.

Meanwhile, rising demand from the data center pipeline and economic development across PPL’s service territories create opportunities for additional electricity demand. Modernizing existing infrastructure can help accommodate this growth while improving operational efficiency.

Overall, PPL’s infrastructure upgrades and substantial capital spending support grid reliability, capacity expansion and long-term earnings growth.

Grid Upgrades Strengthen Utilities’ Growth ProspectsGrid modernization enables utilities to improve operational efficiency and ease transmission congestion. These upgrades support renewable integration, expand rate bases and strengthen long-term earnings growth prospects. PPL is not alone in prioritizing grid modernization, as other utilities are investing heavily to strengthen infrastructure and reliability.

FirstEnergy Corp. (FE - Free Report) Energize365 program focuses on transmission and distribution upgrades, backed by $36 billion in planned investments through 2030, including more than $19 billion for transmission.

Eversource Energy (ES - Free Report) continues investing in grid modernization, with $26.5 billion planned through 2030, including $7.24 billion for transmission and $11.24 billion for electric distribution.

The Zacks Rundown on PPLPPL’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 EPS indicates a year-over-year increase of 7.18% and 8.77%, respectively.

Image Source: Zacks Investment Research

Debt to CapitalPPL's debt-to-capital currently stands at 57.46%, lower than the  Zacks Utility - Electric Power industry’s 62.33%.

Image Source: Zacks Investment Research

PPL’s Stock Price PerformanceIn the past month, the company’s shares have risen 9.1% compared with the industry’s 9% growth.

Image Source: Zacks Investment Research

PPL’s Zacks Rank

Key Takeaways Sterling leads EMCOR with faster earnings growth, a lower valuation and stronger year-to-date stock gains.Sterling's backlog surged 116% to $4.33 billion, while its 2026 EPS is projected to grow 84%.STRL trades at 15.09X forward earnings versus EMCOR's 18.13X, with a slightly higher ROIC of 28.86%. Sterling Infrastructure, Inc. (STRL - Free Report) and EMCOR Group, Inc. (EME - Free Report) are prominent players in the U.S. infrastructure and construction services market, benefiting from rising investments in data centers, advanced manufacturing and mission-critical facilities. Both companies are capitalizing on infrastructure modernization, expanding project pipelines and growing demand for specialized construction services.

Sterling focuses on E-Infrastructure, Transportation and Building Solutions, while EMCOR specializes in electrical and mechanical construction, industrial infrastructure and building services. Despite their different operating models, both are positioned to benefit from long-term infrastructure spending. With third-quarter 2026 earnings approaching, comparing their growth prospects, profitability, valuations and earnings expectations is particularly relevant.

Let's dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.

The Case for Sterling StockSterling continues to benefit from accelerating demand for mission-critical infrastructure, particularly data centers, semiconductor facilities and advanced manufacturing projects. Its E-Infrastructure Solutions business remains the primary growth engine, supported by strong organic expansion and strategic acquisitions.

In second-quarter 2026, Sterling's revenues surged 90% year over year to $1.17 billion, including approximately 50% organic growth. Adjusted earnings per share (EPS) increased 116% to $5.80, while adjusted EBITDA rose 104% to $256.7 million, reflecting strong execution and favorable project mix.

E-Infrastructure revenues increased 192%, supported by robust site development activity and contributions from the CEC and Stone Ridge acquisitions. Mission-critical projects accounted for 92% of the E-Infrastructure backlog, highlighting Sterling's increasing exposure to high-growth markets.

Sterling's signed backlog reached $4.33 billion, up 116% year over year, while combined backlog surged 150% to $5.62 billion. Including future-phase opportunities, the company's visible pool of potential work exceeded $7 billion, providing substantial multiyear growth visibility.

Supported by this momentum, Sterling raised its 2026 revenue guidance to $4-$4.15 billion and adjusted EPS guidance to $19.70-$20.30. The company is increasingly reallocating resources toward higher-margin E-Infrastructure projects, strengthening its profitability outlook.

However, challenges remain. Transportation Solutions revenues declined 20% in the second quarter, reflecting strategic resource reallocation, while Building Solutions revenues slipped 1% amid housing affordability pressures. Integration risks associated with acquisitions, project concentration and potential execution delays could also affect growth.

The Case for EMCOR StockEMCOR continues to capitalize on robust demand for electrical and mechanical construction services, particularly across data centers, manufacturing facilities, healthcare and institutional infrastructure. Its diversified operations, strong project execution and expanding backlog support sustained growth.

Second-quarter 2026 revenues increased 19.8% year over year to $5.15 billion, driven by 19.6% organic growth. EPS climbed 34.8% to $9.06, while operating income advanced 31.8% to $547.3 million. Operating margin expanded 100 basis points to 10.6%.

U.S. Electrical Construction revenues increased 24%, while U.S. Mechanical Construction revenues advanced 31.1%, reflecting strong demand for complex infrastructure projects. Building Services and Industrial Services also registered revenue growth, highlighting EMCOR's diversified demand base.

EMCOR's remaining performance obligations reached a record $17.14 billion, up 43.9% year over year, providing considerable revenue visibility. Its capabilities in prefabrication, virtual design and construction and skilled labor management further strengthen execution efficiency.

Management raised its 2026 revenue guidance to $20-$20.5 billion and EPS guidance to $32-$33.25. Strategic acquisitions and continued investment in specialized construction capabilities are expected to support future expansion.

Nonetheless, EMCOR faces challenges from skilled labor shortages, rising material costs, project execution risks and potential delays in customer spending. Its expanding acquisition portfolio also introduces integration risks. Moreover, maintaining recent margin improvements could become difficult if unfavorable project mix or cost pressures intensify.

STRL Outpaces EME in Year-to-Date Share Price PerformanceSterling shares have gained 21.7% year to date (YTD), outperforming EMCOR's 7.9% increase. Both stocks have exceeded the broader Zacks Construction sector's 5.4% decline. However, while Sterling has outperformed the S&P 500's 12.7% gain, EMCOR has lagged the benchmark. Other infrastructure companies, including Comfort Systems USA (FIX - Free Report) and Quanta Services (PWR - Free Report) , also compete for opportunities arising from rising infrastructure investments and expanding demand for mission-critical projects.

Sterling's stronger share price performance reflects greater investor confidence in its accelerated earnings growth, expanding backlog and increasing exposure to high-margin infrastructure projects.

STRL vs EME Price Performance (YTD)

Image Source: Zacks Investment Research

STRL Stock Offers a More Attractive ValuationOn a forward 12-month price-to-earnings (P/E) basis, Sterling trades at 15.09X, below EMCOR's 18.13X and the Zacks Construction sector's 16.99X.

Sterling's discounted valuation appears attractive considering its faster projected earnings growth and strong infrastructure demand. EMCOR's premium valuation suggests greater expectations for continued execution and profitability, potentially limiting upside if growth moderates.

STRL vs EME Valuation (P/E F12M)

Image Source: Zacks Investment Research

Both companies demonstrate strong capital efficiency. Sterling's trailing 12-month return on invested capital (ROIC) stands at 28.86%, marginally exceeding EMCOR's 28.24%. This suggests both generate attractive returns on invested capital, though Sterling holds a slight edge.

Sterling's combination of a lower earnings multiple, faster growth and marginally higher ROIC strengthens its relative investment appeal.

ROIC TTM (%)

Image Source: Zacks Investment Research

EPS Estimates Favor Sterling's Growth OutlookOver the past 60 days, the Zacks Consensus Estimate for Sterling's 2026 EPS has remained unchanged at $20.02, implying 84% year-over-year growth. The consensus revenue estimate suggests 65.7% growth.

For 2027, Sterling's EPS estimate has increased to $25.80, indicating 28.9% growth on projected revenue growth of 19.5%. The upward estimate revision reinforces confidence in its earnings outlook.

Sterling's EPS Estimate

Image Source: Zacks Investment Research

Meanwhile, the Zacks Consensus Estimates for EMCOR's 2026 and 2027 EPS have remained unchanged at $32.98 and $37.23, respectively, over the past 60 days. EMCOR's 2026 estimates indicate 27.5% EPS growth on 19.6% revenue growth. For 2027, earnings are projected to increase 12.9%, supported by 11% revenue growth.

EMCOR’s EPS Estimate

Image Source: Zacks Investment Research

Although both companies are expected to maintain earnings growth, Sterling's substantially stronger projections and positive 2027 estimate revision give it an advantage.

STRL or EME: Which Stock Is the Better Buy Now?Both Sterling and EMCOR benefit from strong infrastructure demand, expanding backlogs and exposure to mission-critical construction markets. EMCOR's diversified business model, substantial project pipeline and consistent profitability support its long-term prospects.

However, Sterling appears to offer better upside potential at current levels, supported by faster projected revenue and earnings growth, a more attractive valuation, stronger share price performance and slightly higher ROIC.

Sterling's growing E-Infrastructure exposure and upward 2027 EPS estimate revision further strengthen its investment case.

Importantly, Sterling currently carries a Zacks Rank #2 (Buy) compared with EMCOR's Zacks Rank #4 (Sell). Considering these factors, Sterling emerges as the more compelling investment choice for investors seeking exposure to infrastructure growth.

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

New York, New York--(Newsfile Corp. - October 23, 2026) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against The Ensign Group, Inc. (NASDAQ: ENSG) and certain of its officers.

This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Ensign securities between February 10, 2022 and June 18, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/cases/the-ensign-group-inc-ensg-class_action_lawsuit.

Ensign Case Details

The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that:

Ensign's business model depends on the systematic and widespread neglect of elderly people who live in its facilities, including those with needs for high levels of care; Ensign's abuse and neglect includes not giving residents enough food, medical attention, or even basic toiletries as well as failing to respond to residents in clear distress, which has resulted in resident deaths; Ensign uses self-reporting measures as a way to cover up that it systematically neglects patients; Ensign defrauds Medicaid and Medicare by taking federal funds to help patients who need high levels of care, and then neglecting those same patients; Ensign falsifies the number of hours that Certified Nursing Assistants spend with residents; Ensign engages in an illegal scheme to rent the licenses of Administrators who are not generally present at, nor actually managing, its facilities; Ensign materially understated the reputational and litigation exposure that comes with a dangerous, abhorrent, and illegal business model; and as a result, defendants' statements about Ensign's business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.What's Next for Ensign Investors?

A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/cases/the-ensign-group-inc-ensg-class_action_lawsuit, or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Ensign you have until December 7, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.

No Cost to Ensign Investors

We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.

Why Bronstein, Gewirtz & Grossman, LLC for Ensign Securities Class Action?

Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com

"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.

Follow us for updates on LinkedIn, X, Facebook, or Instagram.

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Prior results do not guarantee similar outcomes.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/318434

Source: Bronstein, Gewirtz & Grossman, LLC

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, /PRNewswire/ -- AppLovin Corporation (NASDAQ: APP) faces a securities class action seeking to represent investors who purchased or otherwise acquired AppLovin securities between February 12, 2026 and August 5, 2026.

The suit follows the publication of a concerning analyst report on July 13, 2026 and the company's August 5, 2026 Q2 2026 financial results, each of which drove the price of AppLovin shares sharply lower.

The developments have prompted national shareholders rights firm Hagens Berman to open an investigation into claims that AppLovin violated the securities laws and urge AppLovin investors who suffered substantial losses to submit your losses now. 

Class Period: Feb. 12, 2026 – Aug. 5, 2026
Lead Plaintiff Deadline: Nov. 16, 2026
Visit: www.hbsslaw.com/app 
Direct Contact Email: [email protected] 
Firm Telephone: 844-916-0895
Video: youtu.be/c5nqdaiWyls

AppLovin Corporation (APP) Securities Class Action:

AppLovin provides end-to-end AI-powered advertising solutions for businesses to reach, monetize, and grow their global audience.

To investors, "uplift" is possibly the most critical driver of the company's revenue growth. The company improves its AI model to increase uplift, better matching the exact right ad to the exact right user at the exact right millisecond. In turn, this uplifts advertisers' return on ad spend, increases their advertising budgets, and (for AppLovin) accelerates high-margin revenue.  

The lawsuit is focused on the propriety of AppLovin's statements about model improvements and uplift.

Most recently, several weeks into AppLovin's Q2, during its May 6, 2026 Q1 2026 earnings call, management left investors with high expectations for uplift and revenue growth. 

CEO Adam Foroughi said that the most important milestone investors should focus on was the company's "improving the underlying model." He emphasized that "[l]ast quarter earnings, I mentioned we just had one new model that had just created an uplift[]" and "[t]he one we had a couple of weeks ago was quite substantial." He also explained, "that's why I highlighted […] that we saw a big acceleration going exiting the quarter[,]" and "then, April Q2, bigger than any quarter that we had[.]"

Investors' expectations began to unravel on July 13, 2026, when a prominent analyst published a report highlighting a lack of immediate advertiser influx following the general availability launch of AppLovin's advertising tools. In response, the price of AppLovin shares tumbled $64.13 (-12.6%).

Then, on August 5, 2026, the company reported its Q2 2026 revenue that was below midpoint. In apparent contrast to the "big acceleration," management said "[o]ur pace of meaningful model improvement was lighter than normal during the quarter[]" and "we didn't get the same level of model uplift we've seen in recent quarters[.]" This news drove the price of AppLovin shares crashing another $82.13 (-19.6%).

Between the two drops, the company lost over $44 billion of its market capitalization.

"We're focused on when during Q2 AppLovin first knew that the uplift and revenue acceleration investors had come to expect wasn't happening," said Reed Kathrein, the Hagens Berman partner leading the firm's investigation.

If you invested in AppLovin and have substantial losses, or have knowledge that will assist the firm's investigation, submit your losses now »

Whistleblowers: Persons with non-public information regarding AppLovin should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].

About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw. 

Attorney Advertising. Prior results do not guarantee a similar outcome in any future case.

SOURCE Hagens Berman Sobol Shapiro LLP

Key Takeaways INSP shares gain 47.8% in three months as reimbursement uncertainty eases and recovery prospects improve.Q2 revenues reached $200.6 million, beating expectations, while adjusted EPS of 14 cents topped estimates.Project Horizon targets $30 million in annualized savings, while new CPT codes support Inspire V adoption.
Shares of Inspire Medical Systems (INSP - Free Report) have gained 47.8% over the past three months compared with the industry’s 46.2% growth. The rally appears to reflect easing reimbursement uncertainty, better-than-expected second-quarter results, Project Horizon’s plan to redirect $30 million annually toward growth, and an October coding decision that improves the long-term outlook for Inspire V adoption. Near-term sales, however, remain disrupted.

Minneapolis, MN-based Inspire Medical is a medical technology company focused on the development and commercialization of innovative, minimally invasive solutions for patients with obstructive sleep apnea (OSA). Its proprietary Inspire system is the first FDA-approved neurostimulation technology that provides a safe and effective treatment for moderate to severe OSA.

INSP is also scheduled to report third-quarter results on Nov. 2. The company’s earnings per share (EPS) reflect a 48.8% year-over-year decline. Third-quarter sales are likely to decline 6.5% year over year.

Image Source: Zacks Investment Research

Here, we examine the key factors that likely boosted INSP’s share price over the past three months.

Coding Clarity and Reimbursement Rules Improve the OutlookThe hypoglossal nerve stimulation (HGNS) market faced disruption in early 2026 as coding confusion made hospitals and physicians more cautious about scheduling Inspire V procedures. In June, CMS proposed 2027 facility reimbursement of $35,414 for hospital outpatient procedures, up approximately 12%, and $31,722 for ambulatory surgery centers, up 15%. Proposed physician reimbursement, however, declined about 4% to $699, leaving the final payment outlook mixed.

By August, Inspire Medical said the relevant C-codes were in place and incorporated into the WISeR system in six applicable states. Prior-authorization submissions were also improving as high-volume centers gained billing experience.

Another significant milestone was achieved on Oct. 1, when the American Medical Association approved new Category I CPT codes specifically covering single-lead HGNS procedures, including Inspire V. Set to take effect on Jan. 1, 2028, these codes are expected to improve coding consistency, although CMS valuation is still pending. This development could ease administrative complexities and improve patient access across the category.

Second-Quarter Results Restore ConfidenceCoding and reimbursement disruption continued to weigh on sales, but the second-quarter results offered investors evidence that Inspire Medical was managing these headwinds better. Revenues declined 7.6% year over year to $200.6 million because of coding and reimbursement challenges, but exceeded expectations. Adjusted EPS of 14 cents also beat estimates, while operating cash flow improved to $23.2 million from $2.7 million a year earlier. Gross margin expanded 150 basis points to 85.5%, supported by a greater revenue contribution from the higher-margin Inspire V system.

Management also narrowed its estimated full-year revenue impact from coding and reimbursement disruption and WISeR to $120-$130 million. It revised its 2026 revenue outlook to $835-$875 million and set adjusted EPS guidance of $1.05-$1.45.

Although the results did not signal an immediate return to growth, the earnings beat, improving authorization trends and expectations of easing disruptions in the coming quarters provided greater clarity on the company's recovery prospects. These factors likely bolstered investor sentiment despite the year-over-year revenue decline.

Project Horizon Prioritizes Growth InvestmentsAlongside the results, Inspire Medical announced Project Horizon, a strategic plan expected to generate approximately $30 million in annualized capacity for reinvestment in growth initiatives. The plan combines organizational streamlining with supply-chain and production consolidation, directing resources toward patient access, education and engagement. Initiatives include prior-authorization support through SleepSync and Inspire Connect, which provide structured education and support following implantation.

Project Horizon involves $20-$25 million in pretax restructuring charges, with most actions expected to be completed by year-end. Management indicated that many patient-flow initiatives would contribute more meaningfully in 2027 and beyond. Investors may view the program as an opportunity to channel operational savings toward improving patient conversion and reviving demand, rather than relying solely on the normalization of reimbursement conditions.

Clinical Evidence Broadens the OpportunityIn June, Inspire presented complete results from its Inspire V trial, including safety and efficacy data for its accelerometer-based sensing technology. The company also highlighted research associating hypoglossal nerve stimulation with improved cardiovascular risk markers. Its PREDICTOR study suggested that some candidates could be screened for eligibility without drug-induced sleep endoscopy, potentially reducing diagnostic burden and time to treatment. Together, these findings may help physicians identify eligible patients more efficiently and reinforce the therapy’s broader clinical value.

Concerns for INSPDespite better coding clarity, reimbursement remains a material risk. Management estimated coding and reimbursement disruption and WISeR effects could reduce 2026 revenues by $120 million to $130 million, while the full-year revenue projection remains in the range of $835-$875 million.

The new CPT codes are not scheduled to take effect until 2028, while proposed CMS physician reimbursement rates for 2027 are lower. Moreover, Project Horizon is expected to incur restructuring charges of $20-$25 million, with the anticipated growth benefits likely to emerge gradually.

ConclusionINSP’s rally reflects growing investor confidence in the company’s ability to address coding-related challenges while redirecting operational savings toward improving patient access and expanding market penetration. The AMA’s approval of new CPT codes, coupled with better-than-expected earnings and supportive clinical evidence, strengthens its long-term recovery prospects. However, effective execution, final reimbursement rates and the pace of recovery in procedure volumes remain key factors to monitor.

Zacks Rank & Key PicksAlthough INSP currently carries a Zacks Rank #4 (Sell), the VGM score of B reflects potential. While INSP’s Value Score of C suggests a moderate valuation premium, its Growth and Momentum Scores of B indicate potential for sustained upward momentum. However, given the stock’s current Zacks Rank of Sell, investors may prefer to remain on the sidelines and await greater clarity on coding-related issues and revenue trends during the third-quarter earnings call before making an investment decision.

Some better-ranked stocks from the broader medical space are Glaukos (GKOS - Free Report) , Edward Lifesciences (EW - Free Report) and Globus Medical (GMED - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Glaukos reported second-quarter 2026 EPS of 14 cents, which beat the Zacks Consensus Estimate by 50.00%. Revenues of $186 million surpassed the Zacks Consensus Estimate by 24.1%.

Glaukos has an estimated earnings growth rate of 268.8% for 2027. GKOS’ earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 25.87%.

Edward Lifesciences reported second-quarter 2026 adjusted EPS of 78 cents, which beat the Zacks Consensus Estimate by 6.85%. Revenues of $1.74 billion surpassed the Zacks Consensus Estimate by 2.45%.

Edward Lifesciences has an estimated long-term earnings growth rate of 12.7%. EW’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.49%.

Globus Medical reported a second-quarter fiscal 2026 adjusted EPS of $1.34, which beat the Zacks Consensus Estimate by 19.6%. Revenues of $790 million missed the Zacks Consensus Estimate by 0.35%.

Globus Medical has an estimated long-term earnings growth rate of 12.4%. GMED’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 27.88%.

Nearly 40% of patients alive at three years with Ziihera plus tislelizumab and chemotherapy, irrespective of PD-L1 status, achieving a median OS of 27 months

Mature HERIZON-GEA-01 results show Ziihera plus chemotherapy delivered statistically significant and clinically meaningful OS benefit, reducing the risk of death by 24% versus trastuzumab plus chemotherapy

For U.S. media and investors only

, /PRNewswire/ -- Jazz Pharmaceuticals plc (Nasdaq: JAZZ) today announced updated overall survival (OS) results from the Phase 3 HERIZON-GEA-01 trial evaluating Ziihera® (zanidatamab-hrii) in combination with chemotherapy, with or without Tevimbra® (tislelizumab-jsgr), as first-line treatment for adults with HER2-positive (HER2+) locally advanced or metastatic gastroesophageal adenocarcinoma (GEA). The results from the second interim, and final formal, analysis were presented as a late-breaking rapid oral presentation (LBA79) at the European Society for Medical Oncology (ESMO) Congress 2026 in Madrid, Spain.

"For patients with HER2+ advanced GEA, long-term survival remains difficult to achieve. With longer follow-up, Ziihera-containing regimens demonstrated a durable overall survival benefit, with nearly 40% of patients treated with Ziihera plus tislelizumab and chemotherapy alive at three years," said Dr. Kohei Shitara, director of the Department of Gastrointestinal Oncology, and principal trial investigator at the National Cancer Center Hospital East, Kashiwa, Japan. "Ziihera plus chemotherapy has also now demonstrated a statistically significant survival benefit over trastuzumab plus chemotherapy. Together, these findings provide strong evidence for Ziihera-containing regimens as the new HER2-directed first-line standard of care."

At the data cutoff, median follow-up was 35.3 months, 9.4 months longer than at the first interim analysis. Key findings included:

Ziihera plus tislelizumab and chemotherapy sustained its OS benefit versus trastuzumab plus chemotherapy, with an improved HR: Median OS reached 27.0 months (95% confidence interval [CI]: 23.7-32.2), the longest reported in a Phase 3 trial in this setting, compared with 19.6 months with trastuzumab plus chemotherapy. The Ziihera plus tislelizumab and chemotherapy regimen reduced the risk of death by 35% (hazard ratio [HR] 0.65; 95% CI: 0.52-0.80), improving from an HR of 0.72 at the first interim analysis.Nearly 40% of patients receiving Ziihera plus tislelizumab and chemotherapy were alive at three years: Estimated 36-month OS was 39.8% with Ziihera plus tislelizumab and chemotherapy, 31.5% with Ziihera plus chemotherapy and 22.9% with trastuzumab plus chemotherapy.Ziihera plus chemotherapy demonstrated a statistically significant and clinically meaningful OS improvement versus trastuzumab plus chemotherapy: Median OS was 22.9 months (95% CI: 19.9-27.6) with Ziihera plus chemotherapy compared with 19.6 months (95% CI: 16.9-22.2) with trastuzumab plus chemotherapy. Ziihera plus chemotherapy reduced the risk of death by 24% (HR 0.76; 95% CI: 0.62-0.93; P=0.0088).Ziihera plus tislelizumab and chemotherapy showed a meaningful trend toward improved OS versus Ziihera plus chemotherapy: Median OS was approximately four months longer with Ziihera plus tislelizumab and chemotherapy than with Ziihera plus chemotherapy (27.0 versus 22.9 months; HR 0.81; 95% CI: 0.65-1.00; P=0.0502). The difference did not reach statistical significance. Mean duration of treatment was longest for Ziihera plus tislelizumab and chemotherapy (64.1 weeks): 11.5 weeks longer than Ziihera plus chemotherapy (52.6 weeks), and 21.8 weeks longer than trastuzumab plus chemotherapy (42.3 weeks).Safety profiles remained unchanged with longer follow-up: The safety profiles of both Ziihera-containing regimens were consistent with the first interim analysis, supporting the tolerability of prolonged treatment."These HERIZON-GEA-01 three-year landmark results demonstrate meaningful survival outcomes for patients with HER2+ advanced GEA," said Rob Iannone, M.D., M.S.C.E., executive vice president, global head of R&D, and chief medical officer of Jazz Pharmaceuticals. "The statistically significant survival benefit observed with Ziihera plus chemotherapy and the durable outcomes seen with Ziihera plus tislelizumab and chemotherapy cement Ziihera as the new HER2-targeted backbone therapy in first-line HER2+ advanced GEA."

The Ziihera-containing regimens were recently included as preferred therapies in the National Comprehensive Cancer Network® (NCCN®) Clinical Practice Guidelines in Oncology® for Gastric Cancer, and Esophageal and Esophagogastric Junction Cancers, and Ziihera plus tislelizumab and chemotherapy is the only preferred HER2+ regimen irrespective of PD-L1 status.

These results follow the August 25, 2026, U.S. Food and Drug Administration (FDA) approval of two Ziihera-containing regimens for the first-line treatment of adults with HER2+ unresectable locally advanced or metastatic GEA: Ziihera plus tislelizumab and fluoropyrimidine- and platinum-containing chemotherapy for adults with HER2+ IHC 3+ or IHC 2+/ISH+ disease; and Ziihera plus fluoropyrimidine- and platinum-containing chemotherapy for adults with HER2+ IHC 3+ disease. The approval was based on results from the Phase 3 HERIZON-GEA-01 trial, which were first presented at ASCO GI 2026, subsequently published in The New England Journal of Medicine and further evaluated through PD-L1 subgroup analyses presented at ASCO 2026.

The U.S. Prescribing Information for Ziihera contains Boxed Warnings for diarrhea and embryo-fetal toxicity.

Additional Important Safety Information related to Ziihera use in GEA is provided below. Please see full Prescription, including Boxed Warnings at https://pp.jazzpharma.com/pi/ziihera.en.USPI.pdf.

About the Phase 3 HERIZON-GEA-01 Trial
HERIZON-GEA-01 (NCT05152147) is a global, randomized, open-label Phase 3 trial, conducted jointly with BeOne Medicines, to evaluate and compare the efficacy and safety of zanidatamab plus chemotherapy, with and without tislelizumab, to trastuzumab plus chemotherapy as first-line treatment for adult patients with advanced/metastatic HER2+ GEA. The trial randomized 914 patients from approximately 225 trial sites in more than 30 countries. Appropriate patients for this trial had unresectable locally advanced, recurrent or metastatic HER2+ GEA (adenocarcinomas of the stomach or esophagus, including the gastroesophageal junction), defined as 3+ HER2 expression by IHC or 2+ HER2 expression by IHC with ISH positivity per central assessment. Patients were randomized to the three trial arms: zanidatamab in combination with chemotherapy and tislelizumab; zanidatamab in combination with chemotherapy; and trastuzumab plus chemotherapy. The trial evaluated dual primary endpoints, PFS per blinded independent central review (BICR) and OS.

About Gastroesophageal Adenocarcinoma
GEA, including cancers of the stomach, gastroesophageal junction, and esophagus, is the fifth most common cancer worldwide, and approximately 20% of patients have HER2+ disease.1,2,3,4 HER2+ GEA has high morbidity and mortality, and patients are urgently in need of new treatment options. The overall prognosis for patients with GEA remains poor, with a global five-year survival rate of less than 10% for metastatic disease.5

About Ziihera® (zanidatamab-hrii)
Ziihera (zanidatamab-hrii) is a bispecific HER2-directed antibody that binds to two extracellular sites on HER2. Binding of zanidatamab with HER2 results in internalization leading to a reduction in HER2 expression of the receptor on the tumor cell surface. Zanidatamab induces CDC, ADCC, and ADCP. These mechanisms result in tumor growth inhibition and cell death in vitro and in vivo.6

Gastroesophageal adenocarcinoma (GEA): In the United States, Ziihera is indicated for the first-line treatment of adults with HER2+ locally advanced or metastatic gastroesophageal adenocarcinoma (GEA), including cancers of the stomach, gastroesophageal junction and esophagus, in combination with tislelizumab-jsgr and fluoropyrimidine- and platinum-containing chemotherapy (HER2+ IHC 3+ and IHC 2+/ISH+ as detected by an FDA-authorized test); and in combination with fluoropyrimidine- and platinum-containing chemotherapy (HER2+ IHC 3+ as detected by an FDA-authorized test).

Biliary tract cancer (BTC): In the United States, Ziihera is also indicated for the treatment of adults with previously treated, unresectable or metastatic HER2+ (IHC 3+) biliary tract cancer (BTC), as detected by an FDA-approved test.6 Continued approval for this indication may be contingent upon verification and description of clinical benefit in a confirmatory trial(s).6 Ziihera is also approved in the European Union and other countries.

Zanidatamab is being developed in multiple clinical trials as a targeted treatment option for patients with solid tumors that express HER2. Zanidatamab is being developed by Jazz and BeOne Medicines under license agreements from Zymeworks, which first developed the molecule.

The FDA granted three Breakthrough Therapy designations for zanidatamab's development: one as a single agent for previously treated HER2 gene-amplified BTC, one in combination with fluoropyrimidine- and platinum-containing chemotherapy, with or without tislelizumab for first-line HER2+ unresectable locally advanced or metastatic gastric, gastroesophageal junction (GEJ), or esophageal GEA, and one for the treatment of adults with previously treated, locally advanced, unresectable, or metastatic HER2+ colorectal cancer (CRC). The FDA also granted two Fast Track designations for zanidatamab: one as a single agent for refractory BTC and one in combination with standard-of-care chemotherapy for first-line GEA. Additionally, zanidatamab has received Orphan Drug designations from the FDA for the treatment of BTC, gastric (including GEJ) cancer, and esophageal cancer, as well as Orphan Drug designations from the European Medicines Agency for the treatment of BTC, gastric/gastroesophageal junction cancer, and esophageal cancer. Jazz continues to pursue additional regulatory approvals for zanidatamab in markets worldwide.

Important Safety Information for ZIIHERA

WARNING: DIARRHEA and EMBRYO-FETAL TOXICITY

ZIIHERA, in combination with fluoropyrimidine- and platinum-containing chemotherapy, with or without
tislelizumab-jsgr, can cause severe diarrhea, including life threatening and fatal cases. Use antidiarrheal
prophylaxis during the first cycle when ZIIHERA is given in combination with these drugs. Manage with
antidiarrheals and supportive measures as clinically indicated. Interrupt, reduce the dose or discontinue
ZIIHERA based on severity.

Embryo-Fetal Toxicity: Exposure to ZIIHERA during pregnancy can cause embryo-fetal harm. Advise patients
of the risk and need for effective contraception.

Diarrhea: ZIIHERA can cause severe diarrhea.

When ZIIHERA is used in combination with fluoropyrimidine- and platinum-containing chemotherapy with or without tislelizumab-jsgr, severe, life threatening, and fatal cases of diarrhea can occur despite loperamide prophylaxis. The risk of severe and life threatening diarrhea is higher when ZIIHERA is administered with chemotherapy and tislelizumab-jsgr, with a higher risk in patients aged ≥ 65 years compared to younger patients. Advise patients to increase oral fluids, begin antidiarrheals, and notify their healthcare provider immediately if diarrhea occurs.

Administer antidiarrheal prophylaxis with loperamide in cycle 1 for all patients receiving ZIIHERA in combination with fluoropyrimidine- and platinum-containing chemotherapy with or without tislelizumab-jsgr. Begin loperamide at the first loose stool when ZIIHERA is administered in combination with chemotherapy. Administer fluids, electrolytes, and additional antidiarrheal agents as necessary. Before modifying the dose of ZIIHERA, evaluate, modify or discontinue drug(s) contributing to diarrhea in accordance with their respective prescribing information. Withhold, reduce the dose, or permanently discontinue ZIIHERA based on severity.

If treating patients with ZIIHERA in combination with FOLFOX, do not administer the fluorouracil bolus.

ZIIHERA in combination with chemotherapy and tislelizumab-jsgr

Diarrhea was reported in 85% of 330 patients in clinical studies, including Grade 4 (2.1%), Grade 3 (24%), and Grade 2 (31%) events. Fatal outcomes resulting from diarrhea occurred in 1.5% of patients. Diarrhea leading to dose reduction of ZIIHERA occurred in 10% of patients, and permanent discontinuation of ZIIHERA occurred in 3.9% of patients.

In cycle 1, diarrhea at Grade 4 severity occurred in 1.5% and Grade 3 severity occurred in 15% of patients despite use of loperamide prophylaxis. The median time to onset for cycle 1 diarrhea was 6 days and median time to resolution was 18 days.

ZIIHERA in combination with chemotherapy

Diarrhea was reported in 81% of 395 patients in clinical studies, including Grade 4 (1.3%), Grade 3 (20%) and Grade 2 (33%). Diarrhea leading to dose reduction of ZIIHERA occurred in 10% of patients, and permanent discontinuation of ZIIHERA occurred in 1.8% of patients.

In cycle 1, diarrhea at Grade 4 severity occurred in 0.8% and Grade 3 severity occurred in 14% of patients despite use of loperamide prophylaxis. The median time to onset for cycle 1 diarrhea was 6 days and median time to resolution was 18 days.

Embryo-Fetal Toxicity: Based on the mechanism of action, ZIIHERA can cause fetal harm when administered to a pregnant woman. There are no human or animal data on the use of ZIIHERA in pregnancy. In literature reports, use of a HER2-directed antibody during pregnancy resulted in cases of oligohydramnios and oligohydramnios sequence manifesting as pulmonary hypoplasia, skeletal abnormalities, and neonatal death.

Verify the pregnancy status of females of reproductive potential prior to the initiation of ZIIHERA. Advise pregnant women and females of reproductive potential that exposure to ZIIHERA during pregnancy or within 4 months prior to conception can result in fetal harm. Advise females of reproductive potential to use effective contraception while receiving ZIIHERA and for 4 months following the last dose of ZIIHERA.

Left Ventricular Dysfunction (LVD): ZIIHERA can cause decreases in left ventricular ejection fraction (LVEF).

Assess LVEF prior to initiation of ZIIHERA and at regular intervals during treatment. Withhold dose or permanently discontinue ZIIHERA based on severity of adverse reactions.

The safety of ZIIHERA has not been established in patients with a baseline ejection fraction that is

ZIIHERA in combination with chemotherapy and tislelizumab-jsgr

LVEF decrease (an absolute decline in LVEF of > 10%, resulting in a final value of

ZIIHERA in combination with chemotherapy

LVEF decrease was observed in 5% of 395 patients. LVD leading to permanent discontinuation of ZIIHERA was reported in 1.0% of patients. The median time to first occurrence of LVD was 6.0 months (range: 1.4 to 15.0 months). LVD dysfunction resolved in 70% of patients. Infusion-Related Reactions: ZIIHERA can cause infusion-related reactions (IRRs).

Prior to each dose of ZIIHERA, administer premedication to prevent potential IRRs. Monitor patients for signs and symptoms of IRR during ZIIHERA administration and as clinically indicated after completion of infusion. Have medications and emergency equipment to treat IRRs available for immediate use.

If an IRR occurs, slow or stop the infusion, and administer appropriate medical management. Monitor patients until complete resolution of signs and symptoms before resuming. Permanently discontinue ZIIHERA in patients with recurrent severe or life-threatening IRRs.

ZIIHERA in combination with chemotherapy and tislelizumab-jsgr

An IRR was reported in 22% of 330 patients in clinical studies, including Grade 4 (0.3%), Grade 3 (1.2%), and Grade 2 (16%) despite use of prophylaxis. IRRs leading to permanent discontinuation of ZIIHERA were reported in 0.3% of patients. IRRs occurred on the first day of dosing in 17% of patients. Of all patients who experienced IRRs, 60% of reactions resolved within the first day.

ZIIHERA in combination with chemotherapy

An IRR was reported in 24% of 395 patients in clinical studies, including Grade 4 (0.3%), Grade 3 (1.5%), and Grade 2 (18%) despite use of prophylaxis. IRRs leading to permanent discontinuation of ZIIHERA were reported in 1.3% of patients. IRRs occurred on the first day of dosing in 22% of patients. Of all patients who experienced IRRs, 83% of reactions resolved within the first day.

Adverse Reactions

ZIIHERA in combination with chemotherapy and tislelizumab-jsgr

Serious adverse reactions occurred in 59% of 294 patients in HERIZON-GEA-01. Serious adverse reactions in > 2% of patients included diarrhea (17%), IRR (5%), vomiting (4.8%), hypokalemia (4.4%), acute kidney injury (3.7%), pneumonia (3.7%), nausea (2.4%), decreased appetite (2.4%), and anemia (2.4%). Fatal adverse reactions occurred in 2.4% of patients and included acute kidney injury (N=2), cardiac failure, diarrhea, dehydration, hypovolemic shock and intestinal obstruction (all N=1).

Permanent discontinuation of ZIIHERA occurred in 13% of patients. Adverse reactions that resulted in permanent discontinuation of ZIIHERA in ≥ 1% of patients included diarrhea (4.4%) and ejection fraction decreased (2.7%).

The most common adverse reactions (≥ 20%) were diarrhea (83%), nausea (56%), decreased appetite (46%), vomiting (44%), hypokalemia (39%), fatigue (37%), rash (36%), peripheral neuropathy (27%), and IRR (25%).

ZIIHERA in combination with chemotherapy

Serious adverse reactions occurred in 49% of 305 patients in HERIZON-GEA-01. Serious adverse reactions in > 2% of patients included diarrhea (11%), vomiting (3.3%), decreased appetite (2.6%), pneumonia (2.6%), sepsis (2.6%), hypokalemia (2.3%), and nausea (2.3%).

Permanent discontinuation of ZIIHERA occurred in 10% of patients. Adverse reactions that resulted in permanent discontinuation of ZIIHERA in ≥ 1% of patients included ejection fraction decreased (2.0%), IRR (1.6%), and diarrhea (1.6%).

The most common adverse reactions (≥ 20%) were diarrhea (79%), nausea (54%), vomiting (44%), decreased appetite (40%), fatigue (36%), hypokalemia (33%), peripheral neuropathy (32%), IRR (25%), and rash (22%).

Pediatric Use: Safety and efficacy of ZIIHERA have not been established in pediatric patients.

Geriatric Use

ZIIHERA in combination with chemotherapy and tislelizumab-jsgr

Of 302 patients randomized to ZIIHERA in combination with chemotherapy and tislelizumab-jsgr in HERIZON-GEA-01, there were 139 (46%) patients aged ≥ 65 years. One hundred and six (35%) were aged 65-74 years and 33 (11%) were aged ≥ 75 years.

There was a higher incidence of Grade ≥ 3 adverse reactions observed in patients aged ≥ 65 years (87%) as compared to younger patients (80%). The incidence of Grade 3 or 4 diarrhea was higher in patients aged ≥ 65 years (32%) compared to younger patients (20%).

There was an increased incidence of fatal adverse reactions in patients aged ≥ 65 years (4.4%); including acute kidney injury (N=2), cardiac failure, dehydration, hypovolemic shock and intestinal obstruction (all N=1), compared to younger patients (0.6%), including diarrhea (N=1).

ZIIHERA in combination with chemotherapy

Of 304 patients randomized to ZIIHERA in combination with chemotherapy in HERIZON-GEA-01, there were 130 (43%) patients aged ≥ 65 years. One hundred (33%) were aged 65-74 years and 30 (10%) were aged ≥ 75 years.

No overall differences in safety were observed between patients aged ≥ 65 years and younger adult patients.

® TEVIMBRA (tislelizumab) is a registered trademark of BeOne Medicines.

About Jazz Pharmaceuticals
Jazz Pharmaceuticals plc (Nasdaq: JAZZ) is a global biopharma company whose purpose is to innovate to transform the lives of patients and their families. We are dedicated to developing life-changing medicines for people with rare disease — often with limited or no therapeutic options. We have a diverse portfolio of medicines, including leading therapies addressing epilepsies, cancers and sleep disorders. Our patient-focused and science-driven approach powers pioneering research and development advancements across our robust pipeline of innovative therapeutics. Jazz is headquartered in Dublin, Ireland with research and development laboratories, manufacturing facilities and employees in multiple countries committed to serving patients worldwide. Please visit www.jazzpharmaceuticals.com for more information.

Cautionary Note Concerning Forward-Looking Statements
This press release contains forward-looking statements, including, but not limited to, statements related to the potential therapeutic and differentiated clinical benefits of Ziihera and of combination therapies with Ziihera, including Ziihera's potential to extend survival, Ziihera's potential as a new standard of care in HER2+ first-line GEA and other HER2-expressing cancers and other statements that are not historical facts. These forward-looking statements are based on Jazz Pharmaceuticals' current plans, objectives, estimates, expectations and intentions and inherently involve significant risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks and uncertainties associated with the successful completion of regulatory activities and uncertain regulatory approval, risks related to failure or delays in successfully initiating or completing clinical trials and assessing patients and other risks and uncertainties affecting Jazz Pharmaceuticals and its development programs, including those described from time to time under the caption "Risk Factors" and elsewhere in Jazz Pharmaceuticals' Securities and Exchange Commission filings and reports, including Jazz Pharmaceuticals' Annual Report on Form 10-K for the year ended December 31, 2025 and future filings and reports by Jazz Pharmaceuticals. Other risks and uncertainties of which Jazz Pharmaceuticals is not currently aware may also affect Jazz Pharmaceuticals' forward-looking statements and may cause actual results and the timing of events to differ materially from those anticipated. The forward-looking statements herein are made only as of the date hereof or as of the dates indicated in the forward-looking statements, even if they are subsequently made available by Jazz Pharmaceuticals on its website or otherwise. Jazz Pharmaceuticals undertakes no obligation to update or supplement any forward-looking statements to reflect actual results, new information, future events, changes in its expectations or other circumstances that exist after the date as of which the forward-looking statements were made.

Contacts:

Media:
[email protected]
Ireland +353 1 637 2141
U.S. +1 215 867 4948

Investor:
[email protected]
Ireland +353 1 634 7800
U.S. +1 650 496 2717

1 Bray F., et al. Global cancer statistics 2022: GLOBOCAN estimates of incidence and mortality worldwide for 36 cancers in 185 countries. CA: A Cancer Journal for Clinicians. 2024 April; doi.org/10.3322/caac.21834Digital Object Identifier (DOI).
2 Abrahao-Machado I.F., et al. HER2 testing in gastric cancer: An update WorldJGastroenterol. 2016;22(19):4619-4625.
3 Van Custem E., et al. HER2 screening data from ToGA: targeting HER2 in gastric and gastroesophageal junction cancer. Gastric Cancer. 2015;18(3):476-484.
4 Stroes, C.I., et al. A systematic review of HER2 blockade for the curative treatment of gastroesophageal adenocarcinoma: Successes achieved and opportunities ahead. CancerTreatRev. 2021;99:102249.
5 Tabernero J., et al. HERIZON-GEA-01: Zanidatamab + chemo ± tislelizumab for 1L treatment of HER2-positive gastroesophageal adenocarcinoma. Taylor & Francis. 2022 July; doi.org/10.2217/fon-2022-0595.
6 ZIIHERA (zanidatamab-hrii) Prescribing Information. Palo Alto, CA: Jazz Pharmaceuticals, Inc.

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SOURCE Jazz Pharmaceuticals plc

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Super Micro Computer (SMCI - Free Report) , which belongs to the Zacks Computer- Storage Devices industry, could be a great candidate to consider.

This server technology company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 91.67%.

For the last reported quarter, Super Micro came out with earnings of $1.7 per share versus the Zacks Consensus Estimate of $0.68 per share, representing a surprise of 150.00%. For the previous quarter, the company was expected to post earnings of $0.63 per share and it actually produced earnings of $0.84 per share, delivering a surprise of 33.33%.

Price and EPS Surprise

With this earnings history in mind, recent estimates have been moving higher for Super Micro. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

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

Super Micro currently has an Earnings ESP of +36.36%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on November 3, 2026.

Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Polaris Expands Call of Duty Collaboration as Polaris DAGOR Joins Modern Warfare 4PR NewswireMINNEAPOLIS, Oct. 23, 2026Longstanding collaboration continues

Ending the week on a bearish note, Bloom Energy (BE -12.86%) stock is powering down. The company reported third-quarter 2026 financial results yesterday after the market closed, which appear to have left investors unimpressed. Providing more fodder for the bears, two firms have slashed their expectations on the hydrogen stock.

As of 1:21 p.m. ET, Bloom Energy shares are down 12.9%.

Image source: Getty Images.

Operating cash flow plummets to negative $27.1 millionIn Q3 2026, Bloom Energy reported cash from operations of negative $27.1 million, a notable decrease from the positive $226.4 million reported in Q2 2026 and the positive $19.7 million reported in Q3 2025.

$189.77-$28.01 (-12.86%)

NYSE · As of 1:17 PM ET 10/23/26

The company's sharp turnaround in operating cash flow belies the strong income statement. In Q3 2026, Bloom Energy reported a new record for quarterly revenue: $1.24 billion, a 138.1% year-over-year increase. Similarly, the company reported diluted earnings per share (EPS) of $0.78, improving dramatically from the negative $0.10 it reported during the same period last year.

In the wake of Bloom Energy's financial report, Roth Capital analyst Chip Moore slashed the price target to $230 from $260, maintaining a neutral rating. Similarly, JPMorgan cut its price target to $292 from $314, and BTIG lowered its price target to $250 from $295. While analysts had different reasons for reducing the price targets, one common factor was the stock's high valuation. Currently, Bloom shares are trading at 132.8 times trailing earnings.

Is Bloom Energy stock a buy after powering down today?While operating cash flow turned negative in the last quarter, it's hardly a reason for investors to run for the hills. The company has distinguished itself among other hydrogen stocks in its ability to consistently generate operating cash flow, the recent quarter notwithstanding. For now, the better course of action for current shareholders would be to sit back and see what the company reports next quarter.

JPMorgan Chase is an advertising partner of Motley Fool Money. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy and JPMorgan Chase. The Motley Fool has a disclosure policy.

Key Takeaways Boston Beer's Q3 adjusted EPS rose 2.8% to $4.37, while revenues fell 3.2% to $520.1 million.SAM's shipments declined 4.9%, but pricing, product mix and brewery efficiencies lifted gross margin.SAM raised its 2026 adjusted EPS outlook to $9-$10.50 despite expectations of weak shipment volumes. The Boston Beer Company, Inc. (SAM - Free Report) reported mixed third-quarter 2026 results, with earnings surpassing the Zacks Consensus Estimate but revenues falling short. Adjusted earnings per share (EPS) of $4.37 beat the consensus estimate of $4.30. The figure increased 2.8% from $4.25 in the year-ago quarter.

Net revenues declined 3.2% year over year to $520.1 million, missing the consensus estimate of $523 million. Lower shipment volumes weighed on sales, while favorable pricing, product mix and improved brewery efficiencies supported profitability.

This Zacks Rank #3 (Hold) company’s shares have gained 8.7% over the past three months compared with the industry’s 4.1% growth.

Image Source: Zacks Investment Research

SAM Faces Volume Pressure Amid Mixed Brand TrendsBoston Beer's depletions declined 5% year over year. Shipment volumes decreased 4.9% to approximately 1.8 million barrels, reflecting continued weakness across several established brands.

Declines in Twisted Tea, Truly and Samuel Adams were partially offset by growth in Sun Cruiser and Angry Orchard. Sun Cruiser delivered approximately 60% growth in tracked channels during the quarter, while Angry Orchard recorded its sixth consecutive quarter of growth.

Distributor inventories averaged approximately four weeks on hand at quarter-end compared with four and a half weeks in the prior-year period. Management considered inventory levels appropriate.

Boston Beer's Margin Gains Offset Cost PressuresGross margin expanded 90 basis points (bps) year over year to 51.7% compared with 50.8% in the third quarter of 2025. Favorable product mix, pricing actions, procurement savings and improved brewery efficiencies supported the increase.

These benefits were partially offset by higher commodity and tariff costs. Shortfall fees and noncash expenses associated with third-party production prepayments totaled $1.6 million, reducing gross margin by approximately 31 bps.

Management highlighted continued progress in its supply-chain transformation. The company produced 98% of domestic volumes internally during the quarter compared with 89% a year earlier.

SAM's Advertising Expenses Remain SteadyAdvertising, promotional and selling expenses remained nearly flat year over year at $165.2 million. Freight expenses increased $9.5 million as higher transportation rates outweighed benefits from lower shipment volumes.

General and administrative expenses decreased $2.1 million to $42.9 million, primarily due to lower salary and benefit costs.

Boston Beer Maintains Strong Cash PositionBoston Beer ended the quarter with cash and cash equivalents of $308.1 million and no debt. The company also had $150 million available under its revolving credit facility.

Net cash provided by operating activities totaled $194.2 million during the first 39 weeks of 2026 compared with $230.2 million in the year-ago period. Capital expenditures amounted to $31.2 million, down from $36.7 million.

The company repurchased $79.5 million of Class A common shares from Dec. 28, 2025, through Oct. 16, 2026. Approximately $149 million remained under its board-authorized $1.6 billion share repurchase limit.

SAM Targets Innovation and Market Share RecoveryManagement remains focused on improving market share trends and expanding higher-margin product offerings. Sun Cruiser continues to benefit from distribution gains and strong consumer demand, while Angry Orchard maintains positive momentum.

Boston Beer is also expanding its innovation portfolio. Rally Dog Vodka Ade and Lytt Electric Coolers are scheduled for national availability in 2027, creating additional opportunities in emerging ready-to-drink beverage categories.

Meanwhile, management expects modest shipment growth in the fourth quarter, aided by prior-year inventory adjustments and shipment timing. The company anticipates its most pronounced year-over-year gross margin improvement in the final quarter, supported by lower shortfall fees.

SAM Raises Lower End of 2026 Earnings OutlookBoston Beer revised its 2026 guidance, reflecting continued volume softness alongside improving operational productivity. The company now expects depletions and shipments to decline by mid-single-digit percentages compared with its previous projection of low-to-mid-single-digit declines.

Price increases are likely to be 1-2%. The gross margin outlook was raised to 49-50% from 48.5-50%, supported by productivity savings, improved product mix and lower anticipated tariff costs. Expected tariff expenses were reduced to $18-$22 million from $20-$30 million. Advertising, promotion and selling expenses are likely to remain nearly flat year over year.

Adjusted EPS is now projected at $9-$10.50 compared with the prior range of $8.50-$10.50. The company also lowered its capital spending outlook to $55-$70 million from $60-$80 million.

Stocks to Consider in the Consumer Staples SpaceThe Chefs' Warehouse, Inc. (CHEF - Free Report) , which is a distributor of specialty food products in the United States, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Chefs' Warehouse's current financial-year sales indicates growth of 10.8% from the prior-year level. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.

Utz Brands, Inc. (UTZ - Free Report) , which is a leading manufacturer of a diverse portfolio of salty snacks, currently carries a Zacks Rank #2 (Buy). UTZ delivered a trailing four-quarter earnings surprise of 1.8%, on average.

 The Zacks Consensus Estimate for UTZ’s current financial-year sales indicates a rise of 3.7% from the year-ago number.

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

The consensus estimate for Darling Ingredients’ current financial-year sales is expected to rise 12.2% from the year-ago reported figure. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.

Key Takeaways CURLF raised its hostile Aurora bid to $1 cash and 0.4013 shares per share, but Aurora rejected it.Curaleaf's first-half 2026 revenues rose 8% to $664.3 million, while adjusted EBITDA margin fell to 20.6%.CURLF targets $35-$40 million in SG&A savings, but competition and pricing pressure remain key challenges.
Curaleaf Holdings (CURLF - Free Report) has added a new dimension to its growth strategy by pursuing a hostile takeover of Aurora Cannabis (ACB - Free Report) . While the proposed transaction could reshape Curaleaf's growth strategy, it also raises questions about deal execution, shareholder value and the potential implications for the company's existing business.

CURLF’s Bid Faces ResistanceCuraleaf formally launched its bid to acquire Aurora Cannabis in August, offering Aurora shareholders $0.75 in cash and 0.3463 CURLF shares for each ACB share. Based on Curaleaf’s share price before the announcement, the offer was worth approximately $4 per Aurora share, with the total value capped at $5 per share.

However, the bid was hostile from the beginning, as Curaleaf said Aurora had not responded meaningfully to its efforts to discuss a deal. ACB disputed the proposal’s merits, claiming it benefited Curaleaf more than its own shareholders. It also argued that the proposal undervalued its international medical cannabis operations and raised concerns about Curaleaf’s financial position.

At the beginning of October, Curaleaf improved its offer, raising the cash payment to $1 and the stock portion to 0.4013 CURLF shares per ACB share. The revised proposal increased the implied value to $5 per share and the maximum consideration to $6. Curaleaf also extended the offer deadline to Dec. 4, 2026.

Aurora’s board of directors rejected the revised offer last week, again arguing that it undervalued the company, while its special committee continues exploring other options. Curaleaf later criticized Aurora for refusing to share confidential information with it while allowing other potential buyers access. The takeover dispute remains unresolved.

With the takeover's outcome still uncertain, investors should also examine Curaleaf's broader business fundamentals, growth prospects and competitive position to determine if it remains worth considering.

CURLF’s Business Outlook Improves, Challenges RemainCuraleaf's business is showing signs of recovery, supported by improving U.S. operations, stronger wholesale demand and continued growth in international medical cannabis markets. It reported first-half 2026 revenues of $664.3 million, up 8% year over year. The company’s domestic business has returned to growth, while product innovation and retail expansion are helping strengthen its market position. Curaleaf continues to expand its presence, bringing its footprint to 80 locations in Florida and 190 nationwide. International revenues increased 30% from the prior-year period, highlighting the strength of Curaleaf's expanding presence in European medical cannabis markets.

Management also reported a 10% increase in retail transactions in the second quarter of 2026, which was partially offset by a roughly 4% decline in average unit retail pricing. These developments suggest that Curaleaf's growth is being supported by stronger customer traffic, although continued pricing pressure remains a challenge.

Margins, however, require closer attention. In the second quarter, Curaleaf's gross margin improved to 50%, up 70 basis points (bps) year over year, reflecting cultivation efficiencies, labor cost controls and a better product mix. Yet, adjusted EBITDA margin declined 120 bps to 20.6%. The company’s operating expenses also moved north, limiting the benefit of higher sales and improved gross margins. The key challenge is not only to maintain revenue growth but also to improve operating profitability.

To address the rise in expenses, management is targeting $35-$40 million in selling, general and administrative (SG&A) cost reductions over the next 12 months. Curaleaf also plans to increase the share of its international product supply sourced internally from approximately 20% to 50-75% over the next six to 12 months, aiming to reduce supply-chain volatility, improve European margins and lower inventory requirements.

If these initiatives deliver, they could improve profitability and cash generation. However, their success remains uncertain, particularly as international growth brings supply challenges and competitive pricing pressures persist.

Competition Remains IntenseCuraleaf faces competition from other multi-state cannabis operators that are expanding their retail presence and strengthening their branded-product businesses. Green Thumb Industries (GTBIF - Free Report) and TerrAscend (TSNDF - Free Report) are two notable competitors, with both pursuing expansion in markets where Curaleaf also operates.

Green Thumb has continued to expand its Florida retail network, bringing its footprint in the state to 26 locations and 120 stores nationwide. Its dispensaries offer brands such as RYTHM, Dogwalkers and &Shine, strengthening its retail reach and product distribution. As CURLF continues to expand its own Florida network, GTBIF’s growing presence could add to competition.

TerrAscend has also strengthened its presence in New Jersey by completing its acquisition of Aunt Mary's Dispensary last month. This retail store generates more than $10 million in annualized revenues, and TerrAscend expects the transaction to contribute immediately to EBITDA and free cash flow. The company also sees opportunities to improve the store's performance through its existing brand portfolio.  This expansion increases TerrAscend's reach in a market where Curaleaf also competes, adding pressure on the latter to retain customers and defend its market position.

CURLF Stock Performance & EstimatesYear to date, shares of Curaleaf Holdings have risen 7% against the industry’s 18% decline.

Image Source: Zacks Investment Research

The bottom-line estimates for 2026 and 2027 have remained constant over the past 60 days.

Image Source: Zacks Investment Research

How to Play CURLF Stock Now?Curaleaf's improving revenue growth, expanding retail presence and international opportunities are encouraging. However, margin pressure and rising operating expenses remain concerns, while management still needs to demonstrate that its cost-saving initiatives can translate into stronger profitability. The proposed Aurora acquisition adds another layer of uncertainty, as the deal's outcome remains unclear and could have implications for Curaleaf's financial flexibility and growth strategy.

Meanwhile, competition could make it more challenging for Curaleaf to maintain its market position and pricing power. Given these mixed signals and its Zacks Rank #3 (Hold), investors may adopt a cautious approach until Curaleaf improves its operating performance and uncertainty surrounding the Aurora bid eases.

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

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.

Based in Jericho, Kimco Realty (KIM - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 16.38%. Currently paying a dividend of $0.28 per share, the company has a dividend yield of 4.75%. In comparison, the REIT and Equity Trust - Retail industry's yield is 4.37%, while the S&P 500's yield is 1.33%.

Looking at dividend growth, the company's current annualized dividend of $1.12 is up 10.9% from last year. Over the last 5 years, Kimco Realty has increased its dividend 5 times on a year-over-year basis for an average annual increase of 14.37%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Kimco Realty's current payout ratio is 58%, meaning it paid out 58% of its trailing 12-month EPS as dividend.

KIM is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $1.84 per share, representing a year-over-year earnings growth rate of 4.55%.

Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide a quarterly payout.

High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, KIM is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

Key Takeaways FIX's Q3 earnings surged 68.6% to $13.91 per share, while revenues jumped 53.7% to $3.77 billion.FIX's backlog soared 90% to $17.81 billion, with technology customers driving 60.8% of revenues.FIX shares fell over 6% after hours despite a 64.8% rise in operating income amid guidance and CFO concerns.
Comfort Systems USA, Inc. (FIX - Free Report) delivered impressive third-quarter 2026 results, with earnings and revenues surpassing the Zacks Consensus Estimate and increasing sharply year over year. The quarterly performance reflected robust demand across technology-related projects, strong execution and continued expansion in construction activity. Backlog reached $17.81 billion, reinforcing management's confidence in sustained growth and profitability.

FIX shares dipped more than 6% in after-hours trading on Thursday, Oct. 22, 2026, following the release of its third-quarter 2026 results. The decline reflected concerns over the absence of forward guidance and the company's CFO transition.

The company announced that longtime chief financial officer Bill George will retire after the filing of its 2026 annual report, ending a 30-year tenure. Julie Shaeff, currently chief accounting officer, will succeed him.

FIX's Q3 Earnings & Revenue DiscussionThe company reported earnings per share of $13.91, which topped the Zacks Consensus Estimate of $12.71 by 9.4% and increased 68.6% from $8.25 reported in the year-ago quarter.

Revenues of $3.77 billion surpassed the consensus mark of $3.35 billion by 12.5% and rose 53.7% from $2.45 billion generated in the prior-year quarter. The improvement reflected strong demand, increased project activity and contributions from acquired businesses.

Comfort Systems Sees Robust Segment GrowthComfort Systems generated Mechanical segment (which accounted for 68.6% of total revenues in the quarter) revenues of $2.58 billion in the third quarter, up 42.7% from $1.81 billion in the prior-year quarter. The segment's operating income increased 63.2% to $469.6 million from $287.8 million a year ago.

The Electrical segment's revenues (which accounted for 31.4% of total revenues) surged 84.8% year over year to $1.18 billion from $640.5 million. Segment operating income climbed 60.4% to $173.6 million, supported by increased activity across electrical contracting operations.

Technology customers accounted for 60.8% of consolidated revenues compared with 45.8% a year ago. Manufacturing represented 16.8%, followed by healthcare at 6.3%, education at 4.6% and government at 3.7%.

New construction contributed 76.2% of quarterly revenues, up from 65.2% in the year-ago period. Existing building construction accounted for 14%, while service projects and service calls, maintenance and monitoring represented 5.1% and 4.7%, respectively.

FIX Backlog Surges on Sustained Project DemandBacklog as of Sept. 30, 2026, totaled $17.81 billion, increasing 26.7% from $14.06 billion at June 30, 2026, and jumping 90% from $9.38 billion reported a year ago.

On a same-store basis, backlog climbed to $17.39 billion from $9.38 billion in the prior-year period, highlighting substantial organic growth in the company's project pipeline.

Management attributed the strong order momentum to sustained demand and the company's execution capabilities. Approximately 65-75% of remaining construction performance obligations are expected to be recognized as revenues over the next 12 months, providing visibility into future business activity.

Comfort Systems Improves Operating ProfitabilityGross profit increased 53.7% to $934.5 million from $607.9 million a year ago. Gross margin remained stable at 24.8%, reflecting consistent profitability despite the significant expansion in revenues.

Selling, general and administrative expenses increased 36.8% to $314.2 million. However, SG&A expenses as a percentage of revenues improved to 8.3% from 9.4%, indicating better expense absorption as business volumes expanded.

Operating income surged 64.8% to $624.6 million from $378.9 million in the prior-year quarter. Operating margin expanded 110 basis points to 16.6%.

Adjusted EBITDA increased 61.4% to $667.9 million from $413.9 million. Adjusted EBITDA margin improved 80 basis points to 17.7%, reflecting stronger operating profitability.

FIX's Financial Position Remains StrongAs of Sept. 30, 2026, Comfort Systems had cash and cash equivalents of $2.16 billion, up from $981.9 million at 2025-end. Total debt declined to $49.6 million from $145.2 million, strengthening the company's financial flexibility.

During the quarter, net cash provided by operating activities increased 82.6% to $1.01 billion from $553.3 million a year earlier. Free cash flow rose to $805.6 million from $519 million, despite higher capital expenditures.

The company also paid dividends of 90 cents per share during the quarter, compared with 50 cents a year ago. Share repurchases totaled $340.9 million, reflecting continued shareholder returns alongside investments in business expansion.

Comfort Systems Remains Confident in Growth ProspectsComfort Systems' management maintained a positive outlook, supported by strong customer demand, an expanding project pipeline and consistent operating execution.

The company expects to sustain organic growth, high profitability and solid cash generation through the remainder of 2026 and into 2027. Management emphasized that continued demand and workforce capabilities position the business to capitalize on opportunities across its key markets.

Recent acquisitions also expanded the company's operating capabilities. During the third quarter, Comfort Systems acquired Boys Electrical Contractors in Florida and a Texas-based modular construction business, strengthening its presence across electrical services and customized building components.

FIX’s Zacks Rank & A Few Construction ReleasesComfort Systems currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

KB Home (KBH - Free Report) reported third-quarter fiscal 2026 earnings of $1.05 per share, beating the Zacks Consensus Estimate of 88 cents by 19.3%. Earnings declined 34.8% from $1.61 per share in the year-ago quarter.

KBH’s total revenues of $1.30 billion surpassed the consensus mark of $1.29 billion by 0.4% but dropped 20% year over year. Results reflected lower deliveries and continued pricing pressure, partly offset by progress in the company’s Built to Order model. BTO homes represented 74% of deliveries, supporting sequential improvement in housing gross margin.

Lennar Corporation (LEN - Free Report) reported weaker-than-expected third-quarter fiscal 2026 (ended Aug. 31) results. Adjusted earnings of $1.23 per share missed the Zacks Consensus Estimate of $1.29 by 4.7% and fell 38.5% from $2.00 per share a year ago.

Lennar’s total revenues of $8.05 billion missed the consensus estimate of $8.33 billion by 3.4% and declined 8.6% year over year. Lower deliveries and home prices weighed on results amid affordability pressure. Inventory turn stood at 2.4 times.

United Rentals, Inc. (URI - Free Report) reported third-quarter 2026 results, with adjusted earnings per share and total revenues beating the Zacks Consensus Estimate and increasing year over year. URI’s adjusted earnings of $15.55 per share topped the Zacks Consensus Estimate of $13.83 by 12.4% and grew 32.9% year over year from $11.70 per share. URI’s total revenues rose 15.7% year over year to $4.89 billion and surpassed the consensus estimate of $4.69 billion by 4.3%.

United Rentals management raised its revenue outlook to $18-$18.2 billion from $17.5-$17.8 billion. Adjusted EBITDA is now projected at $8.3-$8.4 billion compared with $7.98-$8.13 billion previously.

Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Apple Hospitality REIT (APLE - Free Report) or Extra Space Storage (EXR - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Apple Hospitality REIT has a Zacks Rank of #2 (Buy), while Extra Space Storage has a Zacks Rank of #3 (Hold) right now. This means that APLE's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

APLE currently has a forward P/E ratio of 10.94, while EXR has a forward P/E of 17.17. We also note that APLE has a PEG ratio of 3.43. 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. EXR currently has a PEG ratio of 4.24.

Another notable valuation metric for APLE is its P/B ratio of 1.37. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, EXR has a P/B of 2.13.

These metrics, and several others, help APLE earn a Value grade of B, while EXR has been given a Value grade of D.

APLE sticks out from EXR in both our Zacks Rank and Style Scores models, so value investors will likely feel that APLE is the better option right now.

First Interstate BancSystem NASDAQ: FIBK reported third-quarter net income of $62.2 million, or $0.65 per diluted share, compared with $83.9 million, or $0.87 per diluted share, in the second quarter. The sequential decline reflected lower non-interest income, which had included a $19.5 million gain in the prior quarter from a Nebraska branch transaction.

Net interest income increased $4 million, or 2%, from the prior quarter to $206.2 million. Fully taxable equivalent net interest margin expanded to 3.55% from 3.48% in the second quarter and 3.36% a year earlier, marking the company’s 10th consecutive quarter of margin expansion.

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Chief Executive Officer Jim Reuter said the company continued to execute its multiyear strategy of improving the franchise’s earnings power through relationship banking, branch optimization, targeted market investments and balance-sheet repositioning.

“Our primary objective is to protect and strengthen the quality of the deposit franchise and add new customers,” Reuter said. He said client acquisition remained strong in the Rocky Mountain region and that lending production remained concentrated in relationship-based clients with operating deposits and related services.

Margin Gains and Deposit Mix
Chief Financial Officer David Della Camera said loan yields increased 5 basis points during the quarter to 5.67%, while total funding costs fell 4 basis points. Deposit costs benefited from the departure of a large, high-cost, fully collateralized customer whose relationship did not meet the company’s long-term return objectives.

The exit contributed roughly 3 basis points of net interest margin improvement during the quarter, according to Della Camera, and did not materially affect net interest income. Excluding that account, deposits increased during the period.

Total deposits declined $52.8 million to $21.4 billion, but the company said its deposit mix improved as non-interest-bearing balances rose for a second consecutive quarter. Della Camera said interest-bearing deposit costs were 1.51% for the full month of September, compared with 1.49% for the third quarter overall.

Management said it expects underlying deposits to remain relatively stable in the fourth quarter, supported by customer acquisition and continued growth in non-interest-bearing balances. Della Camera noted that fourth-quarter deposit trends are typically stronger early in the quarter and weaker later in the period.

Reuter added that the company has seen growth in the number of clients, which he attributed to branding efforts and bankers expanding customer relationships. He said client growth can support deposits and fee-income opportunities over time.

Loans, Credit and Asset Repricing
Loans decreased $296 million in the third quarter, affected by a $47.7 million reduction in indirect lending, a $64.9 million decline in the retained out-of-market portfolio and a $36.8 million decline in the residential portfolio. Some expected third-quarter payoffs shifted into early in the fourth quarter, management said.

The ratio of loans held for investment to deposits was 65.4% at quarter-end, down from 66.6% in the second quarter and 70.1% a year earlier. Management expects loan balances to remain under pressure in the fourth quarter as it continues exiting certain non-relationship and out-of-market credits, while deposits are expected to be flat to higher.

Della Camera said commercial loan production has increased materially from a year ago, though certain portfolio runoffs have kept the underlying commercial portfolio near flat and still modestly declining. He said the company believes it has added the relationship-manager capacity needed to support future growth but did not provide a timetable for loan growth to resume.

The company said asset repricing and reinvestment should continue to support earnings asset yields into 2027. Della Camera said new loan yields were in the mid-6% range during the third quarter, while investment portfolio reinvestment spreads were estimated in the 40- to 50-basis-point range for maturities of five years or more.

Management said the balance sheet is broadly neutral to interest-rate changes from a net interest income perspective in both the near term and over the following 12 months.

Credit Metrics Remain Stable
Net charge-offs rose $0.2 million sequentially to $9.9 million, or 28 basis points of average loans. First Interstate recorded a $10.5 million provision for credit losses, driven primarily by charge-offs, a 2-basis-point increase in the funded loan allowance for credit losses to 1.30%, and a higher unfunded allowance tied largely to increased unfunded construction commitments.

Criticized loans increased $2.1 million, or 0.2%, from the second quarter but were down 19% from a year earlier. Nonperforming assets declined 6% during the quarter.

Reuter said the company’s credit teams continue to review criticized loans and stress upcoming maturities for higher rates as part of borrower renewal discussions. He said management expects continued long-term improvement in credit quality, while acknowledging that criticized loan levels may not improve in a straight line each quarter.

Capital Deployment and Branch Strategy
First Interstate repurchased about 2 million shares for approximately $76 million in the third quarter. Since the share repurchase program began in late August 2025, the company has repurchased about 10 million shares totaling $347 million.

The company also declared a quarterly common dividend of $0.47 per share, representing a 5% annualized yield based on the average closing share price during the third quarter. Its Common Equity Tier 1 capital ratio was 14.36% at quarter-end, down 18 basis points from the prior quarter, while its leverage ratio was 9.49%.

Della Camera said the company intends to remain active in capital deployment but does not have a specific quarterly repurchase target. He said balance-sheet growth would become the preferred capital allocation opportunity as low-cost deposit and lending growth accelerate.

Management said it plans to open two Colorado branches in the first half of 2027 while consolidating three locations in the fourth quarter of 2026. Reuter said the current expense base, technology, infrastructure and staffing levels support the company’s intended growth without requiring a significant additional investment step-up beyond normal inflationary costs.

About First Interstate BancSystem (NASDAQ:FIBK)First Interstate BancSystem, Inc is a financial holding company headquartered in Billings, Montana. Through its principal subsidiary, First Interstate Bank, the company provides community banking services to individuals, businesses, agricultural customers and governmental entities.

First Interstate Bank offers deposit accounts, consumer and commercial loans, mortgage lending, credit cards, cash-management and treasury-management services, online and mobile banking, and wealth-management and investment services.

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

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

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LOS ANGELES, Oct. 23, 2026 (GLOBE NEWSWIRE) -- The Law Offices of Frank R. Cruz reminds investors of upcoming lead plaintiff deadlines in securities class action lawsuits filed on behalf of shareholders of The Chemours Company, Compass, Inc., and Millrose Properties, Inc. Investors who wish to seek appointment as lead plaintiff must file a motion by the deadlines listed below.

If you lost money on these investments, contact The Law Offices of Frank R. Cruz about these class actions to learn about your legal rights, by calling 310-914-5007 or emailing [email protected].

The Chemours Company (NYSE: CC)

Class period: February 20, 2026 through August 4, 2026Lead plaintiff motion deadline: December 7, 2026Case: Darcy v. The Chemours Company et al., filed in the U.S. District Court District of Delaware (Wilmington) According to the Chemours Company complaint, throughout the class period the defendants made false and/or misleading statements and/or failed to disclose that: (i) Defendants had materially overstated aftermarket demand for their Opteon products; (ii) demand for such products was decreasing as a result of Defendants' overselling Opteon products in the preceding fiscal year; and (iii) as a result of these undisclosed issues, Defendants' financial guidance for the 2026 fiscal year was unreliable.

If you are a The Chemours Company shareholder who suffered a loss, click here to participate.

Compass, Inc. (NYSE: COMP)

Class period: January 9, 2026 through October 7, 2026Lead plaintiff motion deadline: December 8, 2026Case: Magloire v. Compass, Inc. et al., filed in the U.S. District Court Southern District of New York According to the Compass, Inc. complaint, throughout the class period the defendants made false and/or misleading statements and/or failed to disclose that: (i) Compass and Anywhere failed to “use their respective reasonable best efforts to obtain [] authorizations and consents” from “certain regulatory authorities” and “to take, or cause to be taken, all appropriate actions and . . . all things necessary, proper or advisable under applicable law (including any antitrust laws) to consummate and make effective the merger at the earliest practicable date”; (ii) Compass was not in “compliance with applicable laws,” with “the absence of governmental investigations and the possession of and compliance with licenses and permits necessary for the conduct of business.”; and (iii) Defendants hired a well-connected lobbyist and lawyer to obtain access to high-level Department of Justice officials to circumvent the antitrust merger review process.

If you are a Compass, Inc. shareholder who suffered a loss, click here to participate.

Millrose Properties, Inc. (NYSE: MRP)

Class period: February 7, 2025 through October 2, 2026Lead plaintiff motion deadline: December 8, 2026Case: Rubenstsein et al. v. Millrose Properties, Inc. et al., filed in the U.S. District Court for the Southern District of Florida According to the Millrose Properties, Inc. complaint, throughout the class period the defendants made false and/or misleading statements and/or failed to disclose that: (i) despite representations to the contrary, Millrose's objectives were not limited to engaging in land purchases, horizontal development, and homesite option purchase arrangements for Lennar and potentially other homebuilders and developers; (ii) despite representations to the contrary, Millrose would in fact enter into lease agreements and would have tenants in its properties; (iii) Millrose would purchase $200 million worth of properties from Lennar; and (iv) Millrose would lease the properties purchased from Lennar out at a loss.

If you are a Millrose Properties, Inc. shareholder who suffered a loss, click here to participate.

What should investors in these cases do now?

Investors need not take any action at this time to be class members in these cases. Investors may retain counsel of their choice or take no action and remain absent class members. No class has been certified yet in any of these cases.

For more information about these class actions or your rights, contact Frank R. Cruz of The Law Offices of Frank R. Cruz at 310-914-5007, by email at [email protected], or visit the firm's case page.

If you inquire by email, please include your mailing address, telephone number, and number of shares purchased.

About The Law Offices of Frank R. Cruz

The Law Offices of Frank R. Cruz investigates and prosecutes securities fraud and corporate malfeasance class actions. With nearly 20 years of litigation experience, the firm focuses on complex securities class actions and gives each client personal, one-on-one attention throughout the legal process.

Prior results do not guarantee a similar outcome.

Contact

Frank R. Cruz

The Law Offices of Frank R. Cruz

Los Angeles, CA

Email: [email protected]

Telephone: 310-914-5007

www.frankcruzlaw.com

Follow The Law Offices of Frank R. Cruz for updates on Twitter: twitter.com/FRC_LAW

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

 | Source: Verisk Analytics, Inc.

JERSEY CITY, N.J., Oct. 23, 2026 (GLOBE NEWSWIRE) -- Verisk (Nasdaq: VRSK), a leading strategic data analytics and technology partner to the global insurance industry, today issued the following statement in response to the Delaware Supreme Court order regarding the AccuLynx transaction:

“We respect the Delaware Supreme Court’s order to affirm the judgment of the Delaware Chancery Court. We will proceed in accordance with the Court’s order. The transaction remains subject to the satisfaction of customary closing conditions and FTC review, and there is no guarantee that the transaction will be completed. We remain focused on serving as a strategic data and technology partner to the global insurance industry and continuing to deliver long-term value for our shareholders.”

###

About Verisk
Verisk (Nasdaq: VRSK) is a leading strategic data analytics and technology partner to the global insurance industry. It empowers clients to strengthen operating efficiency, improve underwriting and claims outcomes, combat fraud and make informed decisions about global risks, including climate change, catastrophic events, sustainability and political issues. Through advanced data analytics, software, scientific research and deep industry knowledge, Verisk helps build global resilience for individuals, communities and businesses. With teams across more than 20 countries, Verisk consistently earns certification by Great Place to Work. For more, visit Verisk.com and the Verisk Newsroom.

Forward-Looking Statements
This release contains forward-looking statements. These statements relate to future events or to future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “will,” “expect,” “intend,” “plan,” “target,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” or “continue” or the negative of these terms or other comparable terminology. You should not place undue reliance on forward-looking statements, because they involve known and unknown risks, uncertainties, and other factors that are, in some cases, beyond our control and that could materially affect actual results, levels of activity, performance or achievements.

Contact Data Investor Relations Stacey Brodbar Senior Vice President, Finance and Investor Relations Verisk 201-469-4327 [email protected] Media  Alberto Canal Verisk Public Relations 201-469-2618 [email protected]

Key Takeaways VLO surged 149.2% over the past year versus PSX's 110.8% gain, with both benefiting from strong margins.VLO's access to cheaper heavy crude and diverse feedstocks helps control costs amid elevated oil prices.PSX's diversified operations and debt reduction bolster resilience, while VLO trades at a lower valuation. Valero Energy Corporation (VLO - Free Report) and Phillips 66 (PSX - Free Report) are two large-cap energy players with promising business prospects, supported by their strong refining operations. Investors’ preference for both stocks is reflected in the price chart. Over the past year, VLO surged 149.2%, outperforming PSX’s 110.8% growth.

Image Source: Zacks Investment Research

However, the stock price performance does not necessarily establish VLO's superiority over PSX as a refining energy giant. Before arriving at an investment conclusion, let's examine the broader downstream business environment, which plays a crucial role in determining the cash flow potential of both energy majors.

VLO's Advantageous Position in Heavy Crude Aids ItThe Middle East tensions are driving crude oil prices higher, with West Texas Intermediate (“WTI”) hovering around $100 per barrel, according to Oilprice.com. The high crude price has significantly increased input costs for refiners such as VLO and PSX. However, unlike many refiners, Valero Energy has a heavy crude advantage, as heavy crude is cheaper than light crude like WTI.

Regarding the company’s access to diverse crude feedstocks, Valero has an advantage because its Gulf Coast refineries can buy crude oil from many low-cost sources, including the United States, Canada and Venezuela. This gives the company more flexibility to purchase cheaper oil, which helps keep refining costs low and can boost profits when competitors have fewer sourcing options.

Constrained Global Refining Capacity is a Boon for VLO & PSX?Global refining capacity is constrained and fuel inventories are low. On the demand side, gasoline and diesel remain resilient. This means people are still driving, while diesel demand suggests transportation and freight activity are still holding up. As a result, with refineries busy and fuel in limited supply, refiners’ margins are quite strong.

With crude prices likely to remain high, investors shouldn’t allocate their money only to exploration and production companies but also to refining players like VLO, even though high crude prices have been increasing refiners’ input costs.

The same story applies to PSX, as the energy major also noted that there aren’t enough refineries or products globally right now because much refining capacity is offline and fuel inventories are low.

PSX’s Resilient Business Model & Debt Reduction FocusAlthough a leading refiner, PSX, unlike most of its refining peers, has diversified its business across 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, with a diversified business model, PSX is largely insulated from commodity price volatility.

Moreover, debt reduction remains on track, with PSX targeting roughly $17 billion of total debt by 2026-end versus almost $21 billion in the second quarter, while net debt is expected to improve from $16.5 billion to less than $16 billion.

Image Source: Phillips 66

VLO or PSX: Which is a Better Stock?Coming to the valuation, VLO stock is currently relatively cheap, as the energy company is trading at a trailing 12-month EV/EBITDA multiple of 9.00x, which is lower than PSX’s 12.52x. In other words, investors are willing to pay a premium price for PSX over VLO.

Image Source: Zacks Investment Research

The premium valuations reflect PSX’s strong business fundamentals, sound balance sheet and resilient business model. VLO also presents a compelling investment case, given its relatively attractive valuation and the prevailing strength in the refining business environment.

Currently, both stocks are highly investment-worthy and sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

On its third-quarter 2026 earnings call, held on Oct. 22, 2026, Robert Half (RHI +20.81%) announced global enterprise revenues of $1.359 billion and its first year-over-year growth in quarterly earnings per share since 2022. Long-term investors care because recovering hiring activity and expanding consultant margins show the specialized staffing model is regaining momentum. Three things management said stand out.

1. Regulatory Pressure Is Driving High-Margin Compliance WorkBank regulators are stepping up enforcement, creating immediate demand for risk and compliance consulting that feeds both Protiviti and contract staffing operations.

During the last 90 days, Treasury Department regulators imposed significant fines and major enforcement actions against multiple large financial institutions.
-- Keith Waddell, President and Chief Executive Officer2. AI Adoption Creates Fresh Opportunities and Verification NeedsGenerative artificial intelligence tools let job candidates pad credentials, making human screening and candidate evaluation far more valuable for hiring managers.

At the same time, the growing use of generative AI by job seekers is making it more challenging for employers to distinguish between candidates' stated qualifications and demonstrated capabilities.
-- Keith Waddell, President and Chief Executive Officer3. Pricing Discipline and Higher Bill Rates Are Expanding SpreadsContract talent bill rates accelerated year over year, lifting segment gross margins through higher billable skill mixes and deliberate pricing execution.

Contract Talent Solutions bill rates for the third quarter increased 3.6% compared to 1 year ago, adjusted for changes in the mix of revenues by functional specialization currency, and country.
-- Michael C. Buckley, Chief Financial OfficerLooking AheadTechnology consulting is reaching record quarterly performance as clients fund core infrastructure upgrades.

Technology consulting again posted all-time-high quarterly revenues with high demand for platform transformation, cybersecurity, and data-related and AI engagements.
-- Keith Waddell, President and Chief Executive OfficerManagement watches pricing discipline, consultant utilization, and compliance project backlogs across both divisions to protect operating margins. The cross-selling model between staffing and consulting provides a structural buffer.

Backed by our trusted brand, exceptional people, innovative capabilities, and diversified business model, we remain confident in our ability to create long-term value for our clients, our employees and our shareholders.
-- Keith Waddell, President and Chief Executive OfficerThe Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Investors interested in Oil and Gas - Integrated - United States stocks are likely familiar with ConocoPhillips (COP - Free Report) and Cactus, Inc. (WHD - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

ConocoPhillips and Cactus, Inc. are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that COP is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.

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.

COP currently has a forward P/E ratio of 13.01, while WHD has a forward P/E of 19.62. We also note that COP has a PEG ratio of 1.45. 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. WHD currently has a PEG ratio of 1.61.

Another notable valuation metric for COP is its P/B ratio of 2.68. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, WHD has a P/B of 3.31.

Based on these metrics and many more, COP holds a Value grade of B, while WHD has a Value grade of C.

COP sticks out from WHD in both our Zacks Rank and Style Scores models, so value investors will likely feel that COP is the better option right now.

Key Takeaways KLA's Q1 earnings are expected to rise 34.09%, with revenues projected to grow 26.09% year over year.AI investments, rising HBM adoption and advanced packaging demand are expected to drive KLA's Q1 growth.KLA's 21.6% YTD stock gain beats the sector, but margin pressure remains a concern.
KLA (KLAC - Free Report) is set to report its first-quarter fiscal 2027 results on Oct. 28.

For the to-be-reported quarter, KLAC expects revenues of $4 billion, plus/minus $200 million. The Zacks Consensus Estimate for revenues is pegged at $4.05 billion, indicating an increase of 26.09% from the year-ago quarter’s reported figure.

For the fiscal first quarter, non-GAAP diluted earnings are projected at $1.16 per share (plus or minus 10 cents). The consensus mark for earnings is pegged at $1.18 per share, unchanged over the past 30 days, indicating year-over-year growth of 34.09%.

Consensus Estimate Trend
Image Source: Zacks Investment Research

KLAC’s earnings have surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 2.75%.

Let us see how things have shaped up for the upcoming announcement.

Key Factors to Note Ahead of KLAC’s Q1 ResultsKLA's first-quarter fiscal 2027 results are expected to have benefited from accelerating investments in artificial intelligence (AI) infrastructure, particularly advanced semiconductor manufacturing. Increasing demand for AI processors, high-performance computing chips and sophisticated semiconductor designs is driving the adoption of KLA’s inspection and metrology solutions. The transition toward 2-nanometer manufacturing and gate-all-around transistor architectures is increasing process control requirements. The company's Semiconductor Process Control business is expected to have benefited from these trends in the to-be-reported quarter.

Increased investments in DRAM manufacturing, particularly high-bandwidth memory (HBM) used in AI accelerators and data centers, are expected to have driven top-line growth in the fiscal first quarter. Growing HBM adoption, increasing extreme ultraviolet (EUV) lithography applications and rising memory-device complexity are creating additional demand for process control equipment. HBM’s larger die sizes, stringent performance specifications and complex stacking architectures require more sophisticated inspection and metrology capabilities. These factors bode well for KLAC.

Moreover, fiscal first-quarter results are expected to have benefited from robust demand for advanced packaging solutions, supported by growing adoption of heterogeneous integration, chiplets and high-performance computing architectures. Increasing packaging complexity is encouraging semiconductor manufacturers to deploy more advanced inspection and metrology tools to improve yields and manufacturing efficiency. KLA expects its advanced packaging process control systems revenues to reach approximately $1.1 billion in calendar 2026, indicating growth of more than 70% year over year. The company is also witnessing growing adoption of its front-end inspection technologies in advanced packaging manufacturing.

Meanwhile, fiscal first-quarter results are also expected to reflect improving component availability and expanding manufacturing capacity. KLA expects revenues in the second half of calendar 2026 to increase approximately 20% from the first half, reflecting accelerating customer demand and improving supply chain execution. Strong equipment orders and a backlog of approximately $12.57 billion at fiscal 2026-end are providing substantial revenue visibility.

Nevertheless, KLAC management has highlighted that calcium fluoride optical components can have lead times of 18-24 months or longer, potentially limiting production flexibility. Rising memory prices have also pressured gross margins, with the company indicating a negative impact exceeding 100 basis points in recent quarters.

KLAC Shares Outperform Sector & PeersKLA shares have returned 21.6% year to date (YTD), outperforming the broader Zacks Computer and Technology sector’s return of 18%. However, the company has underperformed peers, including Applied Materials (AMAT - Free Report) , Teradyne (TER - Free Report) and Axcelis Technologies (ACLS - Free Report) , YTD. Shares of Applied Materials, Teradyne and Axcelis have returned 46.1%, 58.2% and 30.3%, respectively, over the same timeframe.

KLAC Stock’s Performance
Image Source: Zacks Investment Research

The KLAC stock is not so cheap, as suggested by the Value Score of D. In terms of the forward 12-month price-to-earnings (P/E), KLAC is trading at 25.44X, higher than the broader sector and peers like Applied Materials and Axcelis but cheaper than Teradyne. The broader sector is trading at 19.79X while Applied Materials, Axcelis and Teradyne trade at 20.69X, 20.67X and 28.37X, respectively.

KLAC Stock’s Valuation
Image Source: Zacks Investment Research

KLA’s Prospects Ride on Strong Advanced Packaging GrowthKLA’s advanced packaging business represents a significant long-term growth opportunity as semiconductor manufacturers increasingly adopt chiplets, heterogeneous integration and advanced packaging architectures. The company expects KLA’s share of the advanced packaging market to increase to approximately 7-8% in 2026 from only a few percentage points in 2023. The increasing application of front-end manufacturing processes in advanced packaging is driving demand for more sophisticated inspection and metrology solutions. Growing adoption of hybrid bonding and high-density interconnect technologies should further expand KLA’s addressable market.

The company is well-positioned to capitalize on increasing wafer fabrication equipment (WFE) spending, supported by AI infrastructure investments, semiconductor capacity expansion and technology transitions. The company raised its calendar 2026 WFE market outlook to the low-$150-billion range, representing mid-20% growth from approximately $120 billion in 2025. KLAC management indicated that industry growth in 2027 could match or exceed 2026 levels, with a scenario approaching $190 billion in WFE spending.

KLA’s growing installed equipment base is expected to support sustained expansion in its services business. The company has established a long-term annual services revenue growth target of 13-15%, supported by increasing equipment installations, maintenance requirements, upgrades and productivity-enhancing solutions. Approximately 80% of services revenues are contract-based, providing recurring revenue visibility. Strong equipment shipments in calendar 2026 and 2027 should expand the installed base, creating additional opportunities for service contracts and customer support.

ConclusionKLA’s strong positioning in the semiconductor process control market, accelerating AI infrastructure investments and robust demand for advanced packaging solutions bode well for its growth prospects. Increasing process control intensity, rising HBM adoption and expanding WFE spending are expected to sustain revenue momentum. A strong backlog and growing services business further strengthen its long-term outlook.

KLA currently has a Zacks Rank #2 (Buy), which implies that investors should start accumulating the stock ahead of the fiscal first-quarter earnings results. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Hilltop Holdings Inc. (HTH) Q3 2026 Earnings Call October 23, 2026 9:00 AM EDT

Company Participants

Matthew Dunn - Head of Investor Relations
Jeremy Ford - President, CEO & Chairman
William Furr - Executive VP & CFO

Conference Call Participants

Hannah Wynn - Keefe, Bruyette, & Woods, Inc., Research Division
Matt Olney - Stephens Inc., Research Division
Evan Yee - Raymond James & Associates, Inc., Research Division

Presentation

Operator

Hello, everyone. Thank you for joining us, and welcome to Hilltop Holdings Second (sic) [ Third ] Quarter 2026 Earnings Conference Call. [Operator Instructions] I will now hand the conference call over to Matt Dunn. Matt, please go ahead.

Matthew Dunn
Head of Investor Relations

Thank you. Before we get started, please note that certain statements during today's presentation that are not statements of historical facts, including statements concerning such items as our outlook, business strategy, future plans, financial condition, credit risks and trends in credit, allowance for credit losses, liquidity and sources of funding, funding costs, dividends, stock repurchases, subsequent events and impacts of interest rate changes as well as such other items referenced in the preface of our presentation are forward-looking statements. These statements are based on management's current expectations concerning future events that, by their nature, are subject to risks and uncertainties.

Our actual results, capital, liquidity and financial condition may differ materially from these statements due to a variety of factors, including the precautionary statements referenced in the preface of our presentation and those included in our most recent annual and quarterly reports filed with the SEC.

Please note that certain information presented is preliminary and based upon data available at this time. Except to the extent required by law, we expressly disclaim any obligation to update earlier statements as a result of new information.

Additionally, this presentation includes certain

Key Takeaways Cadence expects Q3 revenues of $1.595-$1.625 billion and non-GAAP EPS of $2.01-$2.07, driven by AI demand.Growing adoption of agentic AI tools and robust demand across EDA, IP and SDA are likely to support growth.CDNS benefits from strong backlog, though macro uncertainty and U.S.-China tensions remain concerns. Cadence Design Systems, Inc. (CDNS - Free Report) will release results for the third quarter of 2026 on Oct. 26.

The Zacks Consensus Estimate for third-quarter earnings is $2.04 per share, unchanged in the past 60 days. The consensus mark implies a 5.7% increase from the year-ago actual. The Zacks Consensus Estimate for revenues is pinned at $1.61 billion, indicating a nearly 20.3% uptick from the year-ago actual.

Management expects revenues to be $1.595-$1.625 billion for the third quarter. The company reported sales of $1.339 billion in the year-ago quarter. Non-GAAP EPS is anticipated to be between $2.01 and $2.07. The company reported an EPS of $1.93 in the year-ago quarter. 

Cadence has an impressive earnings surprise history. The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 4.94%.

Price Performance
Image Source: Zacks Investment Research

CDNS stock has lost 7% in the past six months against the Computer-Software industry’s growth of 16.6%. The S&P 500 composite and the Zacks Computer and Technology sector have risen 7.5% and 8.6%, respectively, in the same time frame.

Factors Shaping CDNS’ Q3 ResultsBroad-based momentum across electronic design automation (“EDA”), IP and System Design & Analysis (“SDA”), supported by sustained demand for its AI-oriented portfolio amid robust design activity and new system architectures across hyperscaler infrastructure and physical AI, remains the key catalyst.  

The company had a backlog of $8.1 billion at the second quarter-end driven by bookings momentum, while revenues expected to be recognized over the following 12 months from remaining performance obligations totaled $4.2 billion. This provides substantial visibility into future business performance. Cadence’s ratable software model and high mix of recurring revenues are other positives.

AI has been driving a major transformation in semiconductor and system design and Cadence is deeply integrated into this shift. Design activity across several verticals, especially data centers, drones, robotics and automotive, has been robust due to AI, hyperscale computing and 5G. The focus on Generative AI, Agentic AI and Physical AI has been leading to an exponential increase in computing demand and semiconductor innovation.

Rising customer R&D investments in AI-driven automation have been creating a favorable demand environment for Cadence.

On the last earnings call, management cited agentic AI as a durable tailwind. Cadence expects agentic tools to drive higher EDA consumption and usage across its platform as customers run more simulations, verification and implementation cycles, thereby expanding the addressable market. Management highlighted “strong early traction” for its AI Super-Agent portfolio.

Cadence's agentic AI portfolio includes ChipStack, ViraStack, and InnoStack. In September, the company introduced an RTL Generation Agent for its ChipStack AI Super Agent. The expanded capabilities, expected to become available to select early-access customers in the fourth quarter, strengthen the company's longer-term AI-driven growth prospects.

The company has been collaborating with several tech giants, including Qualcomm and NVIDIA, on their next-generation AI designs across both training and inference. Expanding partnerships with Samsung, Taiwan Semiconductor Manufacturing, Intel and Arm Holdings, bodes well.

Cadence expanded its collaboration with TSMC in September, securing tool certification for advanced A14 design tools and introducing additional silicon-proven IP for N3P and N2P technologies. In October, Cadence collaborated with NVIDIA and launched Europe's first sovereign AI platform for semiconductor, system and AI factory design.

Nonetheless, ongoing uncertainty prevailing over global macroeconomic conditions, especially U.S.-China tech tensions, along with stiff competition in the EDA space and inflation, remains a concern ahead of the third-quarter earnings. Management expects third-quarter non-GAAP operating margin between 43.5% and 44.5%, compared with 47.6% in the prior-year quarter. 

A Look at SegmentsCore EDA business (which constitutes Custom IC, Digital IC and Functional Verification businesses) is likely to have gained from demand for the new hardware systems, especially among AI, automotive and high-performance computing clients. Continued adoption of Cadence's digital full-flow solutions, including Tempus and Certus signoff technologies, is likely to have cushioned the segment’s performance.

The SDA division is likely to have gained from the increasing demand for BETA CAE solutions, PCB and advanced packaging solutions and the integration of Hexagon's Design and Engineering business. Growing adoption of the AuraStack AI Super Agent, which automates PCB and advanced packaging design workflows, could further strengthen the division's prospects.

The IP business has been gaining from an expanding silicon solutions portfolio and increasing demand for solutions in AI and HPC use cases. The company has been witnessing higher demand for its Star IP portfolio across AI and HPC applications, including HBM, PCIe, UCIe and LPDDR6.

Earnings Whispers for CDNSOur proven model predicts an earnings beat for Cadence 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. This is exactly the case here.

CDNS currently has a Zacks Rank #2 and an Earnings ESP of +0.91%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Other Stocks to ConsiderHere are a few other stocks that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this season.

Seagate Technology Holdings plc (STX - Free Report) has an Earnings ESP of +2.49% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

STX is scheduled to report quarterly figures on Oct. 27, 2026. The Zacks Consensus Estimate for Seagate Technology’s to-be-reported quarter’s earnings and revenues is pinned at $7.40 per share and $4.11 billion, respectively. Shares of Seagate Technology are up 162.8% in the past year.

Intel (INTC - Free Report) currently has an Earnings ESP of +2.22% and a Zacks Rank #2. INTC is scheduled to report quarterly earnings on Oct. 29, 2026. The Zacks Consensus Estimate for Intel’s to-be-reported quarter’s earnings and revenues stands at 39 cents per share and $16.44 billion, respectively. Shares of Intel have gained 123.4% in the past year.

Vertiv (VRT - Free Report) has an Earnings ESP of +0.89% and a Zacks Rank #2 at present. The company is scheduled to report quarterly figures on Oct. 28, 2026. The Zacks Consensus Estimate for Vertiv’s to-be-reported quarter’s earnings and revenues is pinned at $1.82 per share and $3.76 billion, respectively. Shares of Vertiv are up 5.2% in the past year. 

SummaryEvery so often, the market hands investors high-yielding opportunities on a platter after throwing out the baby with the bathwater.I detail why I think there are certain BDCs that this applies to right now.I discuss the specifics of what I am looking for as well as some of my top picks of the moment.Looking for a portfolio of ideas like this one? Members of High Yield Investor get exclusive access to our subscriber-only portfolios. Learn More » MicroStockHub/iStock via Getty Images

Investors typically associate low- to mid-teens percentage dividend yields with highly risky, financially distressed businesses that have impending dividend cuts. However, sometimes a market becomes so pessimistic about a specific sector that it throws the babies out with the bathwater.

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

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