Track market-moving stories before they get noisy

Key Takeaways CoreWeave sees rising AI demand driving record backlog and deeper customer commitments.CRWV topped 1 GW of active power and targets more than 1.7 GW by the end of 2026.CoreWeave added over 400 MW of contracted power, lifting total capacity above 3.5 GW. As organizations race to build and deploy increasingly sophisticated AI models, the need for massive computing power seems to compound. This growing demand has created an emerging opportunity for AI-focused cloud infrastructure providers, like CoreWeave, Inc. (CRWV - Free Report) .

Management highlighted four key themes –rising AI demand across hyperscalers and enterprises, a broader platform supporting training, inference, agentic AI workloads, rapid infrastructure expansion with more than 3.5 GW of contracted power and stronger financing that has secured more than $20 billion in debt and equity this year. AI workloads are shifting from training to inference and enterprise production, driving deeper commitments from existing customers while attracting new enterprise clients. This momentum fueled record backlog additions in the first quarter, including initial Vera Rubin deals alongside continued deployment of Blackwell, Hopper and Ampere capacity, with most of the new business expected to support its 2027 growth targets.

CoreWeave's aggressive infrastructure expansion is a key competitive advantage. It continues to strengthen its competitive edge by rapidly converting scarce AI infrastructure into revenue-generating AI cloud capacity. CRWV surpassed 1 GW of active power in the quarter and remains on track to exceed 1.7 gigawatts by the end of 2026. During the quarter, CoreWeave added more than 400 MW of contracted power, increasing its total to over 3.5 GW, with most of the capacity expected to come online by the end of 2027 through long-term lease agreements.

With strong customer demand, strategic global expansion, innovative AI services and partnerships with leading technology companies, CoreWeave appears well-positioned to capitalize on the AI infrastructure boom.

CRWV's AI Dominance Faces Fierce RivalsNebius Group N.V. (NBIS - Free Report) recently unveiled Nebius AI Cloud Aether 3.6, a wide range of enhancements focused on developer productivity, enterprise-grade security, governance and storage performance. The release also marks the debut of Nebius Echo, an AI-powered infrastructure assistant that represents NBIS’ vision for agentic cloud computing. To strengthen its position in the rapidly evolving AI cloud market, NBIS inked an agreement to acquire Eigen AI, in May. By integrating Eigen AI’s optimization stack into its Token Factory platform, NBIS aims to create a vertically integrated AI inference ecosystem that combines massive compute infrastructure, advanced model optimization and enterprise-ready deployment pipelines.

Microsoft (MSFT - Free Report) capitalizes on AI business momentum and Copilot adoption alongside Azure cloud infrastructure expansion. The Azure AI platform continues to benefit from demand across AI and non-AI services, with customer demand exceeding available capacity. It added another GW of capacity during the quarter and remains on track to double its overall data center footprint within two years. New data center investments were announced across four continents. In May, it signed new agreements with U.S. and U.K. government partners, the Center for AI Standards and Innovation and the AI Security Institute to advance AI testing and safety evaluation frameworks.

CRWV’s Price Performance and EstimatesShares of CoreWeave have gained 25.6% year to date against the Internet Software industry’s fall of 8.7%.

Image Source: Zacks Investment Research

In terms of Price/Book, CRWV’s shares are trading at 8.46X, higher than the Internet Software Services industry’s 4.67X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CRWV’s earnings for the current year has been revised downward over the past 60 days.

Image Source: Zacks Investment Research

CRWV currently carries a Zacks Rank #4 (Sell).

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

Key Takeaways Seagate is benefiting from AI-driven storage demand, supporting higher revenue growth and margin expansion.STX is advancing HAMR with Mozaic drives, targeting higher-capacity enterprise HDDs through 2027.STX is boosting shareholder returns with debt reduction, dividends, buybacks and strong cash flow. The AI boom has reshaped the technology landscape, creating massive demand not only for GPUs and cloud infrastructure but also for data storage solutions. As enterprises generate and retain unprecedented amounts of AI training and inference data, storage has become a critical piece of the AI value chain.

Among the biggest beneficiaries of this trend has been Seagate Technology Holdings plc (STX - Free Report) , surging an impressive 505.6% over the past year. It has outpaced the Zacks Computer-Integrated Systems industry, the Zacks Computer & Technology sector and the S&P 500’s run of 218.8%, 34.4%, and 23.1%, respectively, in the same period.

Image Source: Zacks Investment Research

STX’s shares have exceeded its industry peers like International Business Machines Corporation (IBM - Free Report) , but lagged HDD behemoth and its direct competitor Western Digital Corporation (WDC - Free Report) and storage rival Micron Technology (MU - Free Report) . WDC, MU and IBM have gained 751.4%, 676.2% and 4.1%, respectively, during the same time frame.

STX remains one of the world's leading manufacturers of enterprise HDDs and has been aggressively developing next-generation high-capacity drives specifically designed for AI data centers. The company boasts a 52-week high of $1,145. Nonetheless, such an extraordinary rally naturally raises an important question for investors: Can Seagate continue climbing, or has the market already priced in most of the opportunity?

Accelerating AI Infrastructure Spending Fuels STX’s ExpansionAI is driving an explosion in data storage. As hyperscale cloud providers continue expanding AI infrastructure, they increasingly rely on a combination of SSDs for active workloads and HDDs for large-scale data storage. This industry trend plays directly into Seagate's strengths. Major cloud providers, including Microsoft, Amazon, Alphabet and Meta Platforms, continue investing tens of billions of dollars in AI infrastructure. As they expand AI data centers, demand for enterprise storage is rising, creating a strong long-term growth opportunity for Seagate.

Management highlighted that the company is entering a “new era of structural growth” driven by strong AI-led demand, rising adoption of Mozaic products and disciplined execution focused on expanding margins, cash flow and long-term value. While SSDs dominate high-speed applications, HDDs remain significantly more cost-effective for bulk storage—especially critical in hyperscale data centers supporting AI infrastructure. Seagate is well-positioned to capture this expanding opportunity through a technology strategy focused on increasing areal density rather than unit volumes, enabling a more capital- and manufacturing-efficient path to scale while improving cost and power efficiency per terabyte. This supports its target of mid-20% exabyte growth.

HAMR Technology Gives STX a Competitive EdgeInvestment in HAMR technology is STX’s key competitive advantage. Seagate’s focus on areal density and HAMR technology supports capacity growth and cost efficiency, with new product generations planned. Mozaic 4, second-generation HAMR, delivers up to 44TB per drive, 30% more capacity than the first generation. Mozaic 4 shipments began in late March and are expected to command 70% of HAMR shipments by the end of fiscal 2027. Mozaic 5 is in development, targeting 50TB capacity, with qualification shipments in late 2027. HAMR exabyte crossover is expected by the end of 2026. The focus is on increasing capacity per unit rather than unit volume, leveraging technology to improve aerial density.

Second-generation HAMR enables continued growth, with third-generation drives with 50TB capacity expected by the end of next year. Technology innovations include laser, photonic circuitry and media improvements, with minimal impact on the bill of materials. Seagate's strategy is built on durable storage demand, technology leadership and disciplined execution. Rising AI-driven data creation is boosting demand for cost- and energy-efficient, high-capacity HDDs, while its Mozaic platform and HAMR technology strengthen its competitive position. Backed by build-to-order contracts, pricing discipline and long-term supply agreements, Seagate is improving margin visibility and profitability.

Strong hyperscaler investment and sustained nearline storage demand have prompted the company to raise its annual revenue growth outlook to at least 20%, with capacity largely committed through 2027. Seagate's disciplined pricing strategy, supported by build-to-order contracts, provides greater revenue visibility and margin stability. Strong year-over-year and sequential price increases reflect robust demand, while most pricing for fiscal 2027 is already locked in with a significant portion of capacity allocated over the next four quarters. This approach is expected to support sequential revenue and profit growth throughout fiscal 2027, with management anticipating stable pricing trends rather than further acceleration.

Seagate's margins continue to outperform expectations, driven by strong demand, a favorable product mix and technology-led cost efficiencies. Incremental gross margins have exceeded the company's 50% target, supported by higher-capacity drives, improved yields and greater production efficiency. Management expects further margin expansion as Mozaic 5 and other technology advancements enhance cost and performance.

Strong Cash Returns Enhance the Investment CaseConsistent free cash flow generation strengthens Seagate's balance sheet and provides flexibility for future investments. Seagate also rewards shareholders through dividends. The company has maintained an attractive dividend policy while continuing to invest in product innovation. For income-focused investors, this provides an additional layer of return beyond potential share-price appreciation.

Seagate is using its strong cash flow to reduce debt while returning capital to shareholders through dividends and share repurchases. After retiring $641 million in debt last quarter, the company plans to reduce its remaining convertible notes further, expand buybacks and continue investing in growth, reinforcing its commitment to long-term shareholder value. It will maintain capital discipline while continuing the transition and ramp-up of HAMR technology, with fiscal 2026 capital spending expected to remain within its target range of 4–6% of revenue.

Image Source: Zacks Investment Research

However, investors should remain aware of several risks. The HDD industry remains cyclical, making shipments vulnerable to customer inventory corrections, slower enterprise spending and weaker PC demand. Declining SSD prices could also intensify competition, although HDDs continue to offer a significant cost advantage for exabyte-scale storage. Additionally, Seagate's reliance on large hyperscale cloud customers means changes in their purchasing schedules can lead to quarter-to-quarter revenue volatility.

Positive Estimate Revision Trend for STXSTX is currently witnessing an uptrend in estimate revisions. Earnings estimates for fiscal 2026 have inched up 0.3% to $14.93 over the past 60 days, while the same for fiscal 2027 has gone up 6.5% to $28.05.

Image Source: Zacks Investment Research

Valuation VulnerabilitiesGoing by the price/earnings ratio, the company’s shares currently trade at 30.54 forward earnings compared with 13.5 for the industry.

Image Source: Zacks Investment Research

In comparison, the forward 12-month price/earnings multiple for IBM, MU and WDC are 23.35X, 6.73X and 29.54X, respectively.

Is More Upside Ahead for STX Stock?Seagate's growth outlook is driven by several long-term catalysts, including sustained AI infrastructure spending, broader adoption of HAMR technology, increasing enterprise data storage needs and continued expansion of cloud data centers. Improving storage pricing, robust free cash flow and ongoing margin expansion could further boost earnings. Successful execution of its technology roadmap would strengthen Seagate's leadership in enterprise storage and support additional upside over the long term.

For investors who believe AI-driven data creation will continue accelerating over the next decade, Seagate remains an attractive way to gain exposure to one of the essential segments of the AI supply chain. While short-term pullbacks are always possible after such a strong run, the company's technological prowess, improving profitability and exposure to one of the fastest-growing technology trends suggest there could still be further upside over the long term.

Boasting a Zacks Rank #1 (Strong Buy) currently, STX is a portfolio must-have. You can see the complete list of today’s Zacks #1 Rank stocks here.

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Uber CTO Praveen Neppalli Naga said that the company is rolling out AI agents across the company using "agentic pods." Big Event Media/Getty Images for HumanX Conference Uber has a new approach to using AI: "Agentic pods."

Praveen Neppalli Naga, the ride-hailing company's tech chief, said in an X post on Tuesday that Uber embedded 30 of its "most AI-proficient engineers" with teams across the company, including finance, legal, and human resources.

Over two weeks, the engineers worked with employees in those departments, observed their work, and created AI agents to help handle tasks, Naga said. Uber has run 16 such Agentic Pods over the past two months, he said.

Many of the duties that Uber's engineers developed agents for, such as financial pacing reports, involved accessing multiple systems and performing a lot of manual work. The engineers had to work directly with the people responsible for them to understand how to recreate them with AI.

"You can't automate them effectively by looking at process diagrams or documentation," Naga said in his post. "You have to understand how the work actually gets done."

The resulting agents are saving Uber time. Those financial pacing reports can now be made in 10 minutes, down from two days, Naga said. Allocating capital across 150 cities Uber operates in, a task that used to take 15 hours, now takes 30 minutes with AI agents.

Uber's experience with pods points to a role that's become a rare bright spot amid industry layoffs. Despite job cuts, tech companies are still hiring forward-deployed engineers, Business Insider reported in May. The job often involves an engineer from an AI company working with employees at a customer firm.

Whether those efficiencies are worth it is another question.

In May, Uber's chief operating officer, Andrew Macdonald, said on a podcast that it was getting harder for the company to justify spending as much as it has on AI.

Uber, like many tech companies, has ramped up spending on AI. Naga told The Information that Uber maxed out its Claude Code budget for the year this spring. All that spending hasn't led to a similar increase in "useful" consumer features, though, Macdonald said.

Uber plans to keep using the agentic pod model, Naga said in his X post.

"We're now forming a dedicated team to scale this further and go deeper," he said.

"They'll deeply understand the work, redesign it from the ground up, and use AI to fundamentally change how the business operates," he added.

Do you have a story to share about Uber? Contact this reporter at [email protected] or via encrypted messaging app Signal at 808-854-4501. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely.

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

Alex Bitter is a senior retail reporter covering the gig economy, food, and retail. His work focuses major gig delivery and ride-hailing apps, including Uber, Lyft, DoorDash, Instacart, and Walmart's Spark. He is interested in everything from what it's like to work on the apps to the companies' business strategies.Some of his recent stories feature gig workers who have been deactivated on the apps, DoorDash hiring traditional employees to make deliveries, gig workers' use of bots, and gig work expanding into new professions, such as nursing.Alex has also written about Aldi's US expansion, Starbucks' turnaround efforts, and the fallout from Kraft-Heinz's budget cutting. Convenience store chain Sheetz ended its "smile policy" after his reporting.Before joining Insider in September 2020, he wrote about consumer and retail companies for S&P Global Market Intelligence. He's a graduate of the University of Hawai'i at Mānoa and grew up on the Big Island.Alex lives in the Washington, DC, area, where you can find him studying ancient coins or searching for Civil War artifacts with his metal detector in his free time.Got a tip? Reach out at [email protected] or via encrypted messaging app Signal at +1 (808) 854-4501.

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Amazon (NASDAQ:AMZN | AMZN Price Prediction) and Microsoft (NASDAQ:MSFT) both filed earnings on April 29, 2026, framing two different bets on the AI buildout. Amazon leans on custom silicon and, per a $25 billion multi-tranche bond sale, to fund infrastructure. Microsoft leans on its OpenAI stake and contracted backlog. Same tailwind, different balance sheets.

AWS Reaccelerates While Azure Sprints Ahead Amazon posted EPS of $2.78 against a $1.653 estimate on revenue of $181.52 billion, up 16.61%. AWS grew $37.59 billion in revenue, growing 28%, the fastest pace in fifteen quarters, at a 37.7% operating margin. Ads cleared $70 billion trailing, a real second engine.

Microsoft delivered EPS of $4.27 versus $4.09 expected on $82.89 billion in revenue, up 18.3%. Azure grew 40% (39% constant currency), and the AI business hit $37 billion annual run rate, up 123%. Commercial remaining performance obligations reached $627 billion, nearly doubling year-over-year, contracted demand years out.

Business Driver Amazon Microsoft Cloud growth AWS +28% Azure +40% Q1 CapEx $44.2B $30.88B Operating margin 11.2% 45.6% Custom Silicon Vs. Contracted Compute Andy Jassy said Amazon’s chips business is at $20 billion run rate with triple-digit growth, with total Trainium commitments reaching over $225 billion, including up to 5 GW from Anthropic and 2 GW from OpenAI starting in 2027. Jassy expects Trainium to save “tens of billions of dollars of CapEx each year”.

Microsoft’s leverage is contractual. Satya Nadella framed the quarter around delivering “cloud and AI infrastructure and solutions” for the agentic era. Microsoft leans heavily on NVIDIA silicon and its OpenAI partnership, enormously profitable but leaving less optionality on chips than Amazon has built.

The Capex Bill Is About To Get Louder Amazon’s TTM free cash flow collapsed 95% to $1.2 billion, and long-term debt jumped to $119.1 billion from $65.6 billion. Polymarket traders assign 87.5% probability that 2026 capex tops $200 billion, with a coin-flip on $220 billion or more. Microsoft’s CapEx surged 84.39% year-over-year, and management stayed quiet on numeric guidance. I want to see whether AWS margins hold as this cash deploys.

Why I’m Leaning Toward Amazon Right Now Since the reports, AMZN is down 6.49% and MSFT is down 8.19%. Neither has been rewarded. Amazon’s ability to tap institutional debt cheaply, pair it with a chip stack customers are pre-buying in gigawatts, and still show 29.6% operating income growth on core business tilts the read. Microsoft is a fantastic compounder at 45.6% operating margin, and if you want quality and dividend support, that case is intact. But if custom silicon is the real moat of this cycle, Amazon looks like the fortress trade. I would change my view if AWS margin slips below the mid-30s while capex keeps climbing.

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

Contact [email protected] for any questions or corrections.

Six gigawatts. That is the total AMD Instinct GPU capacity AMD (NASDAQ:AMD | AMD Price Prediction) will deploy for Meta under a partnership disclosed alongside its most recent earnings, with the first 1-gigawatt tranche powered by a custom MI450-based GPU. For scale reference, one gigawatt is roughly the output of a large nuclear reactor. Meta is committing to power-plant-scale AMD silicon, and it is doing so on top of a separate 6-gigawatt OpenAI agreement already on the books.

The total investment in compute for AMD has been rumored to be around $300 billion, though we’ll see what ultimately gets invested over time. Indeed, that’s the big question mark right now in financial markets.

What It Means Hyperscalers do not sign gigawatt-scale accelerator agreements as hedges. They sign them when they intend to build. That reframes AMD from a challenger chasing NVIDIA (NASDAQ:NVDA) into a co-supplier for the largest AI infrastructure buildouts in the world.

The financial fingerprints are already on the tape. Q1 FY2026 Data Center revenue reached $5.775 billion, up 57% year over year, making it the largest and fastest-growing of AMD’s four segments. Total Q1 revenue landed at $10.253 billion, up 37.9% year over year, beating the $9.91 billion consensus by 3.41%. Non-GAAP EPS came in at $1.37 versus $1.29 expected, driven by non-GAAP gross margins which expanded to 55% (up 170 basis points year over year).

Cash generation is scaling with the mix shift. Q1 free cash flow hit $2.566 billion, up 252.96% year over year, on operating cash flow of $2.955 billion. Net income more than doubled to $1.383 billion, up 95.06%.

Market Reaction AMD shares closed at $517.82 on July 2, 2026, down 4.26% on the day. That single-session dip is noise inside a much larger move. AMD is up 141.79% year to date from $214.16 at the end of 2025, and up 273.82% over the past year. For context, over the same twelve months, NVIDIA is up 24.06%.

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

Bull Case The AMD bull case rests on a simple observation – the company’s customer roster now looks like NVIDIA’s. AWS, Google Cloud, Microsoft Azure, and Tencent are expanding 5th Gen EPYC-powered instances. Meta is the lead customer for 6th Gen EPYC (Venice and Verano). Oracle Cloud Infrastructure is standing up a 50,000-GPU AI supercluster using AMD Helios rack design in Q3 2026. Samsung is supplying HBM4 memory for the MI455X.

Guidance points to further acceleration. AMD guided Q2 FY2026 revenue to roughly $11.20 billion, implying about 46% year-over-year growth, with non-GAAP gross margin expanding to about 56%. On the Q1 call, CEO Lisa Su said, “Customer engagement around MI450 Series and Helios is strengthening, with leading customer forecasts exceeding our initial expectations and a growing pipeline of large-scale deployments providing us with increasing visibility into our growth trajectory.”

The pressure on rivals is visible in relative performance. Intel (NASDAQ:INTC) still carries a negative EPS of -$0.60 on a trailing basis, with quarterly earnings growth down 71.7% year over year. NVIDIA remains the incumbent, but AMD is winning nameplate capacity commitments rather than trial orders. Analyst posture reflects it: 41 buy or strong buy ratings against 10 holds and zero sells, with a consensus target of $508.31.

Bottom Line Six gigawatts from Meta and another six from OpenAI turn AMD’s AI narrative from optionality into contracted backlog. For long-term holders, the anchor to watch is Data Center revenue, which drove the Q1 beat and underpins Q2 guidance of about $11.20 billion in total revenue.

AMD’s valuation is stretched, with a forward P/E of 77 on a stock up 141.79% year to date leaves little room for execution slips. But, the shipments behind those gigawatts are what the next earnings report will need to prove. That is the number that decides whether the pressure on rivals turns into permanent market share.

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

Contact [email protected] for any questions or corrections.

Key Takeaways NKE's recovery is uneven as running, training and North America improve, but Sportswear and China drag.NIKE Direct revenues fell 7% in Q4 fiscal 2026, with Digital down 12% and owned stores down 7%.Wholesale offers relief, rising 4% in Q4 fiscal 2026 and 6% for the year, led mainly by North America. NIKE, Inc. (NKE - Free Report) is trying to turn a narrower set of operating wins into a broader recovery. The problem is that the gains are still uneven.

Running, global football, training and North America are improving. Sportswear, Jordan Streetwear, NIKE Direct and Greater China continue to pressure demand, pricing and near-term visibility.

NKE Recovery Is Split by CategoryThe clearest progress is coming from performance categories. Running has delivered five consecutive quarters of double-digit growth and added roughly $1 billion over that span. Performance product grew mid-single digits in fiscal 2026, with positive retail sales comparisons across running, training and global football in the fourth quarter.

Management expects growth to expand beyond running into training, basketball and ACG in fiscal 2027. Still, Sportswear and Jordan Streetwear remain weak. Sell-through is challenged, discounting is elevated and future order books are being affected.

NIKE Direct Still Drags on GrowthNIKE Direct remains one of the biggest gaps in the recovery. In the fourth quarter of fiscal 2026, NIKE Direct revenues fell 7% on a reported basis and 9% on a currency-neutral basis to $4.1 billion. NIKE Brand Digital declined 12%, while NIKE-owned stores were down 7%.

The weakness matters because Sportswear and Jordan Streetwear together represent about half of NIKE’s revenues. NIKE is reducing promotions, repositioning digital as a premium business and working to elevate 50% of its owned-store fleet by the end of fiscal 2027. That reset can help brand health, but it also slows the pace of revenue improvement.

NKE Wholesale Rebound Offers Some ReliefWholesale is providing a partial offset. Fourth-quarter fiscal 2026 wholesale revenues rose 4% on a reported basis and 1% on a currency-neutral basis to $6.6 billion, driven mainly by North America. In fiscal 2026, wholesale revenues increased 6% on a reported basis and 4% on a currency-neutral basis.

NIKE is rebuilding partner relationships through curated assortments, better in-store presentation and sport-led storytelling. DICK’S Sporting Goods Inc.’s (DKS - Free Report) Foot Locker is an important marker in that process, as NIKE’s revenue growth and retail sales comparisons as the retailer turned positive for the first time in four years. adidas AG (ADDYY - Free Report) , a major athletic footwear and apparel peer, remains a useful comparison point for investors watching whether NIKE can regain product momentum while protecting brand premium.

NIKE China Reset Clouds Near-Term VisibilityGreater China remains a major overhang. Fourth-quarter revenues in the region fell 12% on a reported basis and 17% on a currency-neutral basis to $1.3 billion. NIKE Direct declined 14%, including a 25% drop in NIKE Digital and a 9% decrease in NIKE stores, while wholesale declined 19%.

In fiscal 2026, Greater China revenues declined 11% on a reported basis and 13% on a currency-neutral basis to $5.85 billion. NIKE has seen digital full-price realization improve and inventory decline by double digits, but management expects near-term revenue trends in the region to remain in line with recent performance.

NKE Signals Point to Ongoing CautionThe bottom line is that NIKE’s recovery has real operational green shoots, but not enough broad-based strength yet. Performance categories and wholesale are improving, while Sportswear, Jordan Streetwear, direct channels and China continue to weigh on the pace of a cleaner rebound.

NKE currently carries a Zacks Rank #4 (Sell). The stock also has a Value Score of D, Growth Score of F, Momentum Score of F and VGM Score of F. Style Scores are designed to complement the Zacks Rank, with stronger grades generally pointing to more favorable value, growth or momentum characteristics.

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

For NIKE, those signals support a cautious stance. A weak Rank reflects pressure in earnings estimate trends, while weak Style Scores suggest limited support from valuation, growth and momentum factors. Until category strength spreads more widely across channels and geographies, the stock outlook remains tied to execution proof rather than early signs of improvement.

The artificial intelligence (AI) bellwether has had its bell rung lately. Is the ding a dinner bell for opportunistic investors? Nvidia (NVDA 0.88%) may have kicked off the AI revolution a couple of years ago, but the market has been rotating out of the global leader lately.

Nvidia stock has fallen 14% since hitting an all-time high in May. Despite inching higher through the first three trading days of this week, the shares are lower over the past month. It's a stunning contrast to the overall market, which is clawing toward fresh highs.

Image source: Getty Images.

Rotation out of the leading AI chipmaker while business is still booming is surprising, but it's not without precedent. More importantly, it's not likely to be permanent. Bullish market sentiment turning its buy order attention to the next step of AI beneficiaries, including memory and data storage manufacturers, earlier this year, isn't outlandish, even if that segment has come under selling pressure in recent weeks.

You can go up and down the pick-and-shovel ecosystem in the near term. It just seems as if you can't ignore the lead horse over the long run.

Nvidia stock is facing plenty of challenges right now, but they seem small compared to the opportunity. Let's take a closer look at the company that continues to be the largest player by market cap, but one that is now the cheapest that it's been in years, according to one popular valuation metric.

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You can buy Nvidia for just 16 times next year's earnings You read that subhead correctly. Nvidia is now trading for 23 times this fiscal year's earnings, but an even more jaw-dropping 16 times next year's analyst profit target. There are some potential headwinds out there, and I don't want to dismiss them.

China's DeepSeek is making waves again. Its latest DSpark inference module reportedly improves AI rendering speed by up to 85% without requiring new hardware. If you can do more with existing hardware, there is no need to upgrade to Nvidia's shiniest new chips. That's not something you just sweep under the rug, but do you remember when Nvidia tumbled in early 2025, when DeepSeek made headlines? Nvidia's growing client base needs reliability more than it craves the gamble of cutting corners.

Nvidia's revenue has accelerated for three consecutive quarters. The 85% top-line jump it posted in its fiscal first quarter is the strongest increase in a year and a half. The growth rate isn't sustainable, but it shows that the initial DeepSeek headlines didn't slow Nvidia's skyrocketing trajectory.

Bears can point to growing competition in AI chips and Chinese trade restrictions. Nvidia just had its first major debt offering in five years. Demand is outpacing the uptick in competitors and trade restrictions. Betting against Nvidia could be a mistake here, especially with Nvidia shares at their cheapest level in years.

It all adds up The chart is interesting. The purple line is Nvidia's stock, which has had a stellar run as a market leader, more than tripling over the past three years. The blue line is Nvidia's earnings multiple for the current fiscal year. You see it drop come late January, when the baton is passed to the next fiscal year, but notice how hype exceeded reality in 2024 (Nvidia's fiscal 2025) before normalizing a year later and outright reversing this year. The orange line -- looking out to bottom-line forecasts for the following fiscal year -- is understandably a year ahead of that swing in valuation momentum.

Saying that Nvidia is trading for just 16 times next year's Wall Street profit target means that it's cheaper than the S&P 500 itself. Should Nvidia really be trading at a discount to the market when it's growing considerably faster? Nvidia's growth will decelerate at this point, and margins may contract as rivals improve their hardware alternatives.

The problem -- and your opportunity -- is that this is the same bear case that has been debunked in recent quarters. Nvidia keeps getting stronger, and analyst profit estimates keep rising. In short, by the end of the next fiscal year, there's a fair chance that Nvidia stock's snapshot today was trading for a lot less than 16 times next year's earnings.

Ding? It's your move.

The market expects GE Aerospace (GE - 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 earnings report, which is expected to be released on July 16, 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 industrial conglomerate is expected to post quarterly earnings of $1.86 per share in its upcoming report, which represents a year-over-year change of +12.1%.

Revenues are expected to be $11.86 billion, up 16.8% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. 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 GE?For GE, 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 +2.79%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination indicates that GE 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 GE would post earnings of $1.61 per share when it actually produced earnings of $1.86, delivering a surprise of +15.53%.

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.

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

Expected Results of an Industry PlayerGE Aerospace (GE - Free Report) , another stock in the Zacks Aerospace - Defense industry, is expected to report earnings per share of $1.86 for the quarter ended June 2026. This estimate points to a year-over-year change of +12.1%. Revenues for the quarter are expected to be $11.86 billion, up 16.8% from the year-ago quarter.

The consensus EPS estimate for GE has remained unchanged over the last 30 days. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +2.79%.

This Earnings ESP, combined with its Zacks Rank #2 (Buy), suggests that GE 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.

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Starbucks is developing in-house systems that could replace software it buys from Big Tech companies, Bloomberg News reported Thursday (July 9).

The coffee chain is working on alternatives to a system from Microsoft that monitors inventory as well as a maintenance management tool from IBM, the report said, citing an internal presentation.

Starbucks has also been working for several years on creating a point-of-sale system that would replace Oracle Simphony, according to the report.

Starbucks declined to comment when reached by PYMNTS beyond sharing a company blog post about its approach to AI.

The moves are part of a larger shift happening in the business world.

“For two decades, buying enterprise software meant accepting a vendor’s feature set, paying per seat and hiring specialists to manage the platform,” PYMNTS reported Wednesday (July 8). “For small businesses, that model often meant paying for capabilities they never used. AI coding tools are changing that calculation.”

Five startups and small companies with staff ranging from 20 to 70 people switched from working with Salesforce and HubSpot in the last six months, turning instead to in-house applications built using AI tools from Anthropic, Lovable and Replit. These businesses reduced software costs by 40% to 80%.

Research and advisory firm Gartner found that up to $234 billion of enterprise application software spending will be exposed to agentic arbitrage by the end of 2030, or roughly 20% of all enterprise software-as-a-service spending.

“Agentic AI changes the economics of software,” George Brocklehurst, managing vice president at Gartner, said in a July 1 news release.

Retool, a low-code platform for building custom internal tools, found that 35% of enterprises have already swapped out at least one SaaS tool with a custom-built alternative, with 78% saying they intend to develop more this year.

Starbucks spends roughly $400 million per year just on software, Chief Technology Officer Anand Varadarajan told employees in an internal forum earlier this year, according to the Bloomberg report.

“There’s clear opportunities to reduce the spend in software,” Varadarajan said, per the report.

While in-house software can be cheaper for companies like Starbucks, which hopes to lower costs by $2 billion for its turnaround plan, building can lead businesses to pay more for maintenance and labor, the report said.

For most of 2026, Intel (INTC +2.68%) was the comeback story of the chip sector. The stock had more than tripled on the belief that its new 18A manufacturing process would finally put the company back on the leading edge. Then, over the past week, the rally came apart.

Intel shares have tumbled about 21% in a week, trading at about $110 as of this writing. That is a jarring reversal for one of the market's best performers this year.

So what actually broke the rally? Three separate pressures landed at nearly the same time. Here's a look at each -- and which one should matter most to investors.

Image source: Getty Images.

The 18A payoff got pushed out Intel's whole 2026 run rested on one idea: that 18A, its most advanced process, would ramp this year and pull the money-losing foundry business toward profitability.

Reports over the past week complicated that story. According to industry reports, 18A yields (the share of chips that come off the line usable) may not reach profitable levels until late 2026 or 2027 -- later than bulls had assumed.

That timing matters because Intel is still losing money in manufacturing. In the first quarter of 2026, Intel foundry generated less than $200 million in external customer revenue and posted a steep operating loss. The longer 18A takes to yield well, the longer investors wait for the payoff on a stock that had already priced success in.

Yields aren't a minor detail, either. Every chip that comes off the line unusable is wasted wafer cost, so weak yields squeeze Intel's revenue and its margins at the same time.

This is the pressure that should worry shareholders most. The other two are about competition and mood. This one goes to the heart of why the stock ran in the first place.

AMD passed it in the data center In the first quarter of 2026, AMD out-earned Intel in the data center.

In the first quarter of 2026, AMD's data-center segment generated $5.8 billion in revenue, up 57% year over year. Intel's own data-center business brought in $5.1 billion, up a respectable 22%. The crossover stings, because data-center chips have been Intel's stronghold for decades.

There is some nuance worth noting. AMD's segment includes its Instinct artificial intelligence (AI) accelerators, not just server processors, so part of that lead is a graphics-chip story. Specifically for server processors, Intel still ships about two-thirds of the units. But it now collects only a little more than half the revenue, because AMD keeps winning the higher-priced chips.

Either way, the direction is clear: Intel's grip on its most profitable market is loosening.

A sectorwide sell-off did the rest The final pressure had nothing to do with Intel specifically. A widely read note from a big bank warned of bubble-like conditions in AI stocks, and even a record profit from memory maker Samsung -- read as a sign the memory boom was peaking -- did nothing to lift the mood. Chip stocks sold off across the board.

Intel, already wobbling on its own news, fell harder than most. When sentiment turns against a whole sector, the names with the shakiest stories tend to get hit worst -- and Intel had just handed the market two fresh reasons to worry. The sell-off erased roughly a fifth of the company's market value in a matter of days.

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Does the crash change the case? So has a 21% drop made Intel a bargain? I don't think it's that simple.

Two of the three pressures are arguably just noise. Sector sentiment will swing back eventually, and AMD's data-center lead, while real, was hardly a secret. But the 18A delay is different. It pushes out the single event the bull case was built around, even as the foundry is still burning cash.

And even after the drop, Intel isn't obviously cheap. It's unprofitable on a trailing basis, and its stock still trades at more than 100 times expected earnings over the next 12 months -- a far richer multiple than the broader market, which sits in the low-to-mid 20s.

To be fair, Intel's data-center revenue is still growing, its foundry is slowly signing up outside customers, and 18A may yet ramp on a reasonable timeline. But the stock had been priced for that ramp to materialize this year, and that assumption just took a real hit. Personally, I'd want hard evidence that 18A yields are improving before treating this crash as an opportunity rather than a warning.

Salesforce Inc. CRM shares fell 2.5% on Thursday after KeyBanc downgraded the software company, citing concerns that its Agentforce artificial intelligence platform may take longer than expected to become a meaningful growth driver.

The downgrade came despite Salesforce's strong position in enterprise software and follows the company's better-than-expected fiscal first-quarter results reported in late May.

Investors have remained focused on whether the company's AI investments can translate into sustained revenue growth as competition in enterprise artificial intelligence intensifies.

KeyBanc downgraded Salesforce to Sector Weight from Overweight on Thursday, with analyst Jackson Ader pointing to customer feedback and channel checks that suggest Agentforce adoption remains in its early stages.

According to the brokerage, Salesforce continues to benefit from its position as an incumbent platform provider, but evidence indicates that meaningful growth acceleration from Agentforce is further away than previously expected.

The firm said it attends more Salesforce partner and customer events than any other company in its coverage universe.

Customer feedback has been consistent in two areas, according to KeyBanc.

Customers' data is not yet organized to support meaningful AI work, while Agentforce itself is still not ready for broad deployment.

The brokerage added that implementation partners are only now beginning to convert Agentforce proof-of-concept projects into pipeline deals.

KeyBanc also said its survey found that more chief information officers expect to deprioritize Salesforce within their IT budgets over the next 12 months than prioritize it.

The brokerage further noted that it has struggled to find evidence in Salesforce's financial disclosures showing that net-new annual contract value is growing faster than overall annual contract value growth, despite management's comments.

"What we can piece together in the disclosed numbers does not signal building momentum," Ader said.

Ader also acknowledged the timing of the downgrade saying it could be at a poor time.

"But at some point, we have to ask ourselves, why gather the evidence if we’re not going to use it," he added.

AI growth remains under scrutinyThe downgrade comes after Salesforce reported stronger-than-expected fiscal first-quarter earnings in late May, supported by demand for its AI-powered products, including Agentforce.

The company said it closed 98 deals worth more than $1 million in annual contract value during the quarter.

Publicly disclosed Agentforce customers include PepsiCo, Falabella and Singapore Airlines.

However, Salesforce's second-quarter revenue guidance came in slightly below Wall Street expectations, raising concerns that rapidly advancing AI products from rivals such as OpenAI and Anthropic continue to pressure demand for enterprise software.

KeyBanc noted that it had previously pushed back against negative sentiment surrounding software-as-a-service companies, highlighting the advantages that incumbent platforms such as Salesforce possess.

However, the firm's latest customer checks prompted it to revise its view.

On Wednesday, Salesforce announced that the US Air Force 441st Vehicle Support Chain Operations Squadron (VSCOS) had begun using the company's Missionforce National Security platform to manage a fleet of more than 84,000 vehicles across nearly 389 locations.

Despite Thursday's decline, Wall Street sentiment remains broadly positive.

More than 70% of analysts covering Salesforce rate the stock a Buy, with an average price target of $241.08, implying roughly 45% upside from Wednesday's closing price of $166.58.

Still, Salesforce has struggled this year. The stock has fallen 35% in 2026.

In its upcoming report, Wells Fargo (WFC - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $1.74 per share, reflecting an increase of 13% compared to the same period last year. Revenues are forecasted to be $21.8 billion, representing a year-over-year increase of 4.7%.

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.2% 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 usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.

That said, let's delve into the average estimates of some Wells Fargo metrics that Wall Street analysts commonly model and monitor.

Analysts forecast 'Book value per common share' to reach $53.96 . The estimate is in contrast to the year-ago figure of $51.13 .

The consensus estimate for 'Average Balance - Total interest-earning assets' stands at $2040.00 billion. Compared to the current estimate, the company reported $1762.16 billion in the same quarter of the previous year.

Analysts expect 'Return on equity (ROE) - Financial Ratios' to come in at 13.0%. The estimate is in contrast to the year-ago figure of 12.8%.

Analysts' assessment points toward 'Efficiency Ratio' reaching 63.1%. Compared to the present estimate, the company reported 64.0% in the same quarter last year.

It is projected by analysts that the 'Common Equity Tier 1 (CET1) - Standardized Approach' will reach 10.1%. Compared to the present estimate, the company reported 11.1% in the same quarter last year.

According to the collective judgment of analysts, 'Total nonperforming assets' should come in at $8.99 billion. Compared to the present estimate, the company reported $7.96 billion in the same quarter last year.

The average prediction of analysts places 'Tier 1 Leverage Ratio' at 6.9%. The estimate compares to the year-ago value of 8.0%.

The combined assessment of analysts suggests that 'Total nonaccrual loans' will likely reach $8.69 billion. Compared to the current estimate, the company reported $7.76 billion in the same quarter of the previous year.

The collective assessment of analysts points to an estimated 'Net loan charge-offs' of $1.15 billion. Compared to the present estimate, the company reported $997.00 million in the same quarter last year.

Analysts predict that the 'Tier 1 Capital Ratio - Standardized Approach' will reach 11.2%. The estimate is in contrast to the year-ago figure of 12.4%.

Based on the collective assessment of analysts, 'Net interest income (on a taxable-equivalent basis)' should arrive at $12.44 billion. Compared to the present estimate, the company reported $11.79 billion in the same quarter last year.

The consensus among analysts is that 'Total Noninterest Income' will reach $9.47 billion. The estimate compares to the year-ago value of $9.11 billion.

View all Key Company Metrics for Wells Fargo here>>>

Over the past month, Wells Fargo shares have recorded returns of +4.4% versus the Zacks S&P 500 composite's +1.1% change. Based on its Zacks Rank #3 (Hold), WFC 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 >>>> .

In Brief

Posted:

8:16 AM PDT · July 9, 2026

Image Credits:Thomas Fuller/SOPA Images/LightRocket / Getty Images Block has agreed to pay $45 million to settle claims brought by 46 U.S. states alleging that its peer-to-peer payments app, Cash App, failed to adequately protect users from fraud.

State attorneys general said they found that Block misled users by falsely advertising that Cash App provided bank-like protections, including advanced fraud detection. Block denied wrongdoing.

According to the states, Cash App allowed users to create accounts without a Social Security number or date of birth, and didn’t place limits on the number of accounts a person could open, making it easier for scammers to exploit the platform. The states also alleged that because Cash App didn’t provide an official customer support phone number, many users who were locked out of their accounts turned to fake customer service numbers that were operated by scammers.

Many Americans rely on fintech apps as their banking services, which has led to increased oversight. Block’s settlement marks the latest chapter in regulators’ scrutiny of Cash App’s business practices. It follows earlier action by the Consumer Financial Protection Bureau, which had similarly accused Block of failing to investigate fraud claims or provide adequate customer service, resulting in $175 million in penalties and other redress to consumers.

Under the new settlement, Block will improve Cash App’s fraud prevention measures and customer service, including by providing live customer support for users of the mobile payments platform.

News of the settlement was first reported by Reuters. Block did not immediately respond to TechCrunch’s request for comment.

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Key Takeaways Costco's June total comparable sales rose 8.8%, slowing from May and April but showing healthy demand.Digitally enabled comparable sales grew 20.9% in June, continuing strong online momentum.Costco's June net sales rose 10.6% to $29.24 billion, supported by value and digital strength. Costco Wholesale Corporation’s (COST - Free Report) June sales data showed that consumer demand remains resilient, even as comparable sales growth moderated. The company continued to benefit from its value-driven pricing, quality merchandise, strong digital momentum and broad warehouse footprint, which are helping attract shoppers in a cautious consumer environment.

Sneak Peek Into Costco’s Comparable Sales PerformanceFor the five weeks ended July 5, 2026, Costco reported an 8.8% year-over-year increase in total comparable sales. Regionally, comparable sales rose 10.6% in the United States, 3.7% in Canada and 4.7% in Other International markets. While this marked a slowdown from total comparable sales growth of 12.5% in May and 11.6% in April, the June performance still reflected healthy underlying demand.

Excluding the effects of gasoline prices and foreign exchange, U.S. comparable sales increased 7.6%, while Canada and Other International markets posted gains of 4.9% and 5.6%, respectively. Overall, total comparable sales, excluding these factors, rose 7% in June, following increases of 8% in May and 7.8% in April.

Digitally enabled comparable sales remained a standout, rising 20.9% in June, or 21.5% after adjusting for fuel and currency impacts. This followed gains of 21.1% in May and 18.8% in April, underscoring sustained momentum in Costco’s online channel.

Costco’s net sales for June increased 10.6% to $29.24 billion from $26.44 billion in the year-ago period. Although growth moderated from May’s 14.5% increase and April’s 13% gain, the retailer’s June performance suggests that its value proposition and digital strength continue to support solid sales momentum.

How Costco Compares With Walmart and TargetWalmart Inc. (WMT - Free Report) continues to post resilient comparable sales growth despite a cautious consumer backdrop. Walmart reported 4.1% U.S. comparable sales growth (excluding fuel) in first-quarter fiscal 2027, supported by a 3% increase in transactions and 26% global e-commerce growth. Walmart also benefited from a stronger marketplace, advertising and Walmart+ membership performance, reinforcing traffic, customer engagement and market-share gains while sustaining healthy comparable sales momentum.

Meanwhile, Target Corporation (TGT - Free Report) is also demonstrating solid comparable sales momentum through strong traffic and digital growth. Target delivered 5.6% comparable sales growth in first-quarter 2026, driven by a 4.4% increase in traffic and 8.9% digital comparable sales growth, with strength across all six merchandise categories. Target continues to enhance comparable sales through merchandising innovation, Target Circle 360, same-day delivery and an improved omnichannel experience, positioning Target for sustained long-term growth.

What the Latest Metrics Say About CostcoCostco has seen its shares tumble 4.5% over the past three months compared with the industry’s decline of 3%. 
 

Image Source: Zacks Investment Research

From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 43.02, higher than the industry’s ratio of 30.43. However, it is trading below its 12-month median level of 46.34, indicating some moderation in valuation despite sustained investor confidence in the stock.
 

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 9.5% and 13.3%, respectively. For the next fiscal year, the consensus estimate indicates a 7.9% rise in sales and 10.2% growth in earnings.

The consensus estimate for earnings per share for the current and next fiscal year has increased by 6 cents and 7 cents to $20.38 and $22.46, respectively, over the past 60 days.

Image Source: Zacks Investment Research

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

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SummaryMicron Technology, Inc. delivered a record-breaking quarter, with revenue up 346% YoY and operating income surging 2,456%, driven by AI-fueled memory demand.MU’s growth is powered by Strategic Customer Agreements: 16 take-or-pay contracts locking in floor margins above historical peaks and $100B+ in minimum revenue.Guidance calls for Q4 revenue of $50B and 86% gross margin, with tight memory supply expected through 2027 and a commitment to return 100% of excess cash to shareholders.While SCAs cap upside for 40% of revenue at peak 2026 prices, the new floor transforms MU’s risk profile, justifying a Strong Buy rating despite some foregone upside. JHVEPhoto/iStock Editorial via Getty Images

Every once in a while, a company reports a quarter so loudly that the point gets drowned out by its own applause. Now, Micron Technology, Inc. (MU) has had runs like this before, and

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

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

Goldman Sachs said Thursday it won deals to manage a combined $70 billion in retirement assets for Verizon Communications and Lockheed Martin, one of the larger recent announcements in the fast-growing market for outsourced corporate investing.

The mandates include about $30 billion in pension assets for Verizon and Lockheed Martin and $40 billion in Verizon defined-contribution retirement assets, which are typically 401(k)s, according to Goldman.

The moves underscore how some of America's largest employers are increasingly handing responsibility for managing retirement assets to outside firms such as Goldman as portfolios become more complex and require expertise across public and private markets.

Competition in the multitrillion-dollar market for retirement assets is fierce among managers including Goldman, BlackRock, Russell Investments and Mercer, because the long-term institutional mandates generate steady fee revenue.

By growing that business, Goldman hopes to increase its share of revenues that are seen as stable and recurring, unlike the more volatile trading and investment banking operations.

"Large plan sponsors are consolidating responsibilities with one partner with the investment expertise and depth of platform to manage their bespoke needs," Marc Nachmann, Goldman's global head of asset and wealth management, said in a statement.

Goldman's outsourced chief investment officer business had about $480 billion in assets as of March 31, while the firm's broader asset and wealth management division oversees roughly $3.7 trillion worth of investments.

Key Takeaways First Majestic raised its 2026 silver and gold production guidance after a stronger first half.AG's Q2 silver production rose 3% y/y, led by gains at La Encantada and Santa Elena.First Majestic hiked its 2026 guidance for San Dimas, Los Gatos, La Encantada and Santa Elena. First Majestic Silver Corp. (AG - Free Report) announced that its silver production reached 3.8 million ounces in the second quarter of 2026, marking a year-over-year increase of 3%. The upside was driven by solid performances at the La Encantada and Santa Elena mines. The company’s gold production also increased 2% year over year to 34,660 ounces.

First Majestic also produced 16.5 million pounds of zinc, 9 million pounds of lead and 252,938 pounds of copper.

First Majestic’s Mine Performances in Q2In the second quarter of 2026, the San Dimas mine produced 1.06 million ounces of silver, marking a 15% decrease from the second quarter of 2025. The mine’s gold production fell 1% year-over-year to 12,385 ounces. The downside was led by a delay in mine haulage.

The Santa Elena mine produced 422,571 ounces of silver (up 38% year over year) and 21,468  ounces of gold, which increased 4% year over year.

La Encantada produced 1.03 million ounces of silver, up 65% from the second quarter of 2025. The upside was driven by 14% growth in ore processed and a 27% increase in silver grades.

Los Gatos contributed 1.28 million ounces of silver and 772 ounces of gold. It also contributed 16.4 million pounds of zinc, 9 million pounds of lead and 235,886 pounds of copper to First Majestic’s total production number.

First Majestic has started its 2025 drilling program at the Jerritt Canyon mine in the third quarter of 2025. The company completed 12,495 meters of surface drilling using two reverse circulation rigs, alongside about 320 meters of underground drilling with a single diamond rig during the second quarter.

AG’s Updates 2026 GuidanceFirst Majestic expects gold production of 72,000-76,000 at the Santa Elena mine, marking an increase of 10% at the mid-point from the previous guidance. The upside will be driven by higher gold grades and slightly increased gold recoveries. The mine’s silver output is projected between 1.4 million and 1.5 million ounces, revised to be near the upper limit of the company's initial forecast.

The company’s Los Gatos mine is expected to produce 5.1-5.5 million ounces of silver in 2026, marking a 5% increase at the mid-point from the previous guidance. In contrast, the La Encantada mine’s silver guidance is expected to increase 19% at the midpoint from the previous guidance to 3.4-3.6 million.

San Dimas’s production is expected to increase 13% at the mid-point from the prior guidance to 4.6-4.9 million ounces of silver for 2026. The upside will be driven by higher throughput rates.

Driven by the strong first-half performance, the company hiked its production outlook for 2026. It expects the total silver production to be 14.6-15.5 million ounces, marking a 10% increase from the previous guidance of 13-14.4 million ounces. Total gold production for 2026 is expected to be 128,000-135,000 ounces, up 7% at the mid-point from the previous forecast.

First Majestic’s Peer Performance in Q4Endeavour Silver Corp. (EXK - Free Report) produced 1.94 million ounces of silver in the second quarter of 2026. This reflected a 31% increase from the year-ago quarter, driven by the addition of the Kolpa operation in May 2025. Endeavour Silver’s total gold production in the quarter grew 35% year over year to 10,474 ounces. The company’s silver-equivalent ounces production increased 36% year over year in the quarter.

AG Stock’s Price PerformanceThe company’s shares have skyrocketed 87.8% in the past year compared with the industry's 72.5% surge.

Image Source: Zacks Investment Research

First Majestic’s Zacks Rank & Stocks to ConsiderAlbemarle has an average trailing four-quarter earnings surprise of 74.5%. The Zacks Consensus Estimate for the company’s 2026 earnings is pegged at $12.45 per share, indicating year-over-year growth from a loss of 79 cents. ALB shares have skyrocketed 124% so far this year. 

Avino Silver has an average trailing four-quarter earnings surprise of 125%. The Zacks Consensus Estimate for Avino Silver’s 2026 earnings is pegged at 39 cents per share, indicating 34.5% year-over-year growth. Its shares have surged 62.7% in a year.

Key Takeaways CB raised its quarterly dividend by 5.2%, extending its streak to 33 consecutive annual dividend increases. CB authorized a new $7.5 billion share repurchase program, enhancing capital return flexibility. Strong underwriting, investment income and cash flow support reinvestment and shareholder distributions. Chubb Limited (CB - Free Report) follows a disciplined and balanced capital deployment strategy that prioritizes profitable business growth while consistently returning excess capital to shareholders. Its strong underwriting performance, substantial operating cash flow and recurring investment income enable the company to maintain financial strength and deploy capital efficiently.

Chubb has a long track record of increasing its dividend. In 2026, the board approved a 5.2% increase in the quarterly dividend to $1.02 per share, marking the 33rd consecutive year of dividend increases. Share buybacks are a key component of Chubb's capital allocation strategy. Effective July 1, 2026, the board authorized a new $7.5 billion share repurchase program, providing management with significant flexibility to return excess capital when valuations are attractive.

Several factors that provide Chubb with the financial flexibility to deploy capital effectively are strong underwriting profitability and disciplined risk selection; robust operating cash flow generated from recurring insurance premiums; significant investment income; and excellent capital adequacy and balance sheet strength.

Chubb invests heavily in expanding its global insurance franchise through product innovation, geographic expansion, technology, AI-driven underwriting, digital claims capabilities and distribution partnerships to support long-term profitable growth.

Chubb prioritizes preserving its superior capitalization and liquidity, enabling it to support underwriting growth and maintain high financial strength ratings across market cycles.

Chubb's combination of steady dividend growth, substantial share repurchases, disciplined reinvestment and selective acquisitions reflects a prudent capital allocation philosophy. Backed by industry-leading underwriting performance, strong cash generation, and a fortress balance sheet, the company is well-positioned to create sustainable long-term shareholder value.

What About Its Peers?First American Financial Corporation (FAF - Free Report) follows a balanced capital-return strategy that combines a steadily growing dividend with opportunistic share repurchases. FAF generally uses a combination of regular dividend increases and selective share repurchases to distribute excess capital. FAF has increased its dividend for more than 15 consecutive years, reflecting management's commitment to returning capital through various housing market environments.

American Financial Group, Inc. (AFG - Free Report) has one of the most shareholder-friendly capital allocation policies in the U.S. insurance sector. AFG regularly generates capital that is needed to support underwriting operations. Returning excess capital to shareholders in the form of regular and special cash dividends and through opportunistic share repurchases is an important and effective component of American Financial’s capital management strategy. The combination of growing regular dividends, frequent special dividends, opportunistic buybacks and strong underwriting profitability has enabled the company to deliver substantial cash returns to investors over time.

CB’s Price PerformanceShares of CB have gained 26.6% in the past year, outperforming the industry.

Image Source: Zacks Investment Research

CB’s OvervaluationThe stock is overvalued compared with its industry. It is currently trading at a price-to-book value multiple of 1.72, higher than the industry average of 1.49. It carries a Value Score of B.

Image Source: Zacks Investment Research

Estimate Movement for CBThe Zacks Consensus Estimate for CB’s second-quarter 2026 has moved up 0.1%, and the third-quarter 2026 EPS has moved down 0.1% in the past 30 days. The same for the full-year 2026 and 2027 EPS has moved down 0.1% and 0.2%, respectively, in the past 30 days.

Image Source: Zacks Investment Research

Key Takeaways Western Digital is advancing HAMR and ePMR to meet rising AI and cloud storage demand.WDC shipped 222 exabytes in fiscal Q3 2026, up 34% year over year, including 32TB ePMR drives.Western Digital targets 40TB UltraSMR volume production in fiscal 2026 and HAMR ramp in 2027. Western Digital Corporation (WDC - Free Report) is advancing its Heat-Assisted Magnetic Recording (HAMR) strategy to support rising demand for high-capacity storage in the AI-driven data economy. As artificial intelligence (AI) adoption and cloud computing continue to accelerate data creation, the company believes the need for persistent, scalable and cost-efficient storage will continue to increase.

On the last earnings call, management highlighted that AI training, inferencing, the emergence of agentic AI, synthetic data generation and physical AI applications, including robotics and autonomous vehicles, are expected to drive long-term storage demand CAGR of more than 25%. To address these evolving requirements, the company is expanding its HDD technology portfolio with higher-capacity drives, improved performance and lower total cost of ownership.

Western Digital continues to collaborate with hyperscale customers while advancing areal density improvements and accelerating its ePMR and HAMR roadmaps. In the third quarter of fiscal 2026, the company shipped 222 exabytes, up 34% year over year, including 4.1 million next-generation ePMR drives totaling 118 exabytes with capacities of up to 32TB. It is also expanding UltraSMR adoption, leveraging its reliability, scalability and total cost of ownership advantages for data center customers.

To strengthen its HAMR capabilities, the company acquired intellectual property and talent to enhance its in-house laser development expertise and introduced UltraSMR-enabled JBOD platforms with software ecosystem partners to broaden adoption through higher storage density and hyperscale-class performance. Firm purchase orders from its top seven customers extend through 2026, while multi-year commercial agreements with three of its top five customers continue into 2027 and 2028.

Western Digital has outlined a customer-focused storage roadmap centered on scalable capacity, improved performance, better power efficiency and faster deployment while maintaining HDD economics. Its 40TB UltraSMR ePMR HDD is targeted for volume production in the second half of fiscal 2026, while HAMR drives are expected to ramp in 2027. The roadmap extends ePMR to 60TB and scales HAMR technology toward 100TB by 2029. The company is also advancing High Bandwidth Drive Technology, Dual Pivot Technology and power-optimized drives, while expanding UltraSMR adoption and its Platforms business to support AI-scale storage deployments.

Taking a Look at WDC’s CompetitorsSeagate Technology Holdings plc (STX - Free Report) is strengthening its leadership in HAMR technology to address growing AI-driven demand for high-capacity, cost-efficient storage. Its second-generation Mozaic 4+ platform delivers up to 44TB per drive, more than 30% higher capacity than earlier versions, and is expected to dominate HAMR exabyte shipments by the end of 2026. The company has already shipped millions of HAMR drives and expects Mozaic 5, offering up to 50TB capacity, to enter qualification in late 2027. Seagate believes its HAMR roadmap, focused on increasing areal density, will support long-term exabyte growth while improving cost and power efficiency per terabyte.

NetApp, Inc. (NTAP - Free Report) is benefiting from rising enterprise demand for modern all-flash storage and hybrid cloud data management as customers scale AI workloads. Fourth-quarter fiscal 2026 results showed continued growth in all-flash, Public Cloud services and Keystone, supported by deeper hyperscaler partnerships and a larger services backlog. For fiscal 2027, management expects revenue growth to accelerate, and plans to continue returning capital to shareholders, including returning up to all free cash flow, while also investing in AI-focused product refreshes. For fiscal 2027, NetApp projects net revenues in the range of $7.325 billion to $7.575 billion.

WDC Price Performance, Valuation and EstimatesIn the past month, shares of WDC have jumped 12.3% compared with the Zacks Computer-Storage Devices industry’s growth of 5.2%.

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In terms of forward price/earnings, WDC shares are trading at 29.54X, higher than the industry’s 13.18X.

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The Zacks Consensus Estimate for WDC’s earnings for fiscal 2026 has been revised north 0.4% to $10.06 over the past 60 days, while the same for fiscal 2027 has gone up 8.44% to $18.64.

Image Source: Zacks Investment Research

Currently, Western Digital has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways Cenovus shares surged 85.3% in the past year, beating CNQ, SU and the sub-industry's 52.9% rallies.Cenovus expects to beat its C$150M 2026 MEG synergy target and generate above C$400M annually by 2028.Cenovus trades at 6.6X EV/EBITDA, below the industry average and Canadian Natural Resources' 9.08X. Over the past year, shares of Cenovus Energy Inc. (CVE - Free Report) have climbed 85.3%, comfortably outpacing Canadian Natural Resources' (CNQ - Free Report) 33.5% gain and Suncor Energy's (SU - Free Report) 49.9% rally. During the same period, the stock has surpassed the sub-industry’s 52.9% return. The strong stock performance reflects growing investor confidence in the company's execution strategy and expanding operational footprint within Canada's energy sector.

Image Source: Zacks Investment Research

Cenovus has steadily strengthened its business through disciplined capital allocation, acquisitions and production growth. As the stock continues to outperform, investors are evaluating whether the company's improving fundamentals can support further upside.

Adding to the bullish case, Cenovus has exceeded the Zacks Consensus Estimate in the past four quarters, delivering an average earnings surprise of 50.8%. Such consistent earnings outperformance highlights the company's operational strength despite the cyclical nature of the energy industry.

Image Source: Zacks Investment Research

Key Factors Driving Cenovus' Growth StoryMEG Energy Acquisition Is Already Delivering ResultsThe acquisition of MEG Energy, completed in late 2025 for C$7.1 billion, has quickly become a major value driver for Cenovus. The transaction expanded the company's oil sands portfolio by adding assets adjacent to its Christina Lake operations, creating opportunities for operational efficiencies and lower development costs.

Management has indicated that redevelopment wells at Christina Lake North are performing better than originally anticipated. Consequently, the company expects to exceed its initial C$150-million synergy target for 2026, while maintaining its outlook of generating more than C$400 million in annual synergies by 2028.

Beyond near-term cost savings, the acquisition strengthens Cenovus' reserve base, enhances production capacity and further reinforces its leadership position among Canada's oil sand producers.

Low-Cost Operations Provide a Durable Competitive AdvantageOne of Cenovus' biggest strengths remains its industry-leading cost structure. According to the company, combined operating and sustaining capital costs are approximately $21 per barrel, making Cenovus one of the lowest-cost producers in its peer group.

Its portfolio of long-life, high-quality oil sands assets enables the company to generate attractive returns across commodity price cycles. Management has also maintained a disciplined capital allocation strategy, with growth projects designed to earn acceptable returns even if WTI crude falls to around US$45 per barrel.

This structural cost advantage positions Cenovus to protect margins, generate healthy free cash flow and continue to create long-term shareholder value even in weaker commodity environments.

Integrated Operations Enhance Cash Flow StabilityWhile crude oil prices remain supportive, the longer-term outlook points to a more balanced global oil market as OPEC+ gradually restores production, geopolitical supply disruptions ease and inventories rebuild. According to the U.S. Energy Information Administration (EIA), Brent crude prices are expected to average $82 per barrel in 2026 before moderating in 2027 as higher global supply weighs on the market.

Against this backdrop, Cenovus appears well-positioned to generate resilient cash flows. The company's upstream portfolio is anchored by long-life oil sand assets with combined operating and sustaining capital costs of approximately $21 per barrel, while management expects its growth investments to generate acceptable returns even at WTI prices of US$45 per barrel. This low-cost production profile provides a meaningful cushion against weaker commodity prices.

Cenovus' integrated business model strengthens its earnings resilience. The company owns approximately 660,000 barrels per day of refining capacity across North America through refineries in Canada and the United States. This downstream business helps offset volatility in upstream earnings by capturing refining margins when crude price realizations weaken. In addition, its extensive pipeline connectivity and heavy-oil processing capabilities help reduce the impact of Western Canadian Select (WCS) price differentials.

The combination of low-cost upstream operations and a sizable downstream refining network enables Cenovus to generate relatively stable free cash flow across commodity cycles, supporting continued shareholder returns, disciplined capital allocation and long-term production growth.

Estimates Reflect Continued Earnings GrowthAnalyst sentiment has become increasingly constructive toward Cenovus in recent months. The Zacks Consensus Estimate for 2026 revenues stands at $37.6 billion, implying 5.8% year-over-year growth, while earnings are projected to reach $3.02 per share, representing an impressive 96% increase from the prior year.

For 2027, consensus estimates call for an additional 1.5% increase in revenues, although earnings are expected to decline 8.2%.

Reflecting improved confidence in the company's outlook, earnings estimates have also moved higher. Over the past 60 days, the consensus EPS estimate has increased 2.03% for 2026 and 6.13% for 2027.

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Attractive Valuation Compared With PeersDespite its strong share price appreciation, Cenovus continues to trade at a reasonable valuation. The stock currently carries a trailing 12-month EV/EBITDA multiple of 6.6X, slightly below the industry average of 6.65X.

The valuation also remains well below Canadian Natural Resources, which trades at 9.08X EV/EBITDA. Although Suncor Energy commands a similar multiple, Cenovus offers a more compelling long-term growth profile, supported by acquisition synergies, low-cost operations and multiple development opportunities that should drive production growth.

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Should You Buy CVE Stock?Cenovus has built a compelling long-term investment case by combining disciplined execution with growth initiatives. The successful integration of the MEG Energy acquisition, one of the industry's lowest operating cost structures and a highly integrated upstream-downstream business model, positions the company to generate resilient earnings across varying commodity price environments.

At the same time, improving earnings estimates indicate growing confidence in management's ability to translate these operational strengths into higher profitability. Despite its strong rally over the past year, the stock continues to trade at an attractive valuation relative to the broader industry and several key competitors.

Backed by a Zacks Rank #1 (Strong Buy), Cenovus appears well-positioned to deliver sustainable shareholder value over the long term, making the stock an attractive consideration for investors seeking exposure to a financially disciplined and operationally efficient Canadian energy producer.

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

Key Takeaways EMCOR expects to keep growing faster than nonresidential construction, led by data center gains.EMCOR lifted 2026 revenue guidance to $18.5B-$19.25B after record Q1 sales of $4.63B.EMCOR is seeing demand across institutional, healthcare, manufacturing, water and logistics projects. EMCOR Group, Inc. (EME - Free Report) appears well positioned to outperform the broader U.S. nonresidential construction market again in 2026, supported by strong demand across multiple end markets, a record project backlog and continued share gains in mission-critical infrastructure. While industry growth is expected to remain moderate, the company continues to benefit from exposure to structural growth markets such as data centers, healthcare, institutional facilities, water infrastructure and advanced manufacturing.

Management remains confident that the company will continue growing meaningfully faster than the broader nonresidential construction market. During the first-quarter earnings call, EMCOR stated that it expects to "continue to grow in excess of nonresidential construction" while expanding its presence across existing and adjacent geographies, particularly within the data center market.

The company has already demonstrated that momentum. First-quarter 2026 revenues increased 19.7% year over year to a record $4.63 billion, or 16.8% on an organic basis. Strong execution prompted management to raise its full-year 2026 revenue guidance to $18.5-$19.25 billion from the prior range of $17.75-$18.5 billion, while also increasing its diluted EPS outlook. Importantly, management indicated that growth is extending beyond data centers.

One reason EMCOR appears capable of sustaining above-market growth is the breadth of its end-market exposure. Rather than relying on a single growth engine, the company continues to benefit from multiple construction verticals. Network and communications, which includes data centers, remains the largest contributor to growth as artificial intelligence (AI), cloud computing and digital infrastructure investments continue to accelerate. At the same time, EMCOR is experiencing strong activity in institutional construction, manufacturing and industrial facilities, healthcare projects and water and wastewater infrastructure. Mechanical construction also benefited from the recovery in warehousing, distribution and logistics projects during the quarter.

Although macroeconomic uncertainty, labor availability and project timing remain industry risks, EMCOR's diversified project portfolio, expanding backlog and exposure to long-term infrastructure investment appear to position the company to continue outperforming broader nonresidential construction trends. If demand across data centers, institutional facilities, healthcare and water infrastructure remains healthy, EMCOR could again deliver growth that exceeds the overall nonresidential construction market in 2026.

Peers Also Positioned to Outgrow the MarketEMCOR is not the only contractor benefiting from resilient demand across high-growth nonresidential construction markets. Industry peers Sterling Infrastructure, Inc. (STRL - Free Report) and Comfort Systems USA, Inc. (FIX - Free Report) are also capitalizing on sustained investment in mission-critical facilities, advanced manufacturing and data center infrastructure, positioning themselves to outpace broader construction industry growth.

Sterling continues to benefit from robust demand in its E-Infrastructure business, where data centers remain the primary growth driver. The company reported that mission-critical projects, including data centers, semiconductor facilities and advanced manufacturing, accounted for more than 90% of its E-Infrastructure signed backlog. Sterling also highlighted expanding opportunities across new geographies, growing cross-selling between its site development and electrical businesses, and increasing project size and complexity — all of which are expected to support above-market growth over the long term.

Comfort Systems is similarly benefiting from structural demand across technology and institutional markets. Management noted that advanced technology, led primarily by data center projects, accounted for 56% of first-quarter revenues and remained the company's largest driver of pipeline and backlog growth. At the same time, healthcare, education and government projects continued to provide a solid base of institutional demand, while ongoing investments in modular manufacturing capacity are expected to support future expansion and execution.

EME Stock’s Price Performance & Valuation TrendShares of this Connecticut-based infrastructure service provider have gained 25.7% year to date, slightly underperforming the Zacks Building Products - Heavy Construction industry, but outperforming the Construction sector and the S&P 500 Index.

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EME stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 24.67, as evidenced by the chart below.

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Earnings Estimate Revision of EME StockEME’s earnings estimates for 2026 and 2027 have moved upward in the past 60 days. The estimates for 2026 and 2027 imply year-over-year growth of 13.5% and 11.8%, respectively.

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

Key Takeaways United Rentals raised 2026 guidance after strong rental demand across construction and industrial markets.URI's Specialty business delivered record revenue growth, supported by new locations and broader offerings.United Rentals faces restructuring costs and macro risks despite strong free cash flow and capital returns. United Rentals, Inc. (URI - Free Report) surged 38.8% in the past three months, outperforming the Zacks Building Products - Miscellaneous industry, the broader Zacks Construction sector and the S&P 500 Index.

This Connecticut-based equipment rental company is benefiting from favorable secular trends in non-residential construction, infrastructure modernization, power, manufacturing, mining and data center development, which continue to drive healthy equipment rental demand. Raised 2026 guidance, robust free cash flow generation and disciplined capital allocation are likely to have strengthened investor confidence, supporting the stock's recent outperformance and reinforcing expectations for sustained earnings and shareholder value growth.

Although near-term challenges like elevated restructuring costs, margin pressures and ongoing macroeconomic uncertainties are concerning, the positive industry dynamics and expanding specialty offerings of URI are more than likely to boost mid and long-term growth.

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Let’s decode the factors molding United Rentals’ prospects in the upcoming period.

Factors Driving United Rentals’ Growth MomentumStrong Equipment Rental Demand: United Rentals is benefiting from sustained demand across both construction and industrial markets, reinforcing its long-term growth outlook. During the first quarter of 2026, equipment rental revenues climbed 8.7% year over year to a record $3.42 billion, driven by 2.3% growth in fleet productivity and a 5.7% expansion in average fleet size. Management highlighted robust activity in non-residential construction, infrastructure, power, manufacturing, mining and data centers, while healthcare and industrial manufacturing projects also gained traction.

URI expects to play a key role in the 2026 FIFA World Cup-related projects, adding another growth catalyst. Encouraged by strong customer feedback, particularly for large projects, United Rentals raised its 2026 guidance, expecting total revenues of $16.9-$17.4 billion (from $16.8-$17.3 billion) and higher EBITDA, reflecting confidence in continued demand for equipment rentals and market share gains.

Disciplined Acquisitions & Capital Allocation Efforts: United Rentals continues to strengthen its competitive position through strategic acquisitions while maintaining a disciplined capital allocation framework. Since its founding, the company has completed nearly 250 acquisitions to expand its geographic footprint, specialty offerings and one-stop-shop capabilities. Alongside inorganic growth, management continues investing in fleet expansion, increasing 2026 gross rental capital expenditure guidance to $4.4-$4.8 billion to meet rising customer demand.

Despite these investments, United Rentals generated more than $1 billion in first-quarter 2026 free cash flow and maintained a conservative net leverage ratio of 1.9x, providing ample financial flexibility. The company also returned $500 million to shareholders through dividends and share repurchases during the quarter and plans to repurchase approximately $1.5 billion of stock in 2026, underscoring its balanced approach toward growth investments and shareholder value creation.

Specialty Business Continues to Outperform: United Rentals' Specialty segment remains a major growth engine, supported by expanding product offerings and increasing demand for higher-value rental solutions. Specialty rental revenues surged 13.8% year over year in the first quarter of 2026 to a record $1.19 billion, significantly outpacing the General Rentals business. Growth was broad-based across all specialty lines, with the company opening 17 new greenfield ("cold start") locations during the quarter to expand market reach.

Specialty segment now represents 36.5% of total revenues (as of 2025) and has delivered a robust 20.2% revenue CAGR over the past decade, reflecting sustained customer adoption. Although margins faced temporary pressure from higher depreciation and delivery costs, management continues investing in this business, viewing Specialty as a key driver of long-term revenue growth, differentiation and cross-selling opportunities.

URI’s ROE PositionUnited Rentals' superior return on equity (ROE) indicates its growth potential. It provides solid investment returns relative to the industry average, as reflected in its current trailing 12-month ROE of 30.56%. This compares favorably with the industry's ROE of 28.04%. The factor mentioned above indicates the company’s efficiency in using its shareholders’ funds, along with its ability to generate profit with minimum capital usage.

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Can United Rentals Stay Ahead of Construction Rivals?United Rentals enjoys a distinct competitive advantage over peers like Armstrong World Industries, Inc. (AWI - Free Report) , Masco Corporation (MAS - Free Report) and Argan, Inc. (AGX - Free Report) because it directly benefits from rising equipment rental demand across virtually every major construction and industrial end market.

While Armstrong World and Masco primarily depend on commercial interior renovation and residential repair and remodeling activity, and Argan's growth is tied largely to power generation and industrial EPC projects, United Rentals serves all these markets simultaneously through its broad equipment rental platform. Strong demand from infrastructure, non-residential construction, manufacturing, data centers, utilities, mining and large industrial projects continues to support fleet utilization and rental pricing.

URI’s unmatched scale, approximately $23 billion rental fleet, extensive North American branch network and rapidly expanding Specialty business further strengthen its competitive position. Coupled with strategic acquisitions, robust free cash flow generation and disciplined capital allocation, these advantages enable United Rentals to outperform renowned peers, like Armstrong World, Masco and Argan, by capturing a broader range of growth opportunities while delivering more resilient earnings across market cycles.

Earnings Estimate Trend of URIURI’s earnings estimates for 2026 and 2027 have moved downward over the past 30 days to $46.76 and $52.75 per share, respectively. However, the revised estimates for 2026 and 2027 imply year-over-year improvements of 11.2% and 12.8%, respectively.

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What is Restricting United Rentals’ Near-Term Prospects?United Rentals faces several near-term challenges despite its strong operating momentum. It continues to incur restructuring costs tied to branch consolidations and workforce optimization, while the Specialty segment experienced margin pressure from higher depreciation, delivery expenses and a shift toward lower-margin ancillary revenues.

More broadly, management remains exposed to macroeconomic uncertainties, including inflation, elevated interest rates, tariffs, supply-chain disruptions and potential slowdowns in construction or industrial activity. Any weakening in large project spending or customer demand could reduce fleet utilization, pressure rental pricing and moderate revenue growth, potentially weighing on profitability and cash generation.

URI Stock Trading at a PremiumURI stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 21.48, as the trend lines suggest below.

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Can URI Stock Maintain Its Momentum in the Near Future?United Rentals remains well-positioned to sustain its long-term growth trajectory, supported by strong demand across non-residential construction, infrastructure, power, manufacturing, mining and data center projects. Its robust fleet utilization and raised 2026 guidance underscore management’s confidence in continued market share gains and earnings growth. The company’s disciplined acquisition strategy, industry-leading rental fleet, strong free cash flow generation and balanced capital allocation further reinforce its competitive advantage.

Although the stock trades at a premium and near-term headwinds, including restructuring costs, margin pressure and macroeconomic uncertainty, could create periodic volatility, these challenges appear manageable given the favorable end-market fundamentals. While recent downward earnings estimate revisions warrant monitoring, forecasts still indicate healthy double-digit earnings growth over the next two years.

Supported by superior return on equity and a current Zacks Rank #2 (Buy), URI stock appears capable of maintaining its market outperformance. Long-term investors can consider buying the stock at current levels rather than waiting for a better opportunity, given its durable growth drivers and resilient business model. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Dycom's Communications revenues rose 24.7% organically year over year to $1.57 billion in fiscal Q1.Fiber-to-the-home programs and higher long-haul and middle-mile builds drove Communications growth.Dycom expects fiscal 2027 Communications revenues of $6.03B-$6.2B and 12.6-15.8% organic growth. Dycom Industries, Inc. (DY - Free Report) is benefiting from rising fiber infrastructure activity as customers expand fiber-to-the-home networks and invest in long-haul and middle-mile builds. Broader deployment programs across multiple geographies are creating additional work opportunities, while multiyear customer plans provide a favorable backdrop for the Communications segment.

In the first quarter of fiscal 2027, Communications revenues reached $1.57 billion, reflecting organic growth of 24.7% year over year. Growth was driven by ramping fiber-to-the-home programs, higher long-haul and middle-mile fiber infrastructure builds, and expanding maintenance and operations services. Adjusted EBITDA increased 28% to $192.4 million, while the segment margin reached 12.3%. Fiber-to-the-home builds also ramped ahead of expectations during the quarter, aided by expansion into additional geographies and favorable seasonal conditions.

The demand environment extends beyond near-term project activity. Customers are pursuing multiyear fiber-to-the-home and long-haul build programs, pointing to a broader investment cycle across communications networks. Dycom is also expanding its digital infrastructure capabilities, linking outside fiber networks with data center connectivity. This wider service offering could help the company participate across more parts of the infrastructure buildout.

For fiscal 2027, Dycom expects Communications revenues of $6.03 billion to $6.2 billion, implying organic growth of about 12.6% to 15.8% from the prior year. The company also expects modest adjusted EBITDA margin improvement for the segment. With fiber-to-the-home activity ramping and long-haul and middle-mile projects adding another demand source, fiber infrastructure expansion appears positioned to remain an important factor in Dycom's growth prospects.

How Dycom Compares With Key Infrastructure RivalsDycom competes closely with MasTec, Inc. (MTZ - Free Report) and EMCOR Group, Inc. (EME - Free Report) in the infrastructure construction market.

EMCOR operates across electrical and mechanical construction, building services and industrial services markets, with strong exposure to mission-critical facilities and data center construction. The company benefits from broad geographic coverage, execution capabilities and a diversified project portfolio across multiple end markets. However, EMCOR’s business remains tied to the pace of large construction projects and customer capital spending across infrastructure sectors.

Meanwhile, MasTec maintains a diversified infrastructure platform spanning communications, power delivery, clean energy, industrial construction and pipeline markets. The company's broad service offering positions it to benefit from long-term investment trends such as AI-driven data centers, grid modernization and energy infrastructure expansion. At the same time, MasTec remains exposed to variability based on project timing and execution across multiple infrastructure segments.

Dycom's specialization in communications infrastructure and fiber network deployment provides a focused advantage as broadband expansion, fiber connectivity and AI-driven data center interconnection projects continue to grow. Long-standing customer relationships and expertise in wireline network construction support its market position. However, the company's performance remains closely linked to telecommunications investment cycles and customer network spending decisions.

DY Stock’s Price Performance & Valuation TrendShares of this North America-based specialty contracting firm have gained 70.5% in the past year, outperforming the Zacks Building Products-Heavy Construction industry, the broader Construction sector and the S&P 500 Index.

Image Source: Zacks Investment Research

DY stock is currently trading at a discount compared with the industry, with a forward 12-month price-to-earnings (P/E) ratio of 23.81, as evidenced by the chart below.

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Earnings Estimate Revision of DYDycom’s earnings estimates for fiscal 2027 and 2028 have moved upward in the past 30 days to $16.35 and $19.95 per share, respectively. The estimates for fiscal 2027 and 2028 imply year-over-year growth of 36.6% and 22%, respectively.

Image Source: Zacks Investment Research

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

Key Takeaways MMSI is positioned for growth with its strong product portfolio, acquisitions and R&D investments.MMSI launched Resilience and acquired View Point, expanding oncology and endoscopy opportunities.MMSI faces tariff costs, China pricing pressure and OEM demand fluctuations in the near term. Merit Medical Systems, Inc. (MMSI - Free Report) is well-poised for growth in the coming quarters, courtesy of its strong product portfolio. The optimism, led by a solid product performance and its continued spending on research and development, is expected to contribute further. However, tariffs and trade policy headwinds, and China macro pressure persist.

This Zacks Rank #2 (Buy) company’s shares have declined 19.4% in the year-to-date period compared with the industry’s 1.2% drop. However, the S&P 500 has risen 9.5% during the same time frame.

The renowned medical device provider has a market capitalization of $4.30 billion. The company projects 8.9% growth for the next five years and expects to maintain its strong performance going forward. It delivered an average earnings surprise of 12.5% for the past four quarters.

Image Source: Zacks Investment Research

Let’s delve deeper.

MMSI’s Growth DriversStrong Product Portfolio and Strategic Acquisitions: Merit Medical continues to expand its presence across interventional cardiology, radiology, oncology, endoscopy and other minimally invasive procedure markets through a diversified product portfolio and disciplined acquisitions. During the first quarter of 2026, the company launched the Resilience Through-the-Scope Esophageal Stent, which management expects to support long-term growth in its endoscopy business. Merit Medical also acquired View Point Medical, adding the OneMark Detection Imaging System and Tissue Markers to complement its SCOUT platform. Management believes the acquisition expands the addressable procedure opportunity for its oncology business by roughly threefold while providing physicians with additional localization options. Earlier acquisitions, including Biolife and the C2 CryoBalloon technology, continue to strengthen the company's therapeutic portfolio and support long-term growth.

Innovation-Driven R&D: Merit Medical continues to invest in research and development to expand its product pipeline and strengthen its competitive position. The company has reorganized its R&D, marketing and commercial teams around eight product platforms, enabling faster product development and closer alignment with physician needs. Supported by approximately 2,200 patents and patent applications, Merit Medical follows a disciplined innovation strategy that prioritizes products with strong commercial potential and attractive returns, positioning the company for sustained long-term growth.

WRAPSODY Offers Long-Term Upside: Merit Medical's WRAPSODY Cell-Impermeable Endoprosthesis remains an important long-term growth opportunity within renal therapies. Clinical data continue to demonstrate superior long-term vessel patency compared with conventional angioplasty, supporting broader physician adoption. Management reaffirmed its commercial strategy and expects the product to generate approximately $7 million in revenues in the United States in 2026. While adoption remains in the early stages, continued physician education and expanding clinical evidence position WRAPSODY as a meaningful multi-year growth catalyst.

Key Challenges for MMSI StockTariffs and Macroeconomic Uncertainty: Merit Medical continues to operate in an uncertain macroeconomic environment marked by evolving trade policies and geopolitical risks. During the first quarter earnings call, management highlighted tariffs as a significant headwind and expects them to remain a drag on profitability in 2026. While the company has implemented operational initiatives to offset part of the cost pressure, the ultimate impact remains uncertain as it depends on future tariff policies, retaliatory actions and legal developments. Geopolitical disruptions, including those affecting the Middle East, have created temporary shipping delays and higher freight-related costs. Although management described these challenges as manageable, prolonged macroeconomic uncertainty could pressure margins and weigh on earnings growth.

OEM and Pricing Headwinds: Merit Medical continues to face near-term pressure in its OEM business, which has experienced demand fluctuations due to inventory destocking, product line transfers and softer international demand, particularly in the Asia-Pacific region. Management expects these issues to be temporary and continues to view the OEM business as a mid- to high-single-digit grower over the long term. However, broader pricing pressure remains a challenge. The company continues to navigate China's volume-based procurement program, which has reduced pricing in recent years and is expected to remain a headwind in 2026. As Merit Medical expands its therapeutic portfolio through acquisitions and new product launches, sustaining growth will require continued innovation and disciplined execution.

Estimate TrendMMSI is witnessing a stable estimate revision trend for 2026. In the past 30 days, the Zacks Consensus Estimate for earnings per share (EPS) has remained stable at $4.07.

The Zacks Consensus Estimate for the company’s second-quarter 2026 revenues is pegged at $404.7 million, suggesting a 5.81% rise from the year-ago reported number. The consensus mark for EPS is pegged at 96 cents, implying a 4.9% decline from the prior-year reported figure.

Other Stocks to ConsiderSome other top-ranked stocks from the broader medical space are Veracyte (VCYT - Free Report) , West Pharmaceutical (WST - Free Report) and Pacific Biosciences of California (PACB - Free Report) .

Veracyte, currently sporting a Zacks Rank #1 (Strong Buy), has an estimated earnings growth rate of 5.1% for 2026. VCYT’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 45.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Veracyte’s shares have gained 33.3% against the industry’s 14.2% decline in the year-to-date period.

West Pharmaceutical, currently carrying a Zacks Rank #2, has an estimated long-term earnings growth rate of 13.9%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.4%.

West Pharmaceutical’s shares have gained 28.5% against the industry’s 1.2% decline in the year-to-date period.

Pacific Biosciences of California, currently carrying a Zacks Rank #2, has an estimated earnings growth rate of 22.6% for 2026. PACB’s earnings beat estimates in each of the trailing four quarters, the average surprise being 29.8%.

Pacific Biosciences’ shares have lost 19.8% compared with the industry’s 14.2% decline in the year-to-date period.

Key Takeaways Vistra is positioned to benefit from AI, data center, electrification and industrial power demand.Long-term PPAs with Meta and AWS provide recurring revenues and reduce merchant price volatility.Vistra's diversified fleet and integrated model support operational flexibility and stable earnings. Vistra Corp. (VST - Free Report) is well-positioned to benefit from the rapidly growing U.S. electricity demand driven by artificial intelligence, hyperscale data centers, electrification and industrial expansion. The company operates one of the nation's largest and most diversified power generation portfolios, including natural gas, nuclear, coal, solar and battery storage assets. This diversified fleet enables Vistra to reliably serve increasing power demand while maintaining operational flexibility across changing market conditions.

A key long-term growth catalyst is Vistra's power purchase agreements (PPAs) with Meta and Amazon Web Services (“AWS”). These long-duration contracts provide predictable and recurring revenue streams by locking in electricity sales over extended periods. As leading technology companies continue expanding AI infrastructure and hyperscale data centers, Vistra is positioned to benefit from sustained electricity demand backed by investment-grade counterparties. The contracts improve earnings visibility, reduce merchant power price volatility and strengthen cash flow stability, supporting long-term financial performance.

Vistra continues to strengthen its competitive position through disciplined investments in power generation, battery energy storage and strategic acquisitions. Its integrated business model, which combines electricity generation with retail operations, provides natural hedging benefits and supports stable earnings across market cycles.

Growing AI-driven electricity demand, expanding clean energy investments, long-term power purchase agreements and a diversified generation portfolio position Vistra for sustained earnings and cash flow growth. These strengths, along with its ability to enhance shareholder returns, make the company an attractive long-term investment despite short-term market volatility.

PPAs Bring Stability in Utility EarningsPPAs strengthen utilities' growth prospects by providing stable, predictable revenue streams and limiting exposure to wholesale electricity price fluctuations. These contracts enhance earnings visibility, support investments in new generation assets, improve cash flow stability and drive sustainable long-term shareholder value.

Utilities such as Constellation Energy (CEG - Free Report) and NextEra Energy (NEE - Free Report) benefit significantly from long-term PPAs, which provide predictable revenue streams and reduce exposure to wholesale power price volatility. These contracts improve earnings visibility, support investments in clean energy projects and generation capacity, strengthen cash flow stability and create sustainable long-term shareholder value.

The Zacks Rundown for VSTThe Zacks Consensus Estimate for Vistra’s earnings per share for 2026 and 2027 indicates a year-over-year increase of 80.99% and 18.06%, respectively.

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Return on equity (“ROE”), a profitability measure, reflects how effectively a company is utilizing shareholders’ funds in its operations to generate income.

VST’s trailing 12-month ROE is 105.64%, way ahead of its industry average of 11.21%.

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VST’s Price PerformanceShares of Vistra have gained 1.4% in the past three months against the Zacks Utility- Electric Power industry’s decline of 2.9%.

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