The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Marriott International (MAR - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Consumer Discretionary peers, we might be able to answer that question.
Marriott International is a member of the Consumer Discretionary sector. This group includes 259 individual stocks and currently holds a Zacks Sector Rank of #11. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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. Marriott International is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for MAR's full-year earnings has moved 0.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that MAR has returned about 27.2% since the start of the calendar year. Meanwhile, stocks in the Consumer Discretionary group have lost about 11.9% on average. This means that Marriott International is performing better than its sector in terms of year-to-date returns.
Another stock in the Consumer Discretionary sector, Target Hospitality (TH - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 75.5%.
The consensus estimate for Target Hospitality's current year EPS has increased 76% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Marriott International is a member of the Hotels and Motels industry, which includes 15 individual companies and currently sits at #159 in the Zacks Industry Rank. On average, this group has gained an average of 18.5% so far this year, meaning that MAR is performing better in terms of year-to-date returns.
On the other hand, Target Hospitality belongs to the Leisure and Recreation Services industry. This 29-stock industry is currently ranked #152. The industry has moved -6% year to date.
Marriott International and Target Hospitality could continue their solid performance, so investors interested in Consumer Discretionary stocks should continue to pay close attention to these stocks.
The market expects Ovintiv (OVV - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 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 earnings report, which is expected to be released on November 3, might help the stock move higher if these key numbers are better than expectations. 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 energy company is expected to post quarterly earnings of $1.89 per share in its upcoming report, which represents a year-over-year change of +83.5%.
Revenues are expected to be $2.32 billion, up 12.2% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 30.37% higher 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.
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 Ovintiv?For Ovintiv, 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 +3.73%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that Ovintiv 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 Ovintiv would post earnings of $1.91 per share when it actually produced earnings of $1.74, delivering a surprise of -8.90%.
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.
Ovintiv 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.
Key Takeaways NetApp's Q1 fiscal 2027 revenues surged 30% to $2.03 billion, aided by pricing gains and strong demand.NTAP's product revenues jumped 51% while improved pricing helped offset rising component costs.NetApp raised its fiscal 2027 revenue outlook by $650 million to $7.975-$8.225 billion amid stronger demand. NetApp, Inc. (NTAP - Free Report) is benefiting from improved pricing amid rising component and commodity costs, supporting its revenue growth despite a challenging cost environment. The company has adjusted product prices to offset higher input costs, which contributed to stronger-than-expected performance in the first quarter of fiscal 2027. On the last earnings call, management highlighted that pricing benefits, accelerated customer purchases and broad-based demand for AI and infrastructure modernization supported the quarter's results.
NetApp reported first-quarter revenues of $2.03 billion, up 30% year over year, including the benefit of an additional week. Excluding this impact, revenues increased 26%. Product revenues surged 51% to $987 million, reflecting robust demand across its portfolio. The company's product gross margin reached 54.6%, declining 150 basis points sequentially due to higher component costs, partially offset by improved pricing. However, product gross margin exceeded management's expectations, demonstrating its ability to capture higher prices despite cost pressures.
On the last earnings call, management stated that its pricing actions are translating into financial benefits faster than in previous cycles. Historically, price increases took two to three quarters to materialize, but greater pricing agility is now allowing NetApp to realize these benefits earlier. The company also noted that customers continue to prioritize spending on critical infrastructure despite higher prices. However, some customers are delaying less essential projects or shifting toward more cost-effective hybrid flash solutions.
NetApp expects its product gross margin performance for the remainder of fiscal 2027 to be slightly better than previously anticipated, reflecting improved confidence in recovering incremental costs. However, management does not expect pricing-related benefits to remain at the exceptional levels witnessed in the first quarter.
Supported by stronger demand and business momentum, NetApp raised its fiscal 2027 revenue guidance to $7.98-$8.23 billion. The midpoint of $8.1 billion implies 17% year-over-year growth and represents a $650 million increase from its previous forecast. For the second quarter, revenues are projected at $2.1 billion, plus or minus $75 million. Continued pricing improvements, alongside sustained AI-driven infrastructure spending, could support revenue growth despite ongoing component cost pressures.
Taking a Look at NTAP’s CompetitorsHewlett Packard Enterprise (HPE - Free Report) is benefiting from a broader shift toward AI infrastructure, networking modernization and hybrid cloud, with Juniper expanding its addressable market and integration synergies supporting earnings growth. Record orders and backlog show demand is outpacing shipments, while Private Cloud AI, Alletra and GreenLake deepen HPE’s exposure to software, services and recurring consumption. Management has raised its fiscal 2026 and fiscal 2027 outlooks as profitability, free cash flow and deleveraging advance. For fiscal 2026, HPE raised its revenue growth outlook to 34-37% and non-GAAP earnings per share guidance to $3.75-$3.85. For fiscal 2027, management raised its revenue growth framework to 13-17% and projected non-GAAP earnings per share growth of 16-20%.
Teradata Corporation (TDC - Free Report) is benefiting from rising recurring revenue, expanding operating leverage and a strengthened balance sheet that gives the company room to fund AI innovation and shareholder returns. The Autonomous Knowledge Platform broadens its hybrid data and AI proposition, while Teradata Factory and AI Studio target regulated, sovereign and production-scale agentic AI workloads. Customer interest and early wins support the strategic shift and stronger retention over time. For 2026, Teradata guided its non-GAAP earnings outlook to $2.65-$2.73 per share and adjusted free cash flow forecast to $330-$350 million.
NTAP Price Performance, Valuation & EstimatesShares of NetApp have gained 27.5% in the past three months against the Computer-Storage Devices industry’s decline of 3%.
Image Source: Zacks Investment Research
Regarding the price/book ratio, NTAP is trading at 29.18, higher than the industry’s multiple of 12.81.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NTAP’s earnings for fiscal 2027 has been revised upward over the past 60 days.
Image Source: Zacks Investment Research
NTAP currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways Rivian's Q3 deliveries surged 45.8% y/y to 19,248 vehicles, driven by rising demand for the R2 SUV.The consensus mark for RIVN's Q3 loss per share and revenues is 65 cents and $2 billion, respectively.Rivian's R2 ramp pressures margins, but autonomy and growing software opportunities bolster its outlook. Rivian Automotive (RIVN - Free Report) is slated to release third-quarter 2026 results on Thursday, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s loss per share and revenues is pegged at 65 cents and $2 billion, respectively.
The loss estimate for the to-be-reported quarter has been narrowed by 2 cents over the past 30 days. The bottom line suggests a year-over-year improvement of 4.3%. The Zacks Consensus Estimate for quarterly revenues suggests 30% growth from the year-ago quarter’s figure.
Image Source: Zacks Investment Research
For full-year 2026, the Zacks Consensus Estimate for Rivian’s revenues is pegged at $7.4 billion, suggesting an increase of roughly 37% year over year. The consensus mark for full-year loss per share is $2.28, narrower than $2.45 incurred in 2025. The consensus mark for 2027 loss per share points to a 20% narrower loss from the projected 2026 levels.
Notably, Rivian surpassed earnings estimates in each of the last four quarters, with the average earnings surprise being 15.14%.
Earnings Whispers for Q3Our proven model doesn’t conclusively predict an earnings beat for the company 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. That’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Rivian has an Earnings ESP of -1.54% and a Zacks Rank #2.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors at PlayRivian built 19,751 vehicles at its Illinois plant and delivered 19,248, topping Wall Street's average estimate of 18,000, per CNBC. Deliveries rose 45.8% from the year-ago quarter and 58% sequentially.The driver was R2, a smaller and cheaper SUV that began reaching customers in June. Until then, Rivian sold only premium vehicles, the R1S SUV and R1T pickup. A lower-priced model matters more now that federal EV tax credits have ended, tariffs are biting and industry demand is soft.
Rivian’s closest peer, Lucid Group (LCID - Free Report) , delivered 3,806 vehicles, which fell short of analyst estimates and were down 6.6% on a yearly basis and 3.7% sequentially. Meanwhile, EV giant Tesla (TSLA - Free Report) delivered 486,532 vehicles in the third quarter of 2026, up 1.3% sequentially but down 2.1% on a year-over-year basis.
Coming back to Rivian, its strong deliveries are likely to have boosted revenues. The Zacks Consensus Estimate for RIVN’s third-quarter revenues is pegged at $1.37 billion, implying an uptick of around 20% both on a sequential and yearly basis.
Growing software and services revenues will also drive overall results. The consensus mark for RIVN’s revenues from software and services is pegged at $629 million, up from $515 million and $416 million generated in the second quarter of 2026 and the third quarter of 2025, respectively.
That said, management expects the R2 ramp to negatively affect automotive gross profit again in the to-be-reported quarter before scale benefits emerge in the fourth quarter of 2026. Additionally, autonomy investment is also increasing, with GPU-related R&D spending expected to have stepped up during the third quarter of 2026.
The Zacks Consensus Estimate for Rivian’s automotive gross margins is negative $183 million, worsening from negative $36 million in the second quarter of 2026 as well as $130 million in the third quarter of 2025.
Tesla Price Performance & ValuationYear to date, shares of Rivian have plunged 42%, underperforming the industry and Tesla but outperforming Lucid. Shares of Tesla and Lucid declined 13% and 68%, respectively, in the same timeframe.
YTD Price Performance Comparison Image Source: Zacks Investment Research
Rivian is trading at a forward sales multiple of 1.54X, lower than the industry’s 3.3X as well as the stock’s own 5-year median of 2.63X.
Image Source: Zacks Investment Research
How to Play RIVN Stock NowRivian’s R2 is its most important growth catalyst. Deliveries began in June 2026, with lower-priced trims expected in early 2027. If demand holds as production scales, the R2 should broaden the customer base and improve utilization at the Normal plant, supporting profitability.
Rivian reaffirmed its 2026 target of 65,000 to 70,000 deliveries, up from 42,247 last year. After 41,807 in the first nine months, it needs at least 23,193 in the fourth quarter to hit the low end, about 20% above the third quarter’s record. That is demanding, but plausible if R2 output keeps rising.
Software is a second avenue. Autonomy+ take rates are trending positively, and Rivian expects to add point-to-point navigation by year-end, eyes-off functionality in 2027, and ultimately Level 4 capability. Rivian’s in-house RAP1 chip remains on track, and Uber has agreed to take up to 50,000 R2 robotaxis, committing up to $1.25 billion through 2031, contingent on milestones. Together, these could add recurring, higher-margin revenues.
Financial backing adds further support. Early this month, Volkswagen provided a $1 billion loan at a fixed 6.03% for ten years, with nothing owed until October 2028. The German auto giant has now put in roughly $5.3 billion of its $5.8 billion commitment, with the remaining $460 million arriving as equity by January 2028.
Rivian is still burning cash and dealing with margin pressure, but management expects scale benefits to emerge in the fourth quarter. With a strengthening product lineup, growing software opportunities and strong partner funding, the fundamentals favor long-term prospects. Regardless of a third-quarter beat or miss, RIVN looks like a long-term buy.
Ripple has struck a deal with Robinhood to expand the reach of its digital dollar, RLUSD, strengthening trading and financing links between their institutional businesses and improving Robinhood's internal money management.
The partnership involves using RLUSD to settle institutional trades, automate Robinhood's treasury operations and expand access to digital asset trading and financing through Ripple Prime and Bitstamp, the global crypto exchange acquired by Robinhood last year.
It also helps meet Robinhood's ambition of becoming a global financial super-app, centralizing its customers' financial lives while expanding the underlying infrastructure that can serve both retail and institutional clients.
"Utility is what moves stablecoins forward. Working with Ripple, Bitstamp and Robinhood will have access to RLUSD for institutional settlement, Ripple Treasury for our operations and Ripple Prime for financing," Robinhood Crypto general manager Johann Kerbrat said in a statement shared with CNBC. "That is what a connected, global financial system looks like."
WorkhorseStablecoins have long been a workhorse of the crypto world, giving traders a way to move money among exchanges, buy and sell crypto assets, and park funds between trades without having to convert back into traditional currency. But as the crypto industry evolves beyond trading and markets move toward 24/7 liquidity, stablecoins are becoming essential financial infrastructure because of their ability to enable near-instant settlement and move dollar-denominated value at any time, regardless of traditional banking hours.
As firms look to do more with stablecoins beyond simply listing them on exchanges, stablecoin issuers are betting they'll favor a one-stop-shop approach that bundles the technology and services needed to move money, settle trades and manage cash.
"Stablecoins have evolved from a crypto trading tool into a critical piece of financial infrastructure," Ripple President Monica Long told CNBC. "The clearest evidence of this is where they're now being embedded — from corporate payments to capital markets. Our partnership with Robinhood reflects that evolution."
"This is about much more than trading," she added. "It's about fundamentally changing how money moves and is managed – giving institutions the ability to operate 24/7/365, unlocking liquidity and putting capital to work more efficiently."
Circle Internet Group, a Ripple competitor, is positioning itself for a similar future, where winning platforms, in addition to issuing stablecoins, also provide the infrastructure to put them to work. Earlier this year, for example, it launched the Circle Payments Network, connecting financial institutions and payment providers using its flagship USDC stablecoin and other digital assets for cross-border payments.
The network is Circle's answer to the eight-year-old Ripple Payments business, a service that helps businesses move money across borders, using any of several assets moving through that system, including USDC, Ripple-created XRP and, as of its debut in December 2024, RLUSD.
RLUSD's market cap has grown to more than $2.5 billion. Tether's USDT and Circle's USDC still dominate the total stablecoin market, which now exceeds $300 billion.
RLUSD will also be listed on Robinhood's trading platform, and is currently available to traders on Bitstamp as well as Robinhood Chain, the company's home-grown blockchain for tokenized stocks and other assets.
Robinhood, which reports third-quarter results for the three months ended in September after the market closes, rose about 2.5% in early trading Tuesday, snapping a three-day decline.
SAN FRANCISCO--(BUSINESS WIRE)--Ripple, the leading provider of blockchain solutions across traditional and digital finance, and Robinhood, a global leader in financial services, today announced a strategic partnership that provides one of the industry's largest consumer and institutional trading platforms with a single, trusted entry point to Ripple's infrastructure across stablecoins, institutional markets and treasury management. Ripple USD (RLUSD) will be a key stablecoin across Robinhood's.
PBF Energy (PBF - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, PBF broke out above the 50-day moving average, suggesting a short-term bullish trend.
The 50-day simple moving average is one of three major moving averages used by traders and analysts to determine support or resistance levels for a wide range of securities. But the 50-day is considered to be more important because it's the first marker of an up or down trend.
Over the past four weeks, PBF has gained 8.3%. The company is currently ranked a Zacks Rank #1 (Strong Buy), another strong indication the stock could move even higher.
The bullish case solidifies once investors consider PBF's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 5 higher, while the consensus estimate has increased too.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on PBF for more gains in the near future.
Key Takeaways PBF's Martinez refinery returned to full operations in May 2026 after repairs from the February 2025 fire.PBF received $250 million in Q2 insurance proceeds, bringing Martinez-related recoveries to $1.25 billion.PBF's Q2'26 operating cash flow reached $1.6B, fueled by strong refining margins & favorable working capital. The return of PBF Energy's (PBF - Free Report) Martinez refinery to full operations marks an important development for the company's cash flow prospects amid favorable refining market conditions. The California facility resumed full production in May 2026 following repairs related to the February 2025 fire, restoring its ability to supply a complete range of refined petroleum products.
As one of North America's largest independent refiners, PBF operates several facilities across the United States, including California, where limited refining capacity has increased dependence on imported gasoline. With tight regional fuel supplies supporting refining margins, Martinez's return strengthens PBF's ability to capitalize on demand for domestically produced fuels.
The restart reduces the financial burden associated with restoring the damaged facility, as most rebuilding expenditures are now behind the company. PBF received $250 million in insurance proceeds during the second quarter, bringing total recoveries related to the Martinez incident to $1.25 billion, net of deductibles and retentions. Management expects additional insurance payments as it works toward finalizing the claim in the second half of 2026, providing another potential source of cash inflows.
The improved operating position comes as PBF generated $1.6 billion in operating cash flow during the second quarter, supported by strong refining margins and favorable working capital. Although the Martinez hydrocracker turnaround, scheduled to conclude in October, remains a near-term operational consideration, the refinery's return to full production and lower rebuilding expenses are expected to support cash flow. Combined with favorable West Coast refining conditions, these developments position PBF to strengthen its cash generation in the coming days.
Refinery Upgrades to Boost MPC & VLO's Growth ProspectsApart from PBF, other major refiners, including Marathon Petroleum Corporation (MPC - Free Report) and Valero Energy Corporation (VLO - Free Report) , are investing in refinery upgrades to strengthen production capabilities and earnings prospects.
Marathon Petroleum brought yield-enhancing projects at its El Paso and Robinson refineries online during the second quarter of 2026, improving its ability to produce higher-value petroleum products. These developments support MPC's efforts to improve refining profitability and cash generation.
Meanwhile, Valero has strengthened its refining capabilities by completing the $230 million fluid catalytic cracking (FCC) unit optimization project at its St. Charles refinery in Louisiana during the third quarter of 2026, on schedule and within budget. The project is now operational and has increased the production of higher-value products, including alkylate and gasoline, positioning VLO to capitalize on favorable refining margins and enhance long-term profitability.
Together, these refinery improvements highlight MPC and VLO's shared focus on operational efficiency and enhanced earnings and cash flow generation through higher-value fuel production.
PBF’s Price Performance, Valuation & EstimatesPBF shares have gained 140.8% over the past year compared with the industry’s 128.7% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, PBF trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 5.42X. This is below the broader industry average of 6.38X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PBF's third-quarter and fourth-quarter 2026 earnings has remained constant over the past seven days. Meanwhile, estimates for full-year 2026 earnings have seen upward revisions.
Image Source: Zacks Investment Research
PBF currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Investing in the financial world often means choosing between different types of market infrastructure. CME Group (CME -3.25%) and Mastercard (MA -0.53%) both provide essential platforms, but they operate in distinct corners of the global economy.
CME Group facilitates the trading of risk through its massive derivatives marketplace, while Mastercard powers the flow of consumer and commercial payments. Investors often compare these two because they both benefit from high barriers to entry and strong profitability. Choosing between them requires weighing the stability of exchanges against the rapid growth of digital transactions.
The case for CMECME Group operates the world's leading marketplace for derivatives, offering futures and options through its CME, CBOT, NYMEX, and COMEX exchanges. Its customer base includes professional traders, financial institutions, and governments that use these tools to manage risk in agricultural, energy, and interest rate markets. Note that one clearing firm accounted for nearly 12% of its clearing and transaction fees, adding a layer of concentration risk.
In FY 2025, revenue reached nearly $6.5 billion, representing growth of approximately 6.4% over the previous year. Net income for the period was roughly $4.0 billion, resulting in a net margin of 62%. This reflects a steady expansion in profitability from the 57.8% net margin recorded in FY 2023 and the 57.5% reported in its FY 2024 financial statements.
As of its December 2025 balance sheet, the debt-to-equity ratio is approximately 0.1x. This ratio measures total debt relative to shareholders' equity, with lower ratios indicating a lighter debt load relative to owners' investment in the business. The company also reported a current ratio of 1.0x, indicating its short-term assets equal its immediate liabilities, and it generated roughly $4.2 billion in free cash flow.
The case for MastercardMastercard connects financial institutions, merchants, and governments through its global payments network, placing it at the heart of the fintech stocks landscape. The company relies on five large customers for a significant portion of its revenue, and it manages relationships for billions of transactions in over 210 countries. Recently, it expanded its capabilities by acquiring BVNK to support stablecoin payments and Recorded Future for specialized threat intelligence services.
During FY 2025, Mastercard reported revenue of nearly $32.8 billion, a 16.4% increase from the previous fiscal year. Net income climbed to approximately $15.0 billion, yielding a net margin of 45.6%. This performance shows consistent high-level execution, as the net margin has remained relatively stable since the 45.7% mark achieved during FY 2024.
As of the December 2025 balance sheet, the company carries a debt-to-equity ratio of approximately 2.5x. This metric indicates that its total debt is two and a half times its shareholders' equity, a level it supports with strong recurring revenue. Mastercard also reported a current ratio of 1.0x, meaning its short-term assets match its short-term liabilities, while generating a robust $16.4 billion in free cash flow.
Risk profile comparisonCME Group faces significant competitive risks from global derivatives exchanges such as Intercontinental Exchange (ICE -1.11%) and Nasdaq (NDAQ -0.05%). Regulatory and compliance risks are extensive, especially regarding potential legislative changes to market structure or financial transaction taxes. Information security and operational resilience are also critical, as evidenced by a 2025 data center cooling failure that disrupted trading operations.
Mastercard contends with intense worldwide competition from other global payment networks like Visa (V -0.73%) and American Express (AXP -0.20%). The company is subject to significant legal scrutiny over interchange rates and antitrust compliance, which could result in fines or business restrictions. Additionally, it faces risks from global economic volatility and from governments favoring their own nationalized payment providers.
Valuation comparisonCME carries a lower Forward P/E, but both companies trade at an identical P/S ratio based on sales over the past twelve months.
MetricCMEMastercardForward P/E24.7x31.7xP/S ratio15.8x15.8xValuation metrics include those sourced from Financial Modeling Prep (FMP) and may differ from those of other data providers.
When comparing CME and Mastercard, investors should consider a few key factors. Let's have a look at them and see what that tells us about each stock.
To start, there's growth. In this case, the matchup reveals a battle between consistency and volatility. Mastercard has delivered quite consistent, average year-over-year revenue growth of 14.3% since 2024. CME, on the other hand, has averaged 9.5% revenue growth. However, its growth has been extremely volatile, ranging from a high of 19.2% to a low of -3%.
Another factor to consider is each company's profitability. Both have delivered exceptional profits, although CME has an advantage in this category. CME has averaged a 64.2% operating margin since 2024, a figure that has steadily increased. Mastercard, meanwhile, has averaged 58.4%. It too has consistently improved its profitability.
Last, there's valuation. Since both companies have delivered consistent profits, let's use price-to-earnings (P/E) to compare them. Mastercard has a P/E multiple of 33.8x, while CME's is 25.3x. That gives an edge to CME.
In summary, these two financial stocks have delivered solid revenue growth and profitability. However, in a head-to-head matchup, many investors may favor CME given its lower valuation and greater profitability. Yet, Mastercard shouldn't be overlooked. Its impressive growth and margins make it a stock that investors should still consider.
Wall Street analysts forecast that IntercontinentalExchange (ICE - Free Report) will report quarterly earnings of $1.97 per share in its upcoming release, pointing to a year-over-year increase of 15.2%. It is anticipated that revenues will amount to $2.73 billion, exhibiting an increase of 13.2% compared to the year-ago quarter.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 0.9% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
Bearing this in mind, let's now explore the average estimates of specific ICE metrics that are commonly monitored and projected by Wall Street analysts.
The average prediction of analysts places 'Revenues- Exchanges Segment (less transaction-based)' at $1.52 billion. The estimate points to a change of +20.4% from the year-ago quarter.
The consensus estimate for 'Revenues- Mortgage Technology Segment' stands at $550.76 million. The estimate indicates a year-over-year change of +4.3%.
The collective assessment of analysts points to an estimated 'Revenues- Exchanges Segment- Energy futures and options' of $593.85 million. The estimate suggests a change of +23.2% year over year.
The consensus among analysts is that 'Revenues- Exchanges Segment- Ags and Metals' will reach $83.04 million. The estimate indicates a change of +62.8% from the prior-year quarter.
The combined assessment of analysts suggests that 'Revenues- Exchanges Segment- Financials' will likely reach $188.46 million. The estimate suggests a change of +35.6% year over year.
Analysts predict that the 'Revenues- Exchanges Segment- Cash equities and equity options' will reach $129.20 million. The estimate suggests a change of +23% year over year.
According to the collective judgment of analysts, 'Revenues- Exchanges Segment- OTC and other' should come in at $108.67 million. The estimate points to a change of +9.8% from the year-ago quarter.
It is projected by analysts that the 'Revenues- Exchanges Segment- Data and connectivity services' will reach $289.67 million. The estimate points to a change of +9.7% from the year-ago quarter.
Analysts expect 'Revenues- Exchanges Segment- Listings' to come in at $130.19 million. The estimate indicates a year-over-year change of +4.2%.
Analysts forecast 'Revenues- Fixed Income and Data Services Segment- Fixed income execution' to reach $32.60 million. The estimate indicates a year-over-year change of -1.2%.
Analysts' assessment points toward 'Revenues- Fixed Income and Data Services Segment- CDS clearing' reaching $96.37 million. The estimate indicates a change of +7.1% from the prior-year quarter.
Based on the collective assessment of analysts, 'Revenues- Fixed Income and Data Services Segment- Fixed income data and analytics' should arrive at $332.39 million. The estimate suggests a change of +6.9% year over year.
View all Key Company Metrics for ICE here>>>
Over the past month, ICE shares have recorded returns of +4.7% versus the Zacks S&P 500 composite's -0.8% change. Based on its Zacks Rank #2 (Buy), ICE will likely outperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Zscaler (ZS - 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 cloud-based information security provider have returned +30.6% over the past month versus the Zacks S&P 500 composite's -0.8% change. The Zacks Security industry, to which Zscaler belongs, has gained 6.5% 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.
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.
For the current quarter, Zscaler is expected to post earnings of $1.16 per share, indicating a change of +20.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.8% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $4.91 points to a change of +16.6% from the prior year. Over the last 30 days, this estimate has changed -1%.
For the next fiscal year, the consensus earnings estimate of $5.56 indicates a change of +13.3% from what Zscaler is expected to report a year ago. Over the past month, the estimate has changed +0.4%.
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 Zscaler.
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.
For Zscaler, the consensus sales estimate for the current quarter of $937.56 million indicates a year-over-year change of +19%. For the current and next fiscal years, $3.93 billion and $4.55 billion estimates indicate +17.2% and +15.9% changes, respectively.
Last Reported Results and Surprise HistoryZscaler reported revenues of $898.18 million in the last reported quarter, representing a year-over-year change of +24.9%. EPS of $1.19 for the same period compares with $0.89 a year ago.
Compared to the Zacks Consensus Estimate of $877.14 million, the reported revenues represent a surprise of +2.4%. The EPS surprise was +9.17%.
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.
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.
Zscaler 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.
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 Zscaler. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
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.
It also includes access to 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 ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most 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 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 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 A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.82% 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 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.
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: Cenovus Energy (CVE - Free Report) Cenovus Energy Inc. is a Calgary, Canada-based integrated energy company. The company produces crude oil, natural gas and natural gas liquids, and markets its production across North America and international markets. Its upstream operations are mainly in Canada and the Asia Pacific region. Its downstream operations include upgrading and refining assets in Canada and the United States.
CVE is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. CVE has a Growth Style Score of A, forecasting year-over-year earnings growth of 167.5% for the current fiscal year.
For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.70 to $4.12 per share. CVE boasts an average earnings surprise of +16.9%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, CVE should be on investors' short list.
Louisiana-Pacific (LPX - Free Report) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended September 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 November 3. 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 home construction supplier is expected to post quarterly earnings of $0.26 per share in its upcoming report, which represents a year-over-year change of -27.8%.
Revenues are expected to be $674.25 million, up 1.7% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 51.11% 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. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
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 Louisiana-Pacific?For Louisiana-Pacific, 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 +20.78%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Louisiana-Pacific 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 Louisiana-Pacific would post earnings of $0.58 per share when it actually produced earnings of $0.40, delivering a surprise of -31.03%.
Over the last four quarters, the company has beaten consensus EPS estimates two 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.
Louisiana-Pacific 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.
Expected Results of an Industry PlayerAmong the stocks in the Zacks Building Products - Wood industry, Weyerhaeuser (WY - Free Report) , is soon expected to post earnings of $0.05 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of -16.7%. This quarter's revenue is expected to be $1.83 billion, up 6.3% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Weyerhaeuser has been revised 257.1% down to the current level. Nevertheless, the company now has an Earnings ESP of -34.78%, reflecting a lower Most Accurate Estimate.
When combined with a Zacks Rank of #4 (Sell), this Earnings ESP makes it difficult to conclusively predict that Weyerhaeuser will 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.
Rocket Lab (RKLB +6.97%) stock has been declining sharply in recent months. Around the time Space Exploration Technologies Corp went public, there has been less excitement (and money) to go around for space stocks, and Rocket Lab appears to have felt that, significantly. In late May, just before the SpaceX IPO, it hit a high of $151. On Monday, it closed at just under $54 -- a decline of 64% from that peak.
At $34 billion in market cap, it's nowhere near as big as SpaceX, which is worth around $2 trillion today. But it still has tremendous growth potential in space, and it's been posting some incredible numbers. Could this struggling rocket stock be a bargain buy right now?
Image source: Getty Images.
Rocket Lab has been growing fast, and the best is still to comeRocket Lab makes money not only from launching rockets but also from building satellites and spacecraft. It's a business that can benefit from the overall growth of the space economy. When it last reported earnings in August, it posted record numbers yet again, as revenue of $234 million was up an impressive 62% year over year.
It wasn't all that long ago that the business wasn't even generating that much annually. Back in 2022, its top line totaled $211 million. Meanwhile, over the trailing 12 months, it has generated $769 million in total revenue.
And yet, there are still tremendous opportunities ahead as the company's Electron rocket can carry payloads up to 300 kg, but its larger Neutron rocket is sure to unlock even more potential -- it can carry up to 13,000 kg. And that rises to 15,000 kg for expendable missions. Neutron's initial launch has been delayed until next year, and that has soured investors who were hoping to see it this year. But it's still a huge potential catalyst for the business down the road.
RKLB Rocket Lab$57.57+$3.75 (+6.97%)
NASDAQ · As of 11:22 AM ET 10/27/26
The stock comes with risk, but it may prove to be a steal of a deal in the long runRocket Lab has been growing fast, and its opportunities are promising, but investors shouldn't overlook the risk, either. The business remains unprofitable, and spending is likely to be high, given the nature of its operations.
For investors who are, however, comfortable with taking on some risk and volatility, the stock may be worth buying right now, while the market looks to be looking past Rocket Lab. When Neutron finally launches, that could once again spark excitement in the stock and send it soaring.
Key Takeaways RKLB expands its space business through satellite launches, spacecraft manufacturing and Neutron development.FLY develops launch vehicles, lunar landers and orbital vehicles for commercial and defense missions.FLY strengthens its defense operations as SciTec secures a $1.5 million U.S. Air Force contract expansion. Rocket Lab Corporation (RKLB - Free Report) and Firefly Aerospace Inc. (FLY - Free Report) are expanding their presence in the commercial space and defense markets, although their businesses differ in scope. Rocket Lab provides launch services, spacecraft components and satellite systems, while Firefly Aerospace develops launch vehicles, lunar landers and orbital vehicles, with its SciTec subsidiary adding defense software and data-processing capabilities.
Increasing investment in space infrastructure and national security programs is creating opportunities for companies offering launch and mission-support capabilities. Rocket Lab is expanding its launch operations to serve satellite deployment requirements, while Firefly Aerospace is developing its space transportation business and strengthening its defense technology operations. Both companies are seeking to capitalize on demand for commercial space services and government-funded missions.
Let’s compare the stocks’ fundamentals to determine which one is the better investment option at present.
The Case for RKLB StockRocket Lab has a diversified business that includes launch services, spacecraft manufacturing, satellite components and space systems. Its Electron rocket serves customers requiring dedicated small-satellite launches, while its spacecraft technologies support a range of commercial and government missions. The company is also developing its Neutron rocket to broaden its launch offerings and serve additional mission requirements.
On Oct. 23, 2026, Rocket Lab completed its 98th Electron launch, carrying three satellites for HawkEye 360 into low Earth orbit. The mission was the company's 19th Electron launch of 2026 and its third dedicated launch for HawkEye 360. The satellites are designed to collect and analyze radio-frequency signals, supporting applications such as maritime monitoring, navigation interference detection and communications analysis. The successful flight demonstrates Rocket Lab's continued launch activity and its ability to help customers deploy satellites for specialized monitoring applications.
The Case for FLY StockFirefly Aerospace develops launch vehicles, lunar landers and orbital vehicles for commercial, scientific and national security missions. These capabilities allow the company to participate in satellite launches, lunar exploration and other space transportation activities. Its SciTec subsidiary adds a defense technology business focused on software and data processing for government customers.
In October 2026, Firefly Aerospace announced that SciTec expanded its U.S. Air Force contract to incorporate additional counter unmanned aerial system sensor feeds into the Advanced Battle Management System. The $1.5 million addition increased the contract's total value to $31 million. The project involves expanding a cloud-based system that combines data from different sensors to support military situational awareness and operational decisions. The contract extension illustrates SciTec's ability to expand existing defense programs, while Firefly Aerospace continues to develop its launch and lunar exploration businesses.
How Does the Zacks Consensus Estimate Compare for RKLB & FLY?The Zacks Consensus Estimate for Rocket Lab’s 2026 sales is pegged at $952.35 million, which indicates a rise of 58.25% from the year-ago number.
Image Source: Zacks Investment Research
The consensus estimate for Firefly Aerospace’s 2026 sales is pegged at $436.60 million, which calls for year-over-year growth of 173.12%.
Image Source: Zacks Investment Research
Debt Position of RKLB & FLYDebt position is an important financial indicator that reflects a company’s financial stability and ability to manage debt obligations efficiently. Currently, Rocket Lab's debt-to-capital is 0.83%, while Firefly Aerospace’s stands at 2.36%.
Image Source: Zacks Investment Research
RKLB & FLY: Stock Price PerformanceOver the past three months, shares of RKLB and FLY have fallen 15.7% and 5.5%, respectively.
Image Source: Zacks Investment Research
Valuation of RKLB & FLYRKLB shares are trading at a forward 12-month Price/Sales (P/S F12M) multiple of 25.96 compared with FLY’s P/S F12M of 4.72.
Image Source: Zacks Investment Research
Summing UpBoth companies operate across the expanding commercial space and defense industries. Rocket Lab focuses on launch services, spacecraft manufacturing and integrated space systems, while Firefly Aerospace develops launch vehicles, lunar landers and defense technology solutions through its SciTec subsidiary.
Our choice at the moment is Firefly Aerospace, supported by its stronger projected sales growth, better stock price performance and more attractive valuation than Rocket Lab.
Firefly Aerospace currently carries a Zacks Rank #2 (Buy), while Rocket Lab carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.
Hunting for 'earnings whispers' or companies poised to beat their quarterly earnings estimates is a somewhat common practice. But that doesn't make it easy. One way that has been proven to work is by using the Zacks Earnings ESP tool.
The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information.
With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure. The system also utilizes our core Zacks Rank to provide a stronger system for identifying stocks that might beat their next quarterly earnings estimate and possibly see the stock price climb.
Bringing together a positive earnings ESP alongside a Zacks Rank #3 (Hold) or better has helped stocks report a positive earnings surprise 70% of the time. Furthermore, by using these parameters, investors have seen 28.3% annual returns on average, according to our 10 year backtest.
Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.
Should You Consider Marriott International?The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Marriott International (MAR - Free Report) holds a #2 (Buy) at the moment and its Most Accurate Estimate comes in at $2.91 a share six days away from its upcoming earnings release on November 2, 2026.
Marriott International's Earnings ESP sits at +1.56%, which, as explained above, is calculated by taking the percentage difference between the $2.91 Most Accurate Estimate and the Zacks Consensus Estimate of $2.87. MAR is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
MAR is one of just a large database of Consumer Discretionary stocks with positive ESPs. Another solid-looking stock is Crocs (CROX - Free Report) .
Slated to report earnings on October 29, 2026, Crocs holds a #2 (Buy) ranking on the Zacks Rank, and its Most Accurate Estimate is $3.33 a share two days from its next quarterly update.
The Zacks Consensus Estimate for Crocs is $3.31, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +0.60%.
MAR and CROX's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
Wall Street analysts expect Crocs (CROX - Free Report) to post quarterly earnings of $3.31 per share in its upcoming report, which indicates a year-over-year increase of 13.4%. Revenues are expected to be $1 billion, up 0.9% from the year-ago quarter.
The consensus EPS estimate for the quarter has undergone an upward revision of 0.3% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
With that in mind, let's delve into the average projections of some Crocs metrics that are commonly tracked and projected by analysts on Wall Street.
The average prediction of analysts places 'Revenues- Crocs Brand' at $847.95 million. The estimate points to a change of +1.4% from the year-ago quarter.
Analysts expect 'Revenues- HEYDUDE Brand' to come in at $158.48 million. The estimate points to a change of -1% from the year-ago quarter.
The consensus among analysts is that 'Revenues By Channel- HEYDUDE Brand- Wholesale' will reach $64.27 million. The estimate indicates a year-over-year change of -7.4%.
The consensus estimate for 'Revenues By Channel- Crocs Brand- Direct-to-Consumer' stands at $477.47 million. The estimate indicates a change of +1.2% from the prior-year quarter.
It is projected by analysts that the 'Revenues By Channel- HEYDUDE Brand- Direct-to-Consumer' will reach $94.20 million. The estimate indicates a change of +3.9% from the prior-year quarter.
The combined assessment of analysts suggests that 'Revenues By Channel- Crocs Brand- Wholesale' will likely reach $372.65 million. The estimate suggests a change of +2.3% year over year.
Analysts forecast 'Geographic Revenues- North America' to reach $433.00 million. The estimate indicates a change of -3.3% from the prior-year quarter.
Analysts' assessment points toward 'Geographic Revenues- International' reaching $416.63 million. The estimate indicates a year-over-year change of +7.2%.
The collective assessment of analysts points to an estimated 'Non-GAAP Gross Margin- HEYDUDE Brand' of 44.4%. The estimate is in contrast to the year-ago figure of 42.3%.
Analysts predict that the 'Non-GAAP Gross Margin- Crocs Brand' will reach 63.1%. Compared to the current estimate, the company reported 61.8% in the same quarter of the previous year.
View all Key Company Metrics for Crocs here>>>
Shares of Crocs have experienced a change of -2.9% in the past month compared to the -0.8% move of the Zacks S&P 500 composite. With a Zacks Rank #2 (Buy), CROX is expected to outperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Did you buy DKS common stock between September 8, 2025 and August 24, 2026?
Affected DKS Investor Summary
Who: DICK’S Sporting Goods, Inc. (NYSE: DKS)What: Securities fraud class action lawsuit filedClass Period: September 8, 2025 through August 24, 2026Deadline to Seek Lead Plaintiff Status: November 3, 2026Key Lawsuit Allegations: Material misstatements and/or omissions concerning the company’s inventory and promotional activity.Investor Action: Contact Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) for recovery options RADNOR, Pa., Oct. 27, 2026 (GLOBE NEWSWIRE) -- Kessler Topaz Meltzer & Check, LLP (www.ktmc.com), a nationally recognized securities litigation law firm, informs investors that a securities fraud class action lawsuit has been filed against DICK’S Sporting Goods, Inc. (DICK’S) (NYSE: DKS) on behalf of those who purchased or acquired DICK’S common stock between September 8, 2025 and August 24, 2026, inclusive. The lawsuit is filed in the United States District Court for the Western District of Pennsylvania and is captioned Plumbers & Pipefitters Local Union #295 Pension Fund v. DICK’S Sporting Goods, Inc., No. 2:26-cv-01860 (W.D. Pa.). Investors have until November 3, 2026, to file for lead plaintiff status.
CONTACT KTMC TO DISCUSS YOUR LEGAL RIGHTS:
If you purchased or acquired DICK’S common stock and have lost money on your investment, please provide your information here:
To view the DICK’S video on YouTube, click here: https://youtu.be/vUSgjaDeZnk?si=Od8jYw_oqSJFg4SM
You can also contact attorney Jonathan Naji, Esq. by calling (484) 270-1453 or by email at [email protected]. There is no cost or obligation to speak with an attorney.
DICK’S SPORTING GOODS, INC. CLASS ACTION LAWSUIT - COMPLAINT ALLEGATION SUMMARY:
The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material facts about the company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) DICK’S cleanup efforts concerning Foot Locker’s inventory were not complete, and, in fact, Foot Locker remained saddled with unproductive and stagnant legacy footwear; (2) Foot Locker heavily relied on legacy footwear products that were particularly vulnerable to intensifying promotional pressures across the athletic footwear industry; (3) in turn, DICK’S was significantly exposed to an industry-wide environment of excess inventory and resulting promotional activity; (4) accordingly, DICK’S was unable to achieve the sales growth, margins, and profits it touted to investors; and (5) as a result, Defendants’ statements about the company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Why did DICK’S Stock Drop?
On August 25, 2026, before the markets opened, DICK’S announced disappointing second quarter 2026 financial results, including adjusted earnings per share and revenue from Foot Locker that fell well short of analyst estimates. DICK’S also reduced its full year 2026 consolidated net sales guidance. DICK’S attributed the poor results, in part, to the athletic footwear marketplace having become “increasingly promotional” and “inventory levels [] building up across parts of the industry, leading to a much more promotional environment” which negatively impacted Foot Locker’s business. On this news, the price of DICK’S common stock declined $55.02 per share, or approximately 30.7%, from a close of $179.33 per share on August 24, 2026, to close at $124.31 per share on August 25, 2026.
WHAT DICK’S SPORTING GOODS, INC. INVESTORS CAN DO NOW:
File to be lead plaintiff by November 3, 2026.Contact KTMC for a free case evaluation. All representation is on a contingency fee basis, there is no cost to you.Retain counsel of choice or take no action.
THE LEAD PLAINTIFF PROCESS FOR DICK’S SPORTING GOODS, INC. INVESTORS:
DICK’S investors may, no later than November 3, 2026, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check, LLP encourages DICK’S investors to contact the firm for more information.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP (KTMC):
Kessler Topaz Meltzer & Check, LLP (KTMC) is a leading U.S. plaintiff-side law firm focused on securities-fraud class actions and global investor protection. The firm represents individual investors as well as institutions, such as major pension funds, asset managers, and international investors. KTMC has led some of the largest recoveries in securities litigation and has been recognized by peers and the legal media with numerous accolades, including being recognized in Chambers & Partners USA 2026 as a Band 1 Top Firm in Securities and Class Actions, Legal 500’s Tier 1 Rankings for Securities and M&A Litigation, The National Law Journal’s Plaintiff’s Hot List and Trailblazers in Plaintiffs' Law, BTI Consulting Group’s Honor Roll of Most Feared Law Firms, The Legal Intelligencer’s Class Action Firm of the Year, Lawdragon’s Leading Plaintiff Financial Lawyers, and Law360’s Titans of the Plaintiffs Bar. The firm operates globally with offices in Pennsylvania and California. KTMC has recovered over $25 billion for our clients and the classes they represent. The complaint in this matter was not filed by KTMC.
CONTACT:
Jonathan Naji, Esq.
(484) 270-1453
280 King of Prussia Road
Radnor, PA 19087 [email protected]
May be considered attorney advertising in certain jurisdictions. Past results do not guarantee future outcomes.
NEW YORK, Oct. 27, 2026 (GLOBE NEWSWIRE) -- SueWallSt notifies investors in DICK'S Sporting Goods, Inc. (NYSE: DKS) that a class action has been filed on behalf of shareholders who purchased securities between September 8, 2025 and August 24, 2026. Find out if you may be eligible to recover losses. You may also contact Joseph E. Levi, Esq. at [email protected] or (888) SueWallSt.
DKS closed at $124.31 per share on August 25, 2026, a one-day decline of $55.02 per share, or roughly 30%. Full-year consolidated net sales guidance was reduced to $21.9 billion to $22.2 billion from $22.1 billion to $22.4 billion. The lead plaintiff deadline is November 3, 2026.
The Promise
The Company closed its $2.5 billion acquisition of Foot Locker on September 8, 2025 and told the market it was positioned to become a global leader in sports retail. Management projected Foot Locker proforma comparable sales growth of 1.5% to 3% for 2026, with accompanying margin expansion. On a May 27, 2026 earnings call, management said of the promotional environment that there was "nothing on the horizon that we're particularly concerned about."
The Reality
Results reported on August 25, 2026 showed Foot Locker revenue of $1.73 billion against analyst estimates of $1.81 billion, and adjusted earnings of $3.53 per share against estimates of $3.76. The Company cut Foot Locker's proforma comparable sales outlook to a range of negative 2.0% to 0.0% and attributed the shortfall to an "increasingly promotional" athletic footwear marketplace and Foot Locker's "greater exposure to legacy footwear silhouettes." The lawsuit contends those conditions and that legacy inventory exposure existed while the earlier projections were being repeated to investors.
Promise vs. Actual: By the Numbers
Foot Locker proforma comparable sales: 1.5% to 3% growth projected; negative 2.0% to 0.0% revisedConsolidated full-year net sales: $22.1 billion to $22.4 billion projected; $21.9 billion to $22.2 billion revisedFoot Locker quarterly revenue: $1.81 billion expected; $1.73 billion reportedAdjusted earnings per share: $3.76 expected; $3.53 reportedDKS share price: $179.33 before the disclosure; $124.31 after, a loss of $55.02 per sharePurchase price paid: $2.5 billion for a business the complaint alleges remained dependent on stagnant legacy footwear What the Lawsuit Alleges About the Gap
"Companies that make specific promises to investors about future performance have an obligation to disclose known risks to those projections. Here, the complaint alleges that guidance for Foot Locker comparable sales moved from growth of 1.5% to 3% to a range of negative 2.0% to 0.0%." -- Joseph E. Levi, Esq.
Submit your information to learn more or call (888) SueWallSt.
WHY SUEWALLST: SueWallSt is powered by Levi & Korsinsky LLP. Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States.
Frequently Asked Questions About the DKS Lawsuit
Q: What specific misstatements does the DKS lawsuit allege? A: The complaint alleges DICK'S Sporting Goods made materially false or misleading statements regarding the Foot Locker acquisition, including assurances that Foot Locker's inventory and promotional challenges had been resolved when the business allegedly remained dependent on stagnant legacy footwear, during the Class Period. When the Company reported second-quarter 2026 results, cut full-year sales guidance, and slashed Foot Locker proforma comparable sales guidance to negative 2.0% to 0.0%, the stock price declined sharply.
Q: When did DICK'S Sporting Goods allegedly mislead investors? A: The Class Period runs from September 8, 2025 to August 24, 2026. The complaint alleges that corrective disclosures revealed information that caused a significant stock decline.
Q: What court was the DKS class action filed in? A: The case was filed in the United States District Court for the Western District of Pennsylvania, governed by the Private Securities Litigation Reform Act of 1995.
Q: What do DKS investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Submit your information for a no-cost, no-obligation evaluation of your potential recovery. No immediate action is required to remain eligible as an absent class member.
Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.
Q: What if I already sold my DKS shares, can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.
Q: What does it cost me to participate? A: There is no upfront cost to submit your information and review whether you may be eligible to recover. Should you choose to participate in the securities class action, they are generally handled on a contingency basis, with any attorneys' fees and expenses subject to court approval.
Q: How long will the lawsuit take to resolve? A: Securities class actions typically take two to four years from initial filing to resolution. Timing depends on the court schedule, case developments, and whether the matter is dismissed, settled, or litigated further.
The drone technology industry is gaining significant traction as unmanned aerial systems (UAS) increasingly find applications across various sectors like mining, infrastructure monitoring, real estate, oil and gas exploration, and even filmmaking. Meanwhile, public safety and disaster response sectors are using drones for surveillance and search-and-rescue missions. The usage of drone swarms is being extensively explored for tasks like large-area surveillance and search-and-rescue.
Drones are gaining momentum in last-mile delivery operations as companies look to cut operational costs and enhance productivity. Retail behemoths like Walmart and Amazon are increasingly deploying drones in logistics. From aerial photography and agricultural mapping to data collection and operations across sectors, drones are transforming how businesses operate.
Technological advancements are also reshaping the landscape. Cutting-edge advancements in autonomous technology and AI-powered navigation are enhancing drone performance and expanding their operational scope. The embedding of AI has made modern drones faster and more versatile than ever. AI incorporation is driving the autonomous navigation functionality of drones, enabling them to autonomously plan their flight paths based on real-time data, such as environmental terrain. The integration of 5G and advanced Wi-Fi technology has improved real-time data transmission, expanding commercial applications.
The drone market is expected to witness a CAGR of 9.5% from 2026 to 2033, according to a report from Grand View Research.
The defense sector remains a major catalyst for drone adoption, supported by simmering geopolitical tensions and the growing importance of UAS in modern warfare. Globally, drones are now being widely deployed for border security, precision strikes, intelligence, surveillance, and reconnaissance (“ISR”) and other tactical operations, making them indispensable assets in modern warfare.
With regulatory frameworks evolving and military and commercial adoption gaining pace, the drone sector has a long runway for growth. Drone tech companies with strong R&D pipelines, diversified end-market exposure, and strategic collaborations are well-positioned to flourish in this evolving landscape.
If you are looking to capitalize on this trend, our Drone Technology Screen makes it easy to identify high-potential stocks, such as Kratos Defense & Security Solutions (KTOS - Free Report) , Elbit Systems (ESLT - Free Report) and RTX Corporation (RTX - Free Report) .
Explore 40 cutting-edge investment themes with Zacks Thematic Investing Screens and uncover your next big opportunity.
3 Drone Tech Stocks to AddKratos Defense is well-positioned to benefit from rising military drone adoption, backed by its portfolio of affordable, high-performance unmanned aerial systems. Kratos’ unmanned systems business involves scaled defense programs and vertical integration. At the heart of this business lies the XQ-58A Valkyrie combat collaborative aircraft (“CCA”), which has secured a key role in the U.S. defense ecosystem.
In October 2026, KTOS and Airbus announced the successful completion of the first flight of the U740-Valkyrie in Europe. The collaboration aims to deliver a combat-ready collaborative combat aircraft by 2029 to meet German and other European defense requirements.
Earlier this year, Northrop Grumman, a KTOS partner, received the $230 million MUX TACAIR CCA program award, which it will split with Kratos. For this program, Northrop will integrate its mission systems with Kratos Valkyrie CCA, validating Valkyrie’s operational relevance. On the last earnings call, KTOS noted that it anticipates an additional Marine Corps Valkyrie order by the end of 2026.
The company is also witnessing international opportunities for its Tactical Firejet and Mighty Hornet platforms, including in Taiwan. Kratos is expanding its Oklahoma manufacturing facility by approximately 50,000 square feet, strengthening production capabilities across Valkyrie and Firejet drones. The company is also expanding its presence in C-UAS, a category expected to ramp significantly over the next few years.
Beyond unmanned systems, Kratos, which sports a Zacks Rank #1 (Strong Buy), is benefiting from increasing investments in propulsion systems, space and satellite systems and hypersonics. Its hypersonics business, which generated approximately $200 million in revenues in 2025, is projected by management to reach $400 million in 2026 and at least $700 million in 2027.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Elbit Systems is an Israel-based company that develops innovative solutions across several domains, including unmanned systems. The company’s drone business got a boost earlier this year when the U.S. Army selected its THOR Group 2 UAS to provide tactical units with organic aerial capability to support a variety of missions, including reconnaissance, surveillance and target acquisition. Earlier in the year, ESLT also won a major $1.4 billion European extensive military modernization contract spanning multiple battlefield domains, including uncrewed autonomous solutions.
Elbit is also strengthening its presence in the European drone market through its partnership with Diehl Defence to offer the SkyStriker loitering munition system to Germany’s armed forces.
In the second quarter of 2026, the company reported higher UAV sales in Israel. Although Aerospace segment revenues declined 8% year over year due to an unfavorable project mix and lower training and simulation sales in Europe, increased UAV sales in Israel partly offset these headwinds.
Elbit is also strengthening the technology surrounding unmanned operations through acquisitions. In January 2026, ESLT acquired U.K.-based UAVTactical Systems Ltd (“UTACS”). UTACS is a key supplier of advanced tactical UAS to the British Army, other NATO member countries and the United Nations. In May 2026, ESLT’s subsidiary FUSE acquired another Israeli technology company, Blue White Robotics Ltd. (Bluewhite). Bluewhite develops AI-driven autonomous solutions for critical off-road and defense applications. The acquisition bolsters FUSE’s autonomous capabilities and complements its unmanned aerial and swarm technologies.
In September, FUSE introduced its AI-driven autonomous combat systems and One2Many operational capabilities, which enable real-time coordination of multiple autonomous aerial and ground systems.
In October 2026, ESLT, which carries a Zacks Rank #2 (Buy), completed the acquisition of Canada-based International Submarine Engineering Ltd., expanding its capabilities in remotely operated systems and autonomous underwater vehicles.
RTX Corporation is a major aerospace and defense player and represents a more diversified way to enhance exposure to the drone technology space. The company delivers advanced systems and services for commercial, military, and government customers through its Collins Aerospace (Collins), Pratt & Whitney, and Raytheon business segments.
The company’s exposure to the drone market is primarily driven by its strength in counter-drone systems. In a significant development, Raytheon secured contracts worth $729 million in October 2026 to supply LIDS (or low, slow, small, unmanned aircraft Integrated Defeat System) components to the U.S. Army, Jordan and Qatar, marking the first international sales of its Coyote effector and Ku-band Radio Frequency Sensor (KuRFS).
RTX is also investing in next-generation technologies to address increasingly sophisticated unmanned aerial threats. In October 2026, Raytheon successfully completed three tests of its upgraded Coyote Block 2C+RM interceptor, advancing the program from concept to testing in just 15 months.
Beyond counter-drone tech, RTX is benefiting from growing demand for its other solutions across commercial aerospace and defense. Raytheon secured substantial multiyear production contracts for Tomahawk, AMRAAM, SM-6 and SM-3 Block IB missiles, providing greater visibility into future revenues.
RTX, which carries Zacks Rank #2, ended September 2026 with a backlog of $340 billion, providing substantial revenue visibility.
Wall Street expects a year-over-year increase in earnings on higher revenues when Dynatrace (DT - Free Report) reports results for the quarter ended September 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 November 3. 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 software intellegence company is expected to post quarterly earnings of $0.49 per share in its upcoming report, which represents a year-over-year change of +11.4%.
Revenues are expected to be $568.12 million, up 15% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.64% higher 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. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
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 Dynatrace?For Dynatrace, 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 +0.83%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Dynatrace 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 Dynatrace would post earnings of $0.45 per share when it actually produced earnings of $0.48, delivering a surprise of +6.67%.
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.
Dynatrace 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.
Expected Results of an Industry PlayerAmong the stocks in the Zacks Computers - IT Services industry, Cognizant (CTSH - Free Report) , is soon expected to post earnings of $1.46 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +5%. This quarter's revenue is expected to be $5.65 billion, up 4.3% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Cognizant has been revised 0.4% up to the current level. Nevertheless, the company now has an Earnings ESP of +0.05%, reflecting a higher Most Accurate Estimate.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Cognizant will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
PACCAR Inc (PCAR) released its 8-K filing on October 27, 2026, reporting significant financial results for the third quarter of 2026. The company demonstrated r
Paccar (PCAR - Free Report) came out with quarterly earnings of $1.61 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $1.12 per share a year ago. These figures are adjusted for non-recurring items.
A quarter ago, it was expected that this truck maker would post earnings of $1.33 per share when it actually produced earnings of $1.43, delivering a surprise of +7.52%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Paccar, which belongs to the Zacks Automotive - Domestic industry, posted revenues of $7.38 billion for the quarter ended September 2026, missing the Zacks Consensus Estimate by 1.37%. This compares to year-ago revenues of $6.11 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Paccar shares have lost about 4.7% since the beginning of the year versus the S&P 500's gain of 12.1%.
What's Next for Paccar?While Paccar has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Paccar was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.70 on $7.83 billion in revenues for the coming quarter and $5.91 on $28.52 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Domestic is currently in the bottom 16% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Oshkosh (OSK - Free Report) , another stock in the same industry, has yet to report results for the quarter ended September 2026. The results are expected to be released on October 29.
This heavy vehicle manufacturer for the military, emergency and commercial companies is expected to post quarterly earnings of $3.01 per share in its upcoming report, which represents a year-over-year change of -5.9%. The consensus EPS estimate for the quarter has been revised 3.1% lower over the last 30 days to the current level.
Oshkosh's revenues are expected to be $2.92 billion, up 8.5% from the year-ago quarter.
For the quarter ended September 2026, Paccar (PCAR - Free Report) reported revenue of $7.38 billion, up 20.8% over the same period last year. EPS came in at $1.61, compared to $1.12 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $7.48 billion, representing a surprise of -1.37%. The company has not delivered EPS surprise, with the consensus EPS estimate being $1.61.
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.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Paccar performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Truck deliveries - Total: 40,100 compared to the 40,107 average estimate based on three analysts.Truck deliveries - Other: 5,900 versus 5,266 estimated by three analysts on average.Truck deliveries - Europe: 10,400 versus 10,729 estimated by three analysts on average.Truck deliveries - U.S and Canada: 23,800 versus the three-analyst average estimate of 24,112.Sales and Revenues- Financial Services: $558.9 million versus $561.27 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -1.1% change.Sales and Revenues- Parts: $1.78 billion versus the three-analyst average estimate of $1.79 billion. The reported number represents a year-over-year change of +3.2%.Sales and Revenues- Truck: $5.6 billion versus $5.59 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +27.9% change.Pretax Profit- Financial Services: $138.1 million versus $131.79 million estimated by four analysts on average.Pretax Profit- Parts: $404.4 million compared to the $468.18 million average estimate based on three analysts.Pretax Profit- Truck: $454.5 million versus the two-analyst average estimate of $317.37 million.View all Key Company Metrics for Paccar here>>>
Shares of Paccar have returned -6.5% over the past month versus the Zacks S&P 500 composite's -0.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Travel + Leisure Co. (TNL - Free Report) reported $1.1 billion in revenue for the quarter ended September 2026, representing a year-over-year increase of 5.5%. EPS of $2.21 for the same period compares to $1.80 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $1.1 billion, representing a surprise of +0.09%. The company delivered an EPS surprise of +8.33%, with the consensus EPS estimate being $2.04.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Travel Leisure Co. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Vacation Ownership - Tours: 213,000 versus the three-analyst average estimate of 211,000.Vacation Ownership - Gross VOI sales (Vacation Ownership Interest): $720.00 compared to the $723.56 average estimate based on three analysts.Vacation Ownership - VPG (Volume Per Guest): $3,286.00 versus $3,348.05 estimated by three analysts on average.Net Revenues- Vacation Ownership: $953 million versus $943.69 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +8.8% change.Net Revenues- Travel and Membership: $150 million versus $159.09 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -11.2% change.Revenue- Vacation Ownership- Other: $42 million versus $51.56 million estimated by two analysts on average.Revenue- Vacation Ownership- Property Management Fees: $248 million compared to the $226.18 million average estimate based on two analysts.Revenue- Travel and Membership- Other: $7 million compared to the $5.98 million average estimate based on two analysts.Net Revenues- Corporate and other: $-2 million versus the two-analyst average estimate of $-1 million.Revenue- Vacation Ownership- Vacation Ownership Interest(VOI) Sales: $545 million compared to the $536.59 million average estimate based on two analysts.Revenue- Vacation Ownership- Consumer Financing: $118 million compared to the $117.88 million average estimate based on two analysts.Revenue- Travel and Membership- Subscription revenue: $41 million versus the two-analyst average estimate of $41.82 million.View all Key Company Metrics for Travel Leisure Co. here>>>
Shares of Travel Leisure Co. have returned +2.7% over the past month versus the Zacks S&P 500 composite's -0.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Watsco (WSO - Free Report) came out with quarterly earnings of $3.77 per share, missing the Zacks Consensus Estimate of $4.13 per share. This compares to earnings of $3.98 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -8.72%. A quarter ago, it was expected that this heating and cooling company would post earnings of $4.38 per share when it actually produced earnings of $4, delivering a surprise of -8.68%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Watsco, which belongs to the Zacks Manufacturing - General Industrial industry, posted revenues of $2.22 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 0.28%. This compares to year-ago revenues of $2.07 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Watsco shares have lost about 9.4% since the beginning of the year versus the S&P 500's gain of 12.1%.
What's Next for Watsco?While Watsco has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Watsco was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.13 on $1.74 billion in revenues for the coming quarter and $12.19 on $7.57 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - General Industrial is currently in the bottom 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Gates Industrial (GTES - Free Report) , has yet to report results for the quarter ended September 2026. The results are expected to be released on October 30.
This manufacturer of power transmission and fluid power systems is expected to post quarterly earnings of $0.45 per share in its upcoming report, which represents a year-over-year change of +15.4%. The consensus EPS estimate for the quarter has been revised 1.6% higher over the last 30 days to the current level.
Gates Industrial's revenues are expected to be $903.52 million, up 5.6% from the year-ago quarter.
Watsco (WSO - Free Report) reported $2.22 billion in revenue for the quarter ended September 2026, representing a year-over-year increase of 7.4%. EPS of $3.77 for the same period compares to $3.98 a year ago.
The reported revenue represents a surprise of +0.28% over the Zacks Consensus Estimate of $2.21 billion. With the consensus EPS estimate being $4.13, the EPS surprise was -8.72%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Watsco performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Total Same-Store Sales: 4% compared to the 4% average estimate based on three analysts.Revenues- HVAC equipment: $1.49 billion versus $1.47 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +10.3% change.Revenues- Commercial refrigeration products: $88.81 million compared to the $95.82 million average estimate based on three analysts. The reported number represents a change of +7.4% year over year.Revenues- Other HVAC products: $643.9 million versus the three-analyst average estimate of $626.55 million. The reported number represents a year-over-year change of +7.4%.View all Key Company Metrics for Watsco here>>>
Shares of Watsco have returned -2.5% over the past month versus the Zacks S&P 500 composite's -0.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Wave Life Sciences (WVE - Free Report) came out with a quarterly loss of $0.3 per share versus the Zacks Consensus Estimate of a loss of $0.34. This compares to a loss of $0.32 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +11.77%. A quarter ago, it was expected that this biopharmaceutical company would post a loss of $0.31 per share when it actually produced a loss of $0.34, delivering a surprise of -9.68%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Wave Life Sciences, which belongs to the Zacks Medical - Biomedical and Genetics industry, posted revenues of $13.16 million for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 342.29%. This compares to year-ago revenues of $7.61 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Wave Life Sciences shares have lost about 81.1% since the beginning of the year versus the S&P 500's gain of 12.1%.
What's Next for Wave Life Sciences?While Wave Life Sciences has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Wave Life Sciences was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.34 on $3.23 million in revenues for the coming quarter and -$1.12 on $47 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Biomedical and Genetics is currently in the top 43% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, BioHarvest Sciences Inc. (BHST - Free Report) , has yet to report results for the quarter ended September 2026.
This company is expected to post quarterly loss of $0.16 per share in its upcoming report, which represents a year-over-year change of -14.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
BioHarvest Sciences Inc.'s revenues are expected to be $9.63 million, up 6.2% from the year-ago quarter.
The upcoming report from Cheniere Energy (LNG - Free Report) is expected to reveal quarterly earnings of $4.18 per share, indicating a decline of 12% compared to the year-ago period. Analysts forecast revenues of $5.38 billion, representing an increase of 21% year over year.
The consensus EPS estimate for the quarter has been revised 0.8% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during 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 investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
In light of this perspective, let's dive into the average estimates of certain Cheniere Energy metrics that are commonly tracked and forecasted by Wall Street analysts.
The average prediction of analysts places 'Revenues- LNG' at $5.52 billion. The estimate indicates a change of +28.3% from the prior-year quarter.
The consensus among analysts is that 'Revenues- Other' will reach $60.71 million. The estimate points to a change of -42.2% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Revenues- Regasification' of $34.42 million. The estimate indicates a change of +1.2% from the prior-year quarter.
According to the collective judgment of analysts, 'Volumes loaded during the current period' should come in at 695 trillion british thermal units. The estimate compares to the year-ago value of 586 trillion british thermal units.
View all Key Company Metrics for Cheniere Energy here>>>
Shares of Cheniere Energy have demonstrated returns of +11.5% over the past month compared to the Zacks S&P 500 composite's -0.8% change. With a Zacks Rank #2 (Buy), LNG is expected to beat the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Yelp (YELP - Free Report) . YELP is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 13.01 right now. For comparison, its industry sports an average P/E of 18.96. Over the last 12 months, YELP's Forward P/E has been as high as 21.69 and as low as 12.66, with a median of 16.11.
Investors will also notice that YELP has a PEG ratio of 0.69. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. YELP's PEG compares to its industry's average PEG of 1.47. Over the last 12 months, YELP's PEG has been as high as 0.91 and as low as 0.50, with a median of 0.69.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. YELP has a P/S ratio of 0.72. This compares to its industry's average P/S of 0.88.
Value investors will likely look at more than just these metrics, but the above data helps show that Yelp is likely undervalued currently. And when considering the strength of its earnings outlook, YELP sticks out as one of the market's strongest value stocks.
Xylem (XYL - Free Report) came out with quarterly earnings of $1.44 per share, missing the Zacks Consensus Estimate of $1.47 per share. This compares to earnings of $1.37 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -2.04%. A quarter ago, it was expected that this water and wastewater treatment company would post earnings of $1.34 per share when it actually produced earnings of $1.46, delivering a surprise of +8.96%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Xylem, which belongs to the Zacks Waste Removal Services industry, posted revenues of $2.2 billion for the quarter ended September 2026, missing the Zacks Consensus Estimate by 3.34%. This compares to year-ago revenues of $2.27 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Xylem shares have lost about 20.5% since the beginning of the year versus the S&P 500's gain of 12.1%.
What's Next for Xylem?While Xylem has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Xylem was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.62 on $2.43 billion in revenues for the coming quarter and $5.65 on $9.17 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Waste Removal Services is currently in the top 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Clean Harbors (CLH - Free Report) , another stock in the same industry, has yet to report results for the quarter ended September 2026. The results are expected to be released on October 28.
This environmental services company is expected to post quarterly earnings of $3.18 per share in its upcoming report, which represents a year-over-year change of +43.9%. The consensus EPS estimate for the quarter has been revised 10.3% higher over the last 30 days to the current level.
Clean Harbors' revenues are expected to be $1.72 billion, up 11.3% from the year-ago quarter.
For the quarter ended September 2026, Xylem (XYL - Free Report) reported revenue of $2.2 billion, down 3% over the same period last year. EPS came in at $1.44, compared to $1.37 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $2.28 billion, representing a surprise of -3.34%. The company delivered an EPS surprise of -2.04%, with the consensus EPS estimate being $1.47.
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.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Xylem performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Measurement & Control Solutions: $436 million compared to the $486.18 million average estimate based on four analysts. The reported number represents a change of -16.5% year over year.Revenue- Applied Water: $489 million versus $468.55 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +7.2% change.Revenue- Water Infrastructure: $645 million versus $668.31 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -1.7% change.Revenue- Water Solutions and Services: $631 million versus the four-analyst average estimate of $671.46 million. The reported number represents a year-over-year change of -0.5%.Adjusted Operating Income- Water Infrastructure: $154 million compared to the $153.26 million average estimate based on two analysts.Adjusted Operating Income- Applied Water: $94 million versus $94.24 million estimated by two analysts on average.Adjusted Operating Income- Water Solutions and Services: $114 million versus the two-analyst average estimate of $132.48 million.Adjusted Operating Income- Corporate and other: $-18 million versus the two-analyst average estimate of $-21.2 million.Adjusted Operating Income- Measurement & Control Solutions: $84 million compared to the $88.02 million average estimate based on two analysts.View all Key Company Metrics for Xylem here>>>
Shares of Xylem have returned +7.3% over the past month versus the Zacks S&P 500 composite's -0.8% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Yext (YEXT - Free Report) . YEXT is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 14.61 right now. For comparison, its industry sports an average P/E of 18.10. Over the last 12 months, YEXT's Forward P/E has been as high as 21.17 and as low as 10.89, with a median of 12.56.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. YEXT has a P/S ratio of 1.66. This compares to its industry's average P/S of 1.82.
Finally, investors should note that YEXT has a P/CF ratio of 26.83. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. YEXT's P/CF compares to its industry's average P/CF of 33.27. Over the past 52 weeks, YEXT's P/CF has been as high as 227.93 and as low as -1262.83, with a median of 106.38.
Value investors will likely look at more than just these metrics, but the above data helps show that Yext is likely undervalued currently. And when considering the strength of its earnings outlook, YEXT sticks out as one of the market's strongest value stocks.
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 popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to 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.
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 ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
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 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 +23.82% 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.
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.
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: McKesson (MCK - Free Report) McKesson Corporation, headquartered in Irving, TX, is one of the largest global healthcare companies and the leading pharmaceutical distributor in North America. The company operates across four business segments: North American Pharmaceutical, which distributes branded, generic, and specialty drugs; Prescription Technology Solutions, which provides patient access, affordability, and third-party logistics services for biopharma manufacturers and payors; Medical-Surgical Solutions, supplying alternate-site providers such as physician offices and home health; and Oncology & Multispecialty, primarily focused on provider solutions. Specialty pharmaceuticals, oncology services, and GLP-1 medications for diabetes and obesity are key growth engines. In FY25, GLP-1 revenues alone reached nearly $41 billion.
MCK is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Medical stock. MCK has a Momentum Style Score of A, and shares are up 16% over the past four weeks.
Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.10 to $44.71 per share. MCK boasts an average earnings surprise of +4.3%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, MCK should be on investors' short list.
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.
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 includes access to the Zacks Style Scores as well.
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.
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 ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most 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 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 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 A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.82% 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.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee 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.
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: Expedia (EXPE - Free Report) Expedia Group, Inc. is based in Seattle, Washington, and is one of the largest online travel companies in the world. The company’s web portals focus on travel planning, travel purchases and travel experience sharing, thus bringing suppliers and consumers of travel-related services together.
EXPE is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. EXPE has a Growth Style Score of A, forecasting year-over-year earnings growth of 27.6% for the current fiscal year.
Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.18 to $20.23 per share. EXPE also boasts an average earnings surprise of +14.7%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, EXPE should be on investors' short list.
Centene (CNC - Free Report) reported $50.65 billion in revenue for the quarter ended September 2026, representing a year-over-year increase of 1.9%. EPS of $0.58 for the same period compares to $0.50 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $47.06 billion, representing a surprise of +7.63%. The company delivered an EPS surprise of +728.57%, with the consensus EPS estimate being $0.07.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Centene performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Membership by line of business - Total: 25.7 million versus 25.5 million estimated by three analysts on average.Membership by line of business - Medicaid: 11.9 million versus the three-analyst average estimate of 11.83 million.Membership Medicaid - Traditional Medicaid: 10.54 million compared to the 10.53 million average estimate based on three analysts.Membership by line of business - Medicare: 954.4 thousand versus 978.83 thousand estimated by three analysts on average.Revenues- Service: $735 million versus the three-analyst average estimate of $802.87 million. The reported number represents a year-over-year change of -4.8%.Revenues- Premium: $44.37 billion compared to the $42.61 billion average estimate based on three analysts. The reported number represents a change of +0.6% year over year.Revenues- Premium and service revenues: $45.11 billion versus $43.41 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +0.5% change.Revenues- Premium tax: $5.54 billion versus $3.22 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +15.7% change.Revenues- Premium and service revenues- Commercial: $8.7 billion versus $9.15 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -20.9% change.Revenues- Premium and service revenues- Medicare: $11.26 billion versus the two-analyst average estimate of $10.64 billion. The reported number represents a year-over-year change of +19.9%.Revenues- Premium and service revenues- Other: $1.1 billion versus the two-analyst average estimate of $1.31 billion. The reported number represents a year-over-year change of -17.9%.Revenues- Premium and service revenues- Medicaid: $24.04 billion versus $22.43 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +3.8% change.View all Key Company Metrics for Centene here>>>
Shares of Centene have returned +8.8% over the past month versus the Zacks S&P 500 composite's -0.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of MU, SKHY 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.
On its Q3 2026 earnings call, held on Oct. 26, 2026, Rambus (RMBS -3.07%) reported record quarterly revenue of $218 million, driven by growing demand for server memory chips.
As artificial intelligence workloads accelerate server upgrades, memory bandwidth limits have made high-speed memory chipsets and security design blocks essential hardware components. Managing power and data flow at higher memory speeds positions chip designers to capture durable, high-margin product sales.
Three key insights from management illustrate how the business navigates this memory expansion.
RMBS Rambus$87.55-$2.78 (-3.07%)
NASDAQ · As of 11:13 AM ET 10/27/26
1. Server Memory Chipset Demand Drives Record Product RevenueProduct revenue climbed 22% year over year to $114 million, driven by adoption of DDR5 registered clock drivers (RCDs, specialized chips on server memory sticks that manage and clean up instructions sent from the processor to memory). Server platforms are expanding from 8 memory channels to 12 or 16 channels. This shift increases the number of memory modules and control chips required per system.
Our leadership in DDR5 RCDs and growing adoption of new generation products fueled our record results. We are seeing strong demand across multiple generations of RCDs...
-- Luc Seraphin, President and Chief Executive Officer2. Power Management Portfolio Expands Into Next Generation LPDDR6 MemoryRambus introduced a power management integrated circuit (PMIC, a chip regulating module voltage) for LPDDR6 server memory architectures. Power efficiency is critical for scaling artificial intelligence operations. Extending power management chips across new memory specifications broadens Rambus's addressable content per server module.
This new PMIC solution extends our server memory product road map to LPDDR6 and reinforces our leadership in advanced server memory power management.
-- Luc Seraphin, President and Chief Executive Officer
Image source: Getty Images.
3. Custom AI Silicon Growth Accelerates High Margin IP LicensingCloud providers and chipmakers are designing custom chips optimized for artificial intelligence. This wave of custom silicon expands demand for high-speed memory interfaces and security blocks. Silicon intellectual property (IP, reusable chip design blocks) licensing delivers steady, high-margin cash flows and provides Rambus with early architectural visibility into future data center design trends.
The expansion of AI is fueling a new wave of custom silicon development. Hyperscalers, AI infrastructure providers and emerging semiconductor companies are designing increasingly differentiated architectures and tailored silicon optimized for their own environments.
-- Luc Seraphin, President and Chief Executive OfficerLooking AheadData center memory demands are expanding, and Rambus is increasing inventory to support customer product ramps while maintaining disciplined capital allocation.
Capital allocation remains a key priority for us. We intend to continue investing in the business while returning 40% to 50% of free cash flows to shareholders over time, supported by our strong balance sheet and continued cash generation.
-- Sumeet Gagneja, Chief Financial OfficerThe Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
LITTLE ROCK, Ark., Oct. 27, 2026 (GLOBE NEWSWIRE) -- Uniti Wholesale today announced expanded connectivity at nine data center locations across six states, extending access to 100G and 400G wavelength services. The expansion includes new data center presence and upgrades to existing connectivity, helping customers connect critical infrastructure, broaden their network reach, and accommodate growing bandwidth requirements.
The expanded footprint also simplifies network planning, giving customers more options to link data centers across markets through a single connectivity partner.
Alongside the expansion, Uniti Wholesale is launching a campaign featuring promotional offers on select 100G and 400G wavelength routes.
“Our customers need more than bandwidth—they need connectivity that fits their business,” said Greg Ortyl, executive vice president and president of Strategic Accounts for Uniti Wholesale. “This expansion gives them more locations to connect, greater flexibility in planning their networks, and a team they can trust to help bring it together.”
Data Center ProviderLocationAddressEquinixEl Segundo, California445 N. DouglasH5 Data CentersChandler, Arizona2600 W. Germann RoadVTXLaredo, Texas520 MatamorosH5 Data CentersSan Antonio, Texas100 Taylor StreetFifteenfortysevenMcAllen, Texas200 S. 10th StreetFlexentialFranklin, Tennessee425 Duke DriveDigital RealtyClifton, New Jersey2 Peekay DriveQTSPiscataway, New Jersey101 Possumtown RoadCyrusOneSterling, Virginia21350 Pacific Street
“A key element in the rapid growth of data center supply is a similar growth trajectory of fiber and communications infrastructure across the United States,” said Josh Simms, CEO of H5 Data Centers. “Uniti Wholesale’s expanded connectivity at each of our Chandler, Arizona, and San Antonio, Texas, data centers can provide customers access to 100 and 400G capacity to support bandwidth-intensive applications and connect their operations across key markets.”
Select 100G and 400G Routes
With approximately 150 route options spanning the West Coast to the East Coast, Uniti Wholesale is giving customers more ways to add high-capacity connectivity at promotional rates.
To take advantage of these exclusive promotional offers, customers can explore eligible routes and view real-time pricing through Route Creator in the Uniti Wholesale iconnect customer portal or contact their sales director for additional details.
Meet With Uniti Wholesale at INCOMPAS
Customers can meet the Uniti Wholesale team at INCOMPAS, Nov. 1–3, 2026, to discuss their connectivity needs and available offers, or contact their Uniti Wholesale representative directly.
About Uniti Wholesale
Uniti Wholesale, a business unit of Uniti (NASDAQ: UNIT), builds and delivers customer-driven dark fiber infrastructure and high-capacity wavelengths, ethernet and wireless access leveraging our optical transport network reaching nearly every hyperscale and AI firm, communications services provider, Fortune 500 enterprise and federal government customers in the U.S. and Canada. Additional information about Uniti Wholesale is available at unitiwholesale.com. Engage with us on LinkedIn.
PHILADELPHIA--(BUSINESS WIRE)--The Lincoln Financial Foundation, the philanthropic arm of Lincoln Financial (NYSE: LNC), and TGR Foundation today announced the launch of “Bold Starts, championed by Lincoln Financial,” a new program designed to help youth build money-management skills, develop financial confidence and prepare for life-long success. The program, which launches this fall at the Smilow Woodland TGR Learning Lab, located at the Cobbs Creek Golf and Education Campus in West Philadelp.
Pražská burza dnes výrazně posílila, když index PX přidal 1,5 % na 2 638 bodů. K růstu přispělo zlepšení sentimentu na zahraničních trzích během odpoledního obchodování. Hlavní pozornost poutala Moneta Money Bank, která zhodnotila o 5 % a výrazně podpořila celý index. Dařilo se také VIG (+2,38 %), ČEZ (+1,61 %) či Erste Group (+0,62 %). Naopak ztrácely CSG (–0,75 %) a Philip Morris ČR (–2,3 %). Nejvyšší obchodní aktivitu zaznamenal ČEZ s objemem 136 mil. Kč.
Retirement math usually demands a sprawling portfolio, but one retiree's three-ticker setup challenges that assumption by mixing yields so mismatched they almost seem designed to cancel each other out.
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A 69-year-old who wants $4,350 a month from a portfolio needs $52,200 a year in dividends and distributions. One three-ticker setup works out as follows: 40% in Schwab US Dividend Equity ETF (NYSEARCA:SCHD), 30% in JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ), and 30% in VICI Properties (NYSE:VICI). Each holding sits in a different yield level, and each level needs a different amount of capital.
About $750,000 Covers the Monthly Check At current prices, the combined yield across all three is roughly 7.0%. The core equation: $52,200 against a 0.07 yield comes to about $750,000.
Holding Dollars Yield Annual Income SCHD $300,000 3.0% $9,066 JEPQ $225,000 11.5% $25,902 VICI $225,000 7.7% $17,271 The total comes to $52,239 a year, which is a pretty high income for a 69-year-old retiree.
SCHD Anchors the Conservative Tier For its part, SCHD pays an annualized $1.066 per share on a price near $35, a yield of about 3.0%. Funding the whole goal here takes the most money: $52,200 at a 0.03 yield comes to $1,740,000.
That capital buys breadth. Top positions include Qualcomm at 6.7%, Texas Instruments at 5.9%, and Coca-Cola at 4%. Shares rose 35% over the past year as dividend stocks outpaced a struggling tech sector this October. Its dividends also typically qualify for lower capital gains tax rates.
VICI Brings Contractual Rent to the Moderate Tier With an annualized dividend of $1.84, VICI yields about 7.7%. An all-VICI approach: $52,200 against a 0.077 yield comes to about $678,000. The income rests on 100% occupancy, a 39.6-year weighted lease term, and 2% annual rent escalators on most leases.
Management raised the quarterly payout to $0.46 from $0.45. The risk is concentration: Caesars Entertainment supplies about 38% of rent and MGM Resorts about 32%. Shares fell 18% over the past year. REIT dividends are mostly ordinary income, though qualified REIT dividends earn a 20% deduction under 26 U.S.C. § 199A(b)(1)(B).
JEPQ Supplies the Aggressive Monthly Cash JEPQ’s annualized distribution of $6.80 on a $59 share price yields about 11.5%. Here the math shrinks: $52,200 at a 0.115 yield comes to about $454,000. The fund sells call options on Nasdaq-100 stocks, which trades away upside for premium income. Payouts track market volatility with monthly distributions ranging from $0.45 to $0.70 per share over the past year, a 58% swing. The expense ratio is 0.35%, and most distributions are taxed as ordinary income.
If the appeal here is really the monthly rhythm of a paycheck rather than JEPQ specifically, there are other tickers built the same way. We rounded up seven of our favorite monthly payers in a free report you can grab here.
Why the Smallest Check Does the Heavy Lifting Ultimately, SCHD adds the least income today, but it also has the strongest growth engine. Assume its portfolio grows dividends by 8% a year, hypothetically. The $9,066 becomes about $18,100 in nine years.
That growth matters because inflation keeps working. At 3% annual inflation, today’s $52,200 requires about $70,150 in a decade. JEPQ has no built-in raise, and VICI’s escalators run near 2%. A retiree living to 90 needs the slow compounder to close the gap.
Three Moves Before Copying This Portfolio Subtract Social Security first. Your portfolio only needs to cover spending that benefits miss. A smaller target cuts required capital and lets you shift toward SCHD’s growth. Stress-test the JEPQ portfolio. Rerun your budget using the $0.45 low month. If that shortfall breaks your plan, hold a cash buffer of several months of spending. Map each holding to the right account. Last year, married joint filers paid 12% on taxable income up to $96,950. Model whether JEPQ and VICI’s ordinary income belongs in an IRA while SCHD’s qualified dividends stay taxable. Contact [email protected] for any questions or corrections.
Swapping one JPMorgan covered call fund for another inside an $820,000 income portfolio adds roughly $9,000 a year, but that extra income comes with conditions most retirees overlook before making the trade.
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An $820,000 portfolio of JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI), JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ), Realty Income (NYSE:O), Main Street Capital (NYSE:MAIN | MAIN Price Prediction) and iShares Core Dividend Growth ETF (NYSEARCA:DGRO), split 30% JEPI, 30% JEPQ, 15% O, 10% MAIN, and 15% DGRO, pays about $64,300 a year right now. However, if you move the JEPI portion into JEPQ, the income rises to about $73,300, but this roughly $9,000 increase comes with conditions.
What Each Holding Pays Today
These are the five holdings’ yields based on the past 12 months of payouts:
Holding
Dollars
Trailing Yield
Annual Income
JEPI
$246,000
8.0%
$19,700
JEPQ
$246,000
11.7%
$28,700
Realty Income
$123,000
5.7%
$7,000
Main Street
$82,000
8.1%
$6,700
DGRO
$123,000
1.9%
$2,300
Altogether, the portfolio yields 7.8%. After the swap, with $492,000 in JEPQ, it yields 8.9%.
What You Give Up for $9,000 More a Year
The two funds cost the same, as each charges a 0.35% expense ratio. The difference is the underlying stock exposure: JEPI sells options against a defensive basket of S&P 500 stocks. JEPQ sells options against Nasdaq-100 exposure, which leans heavily on large tech companies. After the swap, 60% of the portfolio moves with a single, tech-dominated index.
JEPQ’s monthly payments also swing more. It paid $0.47 a share in February 2026 and $0.70 in August. JEPQ has outperformed recently: on an adjusted basis, it gained 13% over the past year, versus 8% for JEPI. That gap could flip quickly if tech stocks sell off.
Three Ways to Build $73,300 of Income
At the conservative level (3.5%), take $73,300 divided by 0.035 equals $2,094,000. This tier holds dividend-growth funds like DGRO and broad-market index funds. It needs the most capital but has the lowest chance of a payout cut.
Take a more moderate approach (6%) by dividing $73,300 by 0.06, which equals $1,222,000. This tier uses REITs, preferred shares, and S&P 500 covered call funds. Payouts grow slowly, if at all.
An aggressive 11% yield reduces the required capital from $73,300 to $666,000. This tier holds Nasdaq covered call funds, business development companies, mortgage REITs, and high-yield bond funds. Payout cuts and a shrinking share price are common here.
The swapped portfolio sits at the low end of the aggressive tier. Your $820,000 produces income that would take more than $2 million at conservative yields.
Why Slower Income Often Wins
Say a $2,094,000 portfolio yielding 3.5% raises its payout 8% a year. In 9 years, the income roughly doubles to $146,500. JEPQ has no such growth engine, as its payouts depend on option premiums, which rise and fall with market volatility.
JEPI shows the risk already: its forward annualized payout of $4.10 a share trails the $4.56 it paid over the past 12 months, for a forward yield of 7.2%. Covered calls also give up gains in strong rallies. That means a flat $73,300 loses buying power every year inflation runs.
Run These Checks Before You Swap
Budget around the low month. Build your spending plan on JEPQ’s lowest recent payment of $0.47. Do the same with Main Street, whose trailing payout includes extra dividends on top of its regular monthly ones.
Compare forward and trailing yields. On a forward basis, JEPQ yields 11.5% and JEPI 7.2%. Recalculate your income using forward figures before you rely on the extra $9,000.
Check where the funds sit. Most covered call distributions are taxed as ordinary income. For 2026, joint filers get a $32,200 standard deduction, and the 22% bracket starts above $100,800. Pension or Social Security income can push you past that line, so holding JEPQ in an IRA may protect more of the increase.
Contact [email protected] for any questions or corrections.
Wall Street expects a year-over-year increase in earnings on higher revenues when GXO Logistics (GXO - Free Report) reports results for the quarter ended September 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 November 3. 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 contract logistics provider is expected to post quarterly earnings of $0.86 per share in its upcoming report, which represents a year-over-year change of +8.9%.
Revenues are expected to be $3.56 billion, up 4.8% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.13% 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 GXO Logistics?For GXO Logistics, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.12%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that GXO Logistics will 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 GXO Logistics would post earnings of $0.58 per share when it actually produced earnings of $0.59, delivering a surprise of +1.72%.
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.
GXO Logistics doesn't appear 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.
Champion Homes (SKY - Free Report) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended September 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 November 3. 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 manufactured and modular housing maker is expected to post quarterly earnings of $0.92 per share in its upcoming report, which represents a year-over-year change of -8.9%.
Revenues are expected to be $716.7 million, up 4.7% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.54% higher 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. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
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 Champion Homes?For Champion Homes, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.17%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Champion Homes will 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 Champion Homes would post earnings of $0.89 per share when it actually produced earnings of $0.88, delivering a surprise of -1.12%.
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.
Champion Homes doesn't appear 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.
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?
Let's take a look at what these Wall Street heavyweights have to say about SM Energy (SM - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
SM Energy currently has an average brokerage recommendation (ABR) of 1.95, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 20 brokerage firms. An ABR of 1.95 approximates between Strong Buy and Buy.
Of the 20 recommendations that derive the current ABR, 11 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 55% and 5% of all recommendations.
Brokerage Recommendation Trends for SM
Check price target & stock forecast for SM Energy here>>>
While the ABR calls for buying SM Energy, 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.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
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.
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.
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 SM a Good Investment?Looking at the earnings estimate revisions for SM Energy, the Zacks Consensus Estimate for the current year has increased 8.9% over the past month to $8.15.
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 SM Energy. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for SM Energy may serve as a useful guide for investors.
Wall Street expects a year-over-year increase in earnings on higher revenues when SM Energy (SM - Free Report) reports results for the quarter ended September 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 November 3. 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 independent oil and gas company is expected to post quarterly earnings of $2.03 per share in its upcoming report, which represents a year-over-year change of +52.6%.
Revenues are expected to be $1.97 billion, up 142.6% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 20.28% higher 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. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
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 SM Energy?For SM Energy, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination makes it difficult to conclusively predict that SM Energy will 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 SM Energy would post earnings of $1.93 per share when it actually produced earnings of $2.19, delivering a surprise of +13.47%.
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.
SM Energy doesn't appear 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 ResultsSM Energy (SM - Free Report) , another stock in the Zacks Oil and Gas - Exploration and Production - United States industry, is expected to report earnings per share of $2.03 for the quarter ended September 2026. This estimate points to a year-over-year change of +52.6%. Revenues for the quarter are expected to be $1.97 billion, up 142.6% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for SM Energy has been revised 20.3% up to the current level. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate.
When combined with a Zacks Rank of #2 (Buy), this Earnings ESP makes it difficult to conclusively predict that SM Energy will 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.
Invesco (IVZ - Free Report) came out with quarterly earnings of $0.72 per share, missing the Zacks Consensus Estimate of $0.75 per share. This compares to earnings of $0.61 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -4.00%. A quarter ago, it was expected that this investment management company would post earnings of $0.67 per share when it actually produced earnings of $0.71, delivering a surprise of +5.97%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Invesco, which belongs to the Zacks Financial - Investment Management industry, posted revenues of $1.38 billion for the quarter ended September 2026, missing the Zacks Consensus Estimate by 0.96%. This compares to year-ago revenues of $1.19 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Invesco shares have added about 8.6% since the beginning of the year versus the S&P 500's gain of 12.1%.
What's Next for Invesco?While Invesco has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Invesco was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.79 on $1.43 billion in revenues for the coming quarter and $2.82 on $5.37 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Investment Management is currently in the bottom 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, TPG Inc. (TPG - Free Report) , is yet to report results for the quarter ended September 2026. The results are expected to be released on October 29.
This company is expected to post quarterly earnings of $0.63 per share in its upcoming report, which represents a year-over-year change of +18.9%. The consensus EPS estimate for the quarter has been revised 3.1% lower over the last 30 days to the current level.
TPG Inc.'s revenues are expected to be $586.95 million, up 15.2% from the year-ago quarter.
For the quarter ended September 2026, Invesco (IVZ - Free Report) reported revenue of $1.38 billion, up 16.5% over the same period last year. EPS came in at $0.72, compared to $0.61 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $1.4 billion, representing a surprise of -0.96%. The company delivered an EPS surprise of -4%, with the consensus EPS estimate being $0.75.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
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 Invesco performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Assets Under Management - ETFs and Index: $774.60 billion versus the two-analyst average estimate of $774.61 billion.Average AUM - Total: $2,510.20 billion compared to the $2,510.20 billion average estimate based on two analysts.Assets Under Management - Fundamental Fixed Income: $307.90 billion versus $307.90 billion estimated by two analysts on average.Assets Under Management - Private Markets: $134.90 billion compared to the $134.91 billion average estimate based on two analysts.Assets Under Management - China JV & India: $166.30 billion versus $166.31 billion estimated by two analysts on average.Assets Under Management - Multi-Asset/Other: $84.50 billion versus $84.50 billion estimated by two analysts on average.Assets Under Management - Global Liquidity: $261.60 billion compared to the $261.62 billion average estimate based on two analysts.Assets Under Management - QQQs: $498.90 billion compared to the $498.84 billion average estimate based on two analysts.Average AUM - ETFs & Index: $770.30 billion compared to the $764.99 billion average estimate based on two analysts.Operating revenues- Other revenues: $45.8 million compared to the $56.86 million average estimate based on two analysts. The reported number represents a change of -5.6% year over year.Operating revenues- Service and distribution fees: $313.2 million versus the two-analyst average estimate of $339.19 million. The reported number represents a year-over-year change of -21.8%.Operating revenues- Performance fees: $2 million versus $7.12 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -69.2% change.View all Key Company Metrics for Invesco here>>>
Shares of Invesco have returned -6.2% over the past month versus the Zacks S&P 500 composite's -0.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Tinder just launched its biggest rebrand in a decade as users and payers keep slipping, and Monday's earnings report will reveal whether the overhaul marks the start of a real recovery or simply delays an inevitable collapse.
Match Group (NASDAQ:MTCH | MTCH Price Prediction) reports third-quarter results on Monday, November 2, after the bell. Tinder’s first full rebrand in nearly a decade is now live globally. This report is the first real test of whether it brings back users and payers.
Tinder Engagement Improves While Revenue Keeps Slipping
Last quarter, revenue came in at $853M, slightly missing the $856.73M consensus and falling 1.2% year over year. Profits looked better. Adjusted EBITDA rose 14% to $331M at a 39% margin.
Tinder direct revenue slipped 1% to $457M, but DAU declines narrowed to 4%, the best in 10 quarters, and improved to about 2.5% in July. Hinge direct revenue grew 22% to $204M.
Management raised its full-year adjusted EBITDA outlook to at-or-above the high end of its range. It also cut the expected Tinder test impact to $30-40M from $60M. Shares have gained 43.14% year to date to $45.21, yet they sit 70.14% below where they traded five years ago.
Consensus Sets a Modest Revenue Bar
Metric
Consensus
Year-Ago
YoY Change
Q3 Normalized EPS
$1.0054
$0.62
62.2%
Q3 Revenue
$892.25M
$914.27M
-2.4%
FY2026 Normalized EPS
$3.9546
$2.38
66.2%
FY2026 Revenue
$3.48B
$3,487M
-0.2%
The year-ago EPS included a $61M legal settlement, which inflates the growth comparison. Revenue guidance stands at $885M to $895M.
Payers, Events, and Hinge Will Decide the Story
Tinder payers are first on my radar. They fell 5% to 8.5 million last quarter, and management expects declines to lessen in Q3 and Q4. Total payers dropped 6%, so any narrowing matters more than headline revenue.
Next is whether DAU, which management called “almost positive” in August, finally turned positive. The mid-July algorithm update now has a full quarter behind it, and Events targets lapsed users as it scales to 75 cities by the end of the year. Match Group’s CEO framed the goal simply: “The next step is winning back singles who’ve drifted away, and reaching those who’ve never tried Tinder at all.”
Hinge still carries the growth load. European expansion markets grew 86%, and a new subscription tier began testing in Q3. E&E is worth watching too, as direct revenue fell 17% and the Azar redesign carries a $15M Q3 drag.
Then there are margins. Alternative payment savings of about $130 million this year helped cut cost of revenue 16%, but marketing spend rises in the second half. Q3 adjusted EBITDA guidance came in at $330M to $335M.
A 2027 Growth Promise Needs Proof Now
Management expects Tinder MAU to be flat by the end of Q4 of next year, with payers returning to growth by then. A stock up 41.69% over the past year already reflects some of that optimism, and options traders are pricing in a move of about 10%. If payer declines narrow and DAU turns positive, the rebrand starts to look like a real turnaround. If payers keep slipping, the permanent fall argument returns.
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