Key Takeaways GE Vernova stands out with a diversified portfolio, larger backlog and improving profitability.FuelCell Energy has surged 171.4% in 2026 as AI data-center demand lifts its distributed power story.Similar valuations put the focus on execution, backlog conversion and earnings visibility. Artificial intelligence (“AI”) is reshaping the power industry by creating unprecedented electricity demand from data centers, while utilities worldwide are racing to modernize aging grids. This backdrop has strengthened the outlook for Alternate Energycompanies that can deliver reliable, scalable and lower-emission power solutions. According to Wood Mackenzie, global energy investment is expected to surpass $3.8 trillion by 2030, creating a favorable environment for companies across power generation and grid infrastructure. Among the industry's notable performers this year are FuelCell Energy (FCEL - Free Report) and GE Vernova (GEV - Free Report) . Although each is benefiting from the same long-term trends, their investment cases differ in meaningful ways.
The Case for FCEL StockFuelCell Energy is focused on stationary fuel-cell systems that generate electricity directly where it is consumed, reducing dependence on increasingly constrained utility grids. This distributed power model is becoming more relevant as AI data centers require uninterrupted electricity but often face lengthy grid interconnection delays. By producing continuous on-site power while also supplying usable heat, hydrogen and carbon-capture capabilities, FuelCell Energy addresses several customer needs through a single platform.
The company is increasingly becoming an AI infrastructure story. More than four-fifths of its commercial pipeline is now linked to data centers, with proposal activity expanding sharply as operators search for dependable baseload power. Its standardized 12.5-megawatt FuelCell Energy Blocks allow customers to add capacity in stages, simplifying expansion while reducing engineering and permitting requirements. Meanwhile, plans to increase manufacturing capacity should better position the company to serve larger commercial projects as demand grows.
Strategic partnerships further strengthen the outlook. FuelCell Energy's collaboration with Siemens aims to integrate fuel-cell technology with advanced electrical infrastructure, enabling faster deployment of large-scale distributed energy systems. Beyond AI applications, the company continues expanding internationally through projects in South Korea while also advancing carbon-capture technology alongside ExxonMobil. Additional support has come from a $49 million financing package backed by the Export-Import Bank of the United States, providing non-dilutive capital to fund manufacturing growth and overseas expansion. Even so, FCEL still needs to convert its growing proposal pipeline into firm orders while increasing production volumes sufficiently to move toward sustained profitability.
The Case for GEV StockGE Vernova approaches the same AI-driven opportunity from a much broader perspective. It operates across power generation, electrification, grid infrastructure and wind energy, making it one of the few companies capable of supporting virtually every stage of the electricity value chain. As hyperscale data centers accelerate power consumption, utilities require new gas-fired generation, stronger transmission systems and more resilient grids — all areas in which GE Vernova already has established capabilities.
Demand continues to build across multiple businesses. The company has secured substantial gas turbine orders, including supplying LM2500XPRESS units for Crusoe AI data centers, while its HA turbine fleet continues expanding globally. It is also benefiting from growing investment in electrification, where transformers, substations and grid automation are becoming essential for supporting higher electricity loads. Meanwhile, GE Vernova continues investing heavily in research, manufacturing capacity and next-generation technologies, including small modular reactors (SMRs), with plans to spend roughly $11 billion on capital expenditures and research through 2028.
Financial execution remains another advantage. Management recently raised its full-year revenues, adjusted EBITDA margin and free cash flow outlook as strong orders, pricing and backlog growth continue supporting profitability. The company also returned meaningful capital to its shareholders through dividends and share repurchases. While offshore wind continues to face project delays, supply-chain pressures and margin challenges, these issues are increasingly offset by the strength of the Power and Electrification businesses, which remain the primary earnings drivers.
Price PerformanceBoth stocks have delivered exceptional returns in 2026, though FuelCell Energy has clearly outperformed. FCEL shares have surged 171.4% year to date, reflecting investor enthusiasm surrounding AI-driven data center opportunities and distributed power solutions. GE Vernova has also posted an impressive 65.1% gain, supported by sustained order momentum across gas turbines, electrification and grid infrastructure. While FCEL's rally has been more dramatic, GEV's advance appears to rest on a broader and more diversified business foundation.
Image Source: Zacks Investment Research
ValuationOn a forward price-to-sales basis, valuation is nearly identical. FuelCell Energy trades at 5.88X forward sales compared with 5.92X for GE Vernova. Given the narrow difference, valuation is unlikely to be the deciding factor. Investors are instead likely to focus on execution, earnings visibility and the ability to capitalize on growing electricity demand.
Image Source: Zacks Investment Research
Earnings EstimatesConsensus estimates remain favorable for both companies. GE Vernova's 2026 earnings estimate of $30.70 per share implies 74% growth, reflecting expectations for continued margin expansion, stronger backlog conversion and healthy cash generation.
Image Source: Zacks Investment Research
FuelCell Energy is still expected to report a loss in fiscal 2026, but the projected loss of $1.79 per share represents a 59% improvement, suggesting the company is gradually moving toward a stronger financial position as commercial activity expands.
Image Source: Zacks Investment Research
ConclusionBoth FuelCell Energy and GE Vernova are benefiting from the same powerful themes of AI-driven electricity demand and long-term grid modernization, and both currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
FuelCell Energy offers greater upside if it successfully converts its expanding pipeline into long-term revenue and improves profitability. However, GE Vernova appears to have the stronger overall investment case today. Its diversified portfolio, larger backlog, improving margins, shareholder-friendly capital allocation and leadership across power generation and electrification make it the slightly more attractive choice for investors seeking exposure to the rapidly evolving energy landscape.
The market expects Rithm (RITM - Free Report) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 28. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis real estate investment trust is expected to post quarterly earnings of $0.50 per share in its upcoming report, which represents a year-over-year change of -7.4%.
Revenues are expected to be $1.46 billion, up 19.9% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 2.38% 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 Rithm?For Rithm, 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 -2.00%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Rithm 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 Rithm would post earnings of $0.53 per share when it actually produced earnings of $0.51, delivering a surprise of -3.77%.
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.
Rithm 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.
Expected Results of an Industry PlayerAnother stock from the Zacks Financial - Miscellaneous Services industry, ChoiceOne Financial Services, Inc. (COFS - Free Report) , is soon expected to post earnings of $0.88 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -3.3%. Revenues for the quarter are expected to be $43.1 million, up 0.6% from the year-ago quarter.
The consensus EPS estimate for ChoiceOne Financial Services has remained unchanged over the last 30 days. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +2.27%.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that ChoiceOne Financial Services will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.
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.
The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.
In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.
Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.
Should You Consider United Parcel Service?Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. United Parcel Service (UPS - Free Report) earns a #3 (Hold) right now and its Most Accurate Estimate sits at $1.66 a share, just seven days from its upcoming earnings release on July 28, 2026.
By taking the percentage difference between the $1.66 Most Accurate Estimate and the $1.65 Zacks Consensus Estimate, United Parcel Service has an Earnings ESP of +1.06%. Investors should also know that UPS is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
UPS is one of just a large database of Transportation stocks with positive ESPs. Another solid-looking stock is Southwest Airlines (LUV - Free Report) .
Southwest Airlines, which is readying to report earnings on July 22, 2026, sits at a Zacks Rank #3 (Hold) right now. Its Most Accurate Estimate is currently $0.54 a share, and LUV is one day out from its next earnings report.
Southwest Airlines' Earnings ESP figure currently stands at +4.60% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.52.
UPS and LUV'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 expects a year-over-year decline in earnings on higher revenues when JetBlue Airways (JBLU - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on July 28, 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 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 airline is expected to post quarterly loss of $0.70 per share in its upcoming report, which represents a year-over-year change of -337.5%.
Revenues are expected to be $2.7 billion, up 14.4% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 26.4% 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 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 JetBlue?For JetBlue, 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 JetBlue 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 JetBlue would post a loss of$0.72 per share when it actually produced a loss of -$0.87, delivering a surprise of -20.83%.
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.
JetBlue 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 ResultsAmong the stocks in the Zacks Transportation - Airline industry, SkyWest (SKYW - Free Report) , is soon expected to post earnings of $2.7 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -7.2%. This quarter's revenue is expected to be $1.11 billion, up 6.8% from the year-ago quarter.
The consensus EPS estimate for SkyWest has been revised 0.5% higher over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -5.56%.
This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that SkyWest will 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.
Diane King Hall discusses 3M (MMM) by highlights its earnings beat fiscal year guidance raise, which investors rewarded with a rally to start Tuesday's trading session. The same can't be said for Adobe (ADBE) and Workday (WDAY) after Morgan Stanley hit both stocks with a downgrade.
Key Takeaways Applied Materials' AGS revenues rose to $1.665B as higher fab utilization boosted recurring services.AMAT expects AGS to sustain mid-teens annual growth as revenue per installed tool continues to expand.AMAT has connected more than 35,000 chambers to AIx software for AI-powered monitoring and analytics. Applied Materials’ (AMAT - Free Report) large installed base has turned into a recurring revenue engine. Applied Global Services (AGS), under which the servicing of installed bases is reported, has generated $1.665 billion in revenues, up from $1.42 billion a year earlier, reflecting higher fab utilization.
AGS’ gross margin improved to 34.7% and its operating margin rose to 29.2%. The strategic value of AGS is that it adds resilience to Applied Materials’ profit model. Unlike the more cyclical equipment business, services are tied to a growing installed base and to customer needs throughout the tool lifecycle.
Management said AGS is another important growth driver because Applied Materials increases the revenue it generates “per tool” on top of a growing installed base. AMAT expects the AGS segment to deliver a sustainable annual growth rate in the mid-teens, potentially higher this year. That makes AGS an important bridge between one-time equipment sales and long-duration customer relationships.
What makes AGS especially relevant in the AI era is the company’s AI-enabled service layer. Applied Materials said that more than 35,000 chambers are connected to its AIx software capabilities, which use AI-powered monitoring, diagnostics and analytics. This matters because Applied Materials’ broader AI and advanced-node strategy depends on execution, visibility and support after installation.
In that setting, AGS helps stabilize Applied Materials’ revenue base, deepen customer relationships and improve operating leverage as the company scales. The segment’s margin profile, recurring nature and AI-driven service enhancements make it a valuable part of Applied Materials’ long-term earnings power.
How Competitors Fare Against AMATSince AMAT serves its own installed base through the AGS business, there are no competitors in this segment. But in the broader product category, AMAT competes with Lam Research (LRCX - Free Report) and ASML Holding (ASML - Free Report) .
ASML is experiencing strong demand from DRAM and logic customers, which are ramping up leading-edge nodes using ASML’s NXE:3800E EUV systems. Additionally, ASML noted that multiple DRAM customers are adopting EUV lithography, which helps shorten cycle time and lower costs. However, AMAT offers a broad range of WFE products that do not compete directly with ASML and Lam Research, making the stock worth holding.
Lam Research secured multiple critical etch wins at a major DRAM manufacturer with its new Akara etch system, which supports 3D DRAM architectures. This was supported by LRCX’s customer investments in DDR5, LPDDR5 and high-bandwidth memory. Lam Research’s Aether dry-resist technology was recently selected as the production tool of record for a leading DRAM customer, securing a foothold in this high-growth segment.
AMAT’s Price Performance, Valuation and EstimatesShares of Applied Materials have surged 104.5% year to date compared with the Zacks Electronics - Semiconductors industry’s growth of 27.4%.
AMAT YTD Performance Chart
Image Source: Zacks Investment Research
From a valuation standpoint, Applied Materials trades at a forward price-to-sales ratio of 12.81X, higher than the industry’s average of 10.48X.
AMAT Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Applied Materials’ fiscal 2026 and 2027 earnings implies year-over-year growth of 29% and 34%, respectively. The estimates for fiscal 2026 and 2027 have been revised upward over the past seven days.
Image Source: Zacks Investment Research
Applied Materials currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Did you buy ZTS securities between January 14, 2025, and May 6, 2026?
Affected ZTS Investor Summary
Who: Zoetis Inc. (NYSE: ZTS) What: Securities fraud class action lawsuit filed Class Period: January 14, 2025 through May 6, 2026 Deadline to Seek Lead Plaintiff Status: July 27, 2026 Key Lawsuit Allegations: Material misstatements and/or omissions concerning the company's product adoption. Investor Action: Contact Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) for recovery options , /PRNewswire/ -- 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 Zoetis Inc. (Zoetis) (NYSE: ZTS) on behalf of those who purchased or otherwise acquired Zoetis securities between January 14, 2025 and May 6, 2026, inclusive (the "Class Period"). The lawsuit is filed in the United States District Court for the Southern District of New York and is captioned City of Ann Arbor Retiree Health Care Benefit Plan & Trust v. Zoetis Inc., No. 26-cv-04401 (S.D.N.Y.). Investors have until July 27, 2026, to file for lead plaintiff status.
CONTACT KTMC TO DISCUSS YOUR LEGAL RIGHTS:
If you purchased or acquired Zoetis securities and have lost money on your investment, please provide your information here:
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.
ZOETIS INC. CLASS ACTION LAWSUIT - COMPLAINT ALLEGATION SUMMARY:
Zoetis is an animal health company that develops, manufactures, and sells vaccines, medications, diagnostics, and more for companion and livestock animals.
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 misrepresented and/or failed to disclose that: (1) prescription growth and use of Librela, a pain treatment for dogs, was weakening following FDA safety warnings of serious neurological complications; (2) Simparica Trio, a preventative for fleas, ticks, and heartworm, was losing significant market share to a lower priced competitor; (3) the company's dermatological products, specifically Apoquel and Cytopoint, were also losing market share to competition; and (4) as a result of the foregoing, 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 Zoetis's Stock Drop?
On May 7, 2026, Zoetis reported its 2026 first quarter financial results which showed significant decline across its Companion Animal business. On this news, Zoetis's stock price fell 21.5%.
WHAT ZTS INVESTORS CAN DO NOW:
File to be lead plaintiff by July 27, 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 ZOETIS INC. INVESTORS:
Zoetis investors may, no later than July 27, 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 Zoetis 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 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. For more information about Kessler Topaz Meltzer & Check, LLP, please visit www.ktmc.com. 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.
, /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of Zoetis Inc. (NYSE: ZTS).
Shareholders who purchased shares of ZTS during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery.
ALLEGATIONS: The complaint alleges that during the class period, Defendants issued materially false and/or misleading statements and/or failed to disclose that: (i) veterinarian prescription growth and adoption of Zoetis' Librela, a canine pain treatment, were sharply weakening as clinicians became more cautious following FDA safety warnings concerning serious neurological complications in dogs; (ii) Zoetis' Simparica Trio was losing significant market share to a lower priced competing canine parasiticide with broader indicated use in a slowing overall market; and (iii) Zoetis' dermatology products, Apoquel and Cytopoint, were losing substantial market share to a newly launched competing canine treatment.
DEADLINE: July 27, 2026 Shareholders should not delay in registering for this class action. Register your information here: https://securitiesclasslaw.com/securities/zoetis-inc-loss-submission-form-2/?id=194961&from=4
NEXT STEPS FOR SHAREHOLDERS: Once you register as a shareholder who purchased shares of ZTS during the timeframe listed above, you will be enrolled in a portfolio monitoring software to provide you with status updates throughout the lifecycle of the case. The deadline to seek to be a lead plaintiff is July 27, 2026. There is no cost or obligation to you to participate in this case.
WHY GROSS LAW FIRM? The Gross Law Firm is a nationally recognized class action law firm, and our mission is to protect the rights of all investors who have suffered as a result of deceit, fraud, and illegal business practices. The Gross Law Firm is committed to ensuring that companies adhere to responsible business practices and engage in good corporate citizenship. The firm seeks recovery on behalf of investors who incurred losses when false and/or misleading statements or the omission of material information by a company lead to artificial inflation of the company's stock. Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
The Gross Law Firm
15 West 38th Street, 12th floor
New York, NY, 10018
Email: [email protected]
Phone: (646) 453-8903
New York, New York--(Newsfile Corp. - July 21, 2026) - WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of Zoetis Inc. (NYSE: ZTS) between January 14, 2025 and May 6, 2026, inclusive (the "Class Period"), of the important July 27, 2026 lead plaintiff deadline.
SO WHAT: If you purchased Zoetis securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.
WHAT TO DO NEXT: To join the Zoetis class action, go to https://rosenlegal.com/cases/zoetis-inc/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than July 27, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually handle securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered billions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers.
DETAILS OF THE CASE: According to the lawsuit, throughout the Class Period, defendants made false and/or misleading statements and touted growing market share, strong veterinarian adoption, and accelerating sales growth across Zoetis' flagship Companion Animal products and/or failed to disclose that: (1) veterinarian prescription growth and adoption of Zoetis' Librela, a canine pain treatment, were sharply weakening as clinicians became more cautious following FDA safety warnings concerning serious neurological complications in dogs; (2) Zoetis' Simparica Trio was losing significant market share to a lower priced competing canine parasiticide with broader indicated use in a slowing overall market; and (3) Zoetis' dermatology products, Apoquel and Cytopoint, were losing substantial market share to a newly launched competing canine treatment. When the true details entered the market, the lawsuit claims that investors suffered damages.
To join the Zoetis class action, go to https://rosenlegal.com/cases/zoetis-inc/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
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, /PRNewswire/ -- The Law Offices of Howard G. Smith announces that investors with substantial losses have opportunity to lead the securities fraud class action lawsuit against Zoetis Inc. ("Zoetis" or the "Company") (NYSE:ZTS).
IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN ZOETIS INC. (ZTS), CONTACT THE LAW OFFICES OF HOWARD G. SMITH BEFORE JULY 27, 2026 (LEAD PLAINTIFF DEADLINE) TO PARTICIPATE IN THE ONGOING SECURITIES FRAUD LAWSUIT.
Contact the Law Offices of Howard G. Smith to discuss your legal rights by email at [email protected], by telephone at (215) 638-4847 or visit our website at www.howardsmithlaw.com.
What Is The Lawsuit About?
The complaint filed alleges that, between January 14, 2025 and May 6, 2026, Defendants failed to disclose to investors that: (1) veterinarian prescription growth and adoption of Zoetis' Librela, a canine pain treatment, were sharply weakening as clinicians became more cautious following FDA safety warnings concerning serious neurological complications in dogs; (2) Zoetis' Simparica Trio was losing significant market share to a lower priced competing canine parasiticide with broader indicated use in a slowing overall market; and (3) Zoetis' dermatology products, Apoquel and Cytopoint, were losing substantial market share to a newly launched competing canine treatment; and (4) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Contact Us To Participate or Learn More:
If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact:
Howard G. Smith, Esq.,
Law Offices of Howard G. Smith,
3070 Bristol Pike, Suite 112,
Bensalem, Pennsylvania 19020,
Call us at: (215) 638-4847
Email us at: [email protected],
Visit our website at: www.howardsmithlaw.com.
To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action.
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Mondelez (MDLZ - Free Report) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 28. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis maker of Oreo cookies, Cadbury chocolate and Trident gum is expected to post quarterly earnings of $0.67 per share in its upcoming report, which represents a year-over-year change of -8.2%.
Revenues are expected to be $9.22 billion, up 2.6% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 6.84% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. 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 Mondelez?For Mondelez, 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 +0.38%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Mondelez 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 Mondelez would post earnings of $0.61 per share when it actually produced earnings of $0.67, delivering a surprise of +9.84%.
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.
Mondelez appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAnother stock from the Zacks Food - Miscellaneous industry, Lamb Weston (LW - Free Report) , is soon expected to post earnings of $0.62 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -28.7%. Revenues for the quarter are expected to be $1.7 billion, up 1.5% from the year-ago quarter.
The consensus EPS estimate for Lamb Weston has been revised 0.4% lower over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +3.56%.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Lamb Weston will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
CPI Comes In Cool: Why It Could Revive These 3 Rate-Sensitive StocksD.R. Horton NYSE: DHI reported lower third-quarter earnings from a year earlier as affordability pressures and cautious consumer sentiment continued to weigh on new-home demand, though the company said it maintained margins above its prior expectations through cost controls and disciplined pricing.
The Arlington, Texas-based homebuilder reported fiscal third-quarter earnings of $3.20 per diluted share, down from $3.36 per share in the prior-year quarter. Net income was $905 million on consolidated revenue of $9.2 billion. Consolidated pre-tax income totaled $1.2 billion, resulting in a pre-tax margin of 13.3%, according to President and Chief Executive Officer Paul Romanowski.
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MarketBeat Week in Review – 07/06 - 07/10D.R. Horton closed 23,983 homes in the quarter, at the high end of its guidance range. Home sales revenue rose to $8.7 billion from $8.6 billion a year earlier, while the number of homes closed increased from 23,160 in the prior-year period. The average closing price was $362,000, flat sequentially and down 2% year over year.
Chief Operating Officer Mike Murray said that average closing price was about $155,000, or 30%, below the average price of new homes in the U.S., reflecting the company’s continued focus on affordability. Romanowski said 65% of the company’s mortgage closings during the quarter were to first-time buyers.
Orders Flat as Cancellations Rise D.R. Horton Is Defying the Housing GloomNet sales order value totaled $8.4 billion on 23,084 homes sold, both essentially flat with the year-earlier quarter, Chief Financial Officer Bill Wheat said. The cancellation rate increased to 20%, compared with 17% in the prior-year period and 16% in the previous quarter, though management said the rate remained within the company’s normal historical range.
Romanowski said affordability constraints and cautious consumer sentiment continued to affect demand. In response to an analyst question about whether demand was stabilizing, he said sales were “relatively in line with normal seasonality” but softened after the company’s April earnings call. He said D.R. Horton still sees “plenty of buyers” in its sales offices, but buyers need more confidence in the broader economy and in their ability to complete a purchase.
Management said the company lowered its full-year delivery outlook because third-quarter sales were below internal expectations. Romanowski said D.R. Horton had expected better-than-normal seasonality early in the quarter, but demand softened as the quarter progressed. He said the company was “happy with the trade-off” of achieving a stronger gross margin at a lower sales volume level.
Margins Supported by Lower Construction Costs D.R. Horton’s home sales gross margin was 20.7% in the quarter, above the high end of its guidance range. Senior Vice President of Communications Jessica Hansen said the margin reflected lower “stick and brick” costs and slightly lower incentives than in the second quarter. She said incentives are expected to remain elevated relative to historical levels.
On a per-square-foot basis, home sales revenue and lot costs were flat sequentially, while stick-and-brick costs fell 2%. Year over year, home sales revenue per square foot declined 3%, stick-and-brick costs declined 5% and lot costs increased 5%.
During the question-and-answer portion of the call, Murray said the company’s largest savings came from framing, including labor, and that costs declined across all major categories for homes closed in the third quarter. He said management expects those savings to hold at least into the fourth quarter, though lumber could become a modest headwind in fiscal 2027.
The company guided for fourth-quarter home sales gross margin of 20.5% to 21%, roughly flat with the third quarter. Wheat said the company’s current visibility points to a “relatively stable margin” going into the fourth quarter, while acknowledging uncertainty because many sales and closings occur within the same quarter.
Inventory and Land Position Remain Areas of Focus D.R. Horton started 23,900 homes in the third quarter and ended the period with 38,000 homes in inventory, down 1% sequentially and year over year. Of those homes, 23,300 were unsold and 7,600 were completed. The company said 600 completed homes had been unsold for more than six months.
Romanowski said the company’s median cycle time from home start to home close improved by about three weeks from a year earlier. He said improved cycle times allow D.R. Horton to hold less housing inventory and turn it more efficiently. The company expects fourth-quarter starts to be lower than third-quarter starts and said it will continue to manage starts based on market conditions.
At June 30, D.R. Horton’s homebuilding lot position consisted of about 570,000 lots, with 22% owned and 78% controlled through purchase contracts. Murray said the company remains focused on building more homes on lots developed by Forestar or third parties, an approach he said enhances capital efficiency and flexibility. The company’s owned lot position was down 13% from a year earlier.
During the quarter, D.R. Horton invested $2.1 billion in lots, land and development, including $1.5 billion for finished lots, $520 million for land development and $75 million for land acquisition.
Rental, Financial Services and Forestar Results The company’s rental operations generated $31 million of pre-tax income on $266 million of revenue, reflecting sales of 601 single-family rental homes and 339 multifamily rental units. Rental property inventory totaled $3 billion at quarter end, including $2.7 billion of multifamily rental properties and $321 million of single-family rental properties.
Financial services operations posted pre-tax income of $70 million on $221 million of revenue, producing a pre-tax margin of 31.9%.
Forestar, D.R. Horton’s majority-owned residential lot development company, reported revenue of $407 million on 3,659 lots sold and pre-tax income of $49 million. Forestar’s owned and controlled lot position totaled 92,000 lots, and 66% of its owned lots were under contract with or subject to a right of first offer to D.R. Horton. D.R. Horton purchased $360 million of finished lots from Forestar during the quarter.
Cash Flow, Buybacks and Guidance D.R. Horton ended the quarter with $6.1 billion of consolidated liquidity, including $2.1 billion of cash and $4 billion of available credit facility capacity. Total debt was $7.1 billion, and consolidated leverage was 23%. Wheat said the company continues to target leverage of about 20% over the long term.
During the third quarter, D.R. Horton paid $127 million in cash dividends, or $0.45 per share, and repurchased 4.2 million shares for $616 million. The company said its outstanding share count declined 6% from a year earlier. Book value per share increased 5% year over year to $84.85.
For the fourth quarter, D.R. Horton expects consolidated revenue of $8.8 billion to $9.3 billion and home closings of 22,500 to 23,000. The company expects consolidated pre-tax margin of 12.3% to 12.8%.
For fiscal 2026, the company now expects consolidated revenue of about $32.5 billion to $33 billion and home closings of 83,800 to 84,300. It also expects an income tax rate of about 25%, operating cash flow of at least $3 billion, common stock repurchases of approximately $2.5 billion and dividend payments of around $500 million.
Romanowski said D.R. Horton will remain “agile and disciplined” amid volatility and uncertainty in the broader economy while focusing on affordable price points, market share growth and shareholder returns.
About D.R. Horton (NYSE:DHI)D.R. Horton, Inc is a national homebuilding company that designs, constructs and sells new residential properties across the United States. The company's core operations focus on building single-family detached homes, townhomes and condominiums for a range of buyer segments. In addition to home construction and sales, D.R. Horton provides complementary services through subsidiaries that support the mortgage, title and closing processes for its customers, enabling integrated transaction workflows from inventory development to home delivery.
Founded in 1978 by Donald R.
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For the quarter ended June 2026, D.R. Horton (DHI - Free Report) reported revenue of $9.23 billion, representing no change compared to the same period last year. EPS came in at $3.20, compared to $3.36 in the year-ago quarter.
The reported revenue represents a surprise of +0.46% over the Zacks Consensus Estimate of $9.18 billion. With the consensus EPS estimate being $2.99, the EPS surprise was +7.02%.
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 D.R. Horton performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Sales Order Backlog - Homes: 15,983 compared to the 17,190 average estimate based on 14 analysts.Homes Closed - Homes: 23,983 versus 23,801 estimated by 14 analysts on average.Net Sales Orders - Homes: 23,084 versus 24,109 estimated by 14 analysts on average.Sales Order Backlog - Value: $6.18 billion compared to the $6.52 billion average estimate based on 11 analysts.Net Sales Orders - Value: $8.44 billion versus the nine-analyst average estimate of $8.71 billion.Revenues- Homebuilding- Home sales: $8.56 billion versus $8.61 billion estimated by 14 analysts on average. Compared to the year-ago quarter, this number represents a 0% change.Revenues- Rental: $380.7 million versus $299.85 million estimated by 14 analysts on average. Compared to the year-ago quarter, this number represents a 0% change.Revenues- Financial Services: $227.8 million compared to the $228.56 million average estimate based on 14 analysts. The reported number represents a change of 0% year over year.Revenues- Homebuilding- Land/lot sales and other: $19.8 million versus the 12-analyst average estimate of $20.03 million. The reported number represents a year-over-year change of 0%.Revenues- Homebuilding: $8.58 billion compared to the $8.64 billion average estimate based on 12 analysts. The reported number represents a change of 0% year over year.Revenues- Forestar: $390.5 million compared to the $407.65 million average estimate based on seven analysts. The reported number represents a change of 0% year over year.Revenues- Eliminations and Other: $-354.1 million compared to the $-341.61 million average estimate based on four analysts. The reported number represents a change of 0% year over year.View all Key Company Metrics for D.R. Horton here>>>
Shares of D.R. Horton have returned -7.2% over the past month versus the Zacks S&P 500 composite's -0.6% 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.
D.R. Horton, Inc. (DHI) Q3 2026 Earnings Call July 21, 2026 8:30 AM EDT
Company Participants
Jessica Hansen - Senior VP of Communications & People and Head of Investor Relations
Paul Romanowski - President, CEO & Director
Michael Murray - Executive VP & COO
Bill Wheat - Executive VP & CFO
Conference Call Participants
John Lovallo - UBS Investment Bank, Research Division
Stephen Kim - Evercore ISI Institutional Equities, Research Division
Alan Ratner - Zelman & Associates LLC
Matthew Bouley - Barclays Bank PLC, Research Division
Eric Bosshard - Cleveland Research Company LLC
Richard Reid - Wells Fargo Securities, LLC, Research Division
Ryan Gilbert - BTIG, LLC, Research Division
Anthony Pettinari - Citigroup Inc., Research Division
Rafe Jadrosich - BofA Securities, Research Division
Trevor Allinson - Wolfe Research, LLC
Susan Maklari - Goldman Sachs Group, Inc., Research Division
Michael Dahl - RBC Capital Markets, Research Division
Buck Horne - Raymond James & Associates, Inc., Research Division
Kenneth Zener - Seaport Research Partners
Jade Rahmani - Keefe, Bruyette, & Woods, Inc., Research Division
Jay McCanless - Citizens JMP Securities, LLC, Research Division
Alex Barrón - Housing Research Center, LLC
Presentation
Operator
Good morning, and welcome to the Third Quarter 2026 Earnings Conference Call for D.R. Horton, America's Builder. [Operator Instructions] Please note this conference is being recorded.
I will now turn the call over to Jessica Hansen, Senior Vice President of Communications for D.R. Horton.
Jessica Hansen
Senior VP of Communications & People and Head of Investor Relations
Thank you, Paul, and good morning. Welcome to our call to discuss our financial results for the third quarter of fiscal 2026.
Before we get started, today's call includes forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Although D.R. Horton believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. All forward-looking statements are based upon information available to
Key Takeaways D.R. Horton beat fiscal Q3 estimates as closings rose 4% to 23,983 and revenues reached $9.23B.DHI's home sales gross margin fell to 20.7% as cancellations rose to 20% and incentives stayed elevated.D.R. Horton cut fiscal 2026 revenue guidance to $32.5-$33B and closings to 83,800-84,300 homes. D.R. Horton, Inc. (DHI - Free Report) reported third-quarter fiscal 2026 earnings of $3.20 per share, beating the Zacks Consensus Estimate of $2.99 by 7%. Revenues of $9.23 billion also surpassed the consensus mark of $9.19 billion by 0.5%. On a year-over-year basis, earnings declined 4.8%, while revenues increased marginally.
The earnings and revenue beat were driven by higher home-closing volumes, resilient home sales margins, disciplined management of pricing and incentives, contributions from the Rental, Forestar and Financial Services businesses and the benefit of a lower diluted share count from share repurchases. However, lower profitability, elevated incentives and cautious consumer demand continued to weigh on results.
Shares of this Arlington, TX-based homebuilder gained more than 1.1% following the earnings release on Tuesday.
DHI Sustains Revenue as Profitability ModeratesConsolidated revenues totaled $9.227 billion compared with $9.225 billion in the prior-year quarter. Income before taxes declined 9.7% year over year to $1.23 billion, while the pre-tax margin contracted to 13.3% from 14.7%.
Net income fell 11.7% to $904.9 million from a year ago. Cost of sales increased to $7.08 billion from $7.02 billion, while selling, general and administrative expenses rose 5% to $991.2 million.
The lower earnings reflected margin pressure rather than a meaningful decline in consolidated revenues. Management continued to balance sales pace, pricing, incentives and inventory levels across its communities.
D.R. Horton's Home Closings Support SalesHomebuilding revenues increased 1.2% year over year to $8.69 billion. Homes closed rose 4% year over year to 23,983, reaching the high end of management’s guidance range for the quarter.
Homebuilding pre-tax income declined 10.1% to $1.07 billion, while the segment’s pre-tax margin narrowed to 12.3% from 13.8%. The results show that higher delivery volume was not enough to offset the effect of weaker profitability.
Net sales orders totaled 23,084 homes, nearly unchanged from the prior-year quarter level of 23,071 units. The value of orders was $8.44 billion, also broadly stable year over year.
DHI Faces Higher Cancellations and Margin PressureThe cancellation rate increased to 20% from 17% in the year-ago period. Management said that affordability constraints and cautious consumer sentiment continued to affect new-home demand.
Home sales revenues increased to $8.68 billion from $8.56 billion. The home sales gross margin fell to 20.7% from 21.8%, though it improved from 20.1% in the second quarter of fiscal 2026.
Gross margin before interest and other costs was 24.7%, down from 25.7% a year earlier. Management expects sales incentives to remain elevated in the fiscal fourth quarter, with incentive levels depending on demand, mortgage rates and broader market conditions.
D.R. Horton Maintains Flexible Inventory PositionThe company ended the quarter with 38,000 homes in inventory, including 23,300 unsold homes. Completed unsold homes totaled 7,600, of which 600 had been completed for more than six months.
During the first nine months of fiscal 2026, 67% of homes closed were built on lots developed by Forestar or third parties, up from 65% a year ago. This structure supports D.R. Horton’s effort to maintain flexibility in its land and lot investments.
Homebuilding return on inventory declined to 17% for the trailing 12 months from 22.1% a year earlier. The decrease reflected lower trailing homebuilding pre-tax income against a relatively stable average inventory base.
DHI's Other Segments Contribute to ResultsRental operations generated revenues of $266.1 million (down 30.1% from a year ago) from the sale of 601 single-family rental homes and 339 multifamily rental units. The segment posted pre-tax income of $31 million (down 43.4% year over year) and a pre-tax margin of 11.6% (contracted from 14.4%).
Forestar sold 3,659 lots and generated revenues of $407 million (up 4.2% from a year ago). Pre-tax income was $48.7 million (up 11.7% year over year), resulting in a margin of 12% from 11.2% a year ago.
Financial Services recorded revenues of $220.7 million (down 3.1% year over year) and pre-tax income of $70.3 million (down 13.5%). The segment’s pre-tax margin was down to 31.9% from 35.7% a year ago, yet making it the company’s most profitable business by margin during the quarter.
DHI Returned Capital While Preserving LiquidityD.R. Horton continued to return cash to shareholders during the quarter. The company repurchased 4.2 million shares for $615.7 million and paid $127.1 million in cash dividends. Common shares outstanding totaled 280.7 million as of June 30, 2026, down 6% year over year, while the remaining repurchase authorization was $1.1 billion.
Cash, cash equivalents and restricted cash totaled $2.13 billion at quarter-end compared with $3.03 billion at the end of fiscal 2025. Total liquidity remained solid at $6.1 billion, while the debt-to-total-capital ratio was 23%. The company also had $600 million of homebuilding senior notes maturing within the next 12 months. The board declared a quarterly dividend of 45 cents per share.
Cash provided by operations was $880.8 million for the first nine months of fiscal 2026 compared with $949.1 million a year ago. Trailing 12-month return on equity was 12.8%, while return on assets was 8.5%, reflecting continued profitability despite lower year-over-year earnings.
D.R. Horton Trims Fiscal 2026 GuidanceD.R. Horton now expects fiscal 2026 consolidated revenues of $32.5-$33 billion, down from $33.5-$34.5 billion expected earlier. This compares with $34.25 billion in fiscal 2025.
Homebuilding closings are projected to be between 83,800 and 84,300 homes (versus earlier projection of 86,000-87,500 homes). This compares with 84,863 in fiscal 2025.
Income tax rate is expected to be approximately 25%.
The company reiterated its expectations for at least $3 billion in operating cash flow, approximately $2.5 billion in share repurchases and about $500 million in dividend payments.
DHI’s Zacks Rank & Recent Homebuilding ReleasesD.R. Horton currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
KB Home (KBH - Free Report) reported second-quarter fiscal 2026 earnings of 43 cents per share, in line with the Zacks Consensus Estimate. Earnings declined 71.3% from $1.50 per share in the year-ago quarter. Total revenues of $1.112 billion beat the consensus mark of $1.090 billion by 2% but decreased 27% year over year. Results reflected lower deliveries and pricing pressure, partly offset by progress in the company’s Built to Order model, which represented 73% of net orders.
For the third quarter of fiscal 2026, KBH expects deliveries of 2,600-2,800 homes and housing revenues of $1.20-$1.35 billion. Housing gross margin is projected to be between 16.0% and 16.6%, assuming no inventory-related charges.
Lennar Corporation (LEN - Free Report) reported mixed second-quarter fiscal 2026 results, with adjusted earnings topping the Zacks Consensus Estimate by 6.5% while revenues missed the same by 1.6%. On a year-over-year basis, both metrics declined 31.1% and 5.2%, respectively, given ongoing softness in housing demand and a lower average sales price (ASP) for homes delivered.
For the third quarter of fiscal 2026, Lennar expects home deliveries in the range of 20,500-21,500 homes and new orders between 21,000 and 22,000 homes. The company expects the ASP to be between $375,000 and $380,000. Gross margin on home sales is expected to be approximately 16%, while SG&A expenses are projected to be between 8.8% and 9% of home sales.
PulteGroup, Inc. (PHM - Free Report) is scheduled to report its second-quarter 2026 results on July 22, 2026. Earnings for the to-be-reported quarter are expected to decline 21.5% on 9.6% lower revenues.
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It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best 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 ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Epam (EPAM - Free Report) Headquartered in Newtown, PA, EPAM Systems, Inc. is well known for its software engineering and IT consulting services.
EPAM is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 6.83; value investors should take notice.
For fiscal 2026, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.02 to $13.08 per share. EPAM boasts an average earnings surprise of +3.8%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, EPAM should be on investors' short list.
For the quarter ended June 2026, Synchrony (SYF - Free Report) reported revenue of $4.61 billion, up 1.9% over the same period last year. EPS came in at $2.59, compared to $2.50 in the year-ago quarter.
The reported revenue represents a surprise of -1.14% over the Zacks Consensus Estimate of $4.66 billion. With the consensus EPS estimate being $2.08, the EPS surprise was +24.52%.
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 Synchrony performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Efficiency Ratio: 35.8% versus 35.1% estimated by four analysts on average.Net interest margin: 15.1% versus 15.3% estimated by four analysts on average.Total - Average loan receivables, including held for sale: $100.7 billion compared to the $100.89 billion average estimate based on three analysts.Net charge-offs as a % of average loan receivables, including held for sale: 5.4% versus the three-analyst average estimate of 5.6%.Total - Purchase volume: $49.83 billion compared to the $48.67 billion average estimate based on three analysts.Total - Period-end loan receivables: $102.21 billion versus $101.88 billion estimated by three analysts on average.Average Balance - Total interest-earning assets: $122.54 billion compared to the $122.76 billion average estimate based on three analysts.Platform Analysis - Digital - Purchase volume: $14.9 billion versus $14.67 billion estimated by two analysts on average.Platform Analysis - Home & Auto - Period-end loan receivables: $30.35 billion versus $30.05 billion estimated by two analysts on average.Platform Analysis - Digital - Average loan receivables, including held for sale: $28.54 billion compared to the $28.8 billion average estimate based on two analysts.Platform Analysis - Diversified & Value - Purchase volume: $17.2 billion versus the two-analyst average estimate of $16.55 billion.Platform Analysis - Diversified & Value - Period-end loan receivables: $20.77 billion compared to the $20.52 billion average estimate based on two analysts.View all Key Company Metrics for Synchrony here>>>
Shares of Synchrony have returned -3% over the past month versus the Zacks S&P 500 composite's -0.6% 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.
Memory stocks are extending their rebound Tuesday morning, with SanDisk (NASDAQ:SNDK | SNDK Price Prediction) up 8% to $1,504, Western Digital (NASDAQ:WDC) up 9% to $531, and Micron Technology (NASDAQ:MU) up 7% to $923. Today’s gains build on a July 20 session in which the same names rose 4% to 6%, turning a summer pullback into a two-day rebound for the group.
The specific catalyst on the tape today belongs to Micron. Bank of America analyst Vivek Arya raised his Micron price target to $1,550 from $1,500 and reiterated Buy. SanDisk and Western Digital are riding the broader memory tape and a constructive UBS note.
Bank of America Fuels the Micron Leg Arya characterized Micron’s latest quarter as “another memorable beat,” pointing to the company’s eighth straight quarterly EPS beat, which topped consensus by 24%. He framed the recent chip pullback as a “summer reset.”
The Bank of America note pegs the high-bandwidth memory (HBM) opportunity at $246 billion by 2030 and global semiconductor sales at $2.7 trillion by 2030. Micron has locked in 16 multi-year Strategic Customer Agreements, including a supply-and-investment partnership with private AI lab Anthropic.
Micron’s Q4 FY2026 guidance calls for revenue of $50 billion plus or minus $1 billion, non-GAAP EPS of $31 plus or minus $1, and gross margin of 86%. The stock’s forward P/E ratio of 5x looks unusually low for a name compounding at this pace, and analyst targets reflect that view: TD Cowen sits at $1,500, with the Street’s consensus at $1,491.95.
UBS piled on Monday, writing that Micron could repurchase more than 40% of its shares by the end of 2028 and generate over $400 billion in free cash flow through 2028. The bank flagged Micron, SanDisk, Western Digital, Seagate Technology (NASDAQ:STX), Broadcom, and Advanced Micro Devices (NASDAQ:AMD) as attractive at current levels.
SanDisk and Western Digital Ride the Memory Wave SanDisk stock has run 533% year to date (YTD), and Western Digital shares are up 207% YTD. Both moves sit on top of sharp monthly pullbacks, so today’s gains function as much as a snap-back trade as a fresh leg higher.
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Neither name printed a company-specific catalyst overnight. SanDisk stock and Western Digital shares are moving on the same AI memory thesis that lifted Micron, along with UBS’s constructive read across the storage complex. The setup mirrors the earnings cadence, where SanDisk posted datacenter segment revenue of $1.47 billion, up 645% year over year (YoY) in its most recent quarter, and Western Digital crossed 50% non-GAAP gross margin for the first time.
For diversified exposure, the Roundhill Memory ETF (NYSEARCA:DRAM) is extending its rebound alongside the group. The fund is heavily concentrated, with Samsung Electronics at 25%, SK Hynix (NASDAQ:SKHY) at 24%, and Micron Technology at 24% of net assets. It’s a narrow, single-theme thematic vehicle (but not leveraged), and the concentration risk in a handful of mega-cap memory makers is real.
What to Watch Into a Heavy Earnings Week The next catalysts arrive fast. Intel (NASDAQ:INTC) reports Thursday, Alphabet (NASDAQ:GOOGL) reports this week, and SK Hynix reports July 29. Any commentary on hyperscaler capex, HBM pricing, or NAND supply from those calls can either extend the memory rally or trigger another rotation out of the group.
Investors may want to size their positions modestly here. These are high-beta names with powerful YTD runs, and the memory tape can turn on a single guidance data point. The bull case rests on structural AI demand, HBM pricing power, and multi-year customer agreements; the bear case is that memory pricing peaks earlier than Street models assume, and July’s drawdown showed how quickly that fear can compress multiples.
Market watchers can check for whether today’s gains hold into the close and whether Intel’s report Thursday validates the hyperscaler capex thesis. That’s the next real information point for the memory/storage trade.
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Oshkosh (OSK - Free Report) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on July 28, 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 heavy vehicle manufacturer for the military, emergency and commercial companies is expected to post quarterly earnings of $2.60 per share in its upcoming report, which represents a year-over-year change of -23.8%.
Revenues are expected to be $2.75 billion, up 0.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.23% 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 Oshkosh?For Oshkosh, 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 -1.54%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Oshkosh 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 Oshkosh would post earnings of $1.04 per share when it actually produced earnings of $0.85, delivering a surprise of -18.27%.
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.
Oshkosh 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.
LOUISVILLE, Ky.--(BUSINESS WIRE)--Yum! Brands, Inc. (NYSE: YUM) today announced that Nai De Leon has been appointed Chief People & Culture Officer, effective November 1, 2026.
HomeInvestingStocksMark HulbertMark HulbertStates are trying to block Paramount’s mega-merger. Shareholders should root for them.July 21, 2026, 10:53 a.m. ET
Paramount Skydance PSKY shareholders should hope the company loses its legal battle with the U.S. states trying to block its acquisition of Warner Bros. Discovery WBD.
That’s because if the deal goes through it stands a good chance to fail — failure in this case meaning that the combined company destroys more shareholder value than it creates.
Wall Street analysts expect Ovintiv (OVV - Free Report) to post quarterly earnings of $1.91 per share in its upcoming report, which indicates a year-over-year increase of 87.3%. Revenues are expected to be $2.35 billion, up 1.4% from the year-ago quarter.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 15.2% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
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 use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
That said, let's delve into the average estimates of some Ovintiv metrics that Wall Street analysts commonly model and monitor.
The average prediction of analysts places 'Revenues- Canadian Operations' at $990.98 million. The estimate suggests a change of +36.9% year over year.
The collective assessment of analysts points to an estimated 'Revenues- Corporate & other' of $46.46 million. The estimate indicates a change of -34.6% from the prior-year quarter.
It is projected by analysts that the 'Revenues- USA Operations' will reach $1.28 billion. The estimate indicates a change of -15.8% from the prior-year quarter.
Analysts forecast 'Production Volumes - Total - Total' to reach 614.81 thousands of barrels of oil equivalent per day. Compared to the current estimate, the company reported 615.30 thousands of barrels of oil equivalent per day in the same quarter of the previous year.
The combined assessment of analysts suggests that 'Production Volumes - Natural Gas - Total' will likely reach . The estimate compares to the year-ago value of .
The consensus among analysts is that 'Production Volumes - Oil & Plant Condensate - Total' will reach 203.33 thousands of barrels of oil per day. The estimate compares to the year-ago value of 153.00 thousands of barrels of oil per day.
According to the collective judgment of analysts, 'Production Volumes - NGLs-Other - Total' should come in at 78.37 thousands of barrels of oil per day. The estimate is in contrast to the year-ago figure of 95.50 thousands of barrels of oil per day.
Analysts expect 'Per-Unit Prices, Excluding the Impact of Realized Gains (Losses) on Risk Management - Oil Price - Total Operations' to come in at $93.70 . The estimate is in contrast to the year-ago figure of $64.50 .
Analysts predict that the 'Per-Unit Prices, Excluding the Impact of Realized Gains (Losses) on Risk Management - NGLs-Other Price - Total Operations' will reach $24.50 . Compared to the present estimate, the company reported $18.28 in the same quarter last year.
The consensus estimate for 'Production Volumes - Total - USA Operations' stands at 254.60 thousands of barrels of oil equivalent per day. The estimate compares to the year-ago value of 314.70 thousands of barrels of oil equivalent per day.
Based on the collective assessment of analysts, 'Production Volumes - Oil & NGLs - Canadian Operations' should arrive at 97.35 thousands of barrels of oil per day. Compared to the current estimate, the company reported 76.90 thousands of barrels of oil per day in the same quarter of the previous year.
Analysts' assessment points toward 'Production Volumes - Oil & NGLs - USA Operations' reaching 185.65 thousands of barrels of oil per day. Compared to the current estimate, the company reported 229.80 thousands of barrels of oil per day in the same quarter of the previous year.
View all Key Company Metrics for Ovintiv here>>>
Over the past month, Ovintiv shares have recorded returns of +5.8% versus the Zacks S&P 500 composite's -0.6% change. Based on its Zacks Rank #3 (Hold), OVV will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium 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 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 ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM 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 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.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Tapestry (TPR - Free Report) Founded in 1941 and headquartered in New York, Tapestry, Inc., which was formerly known as Coach, Inc., is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. The company offers lifestyle products, which include handbags, women’s and men’s accessories, footwear, jewelry, seasonal apparel collections, sunwear, travel bags, fragrance and watches. The company sells through direct-to-consumer, wholesale and licensing channels. Tapestry currently operates under two core brands following portfolio rationalization — Coach and Kate Spade. In third-quarter fiscal 2026, Coach generated $1.70 billion in revenues, while Kate Spade contributed $219.6 million.
TPR is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. TPR has a Growth Style Score of A, forecasting year-over-year earnings growth of 36.5% 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 $0.09 to $6.96 per share. TPR also boasts an average earnings surprise of +15.6%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, TPR should be on investors' short list.
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Jason Kidd said he taste tests Chipotle all day when he travels to different markets. Marissa Leshnov for BI Jason Kidd spends his days taste-testing Chipotle — and it's his dream job.
Kidd, who used to be COO at Taco Bell, told Business Insider that traveling to different locations weekly to visit with Chipotle staff is exactly the role he envisioned for himself.
His path to COO wasn't always glamorous, though. Kidd, who spent two decades in retail before moving into the restaurant business, has simple advice for anyone seeking their dream career: Don't wait for the perfect opportunity. Instead, he said, "say yes," even to the jobs that don't sound "easy or exciting."
"Do the job that someone else doesn't want to do," Kidd said. "Take the opportunity, move, go be uncomfortable."
The COO said that's a "critical piece" of every career, and it worked well for a lot of people he knows who are now "incredibly successful."
Early in his career, Kidd said he volunteered to be the lead in a management training program. The job involved working 4 a.m. shifts, closing shifts, and overnight shifts. Meanwhile, the other trainees mostly worked mid-shifts. Kidd said he finished the program faster than his peers and was promoted first — and not because he was necessarily the smartest of the group.
"I gained the most experience the fastest," Kidd added in a follow up email. "I got to see how every part of the operation worked and how it all came together."
Early on in your career, you tend to have less control over your job and do more grunt work. While those experiences may not always be pleasant, Kidd said it allows you to see what you might like to do — or what you want to avoid in the future.
Sometimes, he said, someone may think they want to do something, but after actually trying it, they realize they don't. Or the opposite may happen, where someone gets surprised by how much they like something.
"So I tell people: Say 'yes.' Be ready," Kidd said.
Kidd also advises workers to be strong communicators from the start. He said owning outcomes is crucial early on in your career, and it's one of the four traits he looks for in workers he goes to promote.
"Give good feedback," Kidd said. "If you can be a clear communicator early on, that goes a long way."
Read next
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Key Takeaways Steel Dynamics earned $3.80 per share, topping estimates, as Q2 revenue rose 33.4%.STLD shipped a record 3.74 million tons of steel, with average selling prices rising to $1,298 per ton. STLD expects aluminum volumes and profitability to improve in H2'26 as commercial operations begin in August. Steel Dynamics, Inc. (STLD - Free Report) reported second-quarter 2026 adjusted earnings of $3.80 per share, up from $2.01 in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of $3.67.
The company reported second-quarter earnings of $3.69 per share, which included a $16 million non-cash asset impairment charge tied to relocating its second planned aluminum recycled slab center from Arizona to Columbus, MS.
Net sales in the second quarter rose around 33.4% year over year to $6,092 million. The metric surpassed the Zacks Consensus Estimate of $5,438 million.
Steel Dynamics, Inc. Price, Consensus and EPS SurpriseSteel Dynamics’ Segment HighlightsNet sales from steel operations were $4,006 million in the reported quarter, up around 22.3% year over year. STLD registered record steel shipments of roughly 3.74 million tons, up about 11.7% from the prior-year quarter. Shipments also topped the consensus estimate of 3.65 million tons.
STLD’s steel operations reported an average external product selling price of $1,298 per ton, up from $1,134 per ton in the year-ago quarter. The figure beat the consensus estimate of $1,270.53 per ton.
Net sales from metals recycling operations were $654 million in the quarter, up around 25.1% year over year. STLD registered ferrous shipments of approximately 1.67 million gross tons, up roughly 4.8% from the prior-year quarter. The figure outpaced the consensus estimate of 1.60 million gross tons.
The company’s steel fabrication operations reported sales of around $394 million, up approximately 15.6% year over year. Steel Dynamics recorded fabrication shipments of 161,010 tons in the quarter, up around 19% from the year-ago period. The figure beat the consensus estimate of 152,000 tons.
STLD’s Financial PositionSteel Dynamics ended the quarter with cash and cash equivalents of $567.7 million, up around 23.9% year over year. Long-term debt was approximately $4.18 billion, up roughly 10.6% from the prior-year period.
The company generated cash flow from operations of $427.9 million in the reported quarter, up around 41.9% year over year.
Steel Dynamics’ OutlookThe company remains optimistic that domestic steel and aluminum consumption will stay strong through the remainder of 2026 and into 2027, supported by improving customer sentiment, stronger order activity, better pricing, domestic trade actions, manufacturing reshoring and infrastructure investments. Steel backlogs and lead times have extended, while customer inventory levels remain below historical norms.
Steel Dynamics also continues to advance the commissioning of its aluminum flat-rolled products mill. The third cold mill was undergoing commissioning, with commercial operations expected to begin in August 2026. Management expects aluminum volumes and profitability to improve sharply in the second half of 2026 as utilization and yields rise and startup costs subside.
STLD’s Price PerformanceShares of Steel Dynamics have gained 74.3% over the past year compared with a 59.4% rise in its industry.
Image Source: Zacks Investment Research
Steel Dynamics’ Zacks Rank & Key PicksSTLD currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are CSW Industrials, Inc. (CSW - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Ternium S.A. (TX - Free Report) .
CSW Industrials is expected to report second-quarter results on July 30. The Zacks Consensus Estimate for CSW’s second-quarter earnings is pegged at $3.66 per share. It carries a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
CRS is slated to report second-quarter results on July 30. The Zacks Consensus Estimate for earnings is pegged at $3.03 per share. CRS has a Zacks Rank #1 at present.
Ternium is scheduled to report second-quarter results on August 4. The Zacks Consensus Estimate for TX’s second-quarter earnings is pegged at $1.06 per share. It currently carries a Zacks Rank #1.
US equities advanced during Q2, supported by another quarter of better-than-expected corporate earnings and continued enthusiasm for companies benefiting from artificial intelligence-related investment. Our bottom five contributors to return in Q2 were Accenture, CME Group, Salesforce, Boston Scientific and EOG Resources. Our top five contributors to return in Q2 were Texas Instruments, Lam Research, NXP Semiconductors, Elevance Health and Alphabet.
Groupon (GRPN - 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.
Over the past month, shares of this online daily deal service have returned +65.4%, compared to the Zacks S&P 500 composite's -0.6% change. During this period, the Zacks Internet - Commerce industry, which Groupon falls in, has gained 4.3%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Groupon is expected to post a loss of $0.08 per share for the current quarter, representing a year-over-year change of -117.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -37.5%.
For the current fiscal year, the consensus earnings estimate of -$0.17 points to a change of +91.8% from the prior year. Over the last 30 days, this estimate has changed -34.2%.
For the next fiscal year, the consensus earnings estimate of $0.89 indicates a change of +623.5% from what Groupon is expected to report a year ago. Over the past month, the estimate has changed +1.1%.
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 #3 (Hold) for Groupon.
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 Groupon, the consensus sales estimate for the current quarter of $127.42 million indicates a year-over-year change of +1.4%. For the current and next fiscal years, $519.48 million and $561.06 million estimates indicate +4.2% and +8% changes, respectively.
Last Reported Results and Surprise HistoryGroupon reported revenues of $117.2 million in the last reported quarter, representing no change year over year. EPS of -$0.32 for the same period compares with $0.18 a year ago.
Compared to the Zacks Consensus Estimate of $117.26 million, the reported revenues represent a surprise of -0.05%. The EPS surprise was -1500%.
Over the last four quarters, the company surpassed EPS estimates just once. The company topped consensus revenue estimates two times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Groupon is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
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 Groupon. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Incyte (INCY - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on July 28, 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 specialty drugmaker is expected to post quarterly earnings of $1.85 per share in its upcoming report, which represents a year-over-year change of +17.8%.
Revenues are expected to be $1.4 billion, up 15.3% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.53% 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 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 Incyte?For Incyte, 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 +18.47%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Incyte 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 Incyte would post earnings of $1.38 per share when it actually produced earnings of $1.81, delivering a surprise of +31.16%.
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.
Incyte 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 HALO grants INCY the right to ENHANZE to support subcutaneous formulations of INCA033989.HALO will receive upfront, milestone and potential royalty payments if products are commercialized.HALO's ENHANZE aims to enable more convenient subcutaneous dosing regimens for patients. Halozyme Therapeutics (HALO - Free Report) announced that it has entered into a global collaboration and license agreement with Incyte (INCY - Free Report) to evaluate additional subcutaneous formulations of the latter’s INCA033989, a first-in-class mutant calreticulin (mutCALR)-targeted monoclonal antibody for a cancer indication.
With the partnership, the companies are looking to investigate additional subcutaneous formulations of Incyte’s INCA033989, utilizing Halozyme's proprietary ENHANZE drug delivery technology in patients with mutCALR-expressing myeloproliferative neoplasms (MPNs).
The companies aim to develop more convenient subcutaneous dosing regimens that could improve the treatment experience for patients with mutCALR-expressing MPNs.
The deal gives Incyte the rights to develop and commercialize Halozyme’s ENHANZE drug delivery technology with its mutCALR development program and an option to nominate up to two additional targets for use with ENHANZE.
Per the agreement, Halozyme will receive an undisclosed amount of upfront payment from Incyte as well as additional milestone payments upon the achievement of specified development, regulatory and commercial milestones. Halozyme is also eligible to receive royalties on future net sales if a product is commercialized from this partnership using ENHANZE.
HALO’s Price PerformanceYear to date, shares of Halozyme have increased 14.6% compared with the industry’s rise of 3.2%.
Image Source: Zacks Investment Research
HALO’s ENHANZE Technology Aid RevenuesHalozyme’s ENHANZE drug delivery technology has been used in the development of subcutaneous formulations of various approved drugs through partnerships with large drugmakers. The company has several marketed partnered drugs based on this technology, including the subcutaneous formulation of J&J’s (JNJ - Free Report) Darzalex and Roche’s (RHHBY - Free Report) Phesgo.
Per the agreements, these companies have been granted worldwide license rights to develop and commercialize their products using ENHANZE technology. These deals generate royalties on sales of marketed drugs, milestone payments and annual license fees, which comprise Halozyme’s top line.
Halozyme’s top line also comprises product sales, royalty payments from Roche for Phesgo and J&J for subcutaneous Darzalex as well as revenues under collaboration agreements related to its ENHANZE technology.
Halozyme’s royalty revenues totaled $240.7 million in the first quarter of 2026, up 43% from the year-ago quarter’s level. This was mainly due to the robust demand for Phesgo, subcutaneous Darzalex and Vyvgart Hytrulo, on which it earns royalties.
Management expects royalty revenues to be in the range of $1.13-$1.17 billion in 2026, implying year-over-year growth of 30% to 35%.
HALO’s Zacks RankHalozyme currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For the quarter ended June 2026, Northrop Grumman (NOC - Free Report) reported revenue of $10.88 billion, up 5.1% over the same period last year. EPS came in at $7.68, compared to $7.11 in the year-ago quarter.
The reported revenue represents a surprise of +0.73% over the Zacks Consensus Estimate of $10.8 billion. With the consensus EPS estimate being $6.84, the EPS surprise was +12.28%.
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 Northrop Grumman performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Sales- Mission Systems: $3.25 billion versus the three-analyst average estimate of $3.21 billion. The reported number represents a year-over-year change of +3%.Sales- Aeronautics Systems: $3.52 billion versus the three-analyst average estimate of $3.27 billion. The reported number represents a year-over-year change of +13%.Sales- Intersegment eliminations: $-739 million versus $-556.86 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +32.7% change.Sales- Space Systems: $2.75 billion compared to the $2.76 billion average estimate based on three analysts. The reported number represents a change of +4% year over year.Sales- Defense Systems: $2.09 billion compared to the $2.14 billion average estimate based on three analysts. The reported number represents a change of +5.1% year over year.Operating income (loss)- Intersegment eliminations: $-97 million versus $-79.82 million estimated by three analysts on average.Operating income (loss)- Mission Systems: $501 million compared to the $468.64 million average estimate based on three analysts.Operating income (loss)- Space Systems: $236 million versus $298.67 million estimated by three analysts on average.Operating income (loss)- Aeronautics Systems: $362 million versus the three-analyst average estimate of $306.92 million.Operating income (loss)- Defense Systems: $156 million compared to the $213.11 million average estimate based on three analysts.Segment operating income adjustment- Unallocated corporate expenses: $-69 million versus $-54.5 million estimated by two analysts on average.View all Key Company Metrics for Northrop Grumman here>>>
Shares of Northrop Grumman have returned +3.3% over the past month versus the Zacks S&P 500 composite's -0.6% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
SpaceX Has Real Value—But These 3 Stocks Have Better Odds Right NowNorthrop Grumman NYSE: NOC raised its 2026 sales and earnings outlook after reporting stronger second-quarter bookings, a record backlog and revenue growth across all four of its business segments, while management also addressed cost pressures on two programs that weighed on segment margins.
Chair, CEO and President Kathy Warden said the company is seeing increased demand tied to U.S. defense priorities, international modernization efforts and production-ready systems in areas including missiles, missile defense, autonomous aircraft and national security space.
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RTX Is Set to Revolutionize Munitions Manufacturing“We are fully aligned with the U.S. government priorities and see significant opportunity and increased demand for our portfolio,” Warden said on the company’s second-quarter 2026 earnings call.
Bookings Push Backlog to Record Level Northrop Grumman reported $20 billion in net awards during the quarter, producing a book-to-bill ratio of 1.84 times. Backlog rose to a record $105 billion, up 17% from a year earlier, according to CFO John Greene.
The Pentagon's AI Pivot Supercharges Defense StocksWarden said the company now expects full-year book-to-bill of at least 1.25 times, citing continued strong bookings and improving government outlays. She said core programs remain well supported in the U.S. base budget request, even as Congress and the administration continue working through fiscal 2027 authorization, appropriations, supplemental defense funding and a reconciliation package focused on military modernization and the defense industrial base.
Northrop Grumman said second-quarter sales increased 5% year over year to $10.9 billion and rose 10% sequentially. Adjusted free cash flow was nearly $1 billion in the quarter, while capital expenditures totaled $302 million as the company continues to expand facilities to support customer demand.
Company Raises 2026 Guidance Management increased full-year sales guidance to a range of $43.75 billion to $44.25 billion, with a midpoint of $44 billion, representing more than 5% organic growth. Northrop Grumman also raised its mark-to-market adjusted earnings per share outlook by $1.20 to a range of $28.60 to $29.10.
Greene said the higher EPS outlook reflects a combination of higher sales, expected strong second-half margins, tax benefits and ongoing efforts to manage operating costs. Second-quarter diluted EPS was $7.68. Greene said EPS benefited from a lower effective tax rate, including the remeasurement of uncertain tax positions after recent developments with the IRS, as well as a gain tied to the sale of an equity investment.
The company reaffirmed adjusted free cash flow guidance of $3.1 billion to $3.5 billion for 2026 and said it still expects $1.85 billion of capital expenditures this year. Greene said CapEx investments are expected to run around 4.5% of sales in 2027 and 2028 as Northrop Grumman supports the B-21 production ramp.
Segment Results Mixed by Program Adjustments Aeronautics Systems delivered the strongest segment performance in the quarter, with sales up 13% on higher volumes for B-21, TACAMO and mature production programs. Operating margin increased to 10.3%, which Greene attributed to strong performance across production and sustainment programs. The company raised its full-year Aeronautics sales estimate to about $14 billion and lifted expected margins to the mid-to-high 9% range.
Defense Systems sales increased 5%, or 7% organically, driven by Sentinel and missile defense programs. Operating margin was 7.5%, reflecting a $68 million unfavorable estimate-at-completion adjustment on the Stand-in Attack Weapon, or SiAW, program. Excluding SiAW, Greene said the rest of the Defense Systems portfolio contributed an operating margin rate of 11% in the quarter.
Warden said higher projected SiAW costs were tied to qualification testing and schedule effects from delays in testing on the AARGM-Extended Range program, which she said is related to the company’s broader tactical missile growth strategy. She said Northrop Grumman has added resources and integration lab capacity to help work through the challenges.
Mission Systems sales rose 3%, supported by marine programs, F-35 sensors and restricted airborne radar programs. The segment’s margin rate improved to 15.4%, driven by strong execution and higher net favorable EAC adjustments. Northrop Grumman raised its full-year Mission Systems margin outlook to approximately 15% while maintaining its sales guidance in the high $12 billion range.
Space Systems sales increased 4%, driven by NASA Commercial Resupply Services and missile defense programs. Operating margin was 8.6%, affected by an unfavorable EAC adjustment on the GEM 63XL program tied to increased estimated material costs and quantities. Warden said the company has progressed on the root cause investigation following a first-quarter launch anomaly and has completed a successful static fire test of a redesigned component. Deliveries of redesigned motors are expected to begin by year-end.
Northrop Grumman lowered its full-year Space margin expectation to the low 10% range but maintained its sales outlook of about $11 billion.
Sentinel, B-21 and Missile Programs Remain Key Growth Drivers Warden highlighted progress on the Sentinel program, including further definitization and authorization that added $7.6 billion to program backlog. She said the company achieved contract incentives during the quarter, completed an acoustic test of the Sentinel missile and has solid rocket motors for the first five flight tests in production. First flight of the integrated missile is expected in 2027.
On the B-21, Warden said Northrop Grumman is working with the Air Force as it analyzes whether to accelerate production into a larger program of record. She said she expects the Air Force to reach a conclusion by year-end.
The company also pointed to opportunities in solid rocket motors. Warden said Northrop Grumman completed qualification activities to become a supplier on PAC-3 and reached a $2 billion framework agreement with the Department of Defense and Lockheed Martin. A PAC-3 solid rocket motor production award is expected later this year.
Warden said Northrop Grumman has 10 multi-year agreements for missile acceleration across its portfolio, representing up to $10 billion of sales opportunity over the next seven years.
International Demand and Space Opportunities Expand Northrop Grumman reiterated its goal of doubling annual international sales to $10 billion by 2031. Warden cited NATO’s commitment involving Triton autonomous aircraft, Kuwait’s State Department authorization for six IBCS systems and Australia’s selection of Northrop Grumman to establish an in-country solid rocket motor manufacturing facility.
In the Middle East, Warden said missile defense remains a priority and noted letters of request from the United Arab Emirates and Qatar for IBCS, along with discussions with other countries in the region. She also said the foreign military sales process has improved, with cases being approved at a faster rate than in prior years.
Management also emphasized national security space as a growing priority. Warden said Northrop Grumman’s national security space backlog exceeds $16 billion and that the business is projected to grow high single digits this year, generating more than $7 billion in sales and accounting for over 15% of company revenue.
The company also discussed its Mission Robotic Vehicle, a commercial robotic spacecraft designed to service satellites in geosynchronous orbit and install life-extension systems. Warden said the first MRV was scheduled to launch later that day, weather permitting, and is expected to become operational in 2027 after reaching orbit and completing testing.
Warden closed the call by saying Northrop Grumman remains confident in improved second-half margin performance and is focused on resolving the SiAW and GEM 63XL program issues while maintaining strong execution across the broader portfolio.
About Northrop Grumman (NYSE:NOC)Northrop Grumman Corporation NYSE: NOC is a leading U.S.-based aerospace and defense company that designs, builds and sustains advanced systems, products and technologies for government and commercial customers. Formed through the combination of Northrop and Grumman businesses in the 1990s, the company's portfolio spans manned and unmanned aircraft, space systems, missile defense, radar and sensor systems, and integrated command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) solutions.
The company's work includes airframe and platform manufacturing, space hardware and satellite systems, advanced mission systems and cybersecurity services, as well as logistics, sustainment and modernization programs.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Key Takeaways Northrop Grumman's Q2 adjusted EPS beat estimates by 12.3%, while sales rose 5.1% year over year.Aeronautics led segment growth with a 13% sales increase, driven by B-21 and restricted programs.Northrop Grumman raised 2026 revenue and adjusted EPS guidance, with free cash flow at $3.10-$3.50B. Northrop Grumman Corporation (NOC - Free Report) reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.
NOC’s Total SalesNOC’s total sales of $10.88 billion in the second quarter beat the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter.
Northrop Grumman’s Backlog CountThe company’s total backlog was $95.68 billion at the end of the second quarter compared with $95.61 billion at the end of first-quarter 2026.
NOC’s Segmental DetailsAeronautics Systems: This segment’s sales of $3.52 billion rose 13% year over year, driven by higher sales from B-21 and other restricted programs, as well as increased volume on the E-130J TACAMO program.
The unit’s operating income totaled $362 million compared with $321 million in the second quarter of 2025. Its operating profit margin remained the same at 10.3%.
Mission Systems: Sales in this segment increased 2.9% to $3.25 billion. This was driven by ramp-up on restricted airborne radar programs and higher volume on marine systems programs.
The unit’s operating income increased 13.6% to $501 million. The operating margin expanded 140 basis points (bps) to 15.4%.
Defense Systems: This segment’s sales rose 5.1% year over year to $2.09 billion. This improvement was driven by the continued ramp-up of the Sentinel program, as well as the higher volume of tactical solid rocket motor programs and the Integrated Battle Command System portfolio.
The unit’s operating income declined 38.3% year over year to $156 million. The operating margin contracted 520 bps to 9.7%.
Space Systems: Sales in this segment rose 4% to $2.75 billion. This improvement was driven by higher Commercial Resupply Service (CRS) missions as well as higher volume on the Glide Phase Interceptor (GPI) and Ground-based Midcourse Defense Weapon System (GMD WS) programs.
The segment’s operating income decreased 17% year over year to $235 million. The operating margin also contracted 150 bps to 9.5%.
Northrop Grumman’s Operational UpdateTotal operating income during the quarter totaled $1.10 billion, reflecting a significant decrease from $1.43 billion in the prior-year quarter.
NOC’s Financial ConditionNorthrop Grumman’s cash and cash equivalents as of June 30, 2026, totaled $2.31 billion, down from $4.40 billion as of Dec. 31, 2025.
Long-term debt (net of the current portion) amounted to $14.43 billion compared with $15.16 billion as of Dec. 31, 2025.
Net cash outflow from operating activities totaled $376 million during the first six months of 2026 compared with $697 million a year ago.
Northrop Grumman’s 2026 GuidanceThe company expects its revenues to be in the range of $43.75-$44.25 billion compared with its previous guidance of $43.50-$44.00 billion. The Zacks Consensus Estimate for sales is pegged at $43.96 billion, lower than the midpoint of the company’s guided range.
NOC expects adjusted earnings to be in the band of $28.60-$29.10 per share compared with its previous guidance of $27.40-$27.90 per share. The consensus estimate for earnings is pegged at $28.19 per share, above the company’s guided range.
Northrop Grumman projects to generate adjusted free cash flow in the band of $3.10-$3.50 billion.
NOC’s Zacks RankUpcoming Q1 Defense ReleasesThe Boeing Company (BA - Free Report) is set to report second-quarter 2026 earnings on July 28, 2026, before market open.
The Zacks Consensus Estimate for BA’s loss is pegged at 24 cents per share. The consensus estimate for its sales is pegged at $24.03 billion, indicating year-over-year growth of 5.7%.
Lockheed Martin (LMT - Free Report) is set to report second-quarter 2026 earnings on July 23, 2026, before market open.
The consensus estimate for LMT’s earnings is pegged at $7.22 per share. The consensus estimate for its sales is pegged at $19.52 billion, indicating year-over-year growth of 7.5%.
General Dynamics Corporation (GD - Free Report) is set to report second-quarter 2026 results on July 29, 2026, before market open.
The Zacks Consensus Estimate for GD’s earnings is pegged at $3.93 per share. The consensus estimate for its sales is pegged at $13.49 billion, indicating year-over-year growth of 3.4%.
Key Takeaways Pre-Markets Are Higher Despite Precarious News on Middle EastQ2 Earnings Results Were Strong for GM, MMM, DHI & MoreOil and Bond Yields Creeping Up Ahead of the Bell Tuesday, July 21st, 2026
Pre-market futures have pushed into the green at this hour, although they are off early morning highs. Investor sentiment remains complicated into the second trading day of the week, with headwinds continuing from AI capex concerns and renewed hostilities in and around the Strait of Hormuz.
The Dow is +129 points presently, +0.25%, while the S&P 500 is +32 points, +0.43%. The Nasdaq is the only major index looking like its pushing continually higher in today’s pre-market, +400 points, +1.39%, while the small-cap Russell 2000 is +11, +0.38%. WTI spot oil has creeped up to $84 per barrel (/bbl) this morning, $90 on Brent crude. Bond yields are inching up as well: +4.61% on the 10-year, +4.22% on the 2-year.
Wide Swath of Quarterly Earnings Results Hit the TapeAhead of today’s open, General Motors (GM - Free Report) posted an impressive +14% earnings surprise for its Q2 to $3.57 per share, with revenues $48.03 billion easily surpassing the Zacks consensus by +3.15%, and higher than the $47.12 billion reported a year ago. GM even raised its full-year guidance, though shares are only modestly moving higher at this hour. The stock is up +43% from a year ago. For more on GM’s earnings, click here.
Minnesota-based international conglomerate 3M (MMM - Free Report) also outperformed expectations this morning, with earnings of $2.40 per share surpassing the $2.27 anticipated, for a +5.73% beat. In fact, it’s the biggest earnings beat from the company since the June quarter a year ago. Full-year guidance was also raised. Shares are up +7% on the news so far this morning.
Inflammation and oncology treatment maker Novartis (NVS - Free Report) — developer of Entresto, Cosentyx, Kisqali and Pluvicto, to name but a few — put up a +9.55% earnings beat: $2.41 per share versus $2.20 anticipated. This is Novartis’ first earnings beat since the December 2025 quarter. Shares are up +2.4% in today’s pre-market, +31% over the past year.
Defense giant Northrop Grumman (NOC - Free Report) posted an earnings beat of +12.28%: $7.68 per share versus $6.84 projected. This marks the company’s fifth-straight earnings beat. Revenues of $10.88 billion came in +0.73% ahead of the Zacks consensus, though a record backlog of $105 billion wasn’t enough to impress early traders — shares are down -4.2% ahead of the open. For more on NOC’s earnings, click here.
Major toy manufacturer Hasbro (HAS - Free Report) outperformed Q2 estimates by +9.4%: $1.28 per share versus $1.17 expected, with revenues of $1.14 billion outpacing estimates by +8.93%, nicely up from $980.8 million reported in the year-ago quarter. Shares are up +2.4% on the news — nearly half on the stock’s entire gains over the past year. For more on HAS’ earnings, click here.
“America’s largest homebuilder” D.R. Horton (DHI - Free Report) also outperformed expectations on its fiscal Q3 quarterly results this morning. Earnings of $3.20 per share swept past the $2.99 forecast, for a +7% beat. This is the third earnings beat for the Texas-based homebuilder in its past four quarters. Revenues matched the year-ago tally at $9.23 billion for the quarter, +0.46% higher than anticipated. For more on DHI’s earnings, click here.
Questions or comments about this article and/or author? Click here>>
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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 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 want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
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: Targa Resources, Inc. (TRGP - Free Report) Targa Resources Corp. is a premier energy infrastructure company. A leading provider of integrated midstream services in North America, the Houston, TX based operator primarily derives its revenues from gathering, compressing, treating, processing and selling natural gas. Targa Resources also provides services associated with natural gas liquids (“NGL”), including those to liquefied petroleum gas (“LPG”) exporters - and crude oil.
TRGP is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Oils-Energy stock. TRGP has a Momentum Style Score of B, and shares are up 6.7% over the past four weeks.
Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.09 to $10.75 per share. TRGP also boasts an average earnings surprise of +10.2%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, TRGP should be on investors' short list.
Wall Street expects a year-over-year decline in earnings on higher revenues when Paccar (PCAR - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 28. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis truck maker is expected to post quarterly earnings of $1.34 per share in its upcoming report, which represents a year-over-year change of -2.2%.
Revenues are expected to be $7.11 billion, up 2.1% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 2.56% 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 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 Paccar?For Paccar, 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 -0.45%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Paccar 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 Paccar would post earnings of $1.13 per share when it actually produced earnings of $1.15, delivering a surprise of +1.77%.
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.
Paccar 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.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth 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 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 The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Zions (ZION - Free Report) Zions Bancorporation, National Association, founded in 1873 and headquartered in Salt Lake City, UT, is a diversified financial services firm with a network of more than 400 branches. The company operates across 11 western states: Utah, California, Idaho, Arizona, Nevada, Colorado, Texas, New Mexico, Washington, Oregon and Wyoming.
ZION is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Finance stock. ZION has a Momentum Style Score of B, and shares are up 7.1% over the past four weeks.
For fiscal 2026, eight analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.05 to $6.49 per share. ZION boasts an average earnings surprise of +15.2%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, ZION should be on investors' short list.
Zions Bancorp (NASDAQ:ZION) reported upbeat earnings for the second quarter on Monday.
The company posted quarterly earnings of $3.05 per share which beat the analyst consensus estimate of $1.71 per share. The company reported quarterly sales of $1.137 billion which beat the analyst consensus estimate of $901.498 million.
Zions Bancorp shares fell 3.9% to trade at $69.10 on Tuesday.
These analysts made changes to their price targets on Zions Bancorp following earnings announcement.
Baird analyst David George maintained the stock with a Neutral and raised the price target from $68 to $75. TD Cowen analyst Janet Lee maintained the stock with a Hold and raised the price target from $71 to $73. Considering buying ZION stock? Here’s what analysts think:
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Key Takeaways Zions beat Q2 earnings estimates; adjusted EPS rose 10.1% y/y.ZION's NII grew y/y, supported by lower funding costs and higher-yielding loans.ZION's adjusted expenses rose 4.8%, while shares fell 2.8% after hours despite the earnings beat. Zions Bancorporation’s (ZION - Free Report) second-quarter 2026 adjusted earnings of $1.74 per share surpassed the Zacks Consensus Estimate of $1.57. Moreover, the bottom line increased 10.1% from the year-ago quarter.
Results were primarily aided by higher net interest income (NII) and growth in non-interest income. Higher sequential loan balance was another positive. However, a rise in non-interest expenses hurt the results to some extent. In the reported quarter, the company recorded a provision expense as against a benefit in the year-ago quarter. Probably because of these negatives, shares of the company lost 2.8% in the after-market hours despite better-than-expected overall performance.
The reported quarter’s results excluded net equity investment gains of $215 million on Visa Class B-1 shares and $37 million on SBIC investments. After considering these, net income attributable to common shareholders (GAAP) was $452 million, up 86% year over year. We had projected the metric to be $396 million.
Zions’ Revenues Improve, Expenses RiseNet revenues (taxable-equivalent) were $1.15 billion, up 35% year over year. Adjusted tax-equivalent net revenues were $878 million. The Zacks Consensus Estimate for second-quarter revenues was $879.2 million.
NII was $677 million, up 4.5% from the prior-year quarter. The increase was mainly driven by lower funding costs and an improved mix of average interest-earning assets, reflecting growth in higher-yielding loans and a decline in lower-yielding investment securities. The net interest margin (NIM) expanded 10 basis points (bps) year over year to 3.27%. Our estimates for NII and NIM were $671 million and 3.29%, respectively.
Non-interest income was $460 million, up significantly from $190 million in the year-ago quarter. The rise was driven by an increase in almost all fee income components, except for dividends and other income. In the reported quarter, the company recorded net securities gains of $269 million, up significantly from $14 million in the prior-year quarter. Adjusted non-interest income was $190 million in the reported quarter. We had projected non-interest income of $186.7 million.
Adjusted non-interest expenses were $546 million, up 4.8% year over year. Our estimate for the metric was $551 million.
The adjusted efficiency ratio was 62.2%, unchanged from the prior-year quarter.
Zion’s Loans Increase, Deposits Decline MarginallyAs of June 30, 2026, net loans and leases held for investment were $61.8 billion, up 1.9% from the previous quarter. Total deposits were $76.6 billion, down marginally from the prior quarter. Our estimates for net loans and leases held for investment and total deposits were $62.1 billion and $76.3 billion, respectively.
ZION’s Credit Quality: A Mixed BagThe ratio of non-performing assets to loans and leases and other real estate owned declined to 0.48% from 0.51% in the year-ago quarter. Net loan and lease charge-offs were $9 million, down from $10 million in the prior-year quarter.
However, in the reported quarter, the company recorded a provision for credit losses of $3 million against a $1-million provision benefit in the prior-year quarter. We had projected provisions of $16 million.
Strong Capital & Profitability Ratios for ZionsAs of June 30, 2026, the common equity tier 1 (CET1) capital ratio was 11.8%, up from 11% in the prior-year quarter. The Tier 1 risk-based capital ratio was 11.9% compared with 11.1% a year ago, while the Tier 1 leverage ratio improved to 9.4% from 8.5% at the end of the year-ago quarter.
Return on average assets was 2.01%, up from 1.09% in the year-ago quarter. Return on average tangible common equity was 28.6%, up from 18.7% in the prior-year quarter.
ZION’s Share Repurchase UpdateDuring the quarter, the company repurchased 1.2 million shares for $75 million.
Our Take on ZIONZions’ modest loan growth, improving NII, solid fee income growth and strengthening deposit base are encouraging. However, elevated expenses and significant exposure to commercial loans remain key concerns.
Currently, Zions carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other BanksCommerce Bancshares Inc.’s (CBSH - Free Report) second-quarter 2026 earnings of $1.10 per share surpassed the Zacks Consensus Estimate of $1.04. The bottom line reflected a rise of 1% from the prior-year quarter.
CBSH’s results primarily benefited from higher NII and a rise in non-interest income. The sequential rise in loan balances acted as a tailwind. However, higher expenses and provisions hurt CBSH’s results to some extent.
F.N.B. Corporation (FNB - Free Report) reported second-quarter 2026 earnings of 42 cents per share, which matched the Zacks Consensus Estimate. The bottom line jumped 16.7% year over year.
FNB’s results primarily benefited from higher NII, a rise in non-interest income and lower provisions. Higher average loans and deposits were other positives. However, higher non-interest expenses hurt the results to some extent.
NEW YORK, July 21, 2026 (GLOBE NEWSWIRE) -- WTW (NASDAQ: WTW) today announced the release of the newest version of RiskAgility Financial Modeler (FM) U. S. Library, its market-leading modeling platform for life insurers. RiskAgility FM U. S.
The market expects Waste Management (WM - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 28. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis garbage and recycling hauler is expected to post quarterly earnings of $2.00 per share in its upcoming report, which represents a year-over-year change of +4.2%.
Revenues are expected to be $6.71 billion, up 4.3% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.86% 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 Waste Management?For Waste Management, 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 -2.01%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Waste Management 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 Waste Management would post earnings of $1.75 per share when it actually produced earnings of $1.81, delivering a surprise of +3.43%.
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.
Waste Management 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.
Williams-Sonoma (WSM - 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 seller of cookware and home furnishings have returned -1.2% over the past month versus the Zacks S&P 500 composite's -0.6% change. The Zacks Retail - Home Furnishings industry, to which Williams-Sonoma belongs, has lost 2.5% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
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.
Williams-Sonoma is expected to post earnings of $2.03 per share for the current quarter, representing a year-over-year change of +1.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.3%.
For the current fiscal year, the consensus earnings estimate of $9.39 points to a change of +6.2% from the prior year. Over the last 30 days, this estimate has changed -1.1%.
For the next fiscal year, the consensus earnings estimate of $10.25 indicates a change of +9.1% from what Williams-Sonoma is expected to report a year ago. Over the past month, the estimate has changed +0.3%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Williams-Sonoma is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Williams-Sonoma, the consensus sales estimate for the current quarter of $1.91 billion indicates a year-over-year change of +4.2%. For the current and next fiscal years, $8.15 billion and $8.51 billion estimates indicate +4.4% and +4.4% changes, respectively.
Last Reported Results and Surprise HistoryWilliams-Sonoma reported revenues of $1.81 billion in the last reported quarter, representing a year-over-year change of +4.4%. EPS of $1.93 for the same period compares with $1.85 a year ago.
Compared to the Zacks Consensus Estimate of $1.8 billion, the reported revenues represent a surprise of +0.05%. The EPS surprise was +7.22%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
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.
Williams-Sonoma is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Williams-Sonoma. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Energy stocks have regained momentum in 2026. Oil prices remain well above their long-term averages, global demand for liquefied natural gas (LNG) continues to grow, and electricity consumption is accelerating as artificial intelligence (AI) data centers and electrification place new demands on the power grid.
Not every energy company will benefit equally. But if you're looking for stocks with clear catalysts over the next 12 months, these three stand out.
Image source: Getty Images.
ExxonMobil ExxonMobil (XOM +1.97%) has built one of the oil industry's lowest-cost, highest-return businesses. And its biggest advantage is Guyana, where the company has now discovered more than 11 billion barrels of recoverable oil equivalent, making it one of the largest oil discoveries in decades. Production recently surpassed 700,000 barrels per day, and management expects Guyana to produce about 1.7 million barrels per day by 2030.
That country is also one of the world's lowest-cost oil sources, with break-even prices estimated at less than $35 per barrel. That allows Exxon to remain highly profitable even if crude prices sink.
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The company is also beginning to realize the benefits of its acquisition of Pioneer Natural Resources. The deal significantly expanded Exxon's position in the Permian Basin, giving it one of the largest unconventional oil portfolios in North America while creating about $4 billion in expected annual integration benefits and operating efficiencies.
Cheniere Energy It's only natural to associate energy with oil, but liquefied natural gas may offer one of the industry's strongest growth opportunities. That's where Cheniere Energy (LNG 1.03%) comes into play.
Cheniere is the largest producer and exporter of LNG in the U.S. As Europe continues replacing Russian natural gas and Asian demand steadily increases, long-term LNG contracts have become increasingly valuable.
The company currently operates seven liquefaction trains at Sabine Pass on the Texas-Louisiana border and another seven at Corpus Christi, Texas. The latter's stage 3 expansion is expected to add another 10 million metric tonnes of LNG production capacity once fully completed. That expansion should significantly increase earnings and cash flow over the next several years.
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Cheniere has also become a free-cash-flow powerhouse. In 2025, the company generated $5.29 billion in distributable cash flow, allowing management to aggressively repurchase shares while steadily increasing its dividend.
And unlike traditional exploration and production companies, much of Cheniere's earnings are supported by long-term contracts rather than daily swings in natural gas prices. With global LNG demand expected to continue growing, Cheniere is well positioned to benefit for the foreseeable future.
NextEra Energy NextEra Energy (NEE 0.32%) isn't just the largest renewable energy company in the U.S. It's increasingly becoming one of the biggest beneficiaries of the country's growing electricity demand.
After years of relatively flat power consumption, utilities are preparing for a surge driven by AI data centers, domestic manufacturing, and electrification. The U.S. Energy Information Administration expects electricity demand to continue reaching record highs over the coming years. NextEra is well-positioned to capitalize on that trend.
The company currently owns Florida Power & Light, one of the nation's largest regulated electric utilities, serving more than 6 million customer accounts. That business generates stable, recurring earnings regardless of the economy.
At the same time, NextEra Energy Resources has become the world's largest generator of solar and wind power. The company currently has a development backlog in renewable energy and battery storage of about 33 gigawatts, giving it one of the industry's deepest growth pipelines.
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The artificial intelligence (AI) building boom could provide another catalyst. Data centers require enormous amounts of electricity, and tech companies need utilities capable of delivering reliable power while helping meet their clean energy goals. NextEra's combination of regulated utility operations, renewable-power generation, and battery storage puts it in a good position to capture that demand.
Financially, the company continues to execute, too. In 2025, adjusted earnings per share (EPS) increased roughly 8%, and management now expects compound annual adjusted EPS growth of at least 8% through 2032. The dividend has also grown by about a 11% compound annual rate over the past decade.
Outperforming the market Energy isn't just about oil prices. You have a variety of opportunities across traditional oil production, global LNG exports, renewable energy, energy storage, and the infrastructure to support a rapidly expanding electricity infrastructure.
ExxonMobil offers low-cost production growth led by Guyana. Cheniere provides exposure to one of the fastest-growing segments of the energy market through LNG exports. NextEra gives you a way to benefit from rising electricity demand and the continued expansion of renewables.
To be sure, no energy stock is immune to commodity price swings or changes in the broader economy. But these three companies have something many competitors don't: high-quality assets, strong balance sheets, and identifiable catalysts that extend beyond simply hoping oil or natural gas prices move higher. That combination gives them a strong chance of outperforming the broader market over the next 12 months.
[url="]Zebra Technologies Corporation[/url] (NASDAQ: ZBRA), a global leader in digitizing and automating workflows to deliver intelligent operations, today ann
Xylem (XYL - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 28. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis water and wastewater treatment company is expected to post quarterly earnings of $1.34 per share in its upcoming report, which represents a year-over-year change of +6.4%.
Revenues are expected to be $2.33 billion, up 1.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.08% 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 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 Xylem?For Xylem, 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 -0.60%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Xylem 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 Xylem would post earnings of $1.09 per share when it actually produced earnings of $1.12, delivering a surprise of +2.75%.
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.
Xylem 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.
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.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best 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 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 investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank 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.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
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.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Zimmer Biomet (ZBH - Free Report) Headquartered in Warsaw, IN, Zimmer Biomet Holdings, Inc. is a leading musculoskeletal healthcare company that designs, manufactures and markets orthopedic reconstructive products; sports medicine, biologics, extremities and trauma products; spine, bone healing, craniomaxillofacial and thoracic products; dental implants; and related surgical products. With operations in over 25 countries, Zimmer markets products in more than 100 countries.
ZBH is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 10.58; value investors should take notice.
One analyst revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.01 to $8.48 per share. ZBH also boasts an average earnings surprise of +4.9%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, ZBH 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.
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.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, 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 investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank 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.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and 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.
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: U.S. Pharmaceutical, which distributes branded, generic, and specialty drugs; RxTS, 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 International, primarily focused in Canada. 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 #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. MCK has a Growth Style Score of B, forecasting year-over-year earnings growth of 13.2% for the current fiscal year.
Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.01 to $44.28 per share. MCK also boasts an average earnings surprise of +3.1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, MCK should be on investors' short list.
Analysts on Wall Street project that Molina (MOH - Free Report) will announce quarterly earnings of $1.37 per share in its forthcoming report, representing a decline of 75% year over year. Revenues are projected to reach $10.88 billion, declining 4.8% from the same quarter last year.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions 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 Molina metrics that are commonly tracked and forecasted by Wall Street analysts.
The consensus among analysts is that 'Revenue- Premium revenue- Marketplace' will reach $643.41 million. The estimate indicates a change of -46.4% from the prior-year quarter.
Based on the collective assessment of analysts, 'Revenue- Premium tax revenue' should arrive at $437.04 million. The estimate suggests a change of +1.4% year over year.
Analysts predict that the 'Revenue- Premium revenue- Medicaid' will reach $8.16 billion. The estimate indicates a year-over-year change of +1.6%.
According to the collective judgment of analysts, 'Revenue- Premium revenue- Medicare' should come in at $1.63 billion. The estimate indicates a change of +1.2% from the prior-year quarter.
The average prediction of analysts places 'MCR - Medicaid' at 92.9%. Compared to the present estimate, the company reported 91.3% in the same quarter last year.
The collective assessment of analysts points to an estimated 'MCR - Medicare' of 93.7%. Compared to the present estimate, the company reported 90.0% in the same quarter last year.
Analysts expect 'MCR - Marketplace' to come in at 84.9%. Compared to the current estimate, the company reported 85.4% in the same quarter of the previous year.
The consensus estimate for 'Ending Membership by Program - Total' stands at 5.00 million. The estimate is in contrast to the year-ago figure of 5.75 million.
It is projected by analysts that the 'Ending Membership by Program - Medicaid' will reach 4.48 million. Compared to the current estimate, the company reported 4.77 million in the same quarter of the previous year.
Analysts' assessment points toward 'Ending Membership by Program - Medicare' reaching 230.66 thousand. The estimate compares to the year-ago value of 267.00 thousand.
Analysts forecast 'Ending Membership by Program - Marketplaces' to reach 285.05 thousand. The estimate is in contrast to the year-ago figure of 690.00 thousand.
The combined assessment of analysts suggests that 'MCR - Total' will likely reach 92.5%. Compared to the present estimate, the company reported 90.4% in the same quarter last year.
View all Key Company Metrics for Molina here>>>
Molina shares have witnessed a change of +16.4% in the past month, in contrast to the Zacks S&P 500 composite's -0.6% move. With a Zacks Rank #3 (Hold), MOH is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
KeyCorp (KEY - Free Report) reported $1.96 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 6.8%. EPS of $0.44 for the same period compares to $0.35 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $1.98 billion, representing a surprise of -1.11%. The company delivered an EPS surprise of +4.76%, with the consensus EPS estimate being $0.42.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how KeyCorp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Capital Ratios - Leverage: 10.3% versus 10.4% estimated by two analysts on average.Capital Ratios - Tier 1 risk-based capital: 12.8% versus the two-analyst average estimate of 12.8%.Net loan charge-offs to average loans: 0.4% versus the two-analyst average estimate of 0.4%.Cash efficiency ratio (non-GAAP): 61.9% versus the two-analyst average estimate of 62.1%.Net interest margin (TE) from continuing operations: 2.9% versus the two-analyst average estimate of 2.9%.Book value at period end: $16.19 versus the two-analyst average estimate of $16.29.Average Balance - Total earning assets: $171.82 billion versus $172.2 billion estimated by two analysts on average.Trust and investment services income: $159 million versus the two-analyst average estimate of $160.93 million.Investment banking and debt placement fees: $169 million compared to the $181.24 million average estimate based on two analysts.Total Noninterest Income: $706 million versus $709.43 million estimated by two analysts on average.Net interest income (TE): $1.26 billion versus $1.26 billion estimated by two analysts on average.Corporate services income: $80 million versus $76.68 million estimated by two analysts on average.View all Key Company Metrics for KeyCorp here>>>
Shares of KeyCorp have returned +2.2% over the past month versus the Zacks S&P 500 composite's -0.6% 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.
Keysight: The AI and Defense Stock Seeing Big Price Target BoostsKeyCorp NYSE: KEY reported higher second-quarter 2026 earnings and raised parts of its full-year outlook, citing stronger commercial loan growth, expanding net interest income and continued momentum in fee-based businesses, while management also addressed investor questions about margin performance, deposit growth and the timing of a recovery in middle-market investment banking.
Chairman and Chief Executive Officer Chris Gorman said KeyCorp earned $0.44 per share in the quarter, up 26% from a year earlier. Revenue rose 7% year-over-year, while pre-provision net revenue increased 9%. The bank’s net interest margin expanded sequentially to 2.89%, and Gorman said the company remains on track to meet or exceed a 3% margin by year-end.
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Banks Are Buying Back Stock Hand Over Fist, Including These 3 Names“Our second quarter results reflect strong business momentum and continued progress against our strategic and financial commitments,” Gorman said.
Commercial Lending Drives Growth KeyCorp’s commercial loan growth was a central focus of the call. Gorman said period-end commercial and industrial loans increased $2.1 billion, or 3%, sequentially, reflecting new client wins and deeper existing relationships. Chief Financial Officer Clark Khayat said average loans rose $2.3 billion sequentially, while period-end loans increased $1.2 billion, as C&I growth was partly offset by the planned runoff of lower-yielding consumer loans.
Intel's New Orbit: From Chip Lag to Leading EdgeKhayat said growth was broad-based across industries and regions, with the largest contributors including utilities, power and renewables, real estate and technology. He also noted that C&I line utilization declined 50 basis points sequentially to 31%, driven by higher commitments.
Management said the bank is intentionally pursuing higher-quality commercial relationships, even where spreads may be somewhat lower. Gorman said about 58% of KeyCorp’s C&I loans are investment grade, and he emphasized that lending is intended to lead to broader relationships in payments, hedging, advisory and other services.
“In order to get the kind of returns that we have to get, we’ve got to do a lot more things for them,” Gorman said.
Guidance Raised on Loan Momentum KeyCorp raised several full-year 2026 guidance metrics. Khayat said the bank now expects revenue to grow 7% to 8%, compared with previous guidance of approximately 7%. Full-year net interest income is now expected to increase 9% to 11%, compared with the prior range of 9% to 10%.
The company also raised its average loan growth forecast to 4% to 5%, from 2% to 4%, and now expects average commercial loans to increase 8% to 10% this year.
Khayat said the updated outlook reflects strong first-half loan growth, success adding and expanding client relationships, and healthy commercial loan pipelines. Gorman said the bank expects revenue to grow about twice as fast as expenses in 2026, producing substantial positive operating leverage.
KeyCorp expects to exit the year with a net interest margin of 3% to 3.05%. Khayat said more than $9 billion of low-yielding fixed assets are expected to reprice through year-end, with a pickup of about 1.25%, helping support margin expansion. He also said the bank expects average client deposits to grow by more than 2% through year-end, largely from core operating deposits.
Deposit Costs and Margin Questions Draw Analyst Focus Analysts repeatedly questioned management about the bank’s margin trajectory after second-quarter net interest margin rose less than expected. Khayat said the quarter reflected stronger-than-expected loan growth, tighter spreads on higher-quality loans and a temporary need for wholesale funding as deposits reached a seasonal low in May.
“We chose to fill that with wholesale funds rather than reprice the client deposit base because the expectation is we’re going to see some good deposit growth here in the second half,” Khayat said.
Average deposits were relatively flat sequentially and year-over-year, while total deposit costs declined two basis points to 1.63%. Average non-interest-bearing deposits increased 2.3% sequentially and represented 19% of total deposits, or 24% when adjusted for hybrid accounts. Khayat said end-of-quarter deposit balances of $153 billion were temporarily elevated by about $4 billion because of transaction timing among relationship clients.
In response to investor questions, Khayat said KeyCorp has good visibility into expected deposit growth, largely from commercial relationship clients. Gorman added that the bank has been focused for years on primacy in commercial relationships, saying KeyCorp has primacy in 82% of its commercial deposits.
Fee Businesses Show Mixed Trends KeyCorp’s fee-based businesses remained an area of emphasis. Gorman said investment banking, commercial payments and wealth collectively grew 8% in the first half of 2026 compared with the first half of 2025.
Investment banking and debt placement fees totaled $169 million in the second quarter. For the first half, investment banking fees were $366 million, up 4% from the year-ago period. Gorman acknowledged that investment banking results were below the company’s expectations in the quarter but said pipelines remain strong. Khayat said overall investment banking pipelines were up 9% from the prior quarter, while M&A pipelines rose 7% to a record level.
KeyCorp expects third-quarter investment banking fees to be up more than 20% sequentially and continues to target mid-single-digit investment banking fee growth for the full year. Gorman said middle-market M&A activity has lagged larger transactions, noting that 40% of KeyCorp’s investment banking fees are driven by private equity.
“I think we are in the early innings of the renaissance of middle market M&A,” Gorman said in response to an analyst question.
In commercial payments, Gorman said total gross payment fees increased 12% year-over-year, helped by investments in bankers and embedded banking. In wealth management, assets under management reached a record $74 billion. Since launching its Mass Affluent strategy in 2023, KeyCorp has added 59,000 households, more than $4 billion of assets under management and nearly $8 billion of total client assets, Gorman said.
Credit, Capital and Strategic Investments Asset quality remained broadly stable, though non-performing assets increased. Khayat said net charge-offs were $115 million, or 42 basis points of average loans, and criticized loans were relatively stable at 4.9%. Non-performing assets rose $126 million sequentially to 74 basis points of loans, largely tied to three credits in real estate, consumer goods and agriculture.
Chief Risk Officer Mohit Ramani said the migration was not related to private credit and did not indicate a broader macro trend. He said KeyCorp continues to expect full-year net charge-offs of 40 to 45 basis points.
“Overall, we don’t feel like a lot of loss content relative to this move,” Ramani said.
KeyCorp reported a CET1 ratio of 11.2% and a marked CET1 ratio of 9.8% at quarter-end. Gorman said the company repurchased more than $340 million of common stock during the quarter and remains on pace to repurchase at least $1.3 billion for the year. Khayat suggested investors assume about $300 million of repurchases per quarter in the second half.
The company also announced an agreement during the quarter to acquire Clearwater U.K., which Gorman described as a strategic extension of KeyCorp’s middle-market advisory franchise. He said the transaction, expected to close in the second half of 2026, will expand the bank’s ability to serve M&A clients and prospects internationally.
Gorman said that despite macroeconomic uncertainty, KeyCorp enters the second half of the year with strong momentum and remains confident in its ability to generate a return on tangible common equity above 15% by the end of 2027, on the way to its longer-term 16% to 19% target.
About KeyCorp (NYSE:KEY)KeyCorp is a bank holding company headquartered in Cleveland, Ohio, that operates through its primary banking subsidiary, KeyBank. It provides a broad range of banking and financial services to individual consumers, small businesses, middle-market companies and large corporations. KeyBank's offerings span traditional deposit and lending products as well as more specialized financial solutions designed for commercial and institutional clients.
The company's product and service mix includes retail banking products such as checking and savings accounts, consumer and residential mortgage lending, and auto financing.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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