Track market-moving stories before they get noisy

Key Takeaways PPL cut first-quarter 2026 O&M expenses to $579 million from $598 million a year earlier. PPL targets $175 million in 2026 O&M savings versus 2021 to help fund its $23 billion plan. PPL expects 2026 EPS of $1.90-$1.98 and 6-8% annual EPS growth through 2029. PPL Corporation (PPL - Free Report) is benefiting from a disciplined cost management strategy that helps control operating expenses and improve efficiency. These efforts support financial stability and create greater flexibility to invest in infrastructure.

The company has steadily improved efficiency across its businesses, helping control operating and maintenance (O&M) expenses while maintaining reliable service. PPL Electric has kept O&M increases about 25% below the inflation rate over the past decade, demonstrating the benefits of its cost-control efforts.

In the first quarter of 2026, consolidated O&M expenses decreased to $579 million from $598 million in the year-ago quarter. O&M expenses also decreased across the company’s regulated operations in Kentucky and Rhode Island. However, Pennsylvania O&M expenses increased due to higher storm and power restoration costs, underscoring that weather-related events remain a risk.

The need for cost control is increasing as PPL expands its investment program. The company plans to invest $23 billion through 2029 to modernize networks and support demand growth. As per the company’s management, every $1 of O&M savings can support about $8 of capital investment without increasing customer bills. PPL achieved $170 million in annual run-rate O&M savings in 2025 and is targeting a $175-million reduction in O&M in 2026 compared with 2021.

These savings could help offset higher depreciation, interest and operating costs while supporting 2026 earnings per share (EPS) guidance of $1.90-$1.98 and 6-8% annual EPS growth through 2029. Therefore, continued O&M efficiency, combined with strong rate-base growth and regulatory recovery, could support sustained earnings growth and shareholder returns.

Efficient Cost Management Fuels Long-Term Utility GrowthUtilities that optimize operations, embrace digitalization and control spending can expand margins, fund infrastructure upgrades and keep customer rates affordable. Efficient cost management strengthens financial flexibility, enabling utilities to fund infrastructure investments, improve operations and support sustainable long-term earnings growth.

Duke Energy (DUK - Free Report) recently finalized initiatives expected to generate more than $5 billion in customer savings through utility consolidation, operational efficiencies and tax-credit monetization. These efforts can strengthen long-term earnings growth while helping maintain customer affordability.

NiSource (NI - Free Report) continues to enhance operating efficiency through its multiyear Project Apollo, which targets sustainable cost savings and streamlined operations. These initiatives can improve customer service and support long-term earnings growth.

The Zacks Rundown on PPLPPL’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 earnings per share indicates a year-over-year increase of 7.73% and 8.06%, respectively.

Image Source: Zacks Investment Research

Debt to CapitalPPL's debt-to-capital ratio currently stands at 57.40%, lower than the Zacks Utility - Electric Power industry’s 60.71%.

Image Source: Zacks Investment Research

PPL’s Stock Price PerformanceIn the past month, the company’s shares have risen 0.7% compared with the industry’s 0.9% growth.

Image Source: Zacks Investment Research

PPL’s Zacks Rank

New York, New York--(Newsfile Corp. - July 20, 2026) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Hub Group, Inc. (NASDAQ: HUBG) and certain of its officers.

This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Hub Group securities between April 28, 2023 and May 11, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/HUBG.

Hub Group Case Details

The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose that:

Hub Group's financial statements prepared for the periods from Q1 2023 to Q4 2024, including its annual reports for 2023 and 2024, contained material misstatements caused by the premature and incorrect recognition of certain transactions concerning, among other things, the Company's operating revenue, operating income, revenue recognition, effectiveness of internal controls and procedures, and drivers of financial results and growth; Hub Group's financial statements prepared for the periods from Q1 2025 to Q3 2025 contained material misstatements caused by the understatement of purchased transportation costs and accounts payable concerning, among other things, the Company's operating expenses, purchased transportation and warehousing expenses, operating income, effectiveness of internal disclosure controls and procedures, and drivers of financial results and growth; and as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects lacked a reasonable basis and were materially false and misleading at all relevant times.What's Next for Hub Group Investors?

A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/HUBG, or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Hub Group you have until August 28, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.

No Cost to Hub Group Investors

We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.

Why Bronstein, Gewirtz & Grossman, LLC for Hub Group Securities Class Action?

Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com

"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.

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Source: Bronstein, Gewirtz & Grossman, LLC

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New York, New York--(Newsfile Corp. - July 20, 2026) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Insulet Corporation (NASDAQ: PODD) and certain of its officers.

This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Insulet securities between May 21, 2025 and May 26, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/PODD.

Insulet Case Details

The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and compliance policies. Specifically, the Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that:

Insulet's manufacturing controls and procedures were defective; the foregoing created a foreseeable heightened risk that one or more Insulet products would be found to be in violation of applicable safety regulations and/or pose a risk of injury; and as a result, Defendants' public statements were materially false and misleading at all relevant times.What's Next for Insulet Investors?

A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/PODD, or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Insulet you have until August 31, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.

No Cost to Insulet Investors

We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.

Why Bronstein, Gewirtz & Grossman, LLC for Insulet Securities Class Action?

Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com

"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.

Follow us for updates on LinkedIn, X, Facebook, or Instagram.

Attorney advertising.
Prior results do not guarantee similar outcomes.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/303937

Source: Bronstein, Gewirtz & Grossman, LLC

Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.

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Key Takeaways HCA reports Q2 2026 results July 24, with consensus EPS of $7.41 on revenue of $19.92 billion.HCA is expected to see higher admissions and revenue per admission, supporting year-over-year growth.HCA faces pressure from higher expenses, shorter stays and fewer outpatient surgery cases. Hospital operator HCA Healthcare, Inc. (HCA - Free Report) is set to report second-quarter 2026 results on July 24, 2026, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $7.41 per shareon revenues of $19.92 billion.

The second-quarter earnings estimate has witnessed one upward revision against no movement in the opposite direction over the past 30 days. The bottom-line projection indicates year-over-year growth of 8.3%. Also, the Zacks Consensus Estimate for quarterly revenues implies a year-over-year increase of 7.1%.

Image Source: Zacks Investment Research

For 2026, the Zacks Consensus Estimate for HCA Healthcare’s revenues is pegged at $78.57 billion, implying a rise of 3.9% year over year. The consensus mark for 2026 EPS is pegged at $29.87, implying an increase of 5.9% year over year.

HCA Healthcare’s earnings beat estimates in three of the last four quarters and missed once, with the average surprise being 10.6%. This is depicted in the figure below.

Q2 Earnings Whispers for HCAOur proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s not the case here.

HCA has an Earnings ESP of +2.41% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

What’s Shaping HCA Healthcare’s Q2 Results?The Zacks Consensus Estimate for HCA Healthcare’s second-quarter equivalent admissions indicates 2.2% year-over-year growth, whereas our model estimate suggests a 1.7% jump. The consensus mark for revenue per equivalent admission signals a 2.7% rise from a year ago, while we expect 2.1% growth.

The consensus estimate for occupancy is pegged at 72.8%, up from 72% a year ago. The Zacks Consensus Estimate for equivalent patient days indicates a 1.9% year-over-year increase.

While these factors are likely to have positioned HCA Healthcare for growth from the year-ago quarter, rising expenses, lower average length of stay and outpatient surgery cases make an earnings beat uncertain.

Our model estimate for second-quarter total operating expenses indicates a 4.4% increase from a year ago, due to higher salaries & benefits, supply costs and other operating expenses. We expect supply costs to jump 3.3% in the to-be-reported quarter.

The Zacks Consensus Estimate for average length of stay indicates a 0.8% decline from the year-ago period. Moreover, both the consensus estimate and our model estimate for outpatient surgery cases imply a 0.3% fall from a year ago.

Stocks That Warrant a LookWhile an earnings beat looks uncertain for HCA Healthcare, here are some companies from the broader Medical space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:

ProMIS Neurosciences, Inc. (PMN - Free Report) has an Earnings ESP of +13.30% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for ProMIS’ bottom line for the to-be-reported quarter of a loss of $1.45 indicates 80% year-over-year improvement. It has witnessed one upward revision against no downward movement over the past 60 days.

Alcon Inc. (ALC - Free Report) has an Earnings ESP of +3.13% and a Zacks Rank of 2.

The Zacks Consensus Estimate for Alcon’s bottom line for the to-be-reported quarter indicates a 1.3% increase from a year ago. The company’s earnings beat estimates in three of the trailing four quarters and missed once, with an average surprise of 3.7%. The consensus estimate for ALC’s revenues is pegged at $2.77 billion, signaling a 7.3% increase.

Cardinal Health, Inc. (CAH - Free Report) has an Earnings ESP of +1.24% and a Zacks Rank of 2.

The Zacks Consensus Estimate for Cardinal Health’s bottom line for the to-be-reported quarter suggests 16.4% year-over-year growth. Its earnings beat estimates in each of the past four quarters, with an average surprise of 10.3%. CAH’s revenues for the to-be-reported quarter are pegged at $65.61 billion, a 9.1% increase from the year-ago period.

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Based in St Louis, Ameren (AEE - Free Report) is in the Utilities sector, and so far this year, shares have seen a price change of 11.71%. The utility is currently shelling out a dividend of $0.75 per share, with a dividend yield of 2.69%. This compares to the Utility - Electric Power industry's yield of 3.06% and the S&P 500's yield of 1.33%.

Looking at dividend growth, the company's current annualized dividend of $3.00 is up 5.6% from last year. Over the last 5 years, Ameren has increased its dividend 5 times on a year-over-year basis for an average annual increase of 7.11%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Ameren's current payout ratio is 57%, meaning it paid out 57% of its trailing 12-month EPS as dividend.

AEE is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $5.39 per share, representing a year-over-year earnings growth rate of 7.16%.

Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer a quarterly payout.

Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that AEE is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).

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Shares of FuelCell Energy (NASDAQ:FCEL) are up 6% to $19.63 in Monday morning trading, while Bloom Energy (NYSE:BE) shares are down 6% to $202.92. The split reveals a fuel-cell trade that has stopped moving as one.

Peer Plug Power (NASDAQ:PLUG) shares are down 2% to $2.13, still stuck in the low single digits after a punishing multi-year drawdown. Year to date (YTD), Bloom Energy stock is up 133%, FuelCell Energy stock has gained 167%, and Plug Power stock is up by just 7%.

The setup matters because all three names ride the same AI data center power thesis. Today, the market is cheering one and doubting another, and it doesn’t look like a coincidence.

Bloom Energy Slides on TD Cowen Caution Bloom Energy shares are under pressure after TD Cowen reiterated a Hold rating with a $235 price target this morning. The analyst flagged that flagship Oracle (NYSE:ORCL | ORCL Price Prediction) and American Electric Power (NASDAQ:AEP) data center projects face major delays that could pressure 2027 and 2028 estimates.

TD Cowen also called Bloom Energy stock fully valued at a P/E ratio of 514x and a price-to-book ratio of 66. That reset lands on a stock already carrying an overhang from the July 8 Hunterbrook “Bloom’s Big Lie” short report, which alleged hidden China dependence for scandium supply.

Bloom Energy has pushed back hard. The company categorically rejected the allegations as “false and misleading” in an 8-K filing. Management framed the report as an opportunistic attack on a name that has run sharply this year, and the response has been unambiguous in defending the supply chain narrative.

Other desks remain constructive on Bloom Energy stock. Baird kept an Outperform rating with a $310 target, UBS reiterated Buy at $350, and RBC held Outperform at $335. Bloom Energy also recently posted a profitable quarter with $0.23 in earnings per share, but the premium multiple leaves little room for slippage on execution.

FuelCell Energy Extends Rally on AI Power Optimism FuelCell Energy stock’s rally on Monday appears to be a continuation of a bullish backdrop tied to AI data center power demand.

The same investor newsletter that told subscribers to buy Amazon in 2002, Netflix in 2004, and Nvidia in 2005 still publishes two new stock picks every month. Over 23 years, Motley Fool's Stock Advisor has more than quadrupled the S&P 500. New members get this month's picks, the Top 10 Rankings, and a 30-day money-back guarantee. Click here to unlock their next top stocks while new members are still being accepted.

The setup started with UBS upgrading FuelCell Energy to Buy with a $27 target on July 14, sending shares 12% higher that day. B. Riley had already moved to Buy with a $32 target on June 29. Siemens then signed a collaboration on 100-plus MW fuel-cell systems, and Fit Energy agreed to source up to 380 MW of on-site power for AI data centers.

UBS has framed the Fit Energy agreement as a small-first, scale-later playbook similar to Bloom Energy’s Oracle and AEP pattern. FuelCell Energy remains unprofitable, with trailing EPS of -$6.20 and TTM revenue of $167.87 million, so today’s story is about pipeline conversion rather than earnings power.

Plug Power Lags as the Sector Splits Plug Power shares continue to drift. There’s no near-term catalyst to close the gap with FuelCell Energy and Bloom Energy, and the company remains loss-making with $150 million in Q1 2026 operating cash burn against $223.2 million in unrestricted cash.

Recent asset sales to Brookfield Asset Management (NYSE:BAM) affiliate Stream Data Centers have added liquidity but done little for Plug Power stock. The market evidently wants proof of cash generation, not survival milestones, and that gap may continue to weigh on PLUG stock.

What to Watch The narrow, volatile Global X Hydrogen ETF (NASDAQ:HYDR) holds all three names in its top positions, making the ETF a clean read on how the sector prices this divergence. It’s a concentrated, single-theme fund, and the cross-currents inside it can be sharp.

Bloom Energy’s next earnings report is slated July 28, which sets a hard test for the bull thesis after today’s TD Cowen call. Investors can watch for whether FuelCell Energy stock holds above $19 in the coming sessions and whether Bloom Energy stock finds support at $200.

The takeaway is straightforward: the fuel-cell trade is no longer a single bet, and investors should keep their position sizes modest while the market re-prices the winners and doubts the rest.

If You'd Bought Amazon When the Motley Fool Said To…In September 2002, Stock Advisor told subscribers to buy Amazon. In December 2004, Netflix. In April 2005, Nvidia. The newsletter still publishes two new stock picks every month — and over 23 years, has more than quadrupled the S&P 500. Here's how to get this month's picks:

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Five years from now, you'll probably wish you'd bought this month's picks. Don't miss them.

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Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Fifth Third Bancorp (FITB - Free Report) is headquartered in Cincinnati, and is in the Finance sector. The stock has seen a price change of 23.93% since the start of the year. Currently paying a dividend of $0.40 per share, the company has a dividend yield of 2.76%. In comparison, the Banks - Major Regional industry's yield is 2.74%, while the S&P 500's yield is 1.33%.

Looking at dividend growth, the company's current annualized dividend of $1.60 is up 3.9% from last year. Over the last 5 years, Fifth Third Bancorp has increased its dividend 4 times on a year-over-year basis for an average annual increase of 7.84%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Fifth Third Bancorp's current payout ratio is 41%, meaning it paid out 41% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, FITB expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $4.12 per share, with earnings expected to increase 13.50% from the year ago period.

Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. It's important to keep in mind that not all companies provide a quarterly payout.

High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, FITB is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

The three major U.S. stock indexes moved in different directions Monday morning as investors weighed competing forces. There's renewed optimism in artificial intelligence infrastructure against persistent concerns about Middle East oil disruptions. Meanwhile, Wall Street faces a heavy week of corporate earnings.

By 11:34 a.m. ET, the Nasdaq Composite (^IXIC +0.33%) index had climbed 0.5%, the S&P 500 (^GSPC +0.12%) was up 0.3%, and the Dow Jones Industrial Average (^DJI 0.43%) moved 0.3% lower. All three indexes opened modestly higher, and the Nasdaq briefly flirted with a 1% pop around 9:50 a.m. Then the early enthusiasm faded, and the Dow crossed into negative territory before 10:00 a.m.

^IXIC data by YCharts

The AI boom roars back to life Alphabet (GOOG +2.03%) (GOOGL +1.91%) emerged as the session's primary catalyst. The Google parent jumped 3% after The Information reported that Google is cooking up a new chip called "Frozen v2." The hardware will reportedly run Google's Gemini AI models six to ten times more efficiently than current silicon. Alphabet added 61 points to the Dow and topped the leaderboard across all three key indexes.

The semiconductor sector rallied broadly on the news. Micron Technology (MU +4.35%) surged 4.2%, the iShares Semiconductor ETF (SOXX +1.68%) gained 2.1%, Nvidia (NVDA +0.73%) added 1.5%, and Broadcom (AVGO +2.89%) rose 2.8%. Some of them have a hand in Alphabet's chip designs, while others are direct rivals. Either way, investors applauded fresh signs of innovation in the chip sector.

After today's gains, SOXX has still cratered 19% from its June high. Monday felt less like a victory lap and more like a pressure release valve finally popping. Mind you, longtime investors are still doing fine. Micron's stock is up 681% in 52 weeks. SOXX more than doubled with a 117% gain.

Image source: Getty Images.

Not everyone got an invitation to Monday's party. Apple (AAPL 2.75%) dropped 2.4%, which is awkward timing given all the positive buzz around its AI rollout in China. Sometimes stocks just need to catch their breath after a big run; Apple gained 5% last week.

Meanwhile, Caterpillar (CAT 1.45%) fell 1.2%. Because the Dow is price-weighted and Caterpillar's shares trade near $870, that decline alone erased about 62 points from the index, essentially erasing Alphabet's positive contribution. Caterpillar's stock accounts for roughly 10% of the Dow's entire value nowadays. Maybe it's time for a stock split.

Overseas, the U.S. military conducted its ninth consecutive night of strikes against Iran. Brent crude oil briefly punched above $90 per barrel before retreating on hints that Tehran might be open to negotiations. Gasoline prices have climbed back to $4 per gallon nationally. Oil refiners Marathon Petroleum (MPC +1.85%) and Valero (VLO +1.90%) are two of the five largest gainers on the S&P 500 over the last month.

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Buckle up for earnings season Monday's session sets the stage for one of the busiest earnings weeks of the quarter. Alphabet and Tesla (TSLA 2.38%) report on Wednesday, followed by Intel (INTC +3.59%) later in the week. More than 300 companies are releasing results before the weekend. Investors are hungry for clarity on AI spending. For better or worse, they're going to get a buffet of data points.

None of this changes the long game. Sector rotation and volatility are part of the deal. The question isn't whether AI stocks will bounce; it's whether the companies behind them can prove the spending is worth it. This week's earnings should offer some answers.

Anders Bylund has positions in Alphabet, Intel, Micron Technology, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Apple, Broadcom, Caterpillar, Intel, Micron Technology, Nvidia, Tesla, and iShares Trust-iShares Semiconductor ETF. The Motley Fool has a disclosure policy.

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© Yuichiro Chino / Moment via Getty Images

Wells Fargo (NYSE:WFC | WFC Price Prediction) just delivered a striking pair of price target hikes on cybersecurity leaders Okta (NASDAQ:OKTA) and Fortinet (NASDAQ:FTNT). The firm raised its Okta stock price target to $150 from $100 while keeping an Equal Weight rating, and lifted its Fortinet stock price target to $120 from $70 while keeping an Underweight rating. For investors, the size of these hikes matters more than the unchanged ratings: they mark a sector-wide re-rating rather than a green light to pile in.

The move lands as cybersecurity demand accelerates on the back of AI-driven threat proliferation and enterprise platform consolidation. Both Okta and Fortinet have posted five consecutive quarterly EPS beats, and management teams at each are pitching their platforms as essential infrastructure for securing AI agents and hybrid workloads.

Still, Wells Fargo kept Okta stock at Equal Weight and Fortinet stock at Underweight, signaling that valuation, not fundamentals, is the constraint. That gap between raised targets and cautious ratings is what investors need to weigh before adding exposure here.

Ticker Company Firm Action Old Rating New Rating Old Target New Target OKTA Okta Wells Fargo Price Target Raise Equal Weight Equal Weight $100 $150 FTNT Fortinet Wells Fargo Price Target Raise Underweight Underweight $70 $120 The Analyst’s Case Wells Fargo’s rationale is identical for both names. Supplementing 14 field checks over the past month, the firm’s Q2 on-cycle reseller survey pointed to improving overall cyber demand driven by AI-related urgency. That’s a demand-side signal, and it’s why targets moved sharply higher on Okta stock and Fortinet stock.

Yet, the ratings didn’t budge. Equal Weight on Okta and Underweight on Fortinet suggest Wells Fargo sees prices catching up to fundamentals rather than fundamentals justifying a bullish stance.

Earnings Snapshots: Okta and Fortinet Okta is the leading independent identity platform. In Q1 FY2027, Okta posted revenue of $765 million, up 11.2% year over year (YoY), with non-GAAP EPS of $0.91 and free cash flow of $271 million. Management is now positioning identity as the control plane for AI agents inside the enterprise.

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Meanwhile, Fortinet is the firewall market leader. In Q1 FY26, Fortinet delivered revenue of $1.85 billion, up 20.1% YoY, non-GAAP EPS of $0.82, and a record $1.01 billion in free cash flow, supported by a hardware refresh cycle and the FortiOS 8.0 launch.

Why the Move Matters Now The valuation backdrop is rich. Per Yahoo Finance as of July 20, Okta shares are up 76% year to date (YTD) with a TTM P/E ratio of 111x, while Fortinet shares are up 105% YTD with a TTM P/E ratio of 63x. The cybersecurity-sector peers look similar: Palo Alto Networks stock is up 95% YTD with a TTM P/E ratio of 312x, and CrowdStrike stock is up 75% YTD with TTM EPS of -$0.02, so no trailing P/E ratio applies.

Palo Alto Networks (NASDAQ:PANW) and CrowdStrike (NASDAQ:CRWD) are riding the same AI-driven demand wave, and both have shown accelerating platform consolidation among enterprise customers. That’s the sector thesis Wells Fargo is validating.

What It Means for Your Portfolio These are fully valued names. The Wells Fargo price target raises on Okta and Fortinet stock reflect sector momentum, and investors can approach these names with restraint. Thus, it makes sense to keep one’s position sizes modest.

For diversified exposure, the First Trust NASDAQ Cybersecurity ETF (NASDAQ:CIBR) holds all four names, with PANW at 8.46%, CRWD at 8.25%, FTNT at 7.4%, and OKTA at 2.7% of net assets. It isn’t leveraged, but single-sector concentration risk is real. All in all, position sizing is just as important as diversification in this fast-moving market sector.

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Contact [email protected] for any questions or corrections.

Strategic Thermal Labs delivers advanced liquid cooling and thermal engineering solutions for high-performance computing

, /PRNewswire/ -- Brown Gibbons Lang & Company (BGL), a leading independent investment bank and financial advisory firm, is pleased to announce the sale of Strategic Thermal Labs (STL), a specialist in advanced liquid-cooling technologies, to a wholly owned subsidiary of Vertiv Holdings Co. (NYSE: VRT), a global leader in critical digital infrastructure.

Brown Gibbons Lang & Company (BGL), a leading independent investment bank and financial advisory firm, is pleased to announce the sale of Strategic Thermal Labs (STL), a specialist in advanced liquid-cooling technologies, to a wholly owned subsidiary of Vertiv Holdings Co. (NYSE: VRT), a global leader in critical digital infrastructure. BGL's Digital Infrastructure investment banking team served as the exclusive financial advisor to Strategic Thermal Labs. Learn more here: https://www.bglco.com/industry-coverage/infrastructure-investment-banking/digital-infrastructure-investment-banking/

Headquartered in Georgetown, Texas, STL is a thermal engineering firm specializing in direct-to-chip liquid cooling, including the design and development of high-performance cold plate solutions. The company provides deep expertise and proven capability in addressing some of the industry's most demanding chip-level density and thermal challenges across data centers, high-performance computing, and AI-driven infrastructure.

Headquartered in Westerville, Ohio, Vertiv provides power, cooling, and IT infrastructure solutions and services that support critical applications across data centers, communication networks, and commercial and industrial environments.

Transaction Details

The acquisition extends Vertiv's thermal-chain strategy by strengthening engineering capability at the interface between server-side liquid cooling and supporting infrastructure—an increasingly critical factor in high-density, liquid-cooled environments supporting AI and high-performance computing workloads. The addition of Strategic Thermal Labs supports Vertiv's broader strategy of helping customers address increasing infrastructure complexity through integrated power, thermal, controls, and lifecycle services capabilities. Strategic Thermal Labs adds proven cold-plate design, server-side liquid cooling, and high-density thermal validation expertise and engineering capability that is expected to strengthen Vertiv's ability to simulate and emulate real high-density compute conditions, optimize the interaction between the thermal chain and power train, and support customers across design, integration, commissioning, and lifecycle operations. About BGL's Digital Infrastructure Investment Banking Team

BGL's Digital Infrastructure investment banking team helps clients both create and maximize value across various sectors, including broadband, wireless, data centers & managed services, towers & wireless infrastructure, and digital infrastructure services.

To learn more about BGL's recent transactions in digital infrastructure investment, visit our Transaction page.

About Brown Gibbons Lang & Company
Brown Gibbons Lang & Company (BGL) is a leading independent investment bank and financial advisory firm focused on the global middle market. The firm advises private and public corporations and private equity groups on mergers and acquisitions, capital markets, financial restructurings, business valuations and opinions, and other strategic matters. BGL has offices in Boston, Chicago, Cleveland, Los Angeles, and New York. The firm is also a founding member of REACH Cross-Border Mergers & Acquisitions, enabling BGL to service clients in 30 countries around the world. Securities transactions are conducted through Brown, Gibbons, Lang & Company Securities, LLC, an affiliate of Brown Gibbons Lang & Company LLC and a registered broker-dealer and member of FINRA and SIPC. For more information, please visit www.bglco.com.

SOURCE Brown Gibbons Lang & Company

Investors looking for stocks in the Chemical - Diversified sector might want to consider either Innospec (IOSP) or Air Liquide (AIQUY). But which of these two stocks presents investors with the better value opportunity right now?

Investors interested in stocks from the Diversified Operations sector have probably already heard of Grupo Cibest (CIB - Free Report) and ITT (ITT - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, Grupo Cibest is sporting a Zacks Rank of #1 (Strong Buy), while ITT has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CIB is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

CIB currently has a forward P/E ratio of 9.07, while ITT has a forward P/E of 24.34. We also note that CIB has a PEG ratio of 0.92. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ITT currently has a PEG ratio of 1.81.

Another notable valuation metric for CIB is its P/B ratio of 1.69. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ITT has a P/B of 3.63.

These metrics, and several others, help CIB earn a Value grade of A, while ITT has been given a Value grade of D.

CIB stands above ITT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CIB is the superior value option right now.

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Arista Networks (ANET - Free Report) , which belongs to the Zacks Internet - Software industry.

This cloud networking company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 8.37%.

For the most recent quarter, Arista Networks was expected to post earnings of $0.81 per share, but it reported $0.87 per share instead, representing a surprise of 7.41%. For the previous quarter, the consensus estimate was $0.75 per share, while it actually produced $0.82 per share, a surprise of 9.33%.

Price and EPS Surprise

With this earnings history in mind, recent estimates have been moving higher for Arista Networks. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. 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.

Arista Networks has an Earnings ESP of +0.84% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on August 4, 2026.

Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.

Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Investors might want to bet on Mettler-Toledo (MTD - Free Report) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.

The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.

Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.

As such, the Zacks rating upgrade for Mettler-Toledo is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.

Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Mettler-Toledo imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.

Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for Mettler-ToledoFor the fiscal year ending December 2026, this maker of precision instruments is expected to earn $46.63 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for Mettler-Toledo. Over the past three months, the Zacks Consensus Estimate for the company has increased 0.3%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Mettler-Toledo to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

[url="]Pipistrel[/url], a Textron Inc. (NYSE: TXT) company and an affiliate of Textron Aviation Inc., today announced [url="]Epic Flight Academy[/url] as the l

New York, New York--(Newsfile Corp. - July 20, 2026) - Kaplan Fox & Kilsheimer LLP announces that a class action lawsuit has been filed against ZoomInfo Technologies Inc. ("ZoomInfo" or the "Company") (NASDAQ: GTM) on behalf of investors that purchased or otherwise acquired ZoomInfo securities between November 3, 2025 and May 11, 2026 (the "Class Period").

CLICK HERE TO JOIN THE CASE

If you are an investor in ZoomInfo and have suffered losses, you may CLICK HERE to contact us. You may also contact Kaplan Fox by emailing [email protected] or by calling (646) 315-9003.

DEADLINE REMINDER: If you are a member of the proposed Class, you may move the court no later than August 24, 2026 to serve as a lead plaintiff for the purported class. If you have losses we encourage you to contact us to learn more about the lead plaintiff process. You need not seek to become a lead plaintiff in order to share in any possible recovery.

On May 11, 2026, after the market closed, ZoomInfo reported its first quarter 2026 financial results. The Company reduced its 2026 revenue guidance from a range of $1.247 - $1.267 billion to $1.185 - $1.205 billion. During the subsequent earnings call, Chief Executive Officer Henry Schuck stated that "[i]n the closing days of March and into April, [the Company] saw a trend of AI and agentic confusion," which led to "a pause in purchasing decisions." According to the complaint, the Company also announced restructuring costs of $45 million to $60 million and that it would be laying off 20% of its workforce.

Following this news, on May 12, 2026, the price of ZoomInfo stock fell $1.98 per share, nearly 33%, to close at $4.06 per share.

The complaint alleges that throughout the Class Period Defendants created the false impression that they possessed reliable information pertaining to the Company's projected revenue outlook and anticipated growth of its legacy and emerging AI-driven products, core software business and sustained improvement in net revenue retention. Further, the complaint alleges that, in truth, ZoomInfo's optimistic plan for continued growth was undermined by slowing seat-based demand, weakening upsells and customers revising decisions to purchase AI products and develop internal AI-driven go-to-market solutions, making ZoomInfo's 2026 full year revenue guidance increasingly unlikely to be met.

WHY CONTACT KAPLAN FOX - Kaplan Fox is a leading national law firm focusing on complex litigation with offices in New York, Oakland, Los Angeles, Chicago and New Jersey. With over 50 years of experience in securities litigation, Kaplan Fox offers the professional experience and track record that clients demand. Through prosecuting cases on the federal and state levels, Kaplan Fox has successfully shaped the law through winning many important decisions on behalf of our clients. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules. Past results do not guarantee future outcomes.

If you have any questions about this Notice, your rights, or your interests, please contact:

Contacting or submitting information to Kaplan Fox & Kilsheimer LLP does not create an attorney-client relationship, nor an obligation on the part of Kaplan Fox to retain you as a client.

https://www.kaplanfox.com/case/zoominfo-technologies-inc-class-action-alert-learn-more-now/

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/305778

Source: Kaplan Fox & Kilsheimer LLP

Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.

Contact Us

SAN FRANCISCO, July 20, 2026 (GLOBE NEWSWIRE) -- HireQuotient, an AI-native recruiting platform, today announced its integration with Paylocity (Nasdaq: PCTY), bringing AI-powered candidate sourcing and screening capabilities to Paylocity customers in manufacturing, building services, construction, healthcare and insurance, which are industries where deskless and frontline hiring has historically been underserved by AI recruiting tools. Employers in these sectors who already use HireQuotient are seeing the impact firsthand.

LOS ANGELES, July 20, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against Verra Mobility Corporation (“Verra” or “the Company”) (NASDAQ: VRRM) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.

Investors who purchased the Company’s securities between February 24, 2026, and May 26, 2026, inclusive (the “Class Period”), are encouraged to contact the firm before August 4, 2026.

If you are a shareholder who suffered a loss, click here to participate.

We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].

The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.

According to the Complaint, the Company made false and misleading statements to the market. Verra misled investors about its growth prospects. The Company downplayed the risk of major customers in the rental car industry replacing its services with in-house solutions. The Company concealed the fact that its relationship with Avis Budget Group, which represented 10% of its revenue, was at significant risk of falling apart. The Company finally revealed that Avis Budget Group terminated its relationship on May 26, 2026. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Verra, investors suffered damages.

Join the case to recover your losses

The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.

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

CONTACT:

The Schall Law Firm
Brian Schall, Esq.,
www.schallfirm.com
Office: 310-301-3335
[email protected]

SOURCE:

 The Schall Law Firm

LOS ANGELES, July 20, 2026 (GLOBE NEWSWIRE) -- The Law Offices of Frank R. Cruz reminds investors that class action lawsuits have been filed on behalf of shareholders of the following publicly-traded companies.  Investors have until the deadlines listed below to file a lead plaintiff motion.

Investors suffering losses on their investments are encouraged to contact The Law Offices of Frank R. Cruz to discuss their legal rights in these class actions at 310-914-5007 or by email to [email protected].

AeroVironment, Inc. (NASDAQ: AVAV)
Class Period: June 25, 2025 – June 18, 2026
Lead Plaintiff Deadline: July 27, 2026

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) AeroVironment understated the likelihood that it would imminently face competition from other vendors for the work it performed in connection with the SCAR program and the U.S. Space Force’s ongoing efforts to modernize the SCN; (2) accordingly, Defendants overstated AeroVironment’s business and financial prospects; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

If you are an AeroVironment shareholder who suffered a loss, click here to participate.

Calix, Inc. (NYSE:  CALX)
Class Period: January 28, 2026 – April 21, 2026
Lead Plaintiff Deadline: July 27, 2026

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) the Company’s first quarter margins had significantly benefited from advanced purchasing of memory components; (2) that the Company’s advanced supply of memory components was dwindling; (3) that, as a result, the Company was experiencing negative margin pressure as it was forced to purchase memory components at rising market prices; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s margins, business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

If you are a Calix shareholder who suffered a loss, click here to participate.

Zoetis Inc. (NYSE: ZTS)
Class Period: January 14, 2025 – May 6, 2026
Lead Plaintiff Deadline: July 27, 2026

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) veterinarian prescription growth and adoption of Zoetis’ Librela, a canine pain treatment, were sharply weakening as clinicians became more cautious following FDA safety warnings concerning serious neurological complications in dogs; (2) Zoetis’ Simparica Trio was losing significant market share to a lower priced competing canine parasiticide with broader indicated use in a slowing overall market; and (3) Zoetis’ dermatology products, Apoquel and Cytopoint, were losing substantial market share to a newly launched competing canine treatment; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

If you are a Zoetis shareholder who suffered a loss, click here to participate.

Lucid Group, Inc. (NASDAQ: LCID)
Class Period: February 25, 2026 – April 13, 2026
Lead Plaintiff Deadline: July 28, 2026

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) a supplier quality issue had significantly disrupted deliveries of the Lucid Gravity; (2) the foregoing was likely to, and did, have a material negative impact on the Company’s business and financial results; (3) accordingly, the Defendants had overstated the purported enhancements to Lucid’s manufacturing and delivery capabilities and overall operations; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

If you are a Lucid shareholder who suffered a loss, click here to participate.

Follow us for updates on Twitter: twitter.com/FRC_LAW.

To be a member of these class actions, you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about these class actions, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to [email protected], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

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

Contacts

The Law Offices of Frank R. Cruz, Los Angeles
Frank R. Cruz, 310-914-5007
[email protected]
www.frankcruzlaw.com

Sheba Medical Center, which is ranked the #7 hospital in the world, has chosen to evaluate and fund a trial of Valion Bio's Entolimod in cancer patients, creating a second clinical development pathway beyond Acute Radiation Syndrome.

Highlights

Independent Validation — Sheba Medical Center, ranked the #7 hospital in the world, selected Entolimod for clinical evaluation in cancer patients based on its potential to reduce radiation-induced neutropenia and protect healthy tissue during radiation therapy. Second Major Commercial Opportunity — This study expands Entolimod beyond Acute Radiation Syndrome into radiation-induced neutropenia and supportive oncology care, representing a substantially larger commercial market. Independent Clinical Value Driver — The study establishes a second clinical development pathway alongside Valion Bio's FDA Animal Rule program, as a medical countermeasure for Acute Radiation Syndrome (ARS). Capital Efficient Development — Sheba is planning to fund and conduct the trial, enabling Valion Bio to generate independent clinical data with minimal incremental investment. , /PRNewswire/ -- Valion Bio, Inc. (Nasdaq: VBIO) today announced a major clinical development milestone with the finalization of an clinical trial protocol at Sheba Medical Center, one of the world's leading hospitals, to evaluate Entolimod in cancer patients receiving high doses of irradiation for a rare form of cancer.

The study, which will enroll up to 10 adult patients, will be conducted by Sheba Medical Center, which approached Valion Bio after recognizing Entolimod's potential to reduce radiation-induced neutropenia and protect healthy tissue during radiation therapy. Under the collaboration, Sheba is planning to fund and conduct the clinical trial, while Valion Bio will provide the investigational drug and support only limited study-related activities outside the standard of care, creating a potential highly capital-efficient opportunity to generate independent clinical data.

"This is a major value-creation milestone for Valion Bio and our shareholders," said Michael K. Handley, President and Chief Executive Officer of Valion Bio. "One of the world's premier hospitals and research centers recognized the potential of Entolimod and approached us to conduct this study. Their willingness to invest their own resources to evaluate Entolimod represents meaningful external validation of our science. More importantly, this collaboration could expand Entolimod beyond biodefense into the multi-billion-dollar supportive oncology market. If successful, Entolimod has the potential to become an important therapy for reducing radiation-induced neutropenia and protecting healthy tissue during cancer treatment, creating a second and potentially much larger commercial opportunity for our lead drug, Entolimod."

Expanding Beyond Biodefense

Entolimod is currently being developed under the U.S. FDA's Animal Rule as a medical countermeasure for Acute Radiation Syndrome. The Sheba study is the first reported formal clinical evaluation of Entolimod in cancer patients receiving therapeutic radiation and represents an important step toward expanding the platform into oncology.

Cancer patients receiving high doses of radiation frequently develop neutropenia, leading to infections, treatment delays, and reduced treatment intensity. The Sheba study will evaluate whether Entolimod can preserve bone marrow function, reduce neutropenia, and improve patients' ability to complete potentially curative radiation therapy.

Sheba Neutropenia Study Near-Term Clinical Catalysts

The Company expects the following development milestones, subject to regulatory and operational requirements:

Institutional Review Board approval: Expected Q3 2026 First patient enrolled: Expected Q4 2026-Q1 2027 Interim data readout: Expected during early 2027 Topline data: Expected in 2027 Each milestone represents an anticipated opportunity to further demonstrate Entolimod's clinical and market potential, as well as a potential opportunity to expand shareholder value.

About Sheba Medical Center

Sheba Medical Center, located in Tel Hashomer, Israel, is the largest medical center in the Middle East. Sheba was ranked the #7 hospital in the world in Newsweek's 2026 World's Best Hospitals ranking and is recognized among the World's Best Specialized Hospitals for Oncology. The Benjamin Davidai Department of Radiation Oncology, which will conduct the study, is one of the largest and most sophisticated radiation oncology programs in Israel. For additional information, please visit www.shebaonline.org.

About Valion Bio, Inc.

Valion Bio, Inc. (Nasdaq: VBIO) is a clinical-stage immunotherapeutics company developing Entolimod, a Toll-like receptor 5 (TLR5) agonist, as a first-in-class radioprotector and radiomitigator for medical countermeasure and supportive-care applications. Entolimod is being developed under the U.S. Food and Drug Administration's Animal Rule for Acute Radiation Syndrome (ARS) and has received Fast Track and Orphan Drug designations. Valion Bio's wholly-owned subsidiary Velocity Bioworks®, based in San Antonio, Texas, is a microbial  fermentation contract development and manufacturing organization (CDMO). For additional information, please visit www.valionbio.com.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements regarding the initiation, conduct, timing, enrollment pace, and potential results of the clinical study at Sheba Medical Center evaluating Entolimod; the anticipated timing of Institutional Review Board approval, first patient enrollment, interim data readout, and topline data; the potential of Entolimod as a radioprotector, radiomitigator, and supportive-care agent, including in cancer patients receiving therapeutic radiation and other radiation exposure settings; market size and commercial-opportunity references, including with respect to neutropenia and supportive-care oncology; potential strategic partnership interest; the Company's Animal Rule development program for Acute Radiation Syndrome; the integration and operations of Velocity Bioworks®; the Company's Nasdaq listing and continued listing compliance; the Company's working capital and financing plans; and the Company's ability to consummate strategic transactions. Forward-looking statements are based on the Company's current expectations and are subject to a variety of risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include, without limitation, those described in the Company's Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on March 30, 2026, and in the Company's other filings with the SEC. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

Investor + Media Contact
Rich Cockrell
CG Capital
[email protected]
404.736.3838

SOURCE Valion Bio, Inc.

Investors looking for stocks in the Manufacturing - Electronics sector might want to consider either Vestas Wind Systems AS (VWDRY - Free Report) or Eaton (ETN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, both Vestas Wind Systems AS and Eaton are sporting a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one factor that value investors are interested in.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

VWDRY currently has a forward P/E ratio of 19.85, while ETN has a forward P/E of 29.97. We also note that VWDRY has a PEG ratio of 1.00. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ETN currently has a PEG ratio of 2.57.

Another notable valuation metric for VWDRY is its P/B ratio of 5.96. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ETN has a P/B of 7.86.

These are just a few of the metrics contributing to VWDRY's Value grade of B and ETN's Value grade of D.

Both VWDRY and ETN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that VWDRY is the superior value option right now.

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Cathay General (CATY - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Cathay General currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market? In order to see if CATY is a promising momentum pick, let's examine some Momentum Style elements to see if this holding company for Cathay Bank holds up.

A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.

For CATY, shares are up 1.92% over the past week while the Zacks Banks - West industry is up 1.89% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 6.13% compares favorably with the industry's 6.29% performance as well.

While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Over the past quarter, shares of Cathay General have risen 15.32%, and are up 30.1% in the last year. In comparison, the S&P 500 has only moved 4.96% and 19.65%, respectively.

Investors should also pay attention to CATY's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. CATY is currently averaging 539,155 shares for the last 20 days.

Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with CATY.

Over the past two months, 1 earnings estimate moved higher compared to none lower for the full year. This revision helped boost CATY's consensus estimate, increasing from $5.40 to $5.42 in the past 60 days. Looking at the next fiscal year, 1 estimate has moved upwards while there have been no downward revisions in the same time period.

Bottom LineTaking into account all of these elements, it should come as no surprise that CATY is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Cathay General on your short list.

Lattice Semiconductor (LSCC - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.

A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.

Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.

As such, the Zacks rating upgrade for Lattice is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

For Lattice, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.

Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for LatticeThis chipmaker is expected to earn $1.79 per share for the fiscal year ending December 2026, which represents no year-over-year change.

Analysts have been steadily raising their estimates for Lattice. Over the past three months, the Zacks Consensus Estimate for the company has increased 14.1%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Lattice to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Key Takeaways MP Materials is favored for stronger long-term growth despite near-term cost pressures.MP's U.S. magnet expansion and government-backed projects strengthen its competitive position.Lynas has commercialized heavy rare earths and secured supply deals with pricing floors. MP Materials (MP - Free Report) and Lynas Rare Earths Limited (LYSDY - Free Report) are among the most prominent players in the global rare earth supply chain and are expected to play key roles in the West’s efforts to secure critical mineral independence and reduce reliance on Chinese supply. 

Las Vegas, NV-based MP Materials is the only fully integrated rare earth producer in the United States. It has capabilities covering the entire supply chain, from mining and processing to advanced metallization and magnet manufacturing. MP has a market capitalization of $8 billion. Perth, Australia-based Lynas, valued at around $11.2 billion, engages in the exploration, development, mining, extraction and processing of rare earth minerals in Australia and Malaysia. 

Rare earths are crucial to the production of high-performance magnets used in EVs, defense and high-tech applications. For investors looking to tap into the long-term growth of the rare earth sector, the key question is which stock one should bet on — MP or LYSDY. To make an informed decision, let us analyze their fundamentals, growth potential and key challenges.

The Case for MP MaterialsMP Materials owns and operates the Mountain Pass mine in California, the only large-scale rare earth mining and processing facility in North America. It also owns the Independence facility in Fort Worth, TX, where it manufactures magnetic precursor products and began producing neodymium-iron-boron (NdFeB) permanent magnets in December 2025.

The company made significant strategic progress in 2025, including a long-term agreement to supply U.S.-made recycled rare-earth magnets to Apple and a public-private partnership with the U.S. Department of War (DoW) aimed at accelerating a domestic magnet supply chain.

Backed by government incentives, the company is constructing the second domestic magnet manufacturing facility (the 10X Facility) in Northlake, TX, which will lift its total U.S. magnet capacity to 10,000 metric tons. MP is also expanding operations at the Independence facility and scaled heavy rare earth separation commissioning activities are set to begin soon at Mountain Pass.

Operationally, MP continues to scale production and downstream manufacturing capabilities. In first-quarter 2026, the company produced a record 917 metric tons of neodymium-praseodymium (NdPr), up 63% year over year, driven by higher separated-product output. Rare-earth oxide concentrate production also reached a quarterly record of 12,983 metric tons, up 6% year over year due to improved recoveries and operational efficiencies.

Total company revenues rose 49% year over year to $90.6 million in the quarter, supported by stronger performance in both the Materials and Magnetics segments. MP also recognized $42.3 million in income related to its price protection agreement with the DoW.

However, profitability remains under pressure as the company transitions toward higher-value separated rare-earth products and magnetic materials. Cost of sales increased 52% in the quarter, while SG&A expenses rose 39%. Start-up costs surged more than 500% due to magnet production and chlor-alkali facility ramp-ups, while advanced project and development expenses climbed 302%. 

MP Materials reported an operating loss of $24 million in the first quarter of 2026 compared with the year-ago loss of $34.8 million. The company reported adjusted earnings of three cents per share against the year-ago quarter’s loss of 12 cents. Looking ahead, the company expects additional cost pressures as production scales. Start-up costs are also likely to increase further in the coming quarters.

The Case for LynasThe company’s operations are anchored by the high-grade Mt Weld mine in Western Australia. Material from Mt Weld is processed at facilities in Kalgoorlie and the Lynas Malaysia advanced materials plant in Kuantan. Lynas is also developing a Heavy Rare Earth (HRE) processing facility in Texas under a U.S. DoW contract.

Lynas achieved a milestone in 2025 with the production of dysprosium oxide (Dy) and terbium oxide (Tb) on the new production line at Lynas Malaysia. It marked the first commercial production of separated HRE for Lynas and also the first production outside China in decades. 

Lynas reported NdPr production of 1,996 tons in the third quarter of fiscal 2026 (ended March 31, 2026), representing a 32% year-over-year increase. The company also produced eight tons of dysprosium and terbium during the quarter. In March 2026, the company produced samarium oxide, a month ahead of target. This first production of samarium oxide sets Lynas apart as a commercial producer and supplier of both light and heavy rare earths.

Samarium oxide is in high demand for use in high-performance magnets for electronics and aerospace, as well as optical, catalyst and medical applications. Lynas expects to deliver annual initial production of around 400 tons with more upside, once its additional HRE separation capacity is constructed and operational.

Revenues surged 115% to AUD 265 million ($186 million) for the third quarter of fiscal 2026, driven by higher NdPr and REO volumes and stronger NdPr pricing.

Strategically, Lynas continues to secure long-term demand visibility. In March 2026, the company announced the signing of a binding Letter of Intent to finalize a rare earth oxide supply agreement with the U.S. government. This will support the U.S. industrial base and the U.S. government’s rare earths supply-chain resilience efforts. Per the terms, around $96 million previously allocated to the construction of an HRE facility in Texas will now be used to purchase light and heavy rare earth oxide products from Lynas’ existing facilities over a four-year period. The floor price for the supply of NdPr oxide will be $110 per kg.

The company also signed two important agreements with its Japanese partners, Japan Australia Rare Earths B.V. (“JARE”), which provide firm offtake commitments, pricing floors and exposure to upside pricing. The renewal of Lynas Malaysia’s operating license for 10 years in March 2026 significantly enhances regulatory certainty compared with prior shorter-term renewals.

Having largely completed its Lynas 2025 growth plan, which expanded capacity, improved efficiency and enabled HRE production, the company is now focused on its “Towards 2030” strategy. Its two focal points are optimizing performance from the Lynas 2025 capital investments and expanding its resource and scale, boosting downstream capacity and expanding in the metal and magnet supply chain. Lynas continues to develop partnerships with metal and magnet makers to expand the metal and magnet supply chain. 

How do Estimates Compare for MP & LYSDY?The Zacks Consensus Estimate for MP Materials’ fiscal 2026 earnings is pegged at 22 cents per share, indicating a turnaround performance from the loss of 24 cents in 2025. The estimate for MP Materials’ 2027 earnings is pegged at $1.04 per share, implying 373.4% year-over-year growth. 

The Zacks Consensus Estimate for Lynas’ fiscal 2026 earnings (ending June 2026) is pegged at 21 cents per share, indicating a substantial increase from earnings of one cent in fiscal 2025. The fiscal 2027 estimate of 48 cents indicates 129% year-over-year growth. 

Image Source: Zacks Investment Research

Both estimates for MP Materials’ 2026 and 2027 have been revised downward over the past 90 days. Estimates for Lynas’ fiscal 2026 have moved down in the past 90 days, while the estimates for fiscal 2027 have moved up. This is shown in the charts below.

Image Source: Zacks Investment Research

MP vs. LYSDY: Price Performance & ValuationOver the past three months, MP Materials stock has declined 31.2% compared with Lynas’ 19.8% fall. 

Image Source: Zacks Investment Research

MP Materials is currently trading at a forward 12-month price-to-sales ratio of 12.54 while Lynas is trading at a lower 9.53.

Image Source: Zacks Investment Research

MP Materials or Lynas: Which Stock is the Better Buy?Both MP Materials and Lynas are strategically positioned to benefit from the robust long-term demand outlook for rare earths. MP continues to enhance its competitive position through government-backed initiatives, expanding magnet manufacturing capacity and greater downstream integration, all of which strengthen its long-term growth prospects. However, its ongoing investments and capacity expansion continue to weigh on costs and near-term profitability.

Lynas has executed well operationally, successfully commercializing heavy rare earth production and securing long-term supply agreements with favorable pricing mechanisms. Nevertheless, despite its operational progress, its projected earnings growth lags MP Materials, whose longer-term growth potential remains stronger despite near-term cost pressures.

MP Materials currently carries a Zacks Rank #3 (Hold), while Lynas has a Zacks Rank #4 (Sell).

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

3 Top Energy Stocks to Buy in 2022Magnolia Oil & Gas NYSE: MGY said it has agreed to acquire WildFire Energy for approximately $4.06 billion, a transaction management described as a strategic bolt-on that will substantially expand Magnolia’s position in the Giddings field and create what it called the premier Eagle Ford/Austin Chalk operator in South Texas.

Chris Stavros, Magnolia’s Chairman, President and Chief Executive Officer, said on a conference call that the WildFire acquisition “more than doubles” Magnolia’s existing acreage position in the Giddings field and reflects the company’s long-standing acquisition criteria, including operational overlap, financial attractiveness and resource upside.

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3 Small Caps Ready to Make a Run“The WildFire acquisition greatly enhances Magnolia’s position by extending our runway of advantage to high return profitability and significant free cash flow generation,” Stavros said.

Deal Structure and Acreage Expansion The company said the purchase price will be funded with a mix of cash and equity, including 32.2 million shares of Magnolia Class A common stock issued to WildFire’s owners. Magnolia will also assume WildFire’s $600 million of outstanding notes due in 2029. The remaining amount is expected to be funded through cash on hand and a balanced mix of debt and new common equity.

Magnolia said it has obtained committed financing and amended and increased its secured credit facility to a $2 billion borrowing base, with elected commitments of $1.75 billion contingent upon closing. The transaction has been unanimously approved by Magnolia’s board and is expected to close late in the third quarter.

The acquisition adds roughly 810,000 net acres, bringing Magnolia’s pro forma acreage position to nearly 1.3 million net acres across more than 1.5 million gross acres. Stavros said the deal effectively consolidates most of the Giddings field and surrounding area. He added that, on a pro forma basis, Magnolia’s acreage position would be the largest in the South Texas Eagle Ford/Austin Chalk trend and almost 80% larger than the second-place operator.

Production, Reserves and Synergies WildFire’s assets produced approximately 53,000 barrels of oil equivalent per day in the second quarter of 2026, including 37,000 barrels per day of oil. Magnolia said total pro forma second-quarter production would have been 159,000 barrels of oil equivalent per day, including 79,000 barrels per day of oil, with an oil mix of about 50%.

Stavros said WildFire’s production carries an estimated low base decline rate of approximately 29%. He also said Magnolia’s pro forma oil production increases by 89% to nearly 80,000 barrels per day, while total proved developed reserves rise 84% to more than 300 million barrels of oil equivalent. Proved developed oil reserves increase approximately 155%, with the overall proved developed oil mix rising to roughly 54%.

Magnolia expects annual cost savings and synergies of at least $100 million on a run-rate basis by the end of 2027, with an estimated present value of approximately $700 million. Stavros said the expected improvements fall into three areas:

Drilling, completions and facilities, representing about 60% of expected synergies; Field operations, representing about 20%; Corporate G&A, representing about 20%. He said corporate G&A and field operations savings are expected to approach their full run rate by mid-2027. Additional operational benefits are expected from longer lateral lengths, Magnolia’s supply chain and logistics pricing, shared infrastructure and Magnolia’s drilling and completion expertise.

The WildFire assets also include approximately 500 miles of gas gathering pipelines in Giddings and a local sand mine. Stavros said the sand mine currently supplies frac sand consumption for both Magnolia’s Giddings operations and WildFire, while also supporting third-party sales.

Capital Returns and Debt Reduction Magnolia said the transaction is expected to be highly accretive to key financial metrics, including cash flow and free cash flow per share, operating margins, earnings per share and net asset value. Citing the expected increase in free cash flow, Magnolia raised its quarterly dividend by 9% to $0.18 per share, payable in the third quarter. Stavros said this is the company’s second dividend increase of the year, following a 10% increase announced in January.

The company expects to continue repurchasing at least 1% of outstanding shares per quarter after the transaction closes. Stavros said Magnolia has returned approximately $2 billion to shareholders since its inception eight years ago, or roughly 40% of its market value.

Management said leverage will initially rise because of the acquisition, but Magnolia expects to use free cash flow beyond its shareholder return program to reduce debt. Stavros said the company expects to reach roughly 1x or less net debt to EBITDA by year-end 2027 and plans further debt reduction over time.

At recent strip prices, Magnolia estimates the combined business could generate more than $4.5 billion in cumulative free cash flow over the next 4.5 years through 2030.

Operational Outlook and Analyst Questions During the question-and-answer session, Stavros said Magnolia expects to initially take on WildFire’s two rigs and one completion crew after closing, effectively doubling Magnolia’s activity level in that respect. He said the company will evaluate whether it can improve efficiencies after the deal closes.

Asked about development targets, Stavros said Magnolia expects a broad mix of Austin Chalk and Eagle Ford activity, with Woodbine development potentially added later. He said WildFire’s Eagle Ford wells are shallower and lower cost, which should benefit Magnolia’s capital program.

On lateral lengths, Stavros said WildFire’s average laterals have been around 8,000 to 8,500 feet, while Magnolia expects many future wells could move toward 10,000 to 15,000 feet where acreage adjacency allows.

Stavros also said Magnolia inherited some hedges on a portion of WildFire’s oil production that provide “a comfortable floor” into 2027. He said Magnolia may opportunistically add hedges given recent oil-price volatility and the company’s increased debt position after the deal.

Magnolia also reported preliminary second-quarter standalone production of approximately 106,000 barrels of oil equivalent per day, with oil production of roughly 42,000 barrels per day. Drilling and completion capital for the quarter was $125 million, and the company ended the quarter with $296 million in cash. Based on stronger second-quarter production, Magnolia raised its full-year 2026 standalone production growth guidance to 6% from 5%.

About Magnolia Oil & Gas (NYSE:MGY)Magnolia Oil & Gas Corp NYSE: MGY is an independent exploration and production company focused on the acquisition, development and optimization of onshore oil and gas assets in South Texas. Headquartered in Houston, the company concentrates its efforts on the Eagle Ford Shale, where it holds significant working interests in key producing counties.

The company's core operations center on horizontal drilling and multi-stage completions designed to extract light crude oil, natural gas and natural gas liquids (NGLs).

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

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