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Namibia Critical Metals (TSX-V:NMI, OTCQB:NMREF) announced that the Joint Management Committee overseeing the Lofdal Heavy Rare Earth Project in Namibia has approved the next phase of work for the project's definitive feasibility study (DFS), including up to approximately C$11 million in additional funding to advance completion of the study.

The company also announced the award of its first major metallurgical and geometallurgical contracts under the expanded DFS program to SGS Canada, which will carry out testing and process development work.

According to the company, the approved programs mark the transition of the Lofdal project into full DFS execution. The work is intended to validate the complete processing flowsheet from run-of-mine ore through to the production of separate light and heavy rare earth carbonate products, while generating engineering and operating data to support updated plant design and project financing.

A key objective of the expanded metallurgical program is to evaluate the production of higher-value intermediate rare earth products in Namibia. Rather than exporting mineral concentrates for further processing, the program will assess integrated hydrometallurgical processing to produce separate light rare earth carbonate (LREC) and heavy rare earth carbonate (HREC) products.

The company stated that this approach aligns with Namibia's goal of increasing domestic beneficiation of critical minerals while supporting industrial development and long-term economic value creation.

Namibia CEO Darrin Campbell said the approval of additional DFS funding will support a comprehensive metallurgical development program designed to reduce processing risks and provide engineering data required for detailed design and project financing.

"Equally important, these programs move Lofdal beyond conventional mineral concentrate production toward higher-value mixed and separated rare earth products,” Campbell said. “This work supports Namibia's vision of developing downstream critical mineral industries while strengthening secure and diversified supply chains for Japan and other allied economies.”

Under the approved work program, approximately 30 tonnes of representative ore will undergo continuous pilot-scale flotation testing to validate the processing flowsheet, optimize operating conditions and produce concentrate for downstream hydrometallurgical processing.

A continuous hydrometallurgical pilot plant will also be established to demonstrate the complete processing flowsheet, including acid bake, leaching, impurity removal, solvent extraction and precipitation. The campaign is expected to produce mixed rare earth carbonate followed by separate light and heavy rare earth carbonate products.

Additional laboratory and pilot-scale solvent extraction work will focus on optimizing the separation of light and heavy rare earth elements and identifying opportunities to improve operating economics through lower reagent consumption.

The expanded program also includes a geometallurgical campaign involving 98 representative samples from across the Lofdal deposit to refine geometallurgical domains and develop predictive processing models for mine planning and process optimization.

The company said the work is expected to validate pilot-scale processing performance, generate engineering design criteria for the process plant, optimize recoveries and operating costs, support environmental permitting activities and further de-risk the processing component of the Lofdal project ahead of completion of the definitive feasibility study.

Shares of Namibia Critical Metals (TSX-V:NMI, OTCQB:NMREF) jumped over 14% at the open in Toronto before settling to trade around C$0.18 by midmorning.

11:00am: AI rally faces reality Some analysts are wondering whether market expectations have already been pushed too high.

Linh Tran, Market Analyst at XS.com, believes what we’re seeing is “more than ordinary profit-taking.”

“With valuations already reflecting much of the optimism surrounding artificial intelligence, the market is no longer satisfied with earnings simply beating forecasts,” Tran wrote.

“Investors now expect companies to keep raising their revenue outlooks, preserve profit margins and prove that the enormous amount of capital being committed to AI infrastructure can generate adequate economic returns.”

Still, Tran believes the market’s long-term uptrend remains intact, but investors may face a more selective environment ahead. A measured pullback could be constructive by easing valuation concerns and setting the stage for a healthier continuation of the rally, the analyst added.

9:55am: Investors look past trade worries Stocks opened higher Tuesday morning, with the Nasdaq leading the charge as chip stocks bounced back and investors digested a fresh batch of corporate earnings.

The Nasdaq climbed 0.7% to 25,687, while the S&P 500 gained 0.4% to 7,468 and the Dow Jones Industrial Average edged up 0.2% to 51,924.

Technology shares regained momentum after recent pressure on semiconductor names, helping to steady markets as investors look ahead to a busy stretch of earnings from major companies.

Corporate results offered another boost to sentiment. General Motors Company (NYSE:GM) reported stronger-than-expected second-quarter results, posting revenue of $48.03 billion versus the $46.61 billion expected by analysts. The automaker also delivered adjusted earnings per share of $3.57, ahead of the $3.19 consensus estimate, while adjusted EBIT came in at $3.94 billion compared with expectations of $3.7 billion.

Industrial giant 3M Co (NYSE:MMM) also topped forecasts, reporting second-quarter revenue of $6.5 billion and adjusted earnings per share of $2.40, ahead of estimates of $6.4 billion and $2.24, respectively. The company said adjusted operating margins improved to 24.9% and raised its full-year 2026 adjusted outlook.

Investors were also keeping an eye on the labour market after data from ADP showed private-sector hiring slowed for a fourth consecutive week. Employers added an average of 16,500 jobs per week in the four weeks through July 4, down from 24,250 three weeks earlier, suggesting some cooling in employment conditions.

Trade tensions remained in focus as US Treasury Secretary Scott Bessent defended the possibility of a 50% tariff on Canada, describing the move as “just reciprocity.”

“Any sustained dip-buying could help turn the tide and push the broader market to the upside,” said Paolo Broccardo, CEO at BankPro. “Strong earnings and resilient guidance could reinforce confidence in the sector, while any disappointment may revive selling pressure.”

8:30am: Fresh US-Canada trade tensions Wall Street looks set for a stronger start on Tuesday, with technology stocks once again leading the way as investors prepare for another busy day of corporate earnings and keep a close eye on trade developments.

Ahead of the opening bell, Nasdaq futures were up 1.3%, while S&P 500 futures gained 0.4%. Dow Jones futures were more modestly higher, rising 0.2%.

Chip stocks were back in favor after another wave of buying in the sector. Nvidia ticked higher in pre-market trading after the AI chip giant disclosed it had taken a stake in neocloud provider Nebius, adding fresh momentum to a group that has been driving much of the market's gains this year.

Investors will also be digesting a new escalation in trade tensions. President Donald Trump announced a fresh round of 50% tariffs on a range of Canadian goods, including beer, hockey sticks, milk and chemicals, with the measures set to take effect in 30 days. The White House said the move was in response to what it described as discriminatory Canadian trade practices, raising the prospect of another round of retaliatory measures between the two countries.

One notable exception was Canadian crude oil, which was spared from the new tariffs. Oil prices eased slightly Tuesday morning after surging in recent sessions as renewed fighting involving Iran pushed Brent crude back toward the $90-a-barrel mark, its highest level since mid-June.

The earnings calendar also picks up pace before the market opens, with General Motors, Halliburton and 3M all scheduled to report quarterly results, helping set the tone ahead of this week's closely watched reports from several Big Tech heavyweights.

For the quarter ended June 2026, 3M (MMM - Free Report) reported revenue of $6.5 billion, up 5.6% over the same period last year. EPS came in at $2.40, compared to $2.16 in the year-ago quarter.

The reported revenue represents a surprise of +1.65% over the Zacks Consensus Estimate of $6.39 billion. With the consensus EPS estimate being $2.27, the EPS surprise was +5.73%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how 3M performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Net Sales- Safety and Industrial business- Total: $3.09 billion compared to the $3.02 billion average estimate based on two analysts. The reported number represents a change of +8.2% year over year.Adjusted Net Sales- Transportation and Electronics: $2.07 billion versus the two-analyst average estimate of $2.01 billion.Net Sales- Consumer business- Total: $1.25 billion versus the two-analyst average estimate of $1.29 billion. The reported number represents a year-over-year change of -1.8%.Adjusted operating income- Consumer: $252 million compared to the $271.73 million average estimate based on two analysts.Adjusted operating income- Transportation and Electronics: $503 million versus $485.15 million estimated by two analysts on average.Adjusted operating income- Safety and Industrial: $859 million versus the two-analyst average estimate of $809.96 million.View all Key Company Metrics for 3M here>>>

Shares of 3M have returned -2.5% over the past month versus the Zacks S&P 500 composite's -0.6% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

Target the Red-Hot Spin-Off and Merger Space With These ETFs3M NYSE: MMM reported stronger-than-expected second-quarter results, with executives citing gains from commercial execution, new product introductions and productivity initiatives as the company raised its full-year outlook for sales, earnings and free cash flow.

Chairman and CEO Bill Brown said 3M delivered organic growth of 5.4% in the quarter, adjusted operating margin of 24.9%, adjusted earnings per share of $2.40 and free cash flow of $1.3 billion. Adjusted EPS rose 11% from the prior year, while free cash flow conversion was 107%. The company returned $1.4 billion to shareholders during the quarter, including $400 million in dividends and $1 billion in share repurchases.

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MarketBeat Week in Review – 04/20 - 04/24“Our results today exceeded our expectations, demonstrate the progress we’re making to build a higher performing company, and continue to give us confidence we’re on the right path forward,” Brown said.

Guidance Raised After Strong First Half Chief Financial Officer Anurag Maheshwari said the company’s first-half performance gave management confidence to raise its 2026 outlook. 3M now expects organic growth of greater than 3.5% for the year, up from its prior expectation of 3%. Adjusted EPS guidance was increased to a range of $8.80 to $8.95, compared with the previous range of $8.50 to $8.70. The new range implies year-over-year EPS growth of 9% to 11%.

3M Stock Pulls Back, But Catalysts Point to New Highs3M also raised its free cash flow forecast by $100 million to a range of $4.7 billion to $4.9 billion, with expected conversion above 100%.

Maheshwari said the revised guidance reflects stronger sales growth, productivity gains and the company’s capital deployment strategy. He noted that oil-related inflation is now expected to be $150 million to $175 million, up from $125 million previously, but said the impact is expected to be offset by pricing actions implemented in the second quarter.

For the second half, the updated guidance implies organic sales growth in the high 3% range or better, which Maheshwari described as more than two times the macro environment, along with operating margin expansion of about 100 basis points from the prior year.

Industrial Businesses Lead Growth Safety & Industrial was the strongest-performing business group, with organic sales growth of 8.2% in the quarter. Maheshwari said the segment benefited from commercial excellence initiatives and the ramp-up of new product launches. He said the company delivered double-digit growth across electrical markets, industrial adhesives and tapes, abrasives, and industrial specialties.

Transportation and Electronics grew 5.9% in the quarter, helped by backlog conversion, commercial execution and account management. Semiconductor, aerospace and data center businesses grew double digits, while commercial branding and transportation grew approximately 5%. Auto was flat in a soft market, and consumer electronics declined in the low single digits.

The Consumer segment, which represents about 20% of sales, declined 2.1% in the quarter and 1.7% in the first half. Maheshwari said U.S. point-of-sale trends were positive for much of the year, but inventory tightening at several key retailers in the second half of June offset that momentum.

Brown said inventory levels in the Safety & Industrial and Transportation & Electronics businesses were normal. In Consumer, he said the retailer pullback was isolated to a few customers and amounted to about one week of supply. He said 3M expects Consumer performance to normalize in the third quarter as retailers stock for the back-to-school season, with the business expected to be flat to up slightly in the second half.

Innovation and Commercial Execution Remain Central Themes Brown said 3M is rebuilding its innovation engine and expects to launch more than 350 new products this year. The company launched 92 products in the second quarter, up 44% from a year earlier, bringing the first-half total to 176.

Brown said 3M is on track to nearly triple the number of new products introduced this year compared with three years ago and to launch more than 1,000 products by 2027. He also said the company is reducing development cycle time by about 20% and expects artificial intelligence to help accelerate movement from idea generation to development and production.

Commercial initiatives also contributed to growth, according to management. Brown said cross-selling produced $110 million of booked opportunities, with another $120 million in the pipeline. During the question-and-answer session, he said customer attrition improved by about 200 basis points, primarily in Safety & Industrial, although he said attrition remains too high.

Brown said 3M expects to be about $450 million above macro growth for the full year, compared with a prior expectation of roughly $340 million to $350 million.

Data Center Opportunity Draws Attention Executives highlighted 3M’s Expanded Beam Optical, or EBO, technology as a potential growth opportunity in data centers. Brown said Microsoft became the first hyperscaler to deploy 3M’s patented EBO technology in Azure data centers.

Brown described EBO as a durable, dust-resistant and vibration-resistant fiber optic connection technology. He said testing with a hyperscaler showed it can reduce by about 85% the time to install circuits and generate revenue in a data center. He said the company has about 100 patents in the area and 50 pending.

Brown said revenue from EBO is expected to be in the $40 million to $50 million range this year, but the opportunity could scale to four or five times that amount, or more, over the next several years depending on adoption and 3M’s ability to expand production. He said the total addressable market for EBO technologies is about $1 billion this year and could grow to $2 billion by 2028.

He added that 3M is working with contract manufacturers and other ecosystem participants, noting that the company does not expect to be successful as a sole provider. Brown said 3M has formed a multi-supplier agreement with 44 players across the ecosystem, including hyperscalers, chip manufacturers and connector manufacturers.

Portfolio and Productivity Actions Continue Brown said 3M is continuing to shift from a holding company model toward a more integrated operating company model. He said the next phase involves simplifying and standardizing core processes, reducing complexity in the factory and distribution network, and reshaping the portfolio.

The company closed the acquisition of Madison Fire & Rescue on July 1 and consolidated it with its Scott SCBA business into a new majority-owned joint venture. Brown said 3M received $700 million in cash as part of the transaction. The joint venture generates $800 million in revenue, grows at a high-single-digit rate and has margins above the company average, according to Brown.

On productivity, Brown said cost of poor quality improved 60 basis points year over year, while overall equipment effectiveness improved 140 basis points. He cited a production improvement effort at 3M’s New Ulm facility, which makes cable accessories for electrical markets, as an example of operational discipline. Brown said the work center achieved record production levels in June and delivered $13 million of incremental revenue.

Maheshwari said second-quarter adjusted operating profit increased $110 million, or $0.16 per share, including a $240 million benefit from sales growth and productivity. That was partially offset by $30 million of investments and $110 million from tariff impacts and stranded cost headwinds. He said 3M has not received any tariff refunds to date.

Executives said 3M continues to track ahead of the commitments outlined at its investor day, including growth above macro, operating margin expansion, earnings growth and shareholder returns. Brown said the company remains in the “early innings” of its value creation effort, but said momentum is building.

About 3M (NYSE:MMM)3M Company, originally founded in 1902 as the Minnesota Mining and Manufacturing Company, is a diversified global technology and manufacturing firm headquartered in St. Paul, Minnesota. Over its history the company has expanded from mineral mining into a broad portfolio of industrial, safety, healthcare and consumer products, building a reputation for applied science and product innovation across many end markets.

3M's businesses span a wide range of product categories including adhesives and tapes, abrasives, filtration and separation technologies, personal protective equipment such as respirators, medical and dental products, industrial and automotive solutions, and a suite of consumer brands (for example, well-known office and home products).

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

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Netflix (NASDAQ:NFLX | NFLX Price Prediction) currently trades at $67.60, while Wall Street’s consensus price target sits at $97.91, implying roughly 44.8% upside.

The streaming giant runs the world’s dominant subscription video service with an audience approaching a billion people across 190+ countries and a rapidly scaling ad business guided to roughly double to approximately $3.0 billion in 2026. Core financials remain elite: a 33.4% operating margin and a 49.5% return on equity.

Yet the stock has cratered. At least one ratings house argues shares could nearly double from here.

How Netflix Fell 45% in 12 Months Netflix has fallen 44.1% over 12 months. The most violent leg came after Q2 2026 earnings, when shares dropped 7.8% within an hour despite an EPS beat.

Revenue of $12.56 billion narrowly missed the $12.58 billion estimate while EPS of $0.80 beat the $0.7883 consensus. Q3 revenue guidance of $12.86 billion landed softer than expected, and free cash flow fell 32.73% year-over-year due to higher cash tax payments and the Warner Bros. termination fee.

This is a company-specific reset. Broader indexes have gained ground while Netflix has bled, trading near its 52-week low of $65.08 and well below the 200-day moving average of $93.74.

BMO’s Bull Case for a Double Analysts treat the drop as an overreaction. Bank of America’s Jessica Reif Ehrlich kept a Buy rating while trimming her target to $105, calling the pullback “an overreaction” and citing Netflix’s record share buyback as management’s valuation signal. Phillip Securities upgraded the stock outright.

BMO Capital Markets sits at the top of the range with BMO with a $135 price target, a figure that would essentially double the share price. Implied upside on that call runs near 100%.

The bull thesis centers on advertising. Co-CEO Greg Peters characterized the gap between ad-tier and standard ARM as “essentially near-term, unrealized revenue growth”, and management expects ad revenue to roughly double to approximately $3 billion in 2026. Cloud games (monthly players up 11x since October 2025), live events that have driven 6 of the top 10 new member sign-up days over the past 5 years, and a $27.1 billion remaining buyback authorization support the operating flywheel.

Of the 50 analysts covering Netflix, 8 rate it Strong Buy, 29 Buy, 13 Hold, and none Sell or Strong Sell. The sell side’s refusal to capitulate at $67 is striking.

Streaming Peers Diverge From Netflix Netflix is falling alone. Disney is down modestly. Warner Bros. Discovery is up sharply. This is a Netflix-specific reset.

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Walt Disney (NYSE:DIS) trades at $96.41, down 19.44% over the past year. The consensus target of $127.64 implies roughly 32% upside, with 6 Strong Buy, 21 Buy, 2 Hold, and 1 Sell ratings leaning positive after streaming profitability inflected.

Warner Bros. Discovery (NASDAQ:WBD) trades at $25.98, up 102.82% over the past year on a definitive merger with Paramount Skydance. The average target of $29.92 implies about 15% upside, with ratings skewing Hold and 15 Holds against 3 Buys and 1 Strong Sell.

Netflix’s 44.8% consensus gap dwarfs Disney’s 32% and Warner’s 15%. BMO’s $135 view puts Netflix in a league of its own.

The Valuation Reset Netflix is off 27.9% year to date and 44.1% over 12 months, while the S&P 500 via SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 8.82% YTD and 18.25% over a year. That is roughly 60 points of relative underperformance for a mega-cap generating positive earnings.

Netflix now trades at roughly 22x trailing earnings, in line with the S&P 500 and far below its historical growth premium. The current price of $67.60 versus the $97.91 consensus target implies 44.8% upside, with 50 analysts covering the name.

Prediction markets are more cautious. Polymarket’s active weekly bracket assigns only 44.0% probability to a $60 to $70 close, showing traders pricing in near-term chop even if the analyst view eventually plays out.

The Path Forward The bull case strengthens if ads scale to ~$3 billion, engagement holds through price hikes, and management buys back stock aggressively into a rebuilding free cash flow base in 2027. That path runs from $67 toward $97 and, in the BMO scenario, toward $135. Operating margin already runs above 33%.

The bear case gains traction if Q3 revenue growth slips below the guided 12%, ad monetization ramps slower than promised, or content amortization keeps eroding free cash flow. Insider selling and neutral prediction-market sentiment are legitimate flags.

On balance, a stock at 22x earnings with a doubling ad business, 74% Buy ratings and zero Sells, carries meaningful analyst-implied upside after a 44% drawdown. But sizing matters, and the chart shows no rush.

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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: MasterCard (MA - Free Report) Founded in 1966 and headquartered in Purchase, NY, Mastercard Inc. is a leading global payment solutions company that provides an array of services in support of credit, debit, mobile, web-based and contactless payments, and other related electronic payment programs to financial institutions and other entities.

MA is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Business Services stock. MA has a Momentum Style Score of A, and shares are up 13.1% over the past four weeks.

For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.03 to $19.63 per share. MA boasts an average earnings surprise of +5.5%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, MA should be on investors' short list.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

New AI capabilities deliver relevant insights in seconds, helping employees provide more personalized client service in real-time

Key takeaways

More than 18,000 employees use EricaAssist as a human-assisted AI agent to help serve clients. New Generative AI (Gen AI) capabilities deliver contextual guidance in under three seconds, helping resolve client needs faster and supporting decision making by customer service representatives. EricaAssist reduces average call times by nearly one minute per interaction, improving efficiency and client experience. , /PRNewswire/ -- Bank of America (BofA) today announced enhancements to EricaAssist, its human assisted AI agent that supports employees during client conversations, delivering real time insights that help resolve client needs faster while keeping the employee at the center of the experience.

Used by more than 18,000 customer service representatives, EricaAssist works alongside employees during calls – summarizing and surfacing relevant guidance in real time – so employees can focus on listening to and understanding clients, explaining solutions, and building stronger relationships. The enhancements are making our human agents better and providing our customers with an improved and more efficient experience.

"EricaAssist reflects our high tech, high touch approach," said Ashley Ross, Head of Consumer Client Experience and Business Transformation at Bank of America. "By combining human judgment with real time AI guidance, we're helping employees navigate complex topics more easily and serve clients more effectively in the moments that matter most."

Bank of America customer service representatives use generative AI capabilities within EricaAssist to summarize why a client is calling, pull together relevant information, and recommend next steps based on the employee's role and the client's relationship with the bank – all without interrupting the flow of the conversation.

"This technology helps our teammates deliver relevant insights in seconds, while operating with strong governance, transparency, and accountability," said Tom Ellis, Chief Information Officer and Head of Consumer Technology at Bank of America.

Later this year, Bank of America plans to expand EricaAssist to support additional servicing scenarios and business lines.

Frequently asked questions

Question: Why enhance EricaAssist with GenAI capabilities?

Answer: Enhancing EricaAssist reflects the bank's focus on continuously improving how employees access and deliver personalized guidance and resolve client needs faster.

Question: How do EricaAssist enhancements reflect Bank of America's broader investments in technology?

Answer: Bank of America spends $14 billion annually on technology, of which more than $4 billion is allocated to new initiatives, including AI. These ongoing investments, combined with our high-tech, high-touch approach, continue to enhance our client experiences across all channels and to drive operational efficiencies across the company.

Question: Why blend AI with employee decision making?

Answer: Our responsible AI strategy ensures human oversight, transparency, and accountability for all outcomes. By leveraging AI at scale across our global operations, we are optimizing performance and improving client experiences. EricaAssist works alongside employees, supporting their decision-making and service. Employees ensure clients receive thoughtful guidance, with AI operating within established governance and oversight.

Bank of America
Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving nearly 70 million clients with approximately 3,500 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 60 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. As the #1 small business lender in the United States (FDIC), Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries and/or jurisdictions. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.

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The federal government has been sending money to deceased individuals, and Treasury Secretary Scott Bessent says the administration has built a system to stop it, one he argues is just scratching the surface of a far larger problem.

In a Fox Business appearance on July 21, 2026, Bessent announced that the Trump administration has implemented a government-wide payment verification process designed to keep federal funds from reaching deceased individuals. According to Bessent, the system has already stopped roughly 5,000 payments totaling about $99 million.

“So far we have saved 100 million dollars, payments that did not go to deceased people,” Bessent said, adding that the effort could prevent “up to 350 million that we can stop before end of this year.”

How the System Works The verification process, created through a presidential executive order, integrates the federal “do-not-pay” database with Treasury’s payment systems, checking outgoing payments against records of the deceased before the money leaves. Bessent described it as part of a broader push by the Vice President’s task force to root out waste and fraud across the government.

He framed the initiative in the administration’s own language. “This is part of what President Trump calls his common sense agenda,” Bessent said. “It is common sense.”

Stopping the Money at the Source Bessent’s argument centers on prevention rather than recovery. Once an improper payment goes out the door, clawing it back is slow, costly, and often futile.

“Once money gets out, trying to retrieve it, very, very difficult,” Bessent said. “Stopping at the source, our goal. There is hundreds of billions of dollars here. This is the start.” The system aims to block payments before they leave Treasury, avoiding the slow and costly process of clawing funds back after disbursement.

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Bessent also drew a pointed contrast with the prior administration. “In the Biden administration, HHS got rid of 50 or 60 people charged with monitoring fraud,” he said, arguing the current effort prioritizes keeping improper payments from going out in the first place.

The Much Bigger Number The $99 million already stopped is, by Bessent’s own framing, just a starting point. The far larger figure comes from the Government Accountability Office, which estimates that improper payments across the federal government could run as high as $500 billion, an amount the segment noted represents roughly 1.66% of GDP.

That is the “$500 billion more at stake” the administration is pointing toward. The GAO’s improper-payments estimate spans far more than checks to dead people. It includes overpayments, underpayments, payments made without proper documentation, and administrative errors across programs, not solely fraud. Payments to the deceased are one identifiable slice of a much broader category, which is part of why capturing the full $500 billion is a far taller order than stopping 5,000 checks.

Why It Matters Waste, fraud, and improper payments are among the rare fiscal issues with bipartisan appeal. Nobody is in favor of mailing checks to the dead, and prevention that costs little to implement is an easy case to make. Against a backdrop of a national debt that has become a central economic worry, with JPMorgan Chase (NYSE:JPM | JPM Price Prediction) CEO Jamie Dimon recently flagging $24 billion per week in federal interest payments on a $39 trillion national debt, any credible effort to plug leaks in federal spending draws attention.

The open questions are about scale and durability. Stopping $99 million is a concrete, verifiable win. Turning that into the “hundreds of billions” Bessent invokes would require the verification net to expand well beyond deceased-recipient checks into the messier, harder-to-fix categories the GAO describes, and to keep working across administrations. Bessent says the infrastructure is now in place to do exactly that.

For now, the headline number is modest relative to the problem, but the principle behind it is hard to argue with. As Bessent put it, this is “the start.” Whether it grows into the half-trillion-dollar opportunity he describes, or plateaus as a useful but limited fix, will be the real test of the common-sense pitch.

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Contact [email protected] for any questions or corrections.

The market expects Ford Motor Company (F - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 28. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of -2.7%.

Revenues are expected to be $45.66 billion, down 2.7% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.22% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

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

Price, Consensus and EPS Surprise

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

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

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

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

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

How Have the Numbers Shaped Up for Ford Motor?For Ford Motor, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +11.95%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Ford Motor will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Ford Motor would post earnings of $0.2 per share when it actually produced earnings of $0.66, delivering a surprise of +230.00%.

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

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

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

Ford Motor appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsHarley-Davidson (HOG - Free Report) , another stock in the Zacks Automotive - Domestic industry, is expected to report earnings per share of $0.58 for the quarter ended June 2026. This estimate points to a year-over-year change of -34.1%. Revenues for the quarter are expected to be $1.12 billion, up 6.5% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for Harley-Davidson has remained unchanged. Nevertheless, the company now has an Earnings ESP of -1.16%, reflecting a lower Most Accurate Estimate.

When combined with a Zacks Rank of #2 (Buy), this Earnings ESP makes it difficult to conclusively predict that Harley-Davidson will beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once.

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

3 Medical Device Stocks Giving Investors a Different Healthcare PlayGeneral Motors NYSE: GM raised its full-year 2026 guidance for the second time this year after reporting higher second-quarter revenue, adjusted earnings and free cash flow, with management citing steady North American demand, disciplined pricing, lower warranty costs and reduced electric vehicle losses.

Chair and CEO Mary Barra said the automaker delivered “another solid quarter” and that employees, dealers and suppliers helped the company “win in a dynamic market.” She said customer demand in North America remained steady, including for pickups and SUVs, while pricing was consistent.

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Flying Under the Radar: Lockheed Martin's $2.8B Stealth Setup“The business continues to perform very well,” Barra said. She added that GM’s U.S. full-size pickup market share stood at more than 42% through the first half of the year, more than 10 percentage points above its closest competitor, despite lower-than-target inventories for much of the year.

GM Raises 2026 Outlook After Strong First Half CFO Paul Jacobson said GM generated $92 billion in revenue and $8.2 billion in EBIT-adjusted earnings in the first half of 2026. Adjusted diluted earnings per share rose more than 35% year over year to $7.27, which Jacobson described as the company’s best first-half adjusted EPS performance ever.

MarketBeat Week in Review – 06/08 - 06/12For the second quarter, total company revenue was $48 billion, up $900 million from a year earlier. EBIT-adjusted earnings were $3.9 billion, also up $900 million year over year. Adjusted automotive free cash flow rose $2.2 billion to $5 billion.

GM now expects:

EBIT-adjusted earnings of $14 billion to $16 billion, up from prior guidance of $13.5 billion to $15.5 billion. Adjusted diluted EPS of $12 to $14, up from $11.50 to $13.50. Adjusted automotive free cash flow of $9.5 billion to $11.5 billion, up from $9 billion to $11 billion. Jacobson said the updated guidance reflects strong operating performance, improved pricing and warranty assumptions, and a slightly better commodity outlook. He said the outlook assumes no material escalation in the Middle East and no significant increase in commodity or other inflationary pressures from current levels.

North America Margins Return to Target Range GM North America delivered second-quarter EBIT-adjusted earnings of $3.4 billion, up $1 billion, or more than 40%, from a year earlier. The region’s margin was 8.6%, up 2.5 percentage points from the prior year and within the company’s 8% to 10% target range.

Jacobson said the improvement was broad-based and driven by strong pricing, lower EV losses, and warranty and emissions-related regulatory tailwinds. Those gains were partially offset by commodity inflation, logistics costs, higher DRAM costs and manufacturing costs tied to onshoring production to the U.S.

GM ended the quarter with U.S. dealer inventory of 511,000 units, or about 55 days of supply, which Jacobson said was in the middle of the company’s targeted 50- to 60-day range.

Barra said GM plans to launch the next-generation Chevrolet Silverado and GMC Sierra light-duty pickups in December. She said the trucks will offer improved ride quality, power, durability and towing capability, along with upgraded exterior and interior designs. The company plans to maintain record production volumes year over year while launching the trucks at three assembly plants and launching next-generation V8 engines at three propulsion plants.

EV Restructuring Charges Continue, But Cash Charges Near Completion GM recorded $2.3 billion in incremental EV-related restructuring charges in the second quarter. Jacobson said the charges included $900 million in supplier-related cash charges, $700 million in cash charges to right-size the battery supply chain with joint venture partners, and $700 million in non-cash write-offs for compliance-related and other asset impairments.

Since the second half of 2025, GM has recorded $10.9 billion in EV-related charges, of which about $7.2 billion will have a cash impact. Through the end of the second quarter, the company had paid $4.5 billion of that amount.

Jacobson said GM believes its actions “substantially complete the material cash charges” expected as the company aligns EV capacity and manufacturing footprint with regulatory policy changes, though he noted circumstances could change and some true-ups may occur.

For the full year, GM continues to expect EV losses to improve by $1 billion to $1.5 billion, driven by right-sizing EV capacity and significantly lower volume. The company realized about $500 million of that benefit in the first half and expects EV wholesale volumes to rise slightly in the second half as it resumes building to demand.

Software, Services and New Businesses Highlighted as Growth Areas Barra and Jacobson emphasized GM’s software and services business, including OnStar and Super Cruise, as a margin-accretive growth area. Barra said GM expects 1 million new subscriptions this year, contributing to more than $3 billion in recognized revenue. Jacobson said deferred revenue rose to $6.3 billion, up almost 50% from a year earlier, while second-quarter recognized revenue was $800 million, up 20% year over year.

Barra said GM will make Super Cruise standard on high-end Silverado and Sierra trims and optional on most other trims, estimating 160,000 incremental Super Cruise units from that strategy. During the Q&A session, Barra said GM continues to evaluate pricing and expansion based on customer reception, adding that the company sees “a very high attach rate” after included service periods end. Jacobson said Super Cruise attachment rates are in the 30% to 40% range.

GM also pointed to GM Insurance and GM Defense as emerging businesses. Barra said GM Insurance has expanded from three states in early 2024 to 21 states and is available to more than 60% of GM’s U.S. sales, with a goal of reaching more than 80% in the near term.

Barra said GM Defense expects 2026 revenue to grow to almost $700 million and is targeting positive EBIT results this year. She said the business is targeting a revenue compound annual growth rate of more than 30% over the next several years with double-digit margins.

Share Buybacks and 2027 Outlook GM continued to repurchase shares in the quarter, buying back $2 billion in open-market shares and retiring about 25 million shares. First-half repurchases totaled $2.8 billion, with 36 million shares retired. Jacobson said GM ended the second quarter with a diluted share count of 893 million, down about 8% from the second quarter of 2025 and 35% from the second quarter of 2023. The company had $3.5 billion remaining under its current repurchase authorization.

Looking ahead, Jacobson said GM believes it can grow revenue, margins, EBIT and free cash flow in 2027 based on current conditions. He cited continued improvement in EV profitability, growth in OnStar digital revenue, additional warranty improvements, fixed-cost efficiencies, a full year of the new Silverado and Sierra pickups, and increased full-size SUV supply.

Barra closed the call by saying GM’s vehicle portfolio is strengthening, its onshoring efforts should reduce tariff expense, and its software, services and adjacent businesses are creating additional value opportunities. “We’re confident in 2026, and have said it will be stronger than 2025,” she said. “More importantly, that 2027 and the years beyond will be stronger still.”

About General Motors (NYSE:GM)General Motors Company NYSE: GM is a global automotive manufacturer headquartered in Detroit, Michigan, that designs, builds and sells cars, trucks, crossovers and electric vehicles, and provides related parts and services. Founded in 1908, GM has long been one of the world's largest automakers and has evolved into a multi-brand company whose primary marques include Chevrolet, GMC, Cadillac and Buick. Beyond vehicle manufacturing, GM's operations encompass vehicle financing, connected services and advanced mobility initiatives.

GM develops and markets a broad portfolio of products and technologies, including internal-combustion and battery-electric vehicles, vehicle components and on-board connectivity 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].

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General Motors GM shares are inching higher on Tuesday morning after the automaker posted a powerhouse Q2 earnings release, outperforming Street expectations across key operational metrics

Revenue came in just over $48 billion – reflecting a 1.9% year-over-year increase – while adjusted earnings per share went up 41.3% versus last year to $3.57 in the second quarter.

Driven by North American truck demand, resilient pricing power, and strict discipline on operating overhead, GM raised its full-year adjusted profit and free cash flow guidance for the second time this year.

Despite headline GAAP net income pressure, the firm’s “core engine” seems to be running at full throttle in an uncertain automotive landscape. Still, General Motors stock is hovering around the same price at which it started 2026.

GM’s standout performance in Q2 was fuelled by its lucrative North American vehicle portfolio.

Segment adjusted EBIT surged 42.7% year-over-year to $3.5 billion – pushing North American margins up to 8.6% - as average vehicle transaction prices remained "rock-solid" around $52,000, as consumer appetite for full-size pickups and SUVs showed remarkable stability.

Pricing gains added $700 million to adjusted EBIT, while internal cost discipline – notably lower warranty expenses – contributed another $300 million.

Crucially, General Motors made tangible progress narrowing its electric vehicle losses, remaining on track to cut EV cash burn by up to $1.5 billion this year.

Buoyed by these tailwinds, management boosted full-year adjusted EBIT guidance to at least $14 billion, triggering a 4% rally in GM shares.

General Motors' quarterly print wasn’t entirely free of weaknesses, though.

In Q2, net income attributable to stockholders tanked 31.1% year-over-year to $1.3 billion.

The primary drag stems from massive accounting write-downs and cash outlays associated with scaling back its electric vehicle footprint, bringing cumulative EV-related retreat charges to $10.9 billion.

Consequently, GM trimmed its full-year GAAP net income target to $8.4 billion–$9.8 billion.

Beyond restructuring noise, operational cost pressures persist.

Profitability faced headwinds from rising memory-chip costs, freight logistics inflation, and short-term friction tied to manufacturing onshoring.

Moreover, the company's financial segment earnings before taxes slid 14% year-over-year to $605 million amid broader consumer credit tightening.

For investors, GM stock presents a classic value-and-capital-return thesis.

Trading at “single-digit” earnings multiples, it offers massive upside potential relative to its fundamental cash generation.

Management’s aggressive share buyback plan – shrinking diluted shares outstanding by over 20% across two years – provides a powerful structural tailwind for adjusted EPS growth.

Paired with a newly declared $0.18 quarterly dividend and raised adjusted free cash flow guidance of up to $11.5 billion, General Motors' capital return strategy is top-tier.

Conservative traders should consider accumulating on short-term market dips. While write-downs from the EV pivot create temporary noise, GM’s dominant combustion-engine cash engine makes it a resilient long-term buy.

Key Takeaways GM's adjusted EPS rose 41.3% to $3.57, while revenues increased 1.9% to $48.03 billion.Pricing added $700 million to adjusted EBIT, while cost improvements contributed another $300 million.GM raised 2026 adjusted EBIT guidance to $14-$16 billion and EPS guidance to $12-$14. General Motors (GM - Free Report) reported second-quarter 2026 adjusted earnings of $3.57 per share, up 41.3% year over year. The figure beat the Zacks Consensus Estimate of $3.13 by 14.06%. Better-than-expected adjusted EBITDA from North America and International segments led to the outperformance.

Revenues increased 1.9% to $48.03 billion and surpassed the consensus estimate of $46.56 billion by 3.15%. Strong pricing, lower costs and disciplined incentives supported results. Global wholesale volume rose to 990,000 vehicles from 974,000 a year earlier.

Adjusted earnings before interest and taxes increased 29.8% year over year to $3.94 billion. The adjusted EBIT margin expanded to 8.2% from 6.4%, reflecting stronger core operating performance.

Price contributed $700 million to the year-over-year improvement in adjusted EBIT, supported by GM’s product portfolio and incentive discipline. Cost performance added $300 million, primarily due to lower warranty expenses, reduced tariff exposure and emissions-related regulatory savings. Commodity inflation, logistics expenses, higher memory-chip costs and manufacturing costs tied to U.S. production onshoring partly offset the gains.

General Motors' North America Business StrengthensGM North America generated revenues of $39.91 billion, up 1.1% from the prior-year quarter. Wholesale volume was nearly flat at 848,000 units as a 31,000-unit decline in electric vehicle volume was offset by higher internal-combustion-engine vehicle shipments.

The segment’s adjusted EBIT surged 42.7% to $3.45 billion, surpassing the Zacks Consensus Estimate of $3.12 billion. Adjusted EBIT margin improved 250 basis points to 8.6%, aided by pricing, incentive discipline and operating efficiencies. U.S. dealer inventory ended the quarter at 511,000 vehicles, down about 3% year over year and within management’s targeted range of 50-60 days.

GM's International Operations Deliver Mixed ResultsGM International revenues climbed 11% year over year to $3.69 billion, while wholesale volume increased to 142,000 vehicles from 125,000. Strong execution in South America supported the top line, though shipping disruptions reduced wholesale volume in the Middle East.

Adjusted EBIT for the segment declined 6.6% to $190 million, surpassing the consensus mark of $176 million. Meanwhile, GM’s China joint ventures generated equity income of $83 million, up 16.9%. The China business delivered its seventh consecutive profitable quarter, supported by cost efficiencies and product-mix optimization.

General Motors' Finance Arm Faces Cost PressureGM Financial revenues edged up to $4.27 billion from $4.26 billion. Higher net financing revenues and insurance premiums supported results.

However, adjusted earnings before taxes fell 14% to $605 million. Increased lease depreciation, higher costs related to insurance operations and a larger provision for loan losses offset the revenue benefits. GM Financial paid a $250 million dividend to its parent during the quarter, bringing first-half dividends to $900 million.

General Motors' Digital Business Keeps ScalingOnStar ended the quarter with deferred revenues of $6.3 billion, up nearly 50% year over year. Recognized revenues reached $800 million, increasing more than 20%. The company remained on track to add about 1 million subscribers in 2026.

Super Cruise recognized revenues grew roughly 70%, and GM added about 70,000 subscribers during the quarter. The company expects to exceed 850,000 Super Cruise subscribers by year-end, while the attach rate after the three-year prepaid period remained in the 30-40% range.

GM's Cash Flow Supports Shareholder ReturnsAutomotive operating cash flow increased 9% to $5.07 billion. Adjusted automotive free cash flow jumped 78% to $5.03 billion, driven by higher automotive earnings, tariff reimbursement timing and lower capital spending.

Capital expenditures totaled $1.92 billion in the quarter. GM repurchased $2 billion of stock and retired approximately 24.9 million shares. The company also distributed about $200 million in dividends. Automotive cash and marketable securities totaled $19.7 billion at quarter-end, while automotive liquidity was $33.6 billion.

General Motors Raises Its 2026 OutlookGeneral Motors raised its full-year adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion. Adjusted earnings are now projected at $12-$14 per share, up from the prior range of $11.50-$13.50.

The company also increased its adjusted automotive free cash flow forecast to $9.5-$11.5 billion from $9-$11 billion. GM continues to expect an 8-10% adjusted EBIT margin in North America and capital spending, including battery joint-venture investments, of $10-$12 billion.

Management attributed the improved outlook to strong pricing and warranty performance, along with a slightly better commodity-cost environment. The board also declared a quarterly dividend of 18 cents per share, to be paid out on Sept. 17, 2026, to shareholders of record as of Sept. 4.

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

Other Releases From the Auto SpaceAutoliv (ALV - Free Report) reported second-quarter 2026 adjusted earnings of $2.43 per share, which increased 10% year over year and came above the Zacks Consensus Estimate of $2.34 by 3.85%. Net sales rose 3.3% to $2.80 billion, topping the consensus estimate of $2.76 billion by 1.45%. Autoliv maintained its 2026 guidance for roughly flat organic sales, an adjusted operating margin of 10.5-11% and operating cash flow of around $1.2 billion. Autoliv’s capital expenditure, net, is expected to remain below 5% of sales.

Genuine Parts (GPC - Free Report) reported second-quarter 2026 adjusted earnings of $2.15 per share, beating the Zacks Consensus Estimate of $2.10 by 2.38%. The bottom line increased 2.4% from $2.10 in the year-ago quarter. Revenues rose 6% year over year to $6.54 billion and surpassed the consensus estimate of $6.39 billion by 2.36%. Genuine Parts reaffirmed its 2026 adjusted earnings guidance of $7.50-$8 per share and total sales growth outlook of 3-5.5%. Genuine Parts ended the June quarter with $2.3 billion of liquidity, including $559 million in cash.

General Motors (NYSE:GM | GM Price Prediction) delivered its fifth straight earnings beat on Tuesday, July 21, and CFO Paul Jacobson used a CNBC interview this morning to frame the results as validation of a multi-year discipline strategy rather than a one-off surprise.

Adjusted EPS came in at $3.57 against estimates of $3.20, while revenue of $48 billion topped the $47 billion consensus. Management raised full-year adjusted EPS guidance to $12 to $14 per share, up from $11.50 to $13.50, the second guidance lift this year.

Shares responded, trading up 5.24% intraday to $79.82 after the report. The stock is still down 1.94% year to date but has gained 49.86% over the trailing 12 months.

GM’s First-Half Earnings Beat 6 of Its Last 10 Full Years CFO Jacobson pointed to the depth of the first-half performance. “Our first-half earnings per share is 25% higher than the first half at any time in our history. And actually more than six out of the last ten full years we’ve already recorded in the first six months,” he said on CNBC.

Lower Incentives Help GM Deliver Its Fifth Straight Beat He credited operational discipline for the recent streak of earnings beats. “Our inventory discipline, our incentive discipline, which has been below the industry average for more than three years, has really led to these consistent results,” Jacobson said. GM incentives currently run at 4.7% of MSRP versus a 6.3% industry average, a spread that flows straight to margin. GM North America posted adjusted EBIT of $3.45 billion at an 8.6% margin, up 2.5 percentage points year over year, on 990,000 wholesale units.

Consumers Keep Buying GM Trucks Despite Recessionary Sentiment On demand, Jacobson said, “Our consumer has been very resilient. We’ve got a very broad portfolio, probably the best portfolio we’ve ever had in our history. And we can meet customers at all price points.” Full-size SUVs and the truck-and-SUV mix drove the North American results.

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This message runs counter to the recessionary sentiment that some macro signals are currently showing. University of Michigan consumer sentiment printed 44.8 in May 2026, a 12-month low and well into what the index defines as recessionary territory. Yet BEA data shows motor vehicle personal consumption held at $759.5 billion (SAAR) in May 2026, consistent with the buying behavior Jacobson described.

GM Expects Up to $3.5 Billion in Tariff Costs GM is guiding to a $2.5-$3.5 billion full-year tariff impact. Jacobson framed the situation as manageable: “The tariff dynamic remains somewhat fluid… the new tariffs that were announced don’t affect autos under 232. We expect a minimal impact from that. But we’re optimistic that the administration can come to a resolution and get final resolution on USMCA or bilateral deals with Mexico and Canada.”

GM Has Retired 35% of Its Shares and Still Trades Below 6x Earnings GM repurchased nearly $3 billion of stock in the first half of 2026 and has now retired over 35% of fully diluted shares since 2023. The board also declared a $0.18 quarterly dividend payable September 17, 2026.

CFO Jacobson clearly made the case for GM being a value play: the stock trades at less than six times 2026 anticipated earnings, while management targets margin expansion toward 8-10%. Adjusted automotive free cash flow of $5.03 billion in Q2, up 78.0% year over year, supports that framing.

What to Watch Next GM’s fifth straight earnings beat reflects stronger margins, disciplined incentives, resilient truck and SUV demand, and aggressive share repurchases. With management raising guidance for the second time this year, GM appears positioned to grow earnings despite billions of dollars in expected tariff costs and ongoing EV restructuring charges. The next test is whether North American margins and pricing remain strong through the second half of 2026.

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Contact [email protected] for any questions or corrections.

FARNBOROUGH, England, July 21, 2026 (GLOBE NEWSWIRE) -- GE Aerospace (NYSE: GE) today announced that AerCap Holdings N.V. ("AerCap") has selected the GEnx-1B engine to power an additional 15 Boeing 787 Dreamliners.

BlackRock (BLK), a global investment management firm expanding further into private markets, is preparing a debt sale of more than $12 billion to help finance a

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

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 28. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis cruise operator is expected to post quarterly earnings of $3.97 per share in its upcoming report, which represents a year-over-year change of -9.4%.

Revenues are expected to be $4.81 billion, up 6% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.25% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

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

Price, Consensus and EPS Surprise

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

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

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

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

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

How Have the Numbers Shaped Up for Royal Caribbean?For Royal Caribbean, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.05%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Royal Caribbean will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Royal Caribbean would post earnings of $3.2 per share when it actually produced earnings of $3.60, delivering a surprise of +12.50%.

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

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

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

Royal Caribbean appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

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

Wall Street expects a year-over-year increase in earnings on higher revenues when Hilton Worldwide Holdings Inc. (HLT - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 28. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis company is expected to post quarterly earnings of $2.28 per share in its upcoming report, which represents a year-over-year change of +3.6%.

Revenues are expected to be $3.36 billion, up 7.1% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.07% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

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

Price, Consensus and EPS Surprise

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

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

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

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

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

How Have the Numbers Shaped Up for Hilton Worldwide?For Hilton Worldwide, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.54%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Hilton Worldwide will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Hilton Worldwide would post earnings of $1.96 per share when it actually produced earnings of $2.01, delivering a surprise of +2.55%.

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

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

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

Hilton Worldwide appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsAnother stock from the Zacks Hotels and Motels industry, Hilton Worldwide Holdings Inc. (HLT - Free Report) , is soon expected to post earnings of $2.28 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +3.6%. Revenues for the quarter are expected to be $3.36 billion, up 7.1% from the year-ago quarter.

The consensus EPS estimate for Hilton Worldwide has been revised 0.1% lower over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +1.54%.

When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Hilton Worldwide will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

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

Lip-Bu Tan serves as the CEO of Intel. CHENG Yu-chen / AFP via Getty Images US chipmaker Intel is planning layoffs within its data center group amid a larger effort to become a "more focused and efficient" company.

"As part of our broader strategy to become a more focused and efficient company, Intel's data center group (DCG) is aligning its organization to ensure it has the right roles and skills in place to position the business for long-term success," an Intel spokesperson told Business Insider on Tuesday.

The spokesperson added that Intel is committed to supporting affected employees through the transition. It was not immediately clear how many company employees would be impacted by the layoffs.

A person familiar with the matter told Business Insider that the changes would not affect the data center group's product commitments and roadmaps and should help to better streamline the business.

News of the planned layoffs was first reported by The Oregonian.

The new round of job cuts comes as Intel has steadily reduced its workforce over recent years. Last year, Intel laid off at least 15% of its factory workers, or more than 5,000 employees, across four US states.

In August 2024, the chip manufacturer announced more than 15,000 job cuts as part of a plan to deliver $10 billion in cost savings for 2025.

Intel's turnaround effort gains momentumThe latest planned layoffs come at a pivotal period for Intel, which has shown signs of renewed momentum under CEO Lip-Bu Tan.

Tan was appointed CEO in March 2025 and is attempting a turnaround. The chipmaker's market share decreased in the last decade amid competition with foreign suppliers like Taiwan Semiconductor Manufacturing Company.

The US chipmaker is in the midst of developing its foundry business, an effort to develop chips for other companies.

On Tuesday, Intel announced its first named customer for its foundry business during Tan's tenure, a partnership with California-based cybersecurity company Fortinet to develop its next-generation security chip. Intel shares were up more than 6% following the news.

Last year, the US government took a nearly 10% stake in Intel, making it the company's largest shareholder. Intel's stock soared after President Donald Trump discussed the agreement at the White House and have climbed roughly 179% since the start of the year.

Tesla CEO Elon Musk has also said that the EV maker plans to use Intel's more advanced 14A chip process, which would mark a major win for the chipmaker.

Back in May, Intel's stock rose to an all-time high following reports that the company was in talks with Apple to make chips for its devices.

Do you work at Intel? Contact the reporter from a non-work email and device at [email protected] or on Signal at 718-288-1655.

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

Natalie is a senior reporter on Business Insider's Business News team.She was previously on BI's Legal Affairs team where she covered major cases out of state and federal court, as well as bankruptcy. Her coverage often focused on stories at the intersection of law, business, politics and technology. Natalie has covered Donald Trump’s criminal and civil cases, the wave of lawsuits against the second Trump administration, the indictment and criminal trial of Sean “Diddy” Combs, the shooting death of UnitedHealthcare CEO Brian Thompson, and the legal battles facing Elon Musk and his companies. Natalie came to Business Insider in June 2021 as a breaking news reporter, focusing on the most interesting angles around the trending news of the day. Natalie largely drove BI’s coverage around the fatal “Rust” shooting involving Alec Baldwin and the disappearance and murder of Gabby Petito.Prior to joining BI, Natalie worked for the New York Post, the New York Daily News, and The Brooklyn Paper. She has an extensive background covering crime and courts. During her more than 12-year journalism career, she did a stint covering the police beat out of the headquarters for the New York Police Department. Natalie, a Brooklyn native, graduated from Brooklyn College in 2012 with a journalism degree. Popular articles

Walmart and Amazon face legal trouble for using a points system to track and fire employees over absences: lawyersCelebrities who partied with Diddy may want to contact their lawyersAn unchecked AI could usher in a new dark ageAt Diddy's A-list 'white parties,' naked women were a staple — but that didn't seem to raise eyebrows at the timeThe illegal maneuvers the rich use to get richerOwner of ship that crashed into Baltimore bridge will likely try to invoke 1851 law used to cap damages after Titanic disaster Intel Layoffs Data Centers More

The market’s most explosive first-half winners of 2026 are getting hammered in the second half, and the reversal has been swift and severe. 

According to new data from Bespoke Investment Group, the 25 best-performing Russell 1000 stocks in the first half of 2026 — each up at least 150%, for an average gain of 235% — have collectively lost a quarter of their value in fewer than three weeks since July began.

SNDK stock is moving. See the chart and price action here.  A Brutal Reversal Takes HoldEvery single one of those 25 stocks has fallen at least 8% this month, even as the rest of the Russell 1000 gained an average of 0.8% over the same stretch. 

It’s a textbook case of mean reversion, and the AI infrastructure trade that fueled the first-half rally is now bearing the brunt of the pullback.

They are not alone. Other AI-infrastructure darlings that topped the first-half leaderboard include: 

Chips, memory, storage and servers dominated the list, reflecting just how concentrated the AI trade had become by mid-year.

Bespoke’s Data Shows a Near-Perfect InversionBespoke’s broader breakdown shows the pain isn’t limited to the top 25. The 47 Russell 1,000 stocks that gained 100%+ in the first half are down an average of 21.6% in July, while the 17 stocks that had fallen 50%+ in the first half have bounced 10.6% — a near-perfect inversion. 

Slicing the index into deciles by first-half performance confirms the pattern: the top decile is down 13.2% month-to-date, and returns improve steadily as you move down the ranks. 

For traders who chased 2026’s biggest winners into July, the unwind has been swift, and stocks like SanDisk and Intel are now Exhibit A.

Photo: Ruslan Lytvyn / Shutterstock

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Key Takeaways Intel's Q2 Client Computing revenue is expected to edge up to $7.96 billion from $7.87 billion a year ago.INTC launched Core Series 3 and Arc G-Series processors to expand PC and handheld gaming demand.Intel partnered with ChatPPT on a Hybrid AI PC Edition combining cloud and on-device AI capabilities. Intel Corporation (INTC - Free Report) is scheduled to report second-quarter 2026 earnings after the closing bell on July 23. In the to-be-reported quarter, the company is likely to have recorded higher revenues from the Client Computing Group (CCG) segment backed by AI PC adoption, innovative product launches and the enterprise PC refresh cycle.

Factors at PlayCCG is the company’s largest segment and accounts for the lion’s share of total revenues. It includes computer CPUs, several server boards, form factor systems and graphic products

During the quarter, Intel introduced Core Series 3 processors, boosting everyday computing with improved performance and efficiency. The new chips target mainstream users, offering better speed, responsiveness, and power optimization. This has strengthened Intel’s position in the entry-level PC market and is driving broader client computing demand.

Intel launched Arc G-Series processors, a new family of handheld gaming processors built on the Intel Core Ultra Series 3 (Panther Lake) architecture. The processors are designed to deliver higher gaming performance, improved power efficiency and longer battery life for next-generation handheld gaming devices. Intel highlighted upcoming systems from partners including Acer, MSI and OneXPlayer. These developments are likely to have supported the CCG segment’s top line during the quarter.

In the quarter under review, Intel joined forces with ChatPPT to launch a Hybrid AI PC Edition, marking a strategic move toward on-device intelligence. The partnership aims to deliver faster, secure, and efficient AI experiences by combining cloud and local processing capabilities for users worldwide. Such collaborations are expected to drive innovation and propel user growth.

Overall ExpectationsThe Zacks Consensus Estimate for CCG revenues is pegged at $7.96 billion, indicating an improvement from $7.87 billion in the year-ago quarter.

For the September quarter, the Zacks Consensus Estimate for total revenues is pegged at $13.43 billion, which indicates a increase from the year-ago quarter’s reported figure of $11.81 billion. The consensus estimate for EPS is pegged at 21 cents per share, indicating an increase from a loss of 10 cents per share.

Earnings WhispersOur proven model predicts a likely earnings beat for Intel for the second quarter. 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 perfectly the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Intel currently has an ESP of +5.18% with a Zacks Rank #1.

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

Other Stocks to ConsiderHere are some other companies 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:

Silicon Motion Technology Corporation (SIMO - Free Report) has an Earnings ESP of +7.68% and sports a Zacks Rank #1 at present. It is set to release its second-quarter 2026 numbers on July 29.

The Earnings ESP for Celestica Inc. (CLS - Free Report) is +1.86%, and it carries a Zacks Rank of 2 at present. The company is scheduled to report second-quarter 2026 numbers on July 27.

The Earnings ESP for Monolithic Power Systems, Inc. (MPWR - Free Report) is +1.08%, and it carries a Zacks Rank of 2 at present. The company is slated to report second-quarter 2026 numbers on July 30.

Shopify (SHOP - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this cloud-based commerce company have returned +15.3%, compared to the Zacks S&P 500 composite's -0.6% change. During this period, the Zacks Internet - Services industry, which Shopify falls in, has lost 3.9%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Shopify is expected to post earnings of $0.39 per share, indicating a change of +11.4% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $1.84 points to a change of +57.3% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $2.21 indicates a change of +20.4% from what Shopify is expected to report a year ago. Over the past month, the estimate has changed +0.9%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Shopify.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Shopify, the consensus sales estimate for the current quarter of $3.43 billion indicates a year-over-year change of +28.1%. For the current and next fiscal years, $14.72 billion and $18.06 billion estimates indicate +27.4% and +22.7% changes, respectively.

Last Reported Results and Surprise HistoryShopify reported revenues of $3.17 billion in the last reported quarter, representing a year-over-year change of +34.3%. EPS of $0.36 for the same period compares with $0.25 a year ago.

Compared to the Zacks Consensus Estimate of $3.08 billion, the reported revenues represent a surprise of +2.79%. The EPS surprise was +12.5%.

Over the last four quarters, Shopify surpassed consensus EPS estimates two times. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Shopify is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Shopify. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.

By PYMNTS  |  July 21, 2026

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American Express aims to improve the B2B payments experience for buyers and suppliers with two new offerings, including a new B2B payment feature and automated invoice reporting capabilities.

Both offerings join American Express’ Buyer Initiated Payments (BIP), which enables buyers to initiate electronic payments to suppliers, the company said in a Tuesday (July 21) press release.

The new B2B payment experience, BIP Connect, enhances BIP by connecting eligible BIP customers to Paymode, a B2B payment network, through a new partnership with the network’s owner, Bottomline, a provider of payments and FinTech solutions, according to the release.

Connecting American Express BIP customers to Paymode’s network of authenticated and verified suppliers helps to streamline onboarding, improve payment efficiency and reduce risk, per the release.

“With BIP Connect, we’re combining the strengths of American Express and Bottomline to accelerate supplier onboarding and provide seamless access to one of the largest supplier networks in the U.S.,” Eva Reda, executive vice president, global commercial services products at American Express, said in the release.

In Bottomline’s own press release about the partnership, Bottomline CEO Craig Saks said: “By integrating Paymode into BIP, we’re giving buyers access to greater control, enhanced security and a simpler way to manage payables and receivables, while making it easier for vendors to reconcile payments and maintain visibility into their cash flow.”

The PYMNTS Intelligence, Bottomline and FIS collaboration “Time to Cash™: A New Measure of Business Resilience” found that chief financial officers are using real-time payment rails and digital workflows to cut “time to cash.” They are also using artificial intelligence-powered forecasting and automation to build smarter, faster payment ecosystems.

The second new offering from American Express will add capabilities within BIP that improve invoice matching through automated reporting, according to the company’s press release. These capabilities will help enhance visibility on the status of invoices, save businesses time and ensure the right payment gets made faster.

The automated reporting capabilities are set to be released later this year to a subset of American Express BIP customers, per the release.

“As more businesses look to modernize B2B payments, American Express is helping connect buyers and suppliers through a more integrated and automated invoice payment experience that simplifies accounts payable and receivable, streamlines workflows and makes it easier to do business together,” Casey Klyszeiko, executive vice president, global merchant and network services products at American Express, said in the release.

For all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.

See More In: accounts payable, accounts receivable, American Express, B2B, B2B Payments, bottomline, invoice payments, News, partnerships, PYMNTS News, supplier payments, What's Hot, What's Hot In B2B

Key Takeaways Pfizer's Q2 non-oncology outlook includes gains for Eliquis and Vyndaqel amid mixed portfolio trends.PFE's Comirnaty and Paxlovid sales are expected to decline on lower demand and purchases.Pfizer's Abrysvo may gain internationally, while U.S. vaccination rates remain weaker. Pfizer (PFE - Free Report) will announce its second-quarter 2026 earnings on Aug. 4, and investors will be watching the performance of its oncology business closely, as the segment generates nearly 27% of the company's total revenues. Its key cancer medicines include Ibrance, Xtandi, Lorbrena, Braftovi/Mektovi and Seagen-acquired antibody-drug conjugate, Padcev.

Apart from oncology, Pfizer has a broad portfolio spanning primary care, vaccines, inflammation and immunology, rare diseases, and other specialty therapies. These businesses are organized under the company's Primary Care and Specialty Care segments.

Here’s a closer look at the expected second-quarter performance of Pfizer’s therapies across these two non-oncology business segments.

In Primary Care, alliance revenues and direct sales from Bristol-Myers (BMY - Free Report) -partnered Eliquis are likely to have risen, driven by higher demand trends globally, partially offset by price and generic erosion in some ex-U.S. markets. As regards sales of key vaccine Prevnar, higher sales in ex-U.S. markets are likely to have been offset by the impact of lower demand in the United States.

The Zacks Consensus Estimate for alliance revenues from Eliquis is $1.98 billion.

The Zacks Consensus Estimate for sales of the Prevnar family of vaccines is $1.39 billion.

Pfizer records direct sales and alliance revenues from its partner, BioNTech (BNTX - Free Report) , for the COVID-19 vaccine, Comirnaty. Revenues from Pfizer/BioNTech’s Comirnaty are likely to have declined in the second quarter due to narrower COVID-19 vaccine recommendations in the United States that have reduced Comirnaty’s eligible patient population. Sales of the antiviral pill for COVID, Paxlovid, should also have declined due to lower infection rates, which hurt demand trends and lower international government purchases.

The Zacks Consensus Estimate for direct sales and alliance revenues from Comirnaty is $278 million, while that for Paxlovid is $119.0 million.

Among the newer products, sales of the RSV vaccine, Abrysvo, are likely to have gained from launch uptake in some international markets, partially offset by weaker vaccination rates in the United States. The Zacks Consensus Estimate for sales of Abrysvo is $155 million.

In the Specialty Care unit, sales of Vyndaqel are expected to have risen as higher sales in international markets may offset lower revenues in the United States. The Zacks Consensus Estimate for sales of Vyndaqel/Vyndamax is $1.75 billion.

While sales of Xeljanz rose, those of Enbrel declined in the first quarter, a trend likely to have continued in the second quarter.

Pfizer’s Key CompetitorsIn inflammation & immunology, Pfizer’s key competitors include AbbVie, Johnson & Johnson, Amgen and Novartis. In areas such as diabetes, cardiovascular disease, obesity, and other chronic conditions, Pfizer faces competition from Eli Lilly, Novo Nordisk, Merck, AstraZeneca, and Sanofi. In vaccines, it competes primarily with Merck, GSK, Sanofi, and Moderna.

PFE’s Price Performance, Valuation and EstimatesPfizer’s stock has risen 2.8% so far this year compared with an increase of 12.7% for the industry.

Image Source: Zacks Investment Research

From a valuation standpoint, Pfizer appears attractive relative to the industry and is trading below its five-year mean. Going by the price/earnings ratio, Pfizer’s shares currently trade at 8.55 forward earnings, significantly lower than 18.88 for the industry as well as the stock’s five-year mean of 9.34.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for 2026 earnings has declined from $2.99 per share to $2.96 per share, while that for 2027 has declined from $2.86 per share to $2.85 per share over the past 30 days.

Image Source: Zacks Investment Research

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