Track market-moving stories before they get noisy

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?

Let's take a look at what these Wall Street heavyweights have to say about Merck (MRK - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Merck currently has an average brokerage recommendation (ABR) of 1.76, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 29 brokerage firms. An ABR of 1.76 approximates between Strong Buy and Buy.

Of the 29 recommendations that derive the current ABR, 17 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 58.6% and 6.9% of all recommendations.

Brokerage Recommendation Trends for MRK

Check price target & stock forecast for Merck here>>>

While the ABR calls for buying Merck, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Is MRK a Good Investment?In terms of earnings estimate revisions for Merck, the Zacks Consensus Estimate for the current year has declined 47% over the past month to $2.74.

Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.

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

Therefore, it could be wise to take the Buy-equivalent ABR for Merck with a grain of salt.

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Caterpillar (CAT - Free Report) .

Caterpillar currently has an average brokerage recommendation (ABR) of 1.92, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 24 brokerage firms. An ABR of 1.92 approximates between Strong Buy and Buy.

Of the 24 recommendations that derive the current ABR, 13 are Strong Buy, representing 54.2% of all recommendations.

Brokerage Recommendation Trends for CAT

Check price target & stock forecast for Caterpillar here>>>

The ABR suggests buying Caterpillar, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Is CAT Worth Investing In?Looking at the earnings estimate revisions for Caterpillar, the Zacks Consensus Estimate for the current year has increased 0.9% over the past month to $24.87.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

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

Therefore, the Buy-equivalent ABR for Caterpillar may serve as a useful guide for investors.

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?

Let's take a look at what these Wall Street heavyweights have to say about Newmont Corporation (NEM - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Newmont currently has an average brokerage recommendation (ABR) of 1.33, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 24 brokerage firms. An ABR of 1.33 approximates between Strong Buy and Buy.

Of the 24 recommendations that derive the current ABR, 19 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 79.2% and 8.3% of all recommendations.

Brokerage Recommendation Trends for NEM

Check price target & stock forecast for Newmont here>>>

While the ABR calls for buying Newmont, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Is NEM a Good Investment?In terms of earnings estimate revisions for Newmont, the Zacks Consensus Estimate for the current year has declined 8.5% over the past month to $9.07.

Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.

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

Therefore, it could be wise to take the Buy-equivalent ABR for Newmont with a grain of salt.

Salesforce (CRM - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Over the past month, shares of this customer-management software developer have returned +15.8%, compared to the Zacks S&P 500 composite's -0.6% change. During this period, the Zacks Internet - Software industry, which Salesforce falls in, has gained 8.8%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsRather 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.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Salesforce is expected to post earnings of $3.27 per share for the current quarter, representing a year-over-year change of +12.4%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The consensus earnings estimate of $14.12 for the current fiscal year indicates a year-over-year change of +12.8%. This estimate has remained unchanged over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $15.49 indicates a change of +9.7% from what Salesforce is expected to report a year ago. Over the past month, the estimate has remained unchanged.

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 #2 (Buy) for Salesforce.

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

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Salesforce, the consensus sales estimate of $11.3 billion for the current quarter points to a year-over-year change of +10.4%. The $46.09 billion and $50.47 billion estimates for the current and next fiscal years indicate changes of +11% and +9.5%, respectively.

Last Reported Results and Surprise HistorySalesforce reported revenues of $11.13 billion in the last reported quarter, representing a year-over-year change of +13.3%. EPS of $3.88 for the same period compares with $2.58 a year ago.

Compared to the Zacks Consensus Estimate of $11.06 billion, the reported revenues represent a surprise of +0.68%. The EPS surprise was +24.36%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times 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.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

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

Bottom LineThe 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 Salesforce. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.

5 Dividend Kings to Buy in July with Irresistible Value and YieldGenuine Parts NYSE: GPC reported higher second-quarter sales and adjusted earnings as growth in its industrial business and margin initiatives helped offset inflationary pressures and costs tied to the Iran conflict, executives said on the company’s earnings call Tuesday.

Chairman and Chief Executive Officer Will Stengel said the company delivered “a strong second quarter” despite a “dynamic global macro environment,” citing total sales of $6.5 billion, up about $400 million, or 6%, from the second quarter of 2025. Adjusted earnings per share rose to $2.15 from $2.10 a year earlier.

Get Genuine Parts alerts:

Don’t Try to Catch These 3 Falling KnivesExecutive Vice President and Chief Financial Officer Bert Nappier said adjusted EPS increased 2.5% year over year, driven by higher sales, particularly in Global Industrial, and benefits from restructuring initiatives. Those gains were partially offset by cost inflation in operating expenses, including impacts from the Iran conflict, as well as an $0.08 headwind from depreciation and interest expense.

Industrial Segment Leads Growth Genuine Parts’ industrial segment, Motion, posted total sales of $2.4 billion, up about $160 million, or 7%, from the prior year. Comparable sales increased 6%, with price inflation contributing about 2.5%.

The Hidden Value in Genuine Parts Company’s Spin-Off PlanStengel said Motion delivered “an excellent quarter,” with balanced growth across large corporate accounts, small and medium-sized customers and value-added solutions. He pointed to improving industrial sentiment, including six consecutive PMI readings above 50, and said the company saw growth in 11 of the 14 end markets it tracks.

Growth was strongest in equipment and machinery and food products, with additional strength in iron and steel, automotive, mining, fabricated metals, distribution centers and logistics, oil and gas, and equipment rental and leasing. Softer demand in pulp and paper, lumber and wood, and rubber and plastics partially offset those gains.

Motion’s core maintenance, repair and operations business, which accounts for about 80% of segment sales, rose roughly 7% in the quarter. Project-based demand, representing the remaining 20% of sales, increased about 9%, marking its strongest performance since the first quarter of 2023, Stengel said.

Industrial segment EBITDA rose about 10% to $316 million, while EBITDA margin increased 30 basis points to 13.1% of sales.

Automotive Results Mixed Across Regions In North America Automotive, total sales rose approximately 4%, while comparable sales increased 2.6%. Segment EBITDA was $208 million, up 6%, with EBITDA margin improving 20 basis points year over year to 8.2% of sales.

Stengel said the North America Automotive business continued to navigate a cautious consumer backdrop and persistent inflation, both of which he said were affected by the Iran conflict. U.S. total sales rose about 3%, with comparable sales also up about 3% and price contributing roughly 2.5%.

Average daily sales rose in the low- to mid-single digits in April and May but were roughly flat in June, which Stengel attributed to a softer market tied to higher fuel prices. He said July month-to-date average daily sales had improved and were tracking in line with company expectations.

Company-owned store comparable sales increased about 4%, with commercial sales up around 5.5%. Independent same-store purchases improved sequentially from the first quarter and increased about 1.5% from a year earlier. Stengel said the broader NAPA system, including company-owned sales and sales to end customers from independent stores, delivered 3% sales growth in the quarter.

By customer type, comparable sales to commercial customers rose about 4%, while retail comparable sales declined about 3%. Non-discretionary repair and maintenance and service categories remained relatively strong, rising in the low- to mid-single digits. Discretionary categories improved sequentially and were up low single digits.

In Canada, total sales rose 9% in local currency and comparable sales increased 1%. Stengel said the Benson acquisition continued to provide a tailwind and remained ahead of company financial and operational targets.

International Automotive total sales rose about 8%, while comparable sales increased approximately 1%. Segment EBITDA rose 6% to $150 million, though EBITDA margin declined 20 basis points to 9.4% of sales. Nappier said the margin decline was primarily due to inflation in salaries and wages, rent and freight, partially offset by restructuring and cost actions.

In Europe, total sales increased about 4% in local currency and comparable sales were up about 1%, with notable improvement in the U.K. and Germany. In Asia Pacific, total sales rose about 2% in local currency, with comparable sales up 1%.

Margins, Costs and Cash Flow Nappier said total company sales growth included a 340-basis-point contribution from comparable sales, a 120-basis-point benefit from acquisitions and a 140-basis-point benefit from foreign currency. Each segment delivered sequentially improved comparable sales growth compared with the first quarter.

Adjusted gross margin increased 20 basis points to 37.9%, driven by strategic pricing and sourcing initiatives, partially offset by higher product costs tied to inflation from the Iran conflict. Adjusted SG&A as a percentage of sales rose 40 basis points to 29.1%.

Nappier said core SG&A increased 4% year over year, with higher healthcare, freight and rent costs. U.S. healthcare expenses were up about 15%, while freight and rent were up mid-single digits. He said people-related costs as a percentage of sales were roughly flat, reflecting restructuring and cost actions.

Year to date, Genuine Parts has incurred $134 million of restructuring costs and realized $55 million of cost savings, including about $30 million in the second quarter. Nappier said the company estimated a $16 million negative EBITDA impact in the quarter from the Iran conflict, in line with its prior expectation of $10 million to $20 million. In response to an analyst question, he said all but $1 million of that impact was in Automotive.

For the first half of 2026, Genuine Parts generated $464 million in cash from operations, aided by an approximately $260 million improvement in net working capital. The company invested $205 million in capital expenditures and returned $288 million to shareholders through dividends.

Guidance Reaffirmed Despite Second-Half Caution Genuine Parts reaffirmed its 2026 adjusted diluted EPS guidance of $7.50 to $8.00, representing 5% growth at the midpoint compared with 2025. The company expects diluted EPS, including restructuring expenses and year-to-date separation costs, to range from $5.90 to $6.40.

Nappier said first-half results were ahead of internal expectations and, absent second-half headwinds, would have put the company on pace toward the high end of its earnings range. However, the company adopted a more cautious view of the second half for Global Automotive due to volatility around the Iran conflict, uncertainty around improved European market conditions and performance among independent U.S. NAPA owners.

The company continues to expect total sales growth of 3% to 5.5% for the year. Its outlook assumes roughly flat market growth, approximately 2% benefit from pricing, carryover benefits from mergers and acquisitions, about one point of growth from strategic initiatives and about one point from foreign exchange.

Nappier said Genuine Parts now expects $20 million to $30 million of incremental operating costs for the rest of the year related to the Iran conflict, including higher freight and fuel costs. He said the company has not changed its gross margin outlook because it broadly expects to pass through many supplier cost increases.

Separation Plan Remains On Track Stengel said Genuine Parts remains on track to separate its Global Automotive and Global Industrial businesses into two independent public companies in the first quarter of 2027. He said the standalone audit work has been completed and the company expects to confidentially file a Form 10 with the SEC later this summer.

The company also expects to host investor days for both businesses in early December in New York, where it plans to provide more detail on strategy, financial profiles, capital structures and capital allocation priorities.

Stengel addressed recent market speculation about a potential transaction involving the Global Automotive business and a competitor, saying the company is “not currently in discussions with any competitor.” He said Genuine Parts remains focused on creating two public companies while continuing to evaluate ways to maximize shareholder value.

Nappier also provided preliminary corporate cost allocations tied to the separation. He said 2025 corporate costs were approximately $360 million. The company estimates $210 million to $230 million of current corporate costs will be allocated to Global Automotive, including about $20 million related to asbestos litigation costs. Including expected dis-synergies, Global Automotive is expected to incur about $250 million of additional costs on a pro forma basis.

For Global Industrial, Nappier said $50 million to $75 million of corporate resources will support Motion as a standalone public company, and when combined with expected dis-synergies, the pro forma Global Industrial business is expected to incur about $100 million in additional costs. He said another approximately $50 million of financing fees tied to the company’s accounts receivable program remains under review as part of capital structure planning.

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

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

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

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

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Genuine Parts wasn't on the list.

While Genuine Parts currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

The AI boom is creating opportunities across semiconductors, cloud computing, enterprise software, infrastructure, cybersecurity, and automation.

Inside this report, you’ll find 10 companies positioned to benefit as artificial intelligence moves from hype to real-world deployment and becomes a core growth driver for corporate America.

Get This Free Report

The underperformance on an up day suggests the market is focusing on the mix of growth versus profitability and what management’s guidance implies for the next few quarters.

• Genuine Parts shares are retreating from recent levels. What’s pressuring GPC stock?

The company reported second-quarter sales of $6.54 billion (up 6% year-over-year) driven by a 3.4% growth in comparable sales, a net 1.4% favorable impact of foreign currency, and a 1.2% benefit from acquisitions.

Analysts projected quarterly sales of $6.43 billion.

Adjusted EPS of $2.15 beat the analyst consensus estimate of $2.08.

Segmental PerformanceNorth America Automotive sales were $2.5 billion, up 3.8% year-over-year, attributable to a 2.6% increase in comparable sales and a 1.3% benefit from acquisitions.

International Automotive sales were $1.6 billion, up 8.2% Y/Y, attributable to a 4.9% favorable impact of foreign currency, a 2.7% benefit from acquisitions, and a 0.6% increase in comparable sales. 

Industrial sales were $2.4 billion, up 7.1% Y/Y, attributable to a 6.1% increase in comparable sales, a 0.8% favorable impact of foreign currency, and a 0.2% benefit from acquisitions.

The company held $559.12 million in cash and cash equivalents as of June 30, 2026. It generated $400.2 million in operating cash flow for the quarter.

Genuine Parts Company executives pointed to industrial strength, pricing actions, operational discipline and separation planning as key drivers of the company’s growth strategy.

Industrial Momentum Supports GrowthChairman and CEO Will Stengel said Motion delivered a strong quarter, with balanced growth across large corporate accounts, local customers and value-added solutions. He said the company remains encouraged by improving industrial market conditions, six straight PMI readings above 50 and broader strength across key end markets.

Stengel said Motion’s core MRO business improved sequentially, while project-based demand posted its strongest performance since the first quarter of 2023. He added that deferred maintenance appears to be normalizing, capital investment projects are improving and strategic initiatives are producing expected benefits.

NAPA Initiatives Gain TractionStengel said Genuine Parts continues to see opportunity in its independent owner base and is applying lessons from its company-owned store strategy. He said the company has used data analytics to group independent owners and develop solutions around sales excellence, pricing, inventory, purchasing, operations and technology.

He said company-owned store sales have improved over the past 10 quarters, while the top quartile of independent owners grew 5% in the second quarter. Stengel said this gives the company a path to improve performance across the broader independent owner base.

Separation Remains On TrackStengel said Genuine Parts remains focused on separating its automotive and industrial businesses into two independent public companies in the first quarter of 2027. He said the company has completed standalone audit work, expects to confidentially file its Form 10 later this summer and plans to host investor days for both businesses in early December in New York.

Genuine Parts reiterated its fiscal 2026 sales outlook of $25.03 billion-$25.64 billion compared to the $25.41 billion estimate.

It reaffirmed fiscal 2026 adjusted EPS guidance of $7.50-$8 against the $7.75 analyst estimate.

Top ETF ExposureSignificance: Because GPC carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

GPC Price ActionGPC Stock Price Activity: Genuine Parts shares were down 6.31% at $114.38 at the time of publication on Tuesday, according to Benzinga Pro data.

Photo: Shutterstock

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Market News and Data brought to you by Benzinga APIs

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

To add Benzinga News as your preferred source on Google, click here.

Wall Street analysts expect Dover Corporation (DOV - Free Report) to post quarterly earnings of $2.72 per share in its upcoming report, which indicates a year-over-year increase of 11.5%. Revenues are expected to be $2.21 billion, up 7.9% from the year-ago quarter.

Over the last 30 days, there has been an upward revision of 0.3% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.

Bearing this in mind, let's now explore the average estimates of specific Dover metrics that are commonly monitored and projected by Wall Street analysts.

According to the collective judgment of analysts, 'Revenue- Engineered Products' should come in at $284.38 million. The estimate indicates a change of +3.1% from the prior-year quarter.

The consensus estimate for 'Revenue- Clean Energy & Fueling' stands at $578.85 million. The estimate suggests a change of +6% year over year.

Analysts' assessment points toward 'Revenue- Climate & Sustainability Technologies' reaching $470.05 million. The estimate points to a change of +13% from the year-ago quarter.

The consensus among analysts is that 'Revenue- Pumps & Process Solutions' will reach $571.06 million. The estimate indicates a year-over-year change of +9.7%.

The combined assessment of analysts suggests that 'Revenue- Imaging & Identification' will likely reach $306.85 million. The estimate suggests a change of +5.1% year over year.

It is projected by analysts that the 'Adjusted EBITDA- Engineered Products' will reach $62.13 million. The estimate compares to the year-ago value of $58.65 million.

Based on the collective assessment of analysts, 'Adjusted EBITDA- Clean Energy & Fueling' should arrive at $126.81 million. Compared to the current estimate, the company reported $116.73 million in the same quarter of the previous year.

Analysts forecast 'Adjusted EBITDA- Climate & Sustainability Technologies' to reach $95.68 million. The estimate compares to the year-ago value of $84.87 million.

Analysts predict that the 'Adjusted EBITDA- Pumps & Process Solutions' will reach $194.13 million. Compared to the present estimate, the company reported $172.64 million in the same quarter last year.

Analysts expect 'Adjusted EBITDA- Imaging & Identification' to come in at $84.70 million. Compared to the current estimate, the company reported $81.17 million in the same quarter of the previous year.

View all Key Company Metrics for Dover here>>>

Dover shares have witnessed a change of -8.6% in the past month, in contrast to the Zacks S&P 500 composite's -0.6% move. With a Zacks Rank #2 (Buy), DOV is expected outperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

21.7.2026 18:21, FME

Index DAX +0,66 % na 25011,35 b.

Německý index DAX zakončuje obchodování v zelených číslech. Dařilo se především sektoru polovodičů, který vzrostl o 5,5 %. Z jednotlivých akcií nejvíce posílily akcie Infineon Technologies (+5,5 %), Siemens Energy (+3,6 %) a Fresenius Medical Care (+2,4 %), když Fitch potvrdil poslední zmíněné společnosti rating na „BBB“ se stabilním výhledem. Naopak ztrácely akcie Munich Re (-2,8 %), Hannover Rueck (-2,6 %) a Scout24 (-2,4 %).

Evropský index STOXX600 zakončil den také v zeleném. Největší růst zaznamenaly sektory IT (+3,5 %), energií (+1,3 %) a průmyslu (+1,0 %). Naopak v červeném zakončily úterý komunikační služby (-1,16 %), nezbytná spotřeba (-1,09 %) a reality (-0,80 %).

Index DAX +0,66 % na 25011,35 b. Nejsilnější akcie Změna Nejslabší akcie Změna Infineon Technologies (IFX) +5,5 % Munich Re (MUV2) -2,8 % Siemens Energy (ENR) +3,6 % Hannover Rueck SE (HNR1) -2,6 % Fresenius Medical Care (FME) +2,4 % Scout24 SE (G24) -2,4 % Fresenius (FRE) +2,3 % Siemens Healthineers (SHL) -2,4 % Commerzbank AG (CBK) +2,3 % Deutsche Telekom (DTE) -1,5 % Zdroj: Bloomberg

Jakub Němec
Fio banka, a.s.
Prohlášení

For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Nordson (NDSN - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Industrial Products sector should help us answer this question.

Nordson is a member of our Industrial Products group, which includes 187 different companies and currently sits at #4 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Nordson is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for NDSN's full-year earnings has moved 1% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, NDSN has returned 18.6% so far this year. At the same time, Industrial Products stocks have gained an average of 14.8%. As we can see, Nordson is performing better than its sector in the calendar year.

One other Industrial Products stock that has outperformed the sector so far this year is Tennant (TNC - Free Report) . The stock is up 16.4% year-to-date.

In Tennant's case, the consensus EPS estimate for the current year increased 6.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Nordson is a member of the Manufacturing - General Industrial industry, which includes 41 individual companies and currently sits at #56 in the Zacks Industry Rank. This group has gained an average of 4.6% so far this year, so NDSN is performing better in this area. Tennant is also part of the same industry.

Investors with an interest in Industrial Products stocks should continue to track Nordson and Tennant. These stocks will be looking to continue their solid performance.

Shares of 3M (MMM) jumped Tuesday morning after the conglomerate reported better-than-expected results and raised its profit outlook.

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Oracle (ORCL - Free Report) .

Oracle currently has an average brokerage recommendation (ABR) of 1.51, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 45 brokerage firms. An ABR of 1.51 approximates between Strong Buy and Buy.

Of the 45 recommendations that derive the current ABR, 34 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 75.6% and 2.2% of all recommendations.

Brokerage Recommendation Trends for ORCL

Check price target & stock forecast for Oracle here>>>

The ABR suggests buying Oracle, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Should You Invest in ORCL?Looking at the earnings estimate revisions for Oracle, the Zacks Consensus Estimate for the current year has increased 0.2% over the past month to $8.03.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

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

Therefore, the Buy-equivalent ABR for Oracle may serve as a useful guide for investors.

Oracle (ORCL +3.35%) shares have been on a wild ride so far this year. Investors have been left wondering whether it's worth holding on to the tech giant's shares, or if they should avoid the volatile stock altogether.

Oracle is spending a lot of money right now as it builds out more AI infrastructure, which has spooked some shareholders, leading to an Oracle stock sell-off that's left its share price down 37% year to date.

That drop could represent a good buying opportunity. Here's why.

Image source: Oracle.

Oracle's stock fell hard after it revealed $70 billion in spending Oracle is doing what nearly every other major tech company is doing right now -- accelerating its spending on artificial intelligence data centers. But shareholders weren't happy when management said capital expenditures (capex) could reach as high as $70 billion in fiscal 2027, and they really aren't happy with how Oracle plans to raise the money.

Management said on the fourth-quarter earnings call that it would raise $40 billion through debt and equity financing, $20 billion of which comes from a share sale that it had already announced.

The problem is that Oracle already raised $43 billion in debt in fiscal 2026, which means the company is continually funding its capex spending by raising large amounts of debt. It's not uncommon for tech companies to take on debt, but it's coming at a time when investors are increasingly skeptical that AI spending will eventually pay off.

Adding to investor skepticism is that Oracle is transitioning away from a higher-margin software business toward capital-intensive AI infrastructure, and management said margins will be a "step down" in the near term as a result.

Today's Change

(

3.35

%) $

4.06

Current Price

$

125.44

Is it worth picking up some shares of Oracle right now? Given Oracle's rising debt, it's not surprising that investors freaked out. But it might be a mistake to overlook Oracle stock right now.

First, consider that the company had $638 billion in remaining performance obligations (RPO) -- binding contracts that represent a revenue backlog -- at the end of fiscal 2026, an increase of 363% from the previous year. Management says this large amount of RPO gives "exceptional visibility into our future revenue growth" and said on the Q4 earnings call that 12% of current RPO -- nearly $77 billion -- will be realized as revenue in fiscal 2027.Management also expects another 34% to be realized over the next 13 to 36 months.

Oracle's earnings are expected to recover, too, with management guidance of $90 billion in sales and adjusted non-GAAP earnings per share of $8.05 in fiscal 2027, representing increases of 34% and 18%, respectively, from 2026.

What's more, Oracle shares look cheap right now. The stock has a price-to-earnings (P/E) ratio of just 21, compared to the tech sector average P/E ratio of 34.

It's understandable why investors are concerned about Oracle's debt and equity raises. Still, if the company's data center plans pan out as expected, it could put the company in a much better position for growth. If you're willing to ride out some of the risks, it might be worth buying some Oracle stock right now.

Key Takeaways Oracle's credit rating was cut as AI investment drove higher debt and negative free cash flow.ORCL reported a $638B backlog, up 363% year over year, and guided for $90B fiscal 2027 revenues.Oracle's AI spending mirrors cash flow pressure seen at Microsoft and Amazon despite stronger ratings. Credit rating agencies have grown increasingly cautious on Oracle (ORCL - Free Report) as the company's aggressive artificial intelligence buildout strains its balance sheet. S&P Global Ratings downgraded Oracle's long-term issuer credit rating one notch to BBB- from BBB earlier this month, along with a short-term rating cut from A-2 to A-3, while maintaining a stable outlook. The move leaves Oracle just one step above speculative-grade status. Moody's Ratings, meanwhile, holds a negative outlook on the company, signaling that a further downgrade remains possible over the medium term. These agency actions coincided with Oracle's five-year credit default swap spread climbing to roughly 2.03 percentage points, its highest level in nearly 18 years, as bond investors demanded greater compensation and existing Oracle debt sold off amid doubts over whether the AI investments will pay off.

The rating cuts followed Oracle's fourth-quarter and full fiscal 2026 results, released in June, which showed record demand alongside deepening cash strain. Total revenues for the quarter reached $19.2 billion, up 21% year over year, with cloud revenues climbing 47% to $9.9 billion; cloud infrastructure revenues alone surged 93%. Remaining performance obligations, Oracle's forward demand backlog, ended the quarter at $638 billion, up 363% from a year earlier and $85 billion higher sequentially. For the full year, revenues reached $67.4 billion and non-GAAP earnings per share rose 27% to $7.63. Yet free cash flow was negative $23.7 billion for fiscal 2026, as capital spending on data centers outpaced operating cash generation.

To fund this expansion, Oracle raised $43 billion in debt and $5 billion in equity during fiscal 2026 and plans roughly $40 billion more in fiscal 2027, including a previously announced $20 billion equity issuance, while stating it does not intend to issue additional bonds this calendar year. Management points to the backlog as evidence that spending tracks committed contracts, guiding to $90 billion in fiscal 2027 revenues, leaving the pace of backlog conversion as the key variable investors are watching against rising leverage.

Microsoft & Amazon Show Similar AI-Driven Cash PressureUnlike Oracle, Microsoft (MSFT - Free Report) and Amazon (AMZN - Free Report) still hold top-tier investment-grade ratings, though both show comparable strain from AI spending. Microsoft's free cash flow fell to $15.8 billion in its most recent quarter, down from $20.3 billion a year earlier, as capital expenditure rose sharply. Amazon's free cash flow was further squeezed to $1.2 billion as capital spending climbed 77% year over year and long-term debt reached $119.1 billion. Neither Microsoft nor Amazon has faced a rating downgrade so far, but the leverage build-up at both companies shows that AI infrastructure costs are pressuring balance sheets industry-wide, not just at Oracle.

ORCL’s Price Performance, Valuation & EstimatesShares of Oracle have lost 31.9% in the past six-month period, underperforming the Zacks Computer and Technology sector’s appreciation of 15.8%.

ORCL’s 6-Month Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, ORCL stock is currently trading at a discount with a trailing 12-month Price/Earnings ratio of 14.44x, which is lower than the Zacks Computer - Software industry average of 19.4x. Oracle carries a Value Score of B.

ORCL’s Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for ORCL’s fiscal 2027 earnings is pegged at $8.03, which suggests 5.24% growth year over year.

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

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

Featuring 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, the research service can help you become a smarter, more self-assured investor.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

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 ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow 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, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

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

Stock to Watch: Block (XYZ - Free Report) Block, Inc. was incorporated in San Francisco in 2009. The company does not designate a headquarters location as it adopted a distributed work model in 2021. It has been an S&P 500 constituent since July 2025.

XYZ is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Computer and Technology stock. XYZ has a Momentum Style Score of A, and shares are up 8.5% over the past four weeks.

For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.04 to $3.90 per share. XYZ boasts an average earnings surprise of +3.5%.

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

Key Takeaways UPS is expected to report Q2 EPS of $1.65 and revenues of $21.75 billion on July 28.Lower Amazon volumes may weigh on shipments, while cost cuts and automation support profitability. A shift toward SMBs, B2B and healthcare logistics is expected to lift UPS' revenue per piece. United Parcel Service (UPS - Free Report) is scheduled to report second-quarter 2026 results on July 28, before market open.

The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $1.65 and $21.75 billion, respectively.

The bottom-line projection indicates a year-over-year increase of 6.5%. The consensus mark for the to-be-reported quarter has remained stable over the past 60 days. The Zacks Consensus Estimate for quarterly revenues implies a year-over-year expansion of 2.5%.

Image Source: Zacks Investment Research

For full-year 2026, the Zacks Consensus Estimate for UPS’ revenues is pegged at $90.32 billion, implying an increase of 1.9% year over year. The consensus mark for full-year EPS is pinned at $7.10, calling for a 0.8% year-over-year contraction. The consensus mark for 2026 EPS has remained stable over the past 60 days.

UPS’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters (missing the mark once). The average beat is 10.6%.

Given this backdrop, let us examine the factors that might have influenced UPS’ performance in the to-be-reported quarter.

The interim peace deal between the United States and Iran has resulted in a sharp fall in oil prices. This development is likely to have aided UPS’ bottom-line performance since expenses on fuel represent a key input cost for transportation stocks.

Despite having come down from the highs witnessed when the war between the nations was in full flow, oil prices are fluctuating, given the fragility of the interim peace deal. In this scenario, focus will also be on UPS’ guidance for the September quarter as well as for full-year 2026.

UPS’ decision to scale back business with Amazon (AMZN - Free Report) is expected to have kept second-quarter volumes muted. Management reached an agreement in principle with Amazon to reduce the e-commerce giant’s volume by more than 50% by June 2026. CEO Carol Tome noted that Amazon was not the company’s most profitable customer. The reduction in volumes is compelling UPS to right-size its network. We expect consolidated average daily volumes to decrease 5.2% in the June quarter from the year-ago actual.

Second-quarter results are likely to reflect UPS’ efforts toward improving profitability over sheer volume. Under the cost-cutting initiatives, UPS has substantially reduced its U.S. operational workforce and closed daily operations at multiple leased and owned buildings. Moreover, UPS has been focusing on increasing automation in sorting and operations and leveraging AI for logistics planning to boost efficiency.

The shift in focus toward higher-margin areas such as small and medium-sized businesses or SMBs and healthcare logistics from low-margin volumes (like Amazon) is expected to be reflected in UPS’ second-quarter results and to aid its per-package revenues. We expect consolidated average revenue per piece to increase 9.2% in the June quarter from the year-ago actual.

Notably, SMBs contributed 34.5% to total U.S. volume in the March quarter, reflecting the highest SMB penetration in UPS’ history. We expect SMBs to have performed strongly in the June quarter as well, boosting results.

In terms of B2B, this represented 45.2% of its total U.S. volume in the March quarter, which was a 140-basis point improvement compared with the first quarter of 2025 and also the highest first quarter B2B penetration in six years. Currently, UPS focuses on premium segments like SMB, B2B and complex health care, and the trend is likely to have continued in the June quarter as well. 

What Our Model Says About UPSOur proven model conclusively predicts an earnings beat for UPS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly the case here.

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

UPS has an Earnings ESP of +1.06% (the Most Accurate Estimate is a cent above the Zacks Consensus Estimate) and a Zacks Rank #3.

Highlights of UPS’ Q1 EarningsQuarterly earnings per share (excluding 5 cents from non-recurring items) of $1.07 beat the Zacks Consensus Estimate of $1.04 but declined 28.2% year over year. Revenues of $21.2 billion surpassed the Zacks Consensus Estimate of $21 billion but decreased 1.6% year over year.

U.S. Domestic Package revenues of $14.1 billion (above our estimate of $13.8 billion) decreased 2.3% year over year, owing to an expected decline in volume. Revenue per piece grew 8.3% year over year. Segmental operating profit (adjusted) fell 44.1% year over year to $565 million. The adjusted operating margin for the segment was 4%.

Other Stocks to ConsiderHere are a few other stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these too have the right combination of elements to beat on earnings this reporting cycle. 

CSX Corporation (CSX - Free Report) has an Earnings ESP of +0.95% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

CSX is scheduled to report second-quarter 2026 earnings on July 22. The Zacks Consensus Estimate for second-quarter 2026 earnings has been revised upward by 3 cents over the past 30 days to 50 cents per share. CSX’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters and missed in the remaining one, the average beat being 3.2%. 

Union Pacific (UNP - Free Report) has an Earnings ESP of +0.34% and a Zacks Rank #3 at present. UNP is scheduled to report second-quarter 2026 earnings on July 23.

The Zacks Consensus Estimate for Union Pacific’s second-quarter 2026 earnings has moved up by 6 cents to $3.20 per share over the past 30 days. Union Pacific’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters (missing the mark on the other occasion). The average beat is 2.3%.  

Key Takeaways Moody's Q2 results may benefit from strong investment-grade and high-yield bond issuance.MCO's Corporate Finance revenues are expected to rise 16% y/y to $594 million.Moody's Analytics revenues are projected to grow 4.8%, while MIS revenues are expected to increase 13.4%. Moody's (MCO - Free Report) is scheduled to announce second-quarter 2026 results on July 22, before the opening bell. The company’s Corporate Finance line, the largest revenue contributor at the Moody's Investors Service (“MIS”) division, is expected to have witnessed robust revenue growth in the to-be-reported quarter.

The company is expected to have benefited from robust investment-grade bond issuance during the second quarter, driven by issuers taking advantage of favorable funding conditions and continued AI-related capital spending by large technology companies. Healthy high-yield bond issuance and a pickup in merger and acquisition financing activities are also likely to have supported ratings demand.

While leveraged loan issuance remained relatively subdued, the strength in investment-grade and high-yield debt issuance is expected to have more than offset this weakness. The Zacks Consensus Estimate for revenues in the Corporate Finance line for the second quarter is pegged at $594 million, indicating a 16% rise from the prior-year quarter.

Coming to Structured Finance, Moody’s is expected to have benefited from robust collateralized debt obligation (CLO) issuance and healthy asset-backed securities (ABS) volumes, supported by resilient leveraged loan activity and steady consumer securitizations. Although commercial mortgage-backed securities (CMBS) issuance remained weak due to elevated interest rates and persistent commercial real estate headwinds, strength in CLO and ABS is likely to have more than offset the softness. As such, the Zacks Consensus Estimate for Structured Finance revenues is pegged at $146 million, indicating 8.1% year-over-year growth.

The consensus estimate for revenues from the Financial Institutions business line of $212 million suggests a year-over-year increase of 11%. The Zacks Consensus Estimate for Public, Project and Infrastructure Finance business revenues of $189 million implies a 16.7% rise.

The Zacks Consensus Estimate for total revenues in the MIS division of $1.20 billion implies a 13.4% year-over-year rise.

Other Factors to Influence MCO’s Q2 EarningsMoody's Analytics (“MA”) Division: With the demand for analytics rising, revenues from all units at the MA division are expected to have increased in the second quarter. The company’s efforts to strengthen the division’s profitability through inorganic growth strategies are anticipated to have offered support. Thus, the division’s overall revenues are likely to have risen in the to-be-reported quarter.

The consensus estimate for the MA division’s quarterly revenues is pegged at $934 million, indicating 4.8% growth from the prior-year quarter.

Expenses: Given Moody’s inorganic growth efforts, costs related to acquisitions and restructuring are expected to have increased in the to-be-reported quarter, resulting in an increase in total expenses.

Earnings Whispers for Moody’sAccording to our proven model, the chances of MCO beating the Zacks Consensus Estimate for earnings this time are high. This is because it has the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.

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

Earnings ESP: The Earnings ESP for Moody’s is +1.36%.

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

Q2 Earnings & Sales Expectations for MCOThe Zacks Consensus Estimate for earnings is pegged at $4.23, which has been unchanged over the past seven days. The figure indicates an 18.8% rise from the year-ago reported number.

The consensus estimate for sales of $2.09 billion suggests a 10% year-over-year rise.

Performance & Expectations of MCO’s PeersAccenture plc (ACN - Free Report) reported third-quarter fiscal 2026 earnings of $3.80 per share, beating the Zacks Consensus Estimate by 2.7%. The metric increased 9% from the year-ago quarter.

ACN’s revenues of $18.72 billion missed the consensus mark by 0.4% but rose 6% year over year in U.S. dollars and 3% in local currency. Managed services, EMEA and communications, media, and technology aided top-line growth. New bookings totaled $19.32 billion, down 2% year over year in U.S. dollars and 3% in local currency.

S&P Global Inc. (SPGI - Free Report) is scheduled to report second-quarter 2026 results on July 28.

Over the past seven days, the Zacks Consensus Estimate for S&P Global’s quarterly earnings has been revised lower to $4.88. The estimated figure indicates 10.2% growth from the prior-year quarter’s actual.

, /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of First Solar, Inc. (NASDAQ: FSLR).

Shareholders who purchased shares of FSLR during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery.

CONTACT US HERE:

https://securitiesclasslaw.com/securities/first-solar-inc-loss-submission-form-3/?id=194982&from=4

CLASS PERIOD: February 26, 2025 to February 24, 2026

ALLEGATIONS: The complaint alleges that during the class period, Defendants issued materially false and/or misleading statements and/or failed to disclose that: (i) defendants had overstated First Solar's capacity to manage the impact of U.S. tariff policy on the Company's business; (ii) defendants understated the extent to which its responses to U.S. tariff policy, including the intentional underutilization of production facilities in Malaysia and Vietnam, and attempted relocation of production to the U.S., were likely to negatively impact First Solar's projected performance in the 2026 fiscal year; and (iii) as a result, defendants' public statements were materially false and misleading at all relevant times.

DEADLINE: August 24, 2026 Shareholders should not delay in registering for this class action. Register your information here: https://securitiesclasslaw.com/securities/first-solar-inc-loss-submission-form-3/?id=194982&from=4

NEXT STEPS FOR SHAREHOLDERS: Once you register as a shareholder who purchased shares of FSLR during the timeframe listed above, you will be enrolled in a portfolio monitoring software to provide you with status updates throughout the lifecycle of the case. The deadline to seek to be a lead plaintiff is August 24, 2026. There is no cost or obligation to you to participate in this case.

WHY GROSS LAW FIRM? The Gross Law Firm is a nationally recognized class action law firm, and our mission is to protect the rights of all investors who have suffered as a result of deceit, fraud, and illegal business practices. The Gross Law Firm is committed to ensuring that companies adhere to responsible business practices and engage in good corporate citizenship. The firm seeks recovery on behalf of investors who incurred losses when false and/or misleading statements or the omission of material information by a company lead to artificial inflation of the company's stock. Attorney advertising. Prior results do not guarantee similar outcomes.

CONTACT:
The Gross Law Firm
15 West 38th Street, 12th floor
New York, NY, 10018
Email: [email protected]
Phone: (646) 453-8903

SOURCE The Gross Law Firm

, /PRNewswire/ -- The Law Offices of Howard G. Smith announces that investors with substantial losses have opportunity to lead the securities fraud class action lawsuit against First Solar, Inc. ("First Solar" or the "Company") (NASDAQ:FSLR).

IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN FIRST SOLAR, INC. (FSLR), CONTACT THE LAW OFFICES OF HOWARD G. SMITH BEFORE AUGUST 24, 2026 (LEAD PLAINTIFF DEADLINE) TO PARTICIPATE IN THE ONGOING SECURITIES FRAUD LAWSUIT.

Contact the Law Offices of Howard G. Smith to discuss your legal rights by email at [email protected], by telephone at (215) 638-4847 or visit our website at www.howardsmithlaw.com.

What Is The Lawsuit About?
The complaint filed alleges that, between February 26, 2025 and February 24, 2026, Defendants failed to disclose to investors that: (1) Defendants had overstated First Solar's capacity to manage the impact of U.S. tariff policy on the Company's business; (2) Defendants understated the extent to which its responses to U.S. tariff policy, including the intentional underutilization of production facilities in Malaysia and Vietnam, and attempted relocation of production to the U.S., were likely to negatively impact First Solar's projected performance in the 2026 fiscal year; and (3) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

Contact Us To Participate or Learn More:  

If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact:
Howard G. Smith, Esq.,
Law Offices of Howard G. Smith,
3070 Bristol Pike, Suite 112,
Bensalem, Pennsylvania 19020,
Call us at: (215) 638-4847
Email us at: [email protected],
Visit our website at: www.howardsmithlaw.com.

To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action.

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

Contact Us:

Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
[email protected]
www.howardsmithlaw.com

SOURCE Law Offices of Howard G. Smith

LyondellBasell Industries N.V. is positioned for a strong 2026, benefiting from Middle East supply disruptions due to the Iran conflict. LYB's Q2 earnings are expected to surge, with analysts forecasting ~$3.40 EPS, driven by tight supply, cost advantages, and portfolio optimization. US-based production and access to cheap natural gas give LYB a significant cost edge over international competitors amid elevated chemical prices.

Jim Cramer’s Lightning Round on CNBC’s Mad Money delivered mixed verdicts on growth and speculative names, endorsing Lyft at current levels, calling for consolidation in fintech, and dismissing First Solar on technicals. He also saw value in shipping stocks such as ZIM.

Here are some of Jim Cramer’s most recent takes:

First Solar Has One of the “Worst Charts” Cramer Has Ever Seen Cramer’s rejection of First Solar (NASDAQ:FSLR | FSLR Price Prediction) was blunt. “Man, that thing has just been crushed. You’re buying it at a very inexpensive price. But… I hate to default to being a technician. It has one of the worst charts I’ve ever seen,“ he said, adding that the company is profitable but faces a lawsuit.

The paradox is real. First Solar posted Q1 2026 EPS of $3.22, beating consensus of $2.98 by 8.02%, with revenue of $1.044 billion and net income up 65% year over year to $346.62 million. CEO Mark Widmar credited “differentiated technology, a domestic manufacturing footprint, and independence from Chinese crystalline silicon supply chains.”

Yet the price action tells the darker story: shares are down 21.41% year to date and off 20.33% in the past month, closing recently at $206.54. Backlog slipped from a Q3 2025 peak of 53.7 GW to 47.9 GW, and the Section 45X tax credit phases out between 2030 and 2033.

Cramer Says Lyft Is a Buy Around $15 A caller asked Jim Cramer whether he thought Lyft (NASDAQ:LYFT) was a buy today, and Cramer sided with the caller: “I think David Risher’s doing a good job. It’s been trading back and forth and back and forth. The $15 is a good level to start. I agree with you.” He also flagged that Lyft has generated over $1 billion in free cash flow.

Shares last traded at $15.43, in the strike zone Cramer identified. Q1 2026 delivered gross bookings of $4.95 billion, up 19% year over year, 28.3 million active riders, and adjusted EBITDA of $132.80 million, up 25%. CEO David Risher said, “Our customer-obsessed comeback continues… Lyft is performing while transforming.” The company repurchased $300 million of stock in the quarter, on top of a $1 billion authorization. See the full Q1 release.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and First Solar didn't make the cut. Grab the names FREE today.

Cramer Predicts “Massive Consolidation” Across Fintech On Fiserv (NYSE:FI), Cramer noted the stock is down 70% with new management in place, then pivoted to a sector call: “I think that they have to merge with someone… I’m calling for, like as I did this weekend in a piece I wrote for the club, massive consolidation in the fintech area. We have way too many companies in that area.“

The stock trades near $51.68, down 68.82% over the past year. Q1 2026 adjusted EPS came in at $1.79, but organic revenue fell 4%. CEO Mike Lyons is executing the One Fiserv Action Plan targeting EPS above $12.00 by 2029.

AST SpaceMobile Could Fall Another 30% Before Cramer Would Buy Cramer was direct on AST SpaceMobile (NASDAQ:ASTS): “Look, you gotta be worried. The company’s losing a fortune… that kind of stock is now out of favor. I think at $40, you can wait till it gets to $40 before you have to pull the trigger. I am not kidding.”

Shares last traded at $57.17, still above Cramer’s wait level, though down 28.81% over the past month. Q1 2026 revenue of $14.7 million missed the $36.6 million estimate, and the GAAP loss was $191 million. Reddit’s r/wallstreetbets reflects the pain, with one viral post titled “Down $240k in less than a month at 23 thanks to ASTS” drawing thousands of upvotes.

ZIM’s $35 Takeover Offer Creates a Different Kind of Value Play Cramer acknowledged there was value in shipping stocks like ZIM. ZIM Integrated Shipping Services (NYSE:ZIM) trades at $24.36, up 65.71% over the past year. ZIM is being acquired by Hapag-Lloyd at $35.00 per share in cash, and the deal is expected to close in Q4 2026. Reddit sentiment is bullish, with one post titled “ZIM: 40% to 300% Gain Potential on Merger Arbitrage.”

Key Takeaways Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and First Solar didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

Micron (MU - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Shares of this chipmaker have returned -28.6% over the past month versus the Zacks S&P 500 composite's -0.6% change. The Zacks Computer - Integrated Systems industry, to which Micron belongs, has lost 17.1% over this period. Now the key question is: Where could the stock be headed in the near term?

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, Micron is expected to post earnings of $31.39 per share, indicating a change of +936% from the year-ago quarter. The Zacks Consensus Estimate has changed +26.3% over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $73.85 points to a change of +790.8% from the prior year. Over the last 30 days, this estimate has changed +20.9%.

For the next fiscal year, the consensus earnings estimate of $157.83 indicates a change of +113.7% from what Micron is expected to report a year ago. Over the past month, the estimate has changed +34.8%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Micron is rated Zacks Rank #1 (Strong Buy).

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

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For Micron, the consensus sales estimate for the current quarter of $50.76 billion indicates a year-over-year change of +348.6%. For the current and next fiscal years, $129.61 billion and $248.08 billion estimates indicate +246.7% and +91.4% changes, respectively.

Last Reported Results and Surprise HistoryMicron reported revenues of $41.46 billion in the last reported quarter, representing a year-over-year change of +345.7%. EPS of $25.11 for the same period compares with $1.91 a year ago.

Compared to the Zacks Consensus Estimate of $36.72 billion, the reported revenues represent a surprise of +12.91%. The EPS surprise was +17.39%.

The company beat consensus EPS estimates in each of the trailing four quarters. 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.

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

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Micron is graded D 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 Micron. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.

HomeStock IdeasLong IdeasTech 

SummaryTSMC and ASML confirmed AI memory demand remains exceptionally strong, while fully booked EUV capacity limits industry supply growth through 2028.Japan and the U.S. committed billions toward Micron Technology, Inc.'s manufacturing expansion, strengthening long-term capacity, supply-chain resilience, and geopolitical positioning.General Motors and Ford signed long-term supply agreements, diversifying Micron beyond hyperscalers with stable automotive AI memory demand.Micron trades at only 11.6x forward earnings despite consensus forecasting EPS growth from $73.39 to $150.91 in FY2027.The main risks are HBM4 technology execution and antitrust litigation, while investor sentiment has become increasingly polarized after the recent selloff. petrovv/iStock via Getty Images

Investment Thesis Despite the correction in Micron Technology, Inc.'s (MU) stock price, TSMC (TSM) and ASML Holding (ASML) have reiterated that HBM demand remains exceptionally strong, whereas EUV shortages turn into

17.4K Followers

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

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.

Intuitive Surgical (ISRG +1.08%), maker of the da Vinci robotic-assisted surgical systems, recently posted a strong quarter. But despite consistently solid numbers, the stock itself has been in a tailspin this year. As of Monday's close, it was down 38% thus far in 2026, and it's not just trading at a new 52-week low, but it's at a multi-year low as well; the last time it was at these levels was back in early 2024.

What's behind the stock's struggles this year, and could this be a glorious opportunity for long-term investors to buy the stock at a discount?

Image source: Getty Images.

Intuitive Surgical's growth has been looking much better of late Last week, Intuitive Surgical posted its second-quarter numbers, which yet again featured double-digit growth. Revenue of $2.9 billion for the period ending June 30 rose by 19% year over year. Over the past year, its growth rate has been comfortably above 15%. With hospitals resuming normal procedures and demand being higher, it's looking more like a top growth stock again.

ISRG Revenue (Quarterly YoY Growth) data by YCharts

The number of da Vinci procedures rose by 15%, and the install base for the surgical system also rose by 12%, totaling 11,710 as of the end of the period. It's an excellent sign that the business is growing well and with a higher install base, winning over new customers as well, setting itself up for even more growth ahead.

However, despite the solid numbers, the stock has been struggling this year. The company's Chief Financial Officer, Jamie Samath, noted that the expiration of the Affordable Care Act's enhanced premiums had a "modest adverse impact" on procedures during the quarter, which may help explain some of the market's apprehension. There's also been a decline in bariatric cases due to the rising popularity of GLP-1 weight loss drugs.

While the business has been doing well, these headwinds are preventing Intuitive from doing even better.

Today's Change

(

1.08

%) $

3.82

Current Price

$

356.99

Intuitive Surgical stock is currently trading at 33 times its estimated future earnings (based on analyst estimates), which is considerably lower than its past levels, as it wasn't uncommon for the multiple to be as high as around 70. Its elevated valuation may have also been a key reason for the stock's decline this year.

However, now with a lighter valuation, Intuitive's stock may be a great buy. The company has been posting strong numbers, and with plenty of growth opportunities still out there related to robotic-assisted surgery, this can be an excellent investment to buy and hold for the long haul.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intuitive Surgical. The Motley Fool recommends the following options: long January 2028 $520 calls on Intuitive Surgical and short January 2028 $530 calls on Intuitive Surgical. The Motley Fool has a disclosure policy.

AMC Entertainment Holdings, Inc. (NYSE:AMC) on Monday reported better-than-expected second-quarter results.

Adjusted EPS of 14 cents surpassed the analyst expectations for a loss of six cents per share. The largest cinema chain operator’s revenue rose 14.2% year over year (Y/Y) to $1.60 billion, exceeding estimates of $1.47 billion.

AMC plans to expand its premium large format (PLF) and extra-large format (XLF) footprint by adding 100–250 auditoriums over the next 2–4 years, primarily funded through third-party capital.

AMC shares fell 6.9% to trade at $2.28 on Tuesday.

These analysts made changes to their price targets on AMC following earnings announcement.

Wedbush analyst Alicia Reese maintained AMC with an Outperform rating and raised the price target from $3 to $4. Benchmark analyst Mike Hickey maintained the stock with a Buy and raised the price target from $2.5 to $3. Considering buying AMC stock? Here’s what analysts think:

Photo via Shutterstock

Market News and Data brought to you by Benzinga APIs

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

To add Benzinga News as your preferred source on Google, click here.

Amgen reached a $74 million settlement of a lawsuit accusing the biotechnology company of ​waiting too long to disclose that it might owe ‌the Internal Revenue Service $10.7 billion for underreporting six years of taxes.